MIRA
INFORM REPORT
|
Report Date : |
08.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
GROUP M MEDIA INDIA
PRIVATE LIMITED |
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Formerly Known
As : |
MOTIVATOR INDIA PRIVATE LIMITED |
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Registered
Office : |
Commerz, 8th Floor, |
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Country : |
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Financials (as
on) : |
31.12.2011 |
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Date of
Incorporation : |
29.11.2001 |
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Com. Reg. No.: |
11-134079 |
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Capital
Investment / Paid-up Capital : |
Rs.8.000 Millions |
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CIN No.: [Company Identification
No.] |
U74300MH2001PTC134079 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM14987A |
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PAN No.: [Permanent Account No.] |
AACCM7365H |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Providing Advertising
Services. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
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 |
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Maximum Credit Limit : |
USD 4000000 |
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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 a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
|
Name : |
Mr. R. Shridhar |
|
Designation : |
Head of Finance |
|
Contact No.: |
91-22-42398888 |
|
Date : |
08.12.2012 |
LOCATIONS
|
Registered Office : |
Commerz, 8th Floor, International Business Park, Oberoi
Garden City, Goregaon (East), Mumbai-400063, Maharashtra, India |
|
Tel. No.: |
91-22- 66638888 |
|
Fax No.: |
91-22- 66638800 /
42398931 |
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E-Mail : |
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|
Website : |
DIRECTORS
As on 11.06.2012
|
Name : |
Mr. Ranjan Mohanlal Kapur |
|
Designation : |
Director |
|
Address : |
B-281, |
|
Date of Birth/Age : |
25.11.1942 |
|
Date of Appointment : |
29.11.2001 |
|
DIN No.: |
00035113 |
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|
|
|
Name : |
Mr. Vikram Sakhuja |
|
Designation : |
Whole Director |
|
Address : |
3rd
Floor, Hormuz Building, Shanti Road, Juhu, Mumbai – 400049, Maharashtra,
India |
|
Date of Birth/Age : |
30.10.1961 |
|
Date of Appointment : |
25.09.2006 |
|
DIN No.: |
00398420 |
|
|
|
|
Name : |
Mr. Mark Forbes Patterson |
|
Designation : |
Director |
|
Address : |
Flat B, 38/F South Tower 5, 38, Bel-Air on The Peak, ISL South, 68
Bel-Air Peak, AVE, HongKong |
|
Date of Birth/Age : |
07.03.1963 |
|
Date of Appointment : |
27.09.2007 |
|
DIN No.: |
01822440 |
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|
|
|
Name : |
Mr. Sridhar Ramasubramanian |
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Designation : |
Whole Time Director |
|
Address : |
C 302, Jupiter Vasant Galaxy, Bangur Nagar, Goregaon (West),
Mumbai-400090, Maharashtra, India |
|
Date of Birth/Age : |
09.05.1967 |
|
Date of Appointment : |
25.05.2009 |
|
DIN No.: |
01915361 |
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Name : |
Mr. Nadaraja Kanniappan |
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Designation : |
Director |
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Address : |
54, Pascoe ST. Glen Iris, Victoria – 3146, Australia |
|
Date of Birth/Age : |
16.08.1961 |
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Date of Appointment : |
24.12.2008 |
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DIN No.: |
02435133 |
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|
|
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Name : |
Mr. Colin Ronald Barlow |
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Designation : |
Director |
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Address : |
225, |
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Date of Birth/Age : |
24.07.1968 |
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Date of Appointment : |
25.05.2009 |
|
DIN No.: |
02760544 |
KEY EXECUTIVES
|
Name : |
Mr. R. Shridhar |
|
Designation : |
Head of Finance |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 11.06.2012
Shareholding Details File Attached
As on 11.06.2012
Equity Share Break up (Percentage
of Total Equity)
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
69.50 |
|
Directors or relatives of Directors |
0.96 |
|
Other top fifty shareholders |
28.03 |
|
Others |
1.51 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing
Advertising Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
·
HSBC Limited,
52/60, M. G. Road, Mumbai – 400001, Maharashtra, India ·
ICICI
Bank Limited, Free Press House, 215, Nariman Point, Mumbai – 400021,
Maharashtra, India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins
and Sells Chartered
Accountants, |
