MIRA INFORM REPORT

 

 

Report Date :

20.12.2012

 

IDENTIFICATION DETAILS

 

Name :

STATE BANK OF HYDERABAD

 

 

Formerly Known As :

HYDERABAD STATE BANK

 

 

Registered Office :

Ground Floor, Gunnfoundry, Hyderabad-500177, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

08.08.1941

 

 

Capital Investment / Paid-up Capital :

Rs.207.500 Millions

 

 

Legal Form :

Subject is a subsidiary (although said as an associate) of State Bank of India. 

 

Both are legally independent banks.

 

Shares of State Bank of India are listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in banking business.

 

 

No. of Employees :

13108 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (76)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

260000000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a subsidiary of “State Bank of India”. It is a well-established and a reputed bank having an excellent track record. It is the largest bank among the five SBI Associates.

 

The financial position of the bank is excellent. It receives strong financial, managerial and operational support from its parent SBI.

 

Trade relations are reported as praiseworthy. Business is active. Payment terms are regular and as per commitment.

 

The company can be considered good 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.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

PERPETUAL TIER – I BONDS : CRISIL AAA

Rating Explanation

Highest degree of safety and lowest credit risk

Date

07.12.2012

 

Rating Agency Name

CRISIL

Rating

UPPER TIER – II BONDS : CRISIL AAA

Rating Explanation

Highest degree of safety and lowest credit risk

Date

07.12.2012

 

 

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.

 


 

LOCATIONS

 

Registered Office :

Ground Floor, Gunnfoundry, Hyderabad-500177, Andhra Pradesh, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

sbhmis@hd1.vsnl.net.in

Website :

http://www.sbhyd.com

 

 

Regional Office :

Located At:

 

  • Aurangabad
  • Gulbarga
  • Hyderabad
  • Mumbai
  • New Delhi
  • Secunderabad
  • Vizag
  • Warangal
  • Chennai
  • Tirupati

 

 

Branch Office :

Located at

 

  • Andhra Pradesh
  • Gujarat
  • Haryana
  • Karnataka
  • Madhya Pradesh
  • Maharashtra
  • Odisha
  • Tamilnadu
  • Uttar Pradesh
  • Kerala
  • Delhi
  • Haryana
  • Uttarakhanda
  • Punjab
  • Rajasthan
  • West Bengal

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Pratip Chaudhuri

Designation :

Chairman

 

 

Name :

Mr. M Bhagavantha Rao

Designation :

Managing Director

 

 

Name :

Mr. Kaza Sudhakar

Designation :

Director (Nominated by the Reserve Bank of India)

 

 

Name :

Mr. Shyamal Acharya

Designation :

Director (Nominated by the State Bank of India)

 

 

Name :

Mr. A K Deb

Designation :

Director (Nominated by the State Bank of India)

 

 

Name :

Mr. K N Nayak

Designation :

Director (Nominated by the State Bank of India)

 

 

Name :

Mr. Gopal Vaidya

Designation :

Director (Nominated by the Govt. of India)

 

 

Name :

Mr. P. Narasimha

Designation :

Director (Nominated by the Govt. of India)

 

 

Name :

Mr. Ramesh Datla

Designation :

Director (Nominated by the State Bank of India)

 

 

Name :

Mr. Venkat Changavalli

Designation :

Director (Nominated by the State Bank of India)

 

 

Name :

Mr. S Gopal Krishna

Designation :

Director (Nominated by the Govt. of India)

 

 

KEY EXECUTIVES

 

Name :

Mr. Jyoti Ghosh

Designation :

Chief General Manager

 

 

Name :

Dr V Suresh Babu

Designation :

Chief General Manager

 

 

Name :

Mr. M P Sridharan

Designation :

General Manager (HR & General Admin)

 

 

Name :

Mr. S Venkataraman

Designation :

General Manager (Priority Sector, Rural banking & FI)

 

 

Name :

