x

MIRA INFORM REPORT

 

 

Report Date :

14.02.2012

 

 

IDENTIFICATION DETAILS

 

Name :

SONATA FINANCE PRIVATE LIMITED

 

 

Registered Office :

125B/6B, Pt. Madan Mohan Malviya Road, George Town, Allahabad-211002, Uttar Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

06.04.1995

 

 

Com. Reg. No.:

20-035286

 

 

Capital Investment / Paid-up Capital :

Rs.83.407 Millions

 

 

CIN No.:

[Company Identification No.]

U65921UP1995PTC035286

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Subject operates a micro-finance company in India.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 1600000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

125B/6B, Pt. Madan Mohan Malviya Road, George Town, Allahabad-211002, Uttar Pradesh, India

Tel. No.:

91-532-6540311/326

Fax No.:

Not Available

E-Mail :

anup@sonataindia.com

 

 

DIRECTORS

 

AS ON 23.09.2011

 

Name :

Mr. Anup Kumar Singh

Designation :

Managing Director

Address :

1/1A, Rai Bahadur Ram Charan Das Road, Allahabad-211002, Uttar Pradesh, India

Date of Birth/Age :

11.03.1972

Date of Appointment :

02.07.2009

Din No.:

00173413

Other Directorship:

S.

No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Company Status

Defaulting status

1

U65999UP2005NPL030941

ACCELERATED CENTER FOR CREDIT ENHANCEMENT AND SOCIAL SERVICES

Director

09-11-05

09-11-05

Active

NO

2

U65921UP1995PTC035286

SONATA FINANCE PRIVATE LIMITED

Managing director

02-07-09

06-09-06

Active

NO

3

U85191UP2011NPL046040

SHRIMAYI SOCIAL AND ALLIED SERVICES

Managing director

08-11-11

08-11-11

Active

NO

 

 

Name :

Mr. Vishal Bharat

Designation :

Nominee Director

Address :

BE/2c, Minirka DDA Flats, New Delhi-110067, India

Date of Birth/Age :

12.09.1969

Date of Appointment :

02.07.2009

Din No.:

02610428

Other Directorship:

S.

No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Company Status

Defaulting status

1

U67190PB1996PTC018617

TRIDENT MICROFIN PRIVATE LIMITED

Director

11-06-09

04-06-09

Active

NO

2

U65921UP1995PTC035286

SONATA FINANCE PRIVATE LIMITED

Nominee director

02-07-09

02-07-09

Active

NO

3

U74140WB1991PTC053189

AROHAN FINANCIAL SERVICES PRIVATE LIMITED

Director

09-09-10

03-07-09

Active

NO

4

U65993AP1991PTC013491

BELLWETHER MICROFINANCE FUND PRIVATE LIMITED

Director

28-09-10

25-02-10

Active

NO

 

 

Name :

Ms. Geeta Dutta Goel

Designation :

Nominee Director

Address :

C-8/8372, Vasant Kunj, New Delhi-110070, India

Date of Birth/Age :

01.06.1968

Date of Appointment :

12.01.2010

Din No.:

02277155

Other Directorship:

S. No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U74140WB1991PTC053189

AROHAN FINANCIAL SERVICES PRIVATE LIMITED

Director

03-07-09

04-07-08

-

Active

NO

2

U65990MH2007PTC175181

SWADHAAR FINSERVE PRIVATE LIMITED

Nominee director

17-09-08

17-09-08

-

Active

NO

3

U65923KA2006PTC040028

JANALAKSHMI FINANCIAL SERVICES PRIVATE LIMITED

Director

27-05-09

27-05-09

13-06-11

Active

NO

4

U67190MH2008PLC182274

MICRO HOUSING FINANCE CORPORATION LIMITED

Director

08-12-09

08-12-09

-

Active

NO

5

U65921UP1995PTC035286

SONATA FINANCE PRIVATE LIMITED

Nominee director

12-01-10

12-01-10

-

Active

NO

6

U65999KA2004PTC035329

UJJIVAN FINANCIAL SERVICES PRIVATE LIMITED

Director

12-07-10

17-05-10

-

Active

NO

7

U74996DL2006PTC153957

INVEST INDIA MICRO PENSION SERVICES PRIVATE LIMITED

Director

26-09-11

24-12-10

-

Active

NO

8

U72400KA2006PTC039874

VINDHYA E-INFO MEDIA PRIVATE LIMITED

Nominee director

29-08-11

29-08-11

-

Active

NO

9

U74999AP2010PLC069785

BASIX SUB-K ITRANSACTIONS LIMITED

Nominee director

21-11-11

21-11-11

-

Active

NO

 