|
Address : |
12, |
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Tel. No.: |
91-22-56679000 |
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Fax No.: |
91-22-56679025 |
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|
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Holding Company : |
Group M Asia Pacific Holding Pte Limited Berkeley Square Holding. Bv |
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Subsidiaries : |
Results India Communication Private Limited CIN No.: U74300MH1983PTC031262 |
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Fellow Subsidiaries : |
Hindustan Thompson Associates Private Limited Mediaedge Cia India Private Limited Mediacom Media India Private Limited Mediacom Communications Private Limited Matrix Publicities And Media India Private Limited Mediaedge Cia India Private Limited Ogilvy And Mather Private Limited Contract Advertising (India) Private Limited Grey Worldwide (India) Private Limited Mirc Electronics Limited Meritus Analytics India Private Limited Interactive Television Private Limited Portland India Outdoor Advertising Private Limited Future Media (India) Limited |
CAPITAL STRUCTURE
As on 31.12.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24000000 |
Equity Shares |
Rs.1/- each |
Rs.24.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8000000 |
Equity Shares |
Rs.1/- each |
Rs.8.000
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
8.000 |
8.000 |
8.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1014.312 |
894.976 |
860.041 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1022.312 |
902.976 |
868.041 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
487.500 |
887.500 |
552.500 |
|
|
TOTAL BORROWING |
487.500 |
887.500 |
552.500 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1509.812 |
1790.476 |
1420.541 |
|
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|
|
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
106.534 |
95.388 |
77.330 |
|
|
Capital work-in-progress |
9.084 |
1.350 |
2.724 |
|
|
|
|
|
|
|
|
INVESTMENT |
4.193 |
4.193 |
4.193 |
|
|
DEFERREX TAX ASSETS |
40.340 |
27.705 |
38.098 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000 |
0.000 |
|
|
Sundry Debtors |
6417.087
|
6814.575 |
6263.300 |
|
|
Cash & Bank Balances |
166.355
|
472.976 |
64.493 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
3354.211
|
3030.044 |
1824.033 |
|
Total
Current Assets |
9937.653
|
10317.595 |
8151.826 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7716.687 |
7522.119 |
6428.475 |
|
|
Other Current Liabilities |
500.819
|
880.035 |
228.693 |
|
|
Provisions |
370.486
|
253.601 |
196.462 |
|
Total
Current Liabilities |
8587.992
|
8655.755 |
6853.630 |
|
|
Net Current Assets |
1349.661
|
1661.840 |
1298.196 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1509.812 |
1790.476 |
1420.541 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue |
2680.000 |
2158.000 |
1712.650 |
|
|
|
Other Income |
NA |
NA |
NA |
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative Expenses |
NA |
NA |
NA |
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
NA |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
744.000 |
556.000 |
515.870 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
253.000 |
195.000 |
196.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
491.000 |
361.000 |
319.490 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
61.38 |
NA |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.41
|
5.34 |
6.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.73
|
0.62 |
0.59 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
8.88
|
10.57 |
8.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16
|
1.19 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
Rs.
In Millions
|
Particular |
31.12.2011 |
31.12.2010 |
31.12.2009 |
|
Creditors due others |
7716.687 |
7522.119 |
6428.475 |
|
Total |
7716.687 |
7522.119 |
6428.475 |
|
Sr. No. |
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 |
No |
|
10] |
Designation of contact person |
No |
|
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 |
Yes |
|
24] |
Banking facility details |
Yes |
|
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
Note:
The registered office of the company has been shifted from Peninsula Chambers, 2nd Floor,
Ganpatrao Kadam Marg, Lower Parel, Mumbai-400013, Maharashtra, India to present
address w.e.f.25.05.2010
FINANCIAL RESULTS
During the year ended 31st December, 2011, the Company’s revenue amounted to Rs. 2680.000 Millions as against Rs. 2158.000 Millions in 2010 a 24 % increase over previous year. The profit before tax was Rs. 744.000 Millions as against Rs. 556.000 Millions in 2010 and the profit after tax was Rs 491.000 Millions as against Rs. 361.000 Millions in 2010. This caps a decade of stupendous growth where their revenues have grown 7 times from 360.000 Millions in 2002 to 2680.000 Millions, and PBT has increased 8 times from Rs.95.000 Millions to Rs.744.000 Millions.