Mr. Mukund Tripathi

Designation :

General Manager West Zone

 

 

Name :

Mr. Ganesh Pai

Designation :

General Manager (Retail Network South Zone II)

 

 

Name :

Mr. Megh Raj Khatri

Designation :

General Manager (IT & New Business)

 

 

Name :

Mrs. M Yashoda Bai

Designation :

General Manager & CVO

 

 

Name :

Mr. B K Shivaram

Designation :

General Manager (Mid Corporate Group)

 

 

Name :

Mr. Sateesh Jha

Designation :

General Manager -Retail Network-North

 

 

Name :

Mr. M Venkatanarayana

Designation :

General Manager (Corp Banking)

 

 

Name :

Mr. Jasbir S Aneja

Designation :

General Manager – Stressed Assets Management

 

 

Name :

Mr. Karnail Singh Jawandha

Designation :

General Manager (Retail Network South Zone I)

 

 

Name :

Mr. R Venkatakrishnan

Designation :

General Manager – Risk Management Credit Policy & Procedure

 

 

Name :

Mr. Subbaraman K S

Designation :

General Manager (Treasury,Fin & Accts)

 

 

Name :

Mr. J Sitapathi Sarma

Designation :

General Manager – (Retail Network South Zone III)

 

 

Name :

Mr. K Murali

Designation :

General Manager (Comm Network North)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

NOT AVAILABLE

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in banking business.

 

 

GENERAL INFORMATION

 

No. of Employees :

13108 [Approximately] 

 

 

Bankers :

Reserve Bank of India

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

  • P.G. Joshi and Company

Chartered Accountants

 

  • Chandra Gupta and Associates

Chartered Accountants

 

  • K.C. Khanna and Company

Chartered Accountants

 

  • Ananthan and Sundaram

Chartered Accountants

 

  • Rao and Kumar

Chartered Accountants

 

  • D.V. Ramana Rao and Company

Chartered Accountants

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.100/- each

Rs.5000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

2075000

Equity Shares

Rs.100/- each

Rs.207.500 Millions

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

CAPITAL AND LIABILITIES

 

 

 

 

 

 

 

Capital

207.500

207.500

207.500

Reserves & Surplus

64769.239

52944.147

42437.457

Deposits

987319.116

886278.655

729707.231

Borrowings

59784.023

52896.597

48384.170

Other Liabilities and Provisions

71074.588

74653.509

63123.805

 

 

 

 

TOTAL

1183154.466

1066980.408

883860.163

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash & Balances with Reserve Bank of India

57373.430

80362.713

51060.922

Balances with Banks and money at Call & Short Notice

32708.485

23759.651

23531.356

Investments

292417.987

284466.567

240085.178

Advances

770523.112

647203.074

528248.406

Fixed Assets

4374.364

3980.003

3049.515

Other Assets

25757.088

27208.400

37884.786

 

 

 

 

TOTAL

1183154.466

1066980.408

883860.163

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

I. INCOME

 

 

 

Interest earned

106466.674

78512.845

63341.185

Other Income

10243.089

9837.541

8413.292

TOTAL

116709.763

88350.386

71754.477

 

 

 

 

II. EXPENDITURE

 

 

 

Interest expended

72821.779

50027.821

44708.820

Operating Expenses

17358.110

15127.909

9837.752

Provisions and Contingencies

13547.207

11532.305

8980.836

TOTAL

103727.096

76688.035

63527.408

 

 

 

 

III. PROFIT/ LOSS:

 

 

 

Net Profit for the year

12982.668

11662.351

8227.068

Profit brought forward

0.003

0.006

0.006

TOTAL

12982.671

11662.357

8227.074

 

 

 

 

Appropriation:

 

 

 

Transfer to Statutory Reserve

3894.801

3498.706

2468.121

Transfer to Other Reserves

7875.709

7318.426

3818.505

Transfer to Capital Reserve

54.581

122.289

342.444

Dividend (Includes Corporate Dividend Tax)

1157.576

1155.661

1165.270

Investment Reserve Account

0.000

(432.728)

432.728

 

 

 

 

BALANCE CARRIED OVER TO THE BALANCE SHEET

0.004

0.003

0.006

 

 

 

 

Earnings Per Share (Rs.)