 

Name :

Mr. Anal Kumar Jain

Designation :

Director

Address :

12, 3A Cross, Domlur Second Stage, Bangalore-560071, Karnataka, India

Date of Birth/Age :

26.06.1949

Date of Appointment :

23.09.2011

Din No.:

01239653

Other Directorship:

S. No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Date of cessation

Company Status

Defaulting status

1

U51109KA2005PTC036095

INFLOW TECHNOLOGIES PRIVATE LIMITED

Director

18-05-05

18-05-05

-

Active

NO

2

U01810KA2005PTC036632

PAY-OTA SYSTEMS INDIA PRIVATE LIMITED

Director

27-06-05

27-06-05

-

Active

YES

3

U72900KA2005PTC036363

SKILLPROFILER ANALYTICS PRIVATE LIMITED

Director

15-05-06

15-05-06

-

Active

NO

4

U85110KA1996PTC021029

MV MICROFIN PRIVATE LIMITED

Managing director

11-02-08

03-12-07

29-07-09

Active

NO

5

U72200KA2008PTC048560

WESTCON (INDIA) PRIVATE LIMITED

Director

10-12-08

10-12-08

-

Active

NO

6

U85110KA1995NPL017199

SANGHAMITHRA RURAL FINANCIAL SERVICES

Director

28-08-09

28-08-09

-

Active

NO

7

U15676DL1995PTC189943

MIMOZA ENTERPRISES FINANCE PRIVATE LIMITED

Director

24-08-10

24-08-10

-

Active

NO

8

U51216KA1991PTC053425

GRAMEEN FINANCIAL SERVICES PRIVATE LIMITED

Director

16-08-11

27-01-11

-

Active

NO

9

U72100KA2008PTC045925

INFLOW KNOWLEDGE SERVICES (INDIA) PRIVATE LIMITED

Additional director

18-02-11

18-02-11

-

Active

NO

10

U65921UP1995PTC035286

SONATA FINANCE PRIVATE LIMITED

Director

23-09-11

01-09-11

-

Active

NO

 

 

Name :

Ms. Chandni Gupta Ohri

Designation :

Director

Address :

Apartment 402, Tower 12, Close South, Nirvana Country, Sector 50, Gurgaon-122002, Haryana, India

Date of Birth/Age :

01.11.1986

Date of Appointment :

23.09.2011

Din No.:

03613229

Other Directorship:

S.

No.

CIN

Name of the Company

Current designation of the director

Date of appointment at current designation

Original date of appointment

Company Status

Defaulting status

1

U65921UP1995PTC035286

SONATA FINANCE PRIVATE LIMITED

Director

23-09-11

01-09-11

Active

NO

 

 

KEY EXECUTIVES

 

Name :

Ms. Shalini Baghel

Designation :

Company Secretary

Address :

B. No. 59, Nand Plaza, Sadar Bazar, Gwalior Road, Agra-282001, Uttar Pradesh, India

Date of Birth/Age :

15.01.1988

Date of Appointment :

13.09.2010

Pan No.:

ARKPB8185C

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 23.09.2011

 

Names of Shareholders

 

No. of Shares

Anup Kumar Singh

 

638950

Bellwether Microfinance Trust, India

 

2728257

Bellwether Microfinance Fund Private Limited, India

 

466850

Swaminathan Aiyer

 

395000

Sonata Employee Welfare Trust, India

 

1250000

India Financial Inclusion Fund, Mauritius

 

2000000

Michael and Susan Dell Foundation, Austin, Texas

 

861638

 

 

 

Total

 

8340695

 

AS ON 23.09.2011

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

39.90

Bodies corporate

 

47.70

Directors or relatives of directors

 

7.66

Other top fifty shareholders

 

4.74

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject operates a micro-finance company in India.

