MIRA INFORM REPORT

 

 

Report Date :

01.06.2012

 

IDENTIFICATION DETAILS

 

Name :

CITICORP FINANCE (INDIA) LIMITED

 

 

Registered Office :

Citi Corporation Centre, 5th Floor, C-61, Bandra Kurla Complex, Mumbai-400051, Maharashtra

 

 

Country :

India 

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

02.07.1997

 

 

Com. Reg. No.:

11-109170

 

 

Capital Investment / Paid-up Capital :

Rs. 9893.870 Millions

 

 

CIN No.:

[Company Identification No.]

U65900MH1997FLC109170

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMC06678A

 

 

PAN No.:

[Permanent Account No.]

AABCC4881F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

The subject is providing diversified financial services.

 

 

No. of Employees :

Information not given by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (54)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 55000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a subsidiary of Citibank Overseas Investment Corporation.

 

It is a well established and reputed company having satisfactory track records. 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 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 DECLINED BY

 

Management no co-operative

 

 

LOCATIONS

 

Registered Office :

Citi Corporation Centre, 5th Floor, C-61, Bandra Kurla Complex, Mumbai-400051, Maharashtra, India

Tel. No.:

91-22-40015541

Fax No.:

91-22-26532215

E-Mail :

rakesh.bajaj@citi.com

 

 

DIRECTORS

 

AS ON 22.07.2011

 

Name :

Mr. Abhijit Sen

Designation :

Director

Address :

Flat No.4 A, Manek, L D Ruparel Marg, Malbar Hill, Mumbai, Maharashtra, India

Date of Birth/Age :

17.11.1950

Date of Appointment :

04.11.1997

DIN No.:

00002593

 

 

Name :

Mr. Pankaj Sharma

Designation :

Managing Director

Address :

704, Oman-A, Vasant Galaxy, Bangur Nagar, Goregaon (West), Mumbai, Maharashtra, India

Date of Birth/Age :

19.07.1967

Date of Appointment :

24.07.2009

DIN No.:

02717462

 

 

Name :

Mr. Narayana Swamy Adityapuram Seshan

Designation :

Director

Address :

6/256, Matru Ashish, Prof U U Bhat Road, Matunga, Mumbai-4000010, Maharashtra, India

Date of Birth/Age :

28.08.1988

Date of Appointment :

28.09.2007

DIN No.:

01815914

 

 

Name :

Mr. Sameer Kaul

Designation :

Director

Address :

Flat No.101, Nav Sonathala Annexe, Off Turner Road, Bandra (West), Mumbai-400050, Maharashtra, India

Date of Birth/Age :

25.02.1971

Date of Appointment :

28.11.2008

DIN No.:

00388405

 

 

Name :

Mr. Rohit Ranjan

Designation :

Director

Address :

404/B, 4th Floor, Hiranandani Gardens, A S Marg, Powai, Mumbai-400075, Maharashtra, India

Date of Birth/Age :

17.02.1961

Date of Appointment :

31.03.2010

DIN No.:

00003480

 

 

Name :

Mr. Rahul Shukla

Designation :

Director

Address :

54, Siddhivinayak, Sector-21, Nerul, Navi Mumbai-400706, Maharashtra, India

Date of Appointment :

04.02.2011

DIN No.:

03352971

 

 

KEY EXECUTIVES

 

Name :

Mr. Rakesh Bajaj

Designation :

Secretary

Address :

C-6/9, Jeevan Bima Nagar, Mumbai, Maharashtra, India

Date of Birth/Age :

06.08.1971

Date of Appointment :

25.08.2008

PAN No.:

AACCPB3978L

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 22.07.2011

 

Names of Shareholders

No. of Shares

Citibank Overseas Investment Corporation

989386977

Citibank Overseas Investment Corporation jointly with Sunil Kothare

1

Citibank Overseas Investment Corporation jointly with Kushwya Sheth

1

Citibank Overseas Investment Corporation jointly with Abhijt Sen

1

Citibank Overseas Investment Corporation jointly with Navin Upadhya

1

Citibank Overseas Investment Corporation jointly with Viral

1

Citibank Overseas Investment Corporation jointly with Rohit Ranjan

1

Citibank Overseas Investment Corporation jointly with R. Murakhan

1

TOTAL

989386984

 

AS ON 22.07.2011

 

Equity Shares Break Up

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

The subject is providing diversified financial services.