6256.71

5620.38

4766.66

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

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

No

8]

No. of employees

Yes

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

No

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

No

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

Yes


 

CONTINGENT LIABILITIES:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

Claims against the bank not acknowledged as Debts

334.897

307.569

Liability for partly paid investments

1.988

1.988

Liability on account of out-standing forward Exchange Contracts

205650.378

327158.072

Guarantees given on behalf of Constituents (Including Letters of Comfort)

 

 

  • In India

62916.556

57131.535

  • Outside India

4601.971

3494.914

Acceptances, endorsements and other Obligations

87250.786

61210.399

Other items for which the bank is contingently liable (net of provisions)

4899.733

4131.527

Total

365656.309

453436.004

 

 

LIMITED REVIEW OF FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2012

(Rs. In Millions)

Particular

Quarter Ended

Half-year  Ended

 

30.09.2012

30.06.2012

31.12.2011

 

 

Reviewed

Interest Earned

30680.700

29976.800

60657.500

Interest and discount on advances/bills

23656.200

23481.600

47137.800

Income on investments

6536.600

5924.000

12460.700

Interest on term money/ lendings

113.800

165.300

279.100

Interest on balances with RBI and other interbank funds

303.000

381.600

684.500

Other interest income

71.100

24.300

95.400

Other income

2140.100

2183.500

4323.600

Total income

32820.800

32160.300

64981.100

Interest expanded

20920.200

20350.800

41271.000

Operating expenses

5406.800

4988.000

10394.800

Payments to an provision for employees

3438.900

3324.700

6763.600

Other operating expenses

1967.900

1663.300

36.1200

Total expenditure [excluding provisions and contingencies]

26327.000

25338.800

51665.800

Operating profit /loss [profit before provision and contingencies]

6493.800

6821.500

13315.300

Other provision and contingencies

3657.400

2594.800

6252.200

Out of which provision for NPAs

2780.800

2311.300

5092.100

Provision for taxes

1273.500

2356.500

3630.000

Deferred tax

(571.400)

(1481.500)

(2052.900)

Net profit

2134.300

3351.700

5486.000

Paid-up equity share capital

207.500

207.500

207.500

Reserves excluding revaluation reserves

 

 

 

Analytical Ratios

 

 

 

Percentage of shares held by Gol

NIL

NIL

NIL

Capital adequacy ratio (Basel I)

12.18%

12.43%

12.18%

Capital adequacy ratio (Basel II)

12.86%

13.17%

12.86%

Earnings per share (In Rs.) (**)

1028.57

1615.27

2643.85

Amount of gross non-performing assets

26034.700

22100.100

26034.700

Amount of net non-performing assets

10968.900

9811.700

10968.900

Percentage of gross NPAs

3.30%

2.83%

3.30%

Percentage of net NPAs

1.42%

1.28%

1.42%

Return on assets (ROA) (annualized)

0.89%

1.10%

0.89%

 

Note

(**) Figures reported for the period are not annualised

 

UNAUDITED SEGMENT REPORTING FOR THE QUARTER ENDED 30.09.2012

(Rs. In Millions)

Particular

Quarter Ended

Half-year  Ended

 

30.09.2012

30.06.2012

31.12.2011

 

 

Reviewed

Segment Revenue

 

 

 

(a) Treasury Operations

706.900

1006.200

1713.100

(b) Corporate/Wholesale

8353.500

6582.900

14936.400

(c) Retail Banking

23729.700

24552.200

48281.900

(d) Other Banking Operations

30.500

19.300

49.700

TOTAL

32820.600

32160.600

64981.100

Segment Results

 