COMPANY PERFORMANCE
They completed the first 10 years of their existence. And what a glorious ten years it has been. They thought it fitting that this report captures the decade rather than just the year gone by a decade of inorganic growth. Their company was incorporated on Nov 29 2001 and started operations on Jan 1 2002. As I mentioned, In these ten years their Revenues have grown more than 7 times (CAGR 22%) and profits have grown more than 8 times (CAGR 23%). Their track record of not missing targets remains unblemished. This year too, their topline growth is 24% and bottom line growth is 35%. They started operations with a Mindshare and Maxus (Maximize). Mindshare has grown 3 1/2 times and Maxus almost 10 times. They then added Motivator in 2004 which has grown almost 4 times at over 25% CAGR. Both Mindshare and Maxus stand as #1 and 2 in terms of size and standing. Mindshare has been Media Agency of the Year 6 times including the last 4 years running. It has also been voted Campaign South Asia Agency of the Year, Mindshare global office of the year and Mindshare AP office of the Year two years running. Maxus is the consistent second most awarded Agency, including the ruler of Ad Club Bangalore awards and the Goafest, and by far the leading award winner within Maxus Global internal awards. They set up their specialist practices ESP (Broadmind), Interactions, and Dialect over 2003/4 and grew each into a market leading position. In 2005/2006/2008, they strengthened their media practices through Media Sales House (Matrix), analytics (Meritus) and consulting division (mConsult), Out of home practices (Cinema / OOH) grew it into a highly profitable business models. In Digital they expanded their offering to Search, Mobile and Social, and they are happy to announce that their Mobile practice has been recognized as a Regional and Global centre of Excellence. In 2010 they set up their experiential marketing division Dialogue Factory. In the process they have expanded their capability from delivering plans where advertising gets seen, to creating integrated communication plans that build engagement to now socially networked plans that create advocacy. Their one stop shop now has the ability to seamlessly provide Media plans across TV, Print, Radio, Cinema, OOH, Internet, Mobile, Ambient and Retail Media; Content integration via movie tie ups, AFPs, Events, experiential marketing, Digital Apps, Digital ads and microsites; Digital solutions in SEM/SEO, social, proximity marketing, e-commerce; and ROI solutions through brand consultancy, marketing analytics and dashboard creation. Proactively building a GroupM culture Internally they geared ourselves up to leverage their scale and choreograph convergence through all that they do. They believe they are one of the few companies that has proactively shaped its culture. In 2008, they articulated their core values and the mission to choreograph convergence and in 2009 they ensured that values get translated into behavior by launching GroupM Awards - The Choreos, now in its 4th year. In 2010 they ensured KPIs of each of their diverse units was aligned to ensure they work in one direction. In 2011 they took their strategy cascades one step further by launching m100 - an awesome capture of their organizational priorities to the top 100 odd leaders of the company. This year their focus is on getting the organization to choregraph convergence around their Client Leaders so that they move up the Client’s value chain. Building to last Agencies historically suffer from the vulnerability of iconic leadership determining the fortunes. They are proud to state that they are building a company that is stronger than the sum of its talent. They set up Mplan and SSC in 2007 to manage traffic/ commercial and have taken it to a global best practice of productivity, efficiency and error-free operations. Their Trading (CTG) function has truly leveraged GroupM buying might by displaying the intelligent application of scale. They have done this via smart organization structures, new trading practices, redefining analytics, use of technology and setting industry standards for inflation. Finance has been the conscience of the company when it comes to challenging illogical client terms, wasteful costs, collections, reporting and indeed managing profit delivery. IT has been the ever reliable partner to ensure that all limitations in technology were offset by ingenuity and inspired hard work of the team. As they speak Technology is one of the strongest thrust areas for the company with a dual objective of having a seamless plan to collection system with minimal grunt work and data available on tap. Becoming an employer of choice Over the 10 years their stature as an employer who can attract the best talent has increased. At the coveted pan-industry Employer Branding Awards they were voted the 15th best employer brand in 2010, 7th best in 2011 and in 2012 they have been voted the 2nd Best Employer Brand! This is largely due to the kind of great work they do, and importantly because of their HR and Training Initiatives. They were amongst the first to exploit HR Information Systems with mConnect, have lifted the Performance evaluation game with all appraisals in-system, and they have also been proud exporters of talent. And this year they are extremely proud to having launched the breakthrough GroupM employee welfare Trust earlier this year that links organizational profit growth to the very individuals who help create it. The Aspire brand of Training has now become an industry differentiator for us. They have a community of 20 active Trainers (33 total). They have developed 12 modules that cover craft, skills, coaching and leadership. They launched Mediamasters this year – the definitive induction program for new hires. Aspire has also been at the centre of all Agency/ GroupM organizational change exercises.
FIXED ASSETS
· Office equipments
· Computer equipments
· Furniture fixtures
· Vehicles
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.54.20 |
|
|
1 |
Rs.87.00 |
|
Euro |
1 |
Rs.70.22 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
64 |
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.