 

 

Products :

·         Finance

·         Investment

·         Lease

 

 

GENERAL INFORMATION

 

No. of Employees :

Information not given by the management

 

 

Bankers :

Not Available

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Non convertible redeemable debentures (Net of discount Rs. 3.485 millions, Previous year Rs. 2.183 millions)

(The company has issued secured non-convertible debentures under various series in different terms and conditions, which have been secured by a pari passu charge on the Company’s immovable property and movable financial assets)

10222.897

14423.917

Finance lease obligation (Secured by hypothecation of vehicles taken on lease)

8.599

17.268

From Banks

 

 

Short Term Loans

 

 

Demand Loans

6200.000

6100.000

Cash Credit

3410.085

3576.231

 

 

 

Total

19841.581

24117.416

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2011

Rs. In Millions

31.03.2010

Long term

 

 

External commercial borrowing (USD 90 Million, Previous year USD 90 Million)

4013.550

4041.000

 

 

 

Total

4013.550

4041.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Company

Chartered Accountant

Address :

Lodha Excelus, 1st Floor, Apollo Mills Compound, N. M.J oshi Marg, Mahalaxmi, Mumbai-400011, Maharashtra, India

Tel. No.:

91-22-38896000

Fax No.:

91-22-39836000

Pan No.:

AAAFB9852F

 

 

Holding Company :

Citibank Overseas Investment Corporation

 

 

Ultimate Holding Company :

Citigroup Inc.

 

 

Subsidiaries :

Citicorp Clearing Services India Limited

CIN No.:-U63090MH2005PLC157251

 

Citicorp Capital Markets Limited

CIN No.:-U67120MH2002PLC136776

 

Citicorp Maruti Finance Limited

CIN No.:-U65921DL1997PLC090046

 

Citifinancial Retail Services India Limited

CIN No.:-U65921TN2000PLC046039

 

 

Fellow Subsidiaries :

·         Citi Cards Japan Inc.

·         Citicorp Operations Consulting GmbH, Germany

·         Citifinancial Europe PIC, UK

·         Citigroup Pty Limited, Australia

·         Citibank International Plc, Greece

·         Citibank International Plc, Portugal

·         Citibank International Plc, Italy

·         Citigroup Financial Products Inc

·         Citi Strategic Holdings Mauritius Limited

·         Citicorp Services (India) Limited

·         Citi Mortgage Inc., USA

·         Citicorp Investment Bank (Singapore) Limited

·         Citigroup Transaction Services, Malaysia

·         Citicorp North America, Inc

·         Citibank Korea, Inc

·         Banco Citibank de Guatemala. SA

·         CitiFinancial Consumer Finance India Limited

·         Citigroup Global Markets India Private Limited

·         Citigroup Global Markets Inc

·         Citigroup Global Markets Limited

·         Citicorp Credit Services Inc

·         Citigroup Technology Inc

·         Citigroup Global Markets Asia Limited

·         Citibank International Plc.

·         Citicards Canada Inc.

·         Citi Commerce Solutions of Canada Limited

 

 

Enterprises which exercise control :

·         Citibank N. A

 


 

CAPITAL STRUCTURE

 

AS ON 31.03.2011

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

1200000000

Equity Shares

Rs.10/- each

Rs. 12000.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

989386984

Equity Shares

Rs.10/- each

Rs. 9893.870 Millions

 

 

 

 

 

NOTE

 

The entire issued, subscribed and paid up share capital is held by the holding company, Citibank Overseas Investment Corporation and its nominees.

 

 

AS ON 22.07.2011

 

Authorised Capital : Rs. 12060.000 Millions

 


 

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

9893.870

9893.870

9893.870

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

3974.728

4093.255

3573.849

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

13868.598

13987.125

13467.719

LOAN FUNDS

 

 

 

1] Secured Loans

19841.581

24117.416

44142.170

2] Unsecured Loans

4013.550

4041.000

4564.800

TOTAL BORROWING

23855.131

28158.416

48706.970

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

37723.729

42145.541

62174.689

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

23.964

169.276

220.672

Capital work-in-progress

5.655

0.000

3.350

 

 

 

 

INVESTMENT

6174.513

12589.471

19612.512

DEFERREX TAX ASSETS

631.314

631.314

631.314

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

1132.495

1653.452

1522.828

 