 

 

(a) Treasury Operations

305.500

915.800

1221.300

(b) Corporate/Wholesale

4713.800

3965.200

8679.000

(c) Retail Banking

2247.400

2716.000

4963.500

(d) Other Banking Operations

30.500

19.300

49.600

TOTAL

7297.200

7616.300

14913.400

Unallocated expenses / unallocated income

(803.300)

(794.800)

(1598.100)

OPERATING PROFIT

6493.900

6821.500

13315.300

Provisions & Contingencies

3657.400

2594.800

6252.200

Taxes

702.100

875.000

1577.100

Extraordinary Profit

0.000

0.000

00.000

Net Profit

2134.400

3351.700

5486.000

Other Information

 

 

 

Segment Assets

 

 

 

(a) Treasury Operations

409937.700

389487.300

409937.700

(b) Corporate/Wholesale

477884.300

479160.800

477884.300

(c) Retail Banking

350768.900

339777.500

350768.900

TOTAL

1238590.900

1208425.600

1238590.900

Unallocated Assets

4590.700

3833.400

4590.700

TOTAL

1243181.600

1212259.000

1243181.600

Segment Liabilities

 

 

 

(a) Treasury Operations

413065.400

9344.200

413085.400

(b) Corporate/Wholesale

154957.200

135273.700

154957.200

(c) Retail Banking

638689.000

1031191.100

638689.000

TOTAL

1206731.600

117580.900

1206731.600

Unallocated Liabilities

36450.000

36450.000

3645.00

TOTAL

1243181.600

1212259.000

124318.16

Notes:

1.         The Bank operates only in Domestic Segment

2.         Figures for the previous period have been regrouped wherever necessary in order to make them comparable

 

NOTE:

 

  1. The above results have been taken on record by the Board of Directors in the meeting held on 03.11,2012 and have been subjected to limited review by the Statutory Central Auditors.

 

  1. The financial results for the Half-year ended 30.09.2012 have been arrived at after considering the provisions for Non-performing assets, standard assets and investment depreciation as per prudential norms issued by RBI. Provisions for Gratuity, Pension, Leave encashment, Depreciation on fixed assets, income Tax and Deferred Tax have been made on an estimated basis, which is subject to adjustment at the year end.

 

  1. The Accounting policies (including those relating to income recognition and asset classification) adopted in the previous accounting year ended 31.03.2012 have not been changed during the Half year ended 30.09.2012.

 

  1. To improve the Provision Coverage Ratio, the Bank is holding an additional provision of 74549.500 Millions on NPAs over and above the provisions stipulated under RBI Norms.

 

WEBSITE DETAILS:

 

OVERVIEW


Subject was constituted as Hyderabad State Bank on 8.8.1941 under Hyderabad State Bank Act, 1941. The Bank started with the unique distinction of being the central bank of the erstwhile State of Hyderabad, covering present-day Telangana region of Andhra Pradesh, Hyderabad-Karnataka of Karnataka and Marathwada of Maharashtra, to manage its currency – Osmania Sikka and public debt apart from the functions of commercial banking. The first branch of the Bank was opened at Gunfoundry, Hyderabad on 5th April, 1942.

 

In 1953, the Bank took over the assets and liabilities of the Hyderabad Mercantile Bank Limited. In the same year, the Bank started conducting Government and Treasury business as agent of Reserve Bank of India. In 1956, the Bank was taken over by Reserve Bank of India as its first subsidiary and its name was changed from Hyderabad State Bank to State Bank of Hyderabad. The Bank became a subsidiary of the State Bank of India on the 1st October 1959 and is now the largest Associate Bank of State Bank of India.

 

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 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.54.74

UK Pound

1

Rs.89.02

Euro

1

Rs.72.48

 

 

INFORMATION DETAILS

 

Report Prepared by :

BSN


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

9

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

9

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

76

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.