 

 

GENERAL INFORMATION

 

Bankers :

·         HDFC Bank Limited, HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013, Maharashtra, India

·         HDFC Bank

·         Axis Bank

·         ABN Amro Bank

·         Small Industries Development Bank of India

·         Yes Bank

·         Central Bank of India

·         IndusInd Bank

·         Corporation Bank

·         Union Bank of India

 

 

Facilities :

Secured Loan

As on 31.12.2011

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

HDFC Bank

[Secured against hypothecation of book debts and pledge of FDR]

0.000

18.633

Axis Bank

[Secured against hypothecation of book debts and pledge of FDR]

7.143

28.572

Ananya Finance

[Secured against hypothecation of book debts ]

17.777

61.945

ABN Amro Bank

[Secured against hypothecation of book debts]

0.000

2.500

Small Industries Development Bank of India

[Secured against hypothecation of book debts and pledge of FDR]

74.993

107.138

Yes Bank

[Secured against hypothecation of book debts]

0.833

8.333

Central Bank of India

[Secured against hypothecation of book debts and pledge of FDR]

58.114

83.114

Maneeva Holding

[Secured against hypothecation of book debts]

110.000

100.000

Indusind Bank

[Secured against hypothecation of book debts and pledge of FDR]

6.667

40.000

Reliance Capital

[Secured against hypothecation of book debts]

8.467

48.528

Corporation Bank

[Secured against hypothecation of book debts]

24.800

37.400

Mas Financial Services Limited

[Secured against hypothecation of book debts and pledge of FDR]

0.000

50.000

Micro Venture

[Secured against hypothecation of book debts and pledge of FDR]

60.000

55.000

Union Bank of India

[Secured against hypothecation of book debts and pledge of FDR]

32.581

45.105

IFMR

[Secured against hypothecation of book debts and pledge of FDR]

30.000

0.000

Total

431.375

686.268

 

 

 

Unsecured Loan

 

 

Bellwether Microfinance Fund Private Limited

20.000

0.000

Total

20.000

0.000

 

 

 

Banking Relations :

--

 

 

Financial Institution:

·         MV Microfin Private Limited, 1327/1, 13th Cross, Indiranagar Second Stage, Bangalore-560038, Karnataka, India

·         IFMR Capital Finance Private Limited, No. 1, Kanagam Village, 10th  Floor, IITM Research Park, Taramani, Chennai-600113, Tamilnadu, India

 

 

Auditors :

 

Name :

Vinay Kumar and Company

Chartered Accountants

Address :

5, Sardar Patel Marg, Civil Lines, Allahabad-211001, Uttar Pradesh, India

Pan No.:

ADOPK2745F

 

 

CAPITAL STRUCTURE

 

AS ON 31.12.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

10000000

Equity Shares

Rs.10/- each

Rs.100.000 Millions

5000000

Preferences Shares

Rs.10/- each

Rs.50.000 Millions

 

Total

 

Rs.150.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

8340695

Equity Shares

Rs.10/- each

Rs.83.407 Millions

 

NOTE: Of the above shares 1250000 shares are held by Sonata Employee Welfare Trust.


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.12.2011

[9th Months]

31.03.2011

[12th Months]

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

83.407

83.407

83.407

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

324.525

279.600

232.214

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

407.932

363.007

315.621

LOAN FUNDS

 

 

 

1] Secured Loans

431.375

686.268

440.714

2] Unsecured Loans

20.000

0.000

0.000

TOTAL BORROWING

451.375

686.268

440.714

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

859.307

1049.275

756.335

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

7.083

8.201

6.160

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

14.054

31.809

108.432

DEFERREX TAX ASSETS

0.972

1.064

1.289

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Cash and Bank Balances

318.702

280.995

127.955

 

Owned Loan portfolio in SHG

469.114

720.900

497.288

 

Individual Loan 43.043

43.043

20.032

1.709

 

Cycle Loan

0.100

0.000

0.000

 

ACS Loan

0.057

0.000

0.000

 

Advances and Other Current Assets

75.549

30.220

27.533

Total Current Assets

906.565

1052.147

654.485

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors and Other Current Liabilities

17.893

18.868

10.459

 

Provisions

51.626

25.427

4.182

Total Current Liabilities

69.519

44.295

14.641

Net Current Assets

837.046

1007.852

639.844

 

 

 

 

MISCELLANEOUS EXPENSES

0.152

0.349

0.610

 

 

 

 

TOTAL

859.307

1049.275

756.335

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.12.2011

[9th Months]

31.03.2011

[12th Months]

31.03.2010

 

SALES

 

 

 

 

 

Interest From Micro Credit Loans

191.174

235.715

 

 

Processing Fees

10.899

13.721

 

 

 

Interest on Fixed Deposits

5.261

3.824

145.066

 

 

Income From Portfolio Sale

13.603

4.708

 

 

 

Other Income

5.975

6.997

 

 

 

TOTAL                                     (A)

226.912

264.965

145.066

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Salaries, Benefits to Personnel

59.242

79.749

 

 

Administrative Expenses

21.925

23.009

 

 

 

Provision For Doubtful Debts

5.437

0.611

82.137

 

 

Bad Loan Written Off

1.272

3.497

 

 

 

Business Infrastructure Acquisition Expenses Written Off

0.196

0.262

 

 

 

TOTAL                                     (B)

88.072

107.128

82.137

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

138.840

157.837

62.929

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

66.065

82.571

50.221

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

72.775

75.266

12.708

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.560

2.227

1.536

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

71.215

73.039

11.172

 

 

 

 

 

Less

TAX                                                                  (H)

26.290

25.653

4.481

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

44.925

47.386

6.691

 

 

 

 

 

Less

Reserve Fund @ 20%

9.003

9.522

NA

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

56.756

18.892

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

92.678

56.756

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.39

5.68

0.80

 

 


KEY RATIOS

 

PARTICULARS

 

 

31.12.2011

[9th Months]

31.03.2011

[12th Months]

31.03.2010

PAT / Total Income

(%)

19.80

17.88

4.61

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

31.38

27.57

NA

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.79

6.89

1.69

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.17

0.20

0.04

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.28

2.01

1.44

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

13.04

23.75

44.70

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE:

 

The registered office of the company has been shifted from 1/1A, Rai Bahadur Ram Charan Das Road, Balrampur House, Allahabad-211002, Uttar Pradesh, India to the present address w.e.f. 16.08.2011.

 

BANKERS CHARGES REPORT AS PER REGISTRY

 

This form is for

Creation of charge

Corporate identity number of the company

U65921UP1995PTC035286

Name of the company

SONATA FINANCE PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

125B/6B, Pt. Madan Mohan Malviya Road, George Town, Allahabad-211002, Uttar Pradesh, India

Type of charge

Book Debts  

Particular of charge holder

IFMR Capital Finance Private Limited, No. 1, Kanagam Village, 10th  Floor, IITM Research Park, Taramani, Chennai-600113, Tamilnadu, India

Email

srividhya.r@ifmr.co.in

Nature of description of the instrument creating or modifying the charge

Deed of Hypothecation and Facility Agreement.

Date of instrument Creating the charge

28.12.2011

Amount secured by the charge

Rs.30.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Rate of Interest @ 15.30% p.a.

 

Terms of Repayment

The Company shall pay accrued interest on the facility on a monthly basis along with the Principal over 24 months. First due date of repayment starting after one month of first Disbursement Date i.e. January 30, 2012 and shall mature on 30 December 2013.

 

Extent and Operation of the charge

The Term Loan Facility of Rs. 30.000 Millions granted by Lender to the Company to originate joint-liability group micro-loans and the Facility has First and Exclusive Charge over unencumbered Receivables of the Company.

Short particulars of the property charged

First and Exclusive Charge over the unencumbered Receivables (Hypothecated property).

 

Cash Collateral equal to 10% of the Initial Facility i.e. Rs. 3.000 Millions shall be in form of fixed deposits in the name of Lender.

 

FIXED ASSETS:

 

·         Furniture and Fixture

·         Electrical Fittings

·         Computers

·         Office Equipments

·         Vehicles

·         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, India Prisons Service, Interpol, etc.

 

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.49.32

UK Pound

1

Rs.77.84

Euro

1

Rs.65.35

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

47

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

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.