Sundry Debtors

351.500

558.969

647.092

 

Cash & Bank Balances

8358.108

10644.065

7936.479

 

Other Current Assets

806.501

1725.499

3477.869

 

Loans & Advances

23809.969

18965.970

33166.130

Total Current Assets

34458.573

33547.955

46750.398

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

115.922

165.860

332.045

 

Other Current Liabilities

2518.391

4093.179

4177.914

 

Provisions

935.977

533.436

533.598

Total Current Liabilities

3570.290

4792.475

5043.557

Net Current Assets

30888.283

28755.480

41706.841

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

37723.729

42145.541

62174.689

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Finance Income

3589.804

3553.973

6920.780

 

 

Fee Income

72.108

979.551

1097.514

 

 

Other Income

599.378

2239.969

798.600

 

 

TOTAL                                     (A)

4261.290

6773.493

8816.894

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Personnel Cost

216.636

708.685

732.838

 

 

Administrative and Other Expenses

770.410

934.626

1235.865

 

 

Provision and bad debts

749.103

1076.485

508.182

 

 

TOTAL                                     (B)

1736.149

2719.796

2476.885

 

 

 

 

 

Less

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

2525.141

4053.697

6340.009

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1982.022

2993.948

4846.592

 

 

 

 

 

 

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

543.119

1059.749

1493.417

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

15.811

75.951

84.252

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

527.308

983.798

1409.165

 

 

 

 

 

Less

TAX                                                                  (H)

128.385

348.639

457.433

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

398.923

635.159

951.732

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

3011.013

2618.640

1973.007

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Statutory Reserve

79.785

127.032

190.346

 

 

General Reserve

1193.478

0.000

0.000

 

 

Proposed Dividend

445.224

98.939

98.939

 

 

Tax on Proposed Dividend

72.226

16.815

16.815

 

BALANCE CARRIED TO THE B/S

1619.223

3011.013

2618.639

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Fees for research and analytical services

14.191

928.972

NA

 

TOTAL EARNINGS

14.191

928.972

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.40

0.64

0.96

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

0.09

9.38

10.79

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

14.69

27.68

20.36

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.50

2.86

2.96

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.04

0.07

0.16

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

1.98

2.36

3.99

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

9.65

7.00

9.27

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Check List by Info Agents

Available in Report (Yes / No)

1.       Year of Establishment

Yes

2.       Locality of the firm

Yes

3.       Constructions of the firm

Yes

4.       Premises details

No

5.       Type of Business

Yes

6.       Line of Business

Yes

7.       Promoter’s background

Yes

8.       No. of Employees

No

9.       Name of person contacted

Yes

10.   Designation of contact person

Yes

11.   Turnover of firm for last three years

Yes

12.   Profitability for last three years

Yes

13.   Reasons for variation <> 20%

-----

14.   Estimation for coming financial year

No

15.   Capital in the business

Yes

16.   Details of sister concerns

Yes

17.   Major suppliers

No

18.   Major customers

No

19.   Payments terms

No

20.   Export / Import details

Yes

21.   Market information

------

22.   Litigations that the firm / promoter involved

------

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

 

 

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars

 

31.03.2011

31.03.2010

31.03.2009

Sundry Creditors

 

 

 

-          Outstanding dues to micro and small enterprises

0.027

0.028

0.063

-          Dues to other creditors

115.895

165.832

331.982

TOTAL

115.922

165.860

332.045

 

 

BACKGROUND

 

Subject is a loan and investment Non Banking Financial Company ('NBFC'), as defined under section 451A of the Reserve Bank of India Act, 1934. It is a 100% subsidiary of Citibank Overseas Investment Corporation ('COIC'), a Citigroup subsidiary.

 

The Company was incorporated on July 2, 1997 with the objective of offering a wide range of financial services to its customers. The Company has been issued a registration certificate no. 13.00001 dated August 21, 1997 by the Reserve Bank of India to operate as a Non-Banking Financial Company.

 

 

OPERATIONS

 

ASSET BACKED FINANCE

 

The economy reported GDP growth of 8.6% in this year compared to 8% last year. Industrial sectors have emerged as one of the prime movers in the revival of gross domestic product, with the industrial and service sectors growing at 8.1% and 9.6% respectively. There was a significant increase in the demand of commercial vehicles and construction equipments during 2010-2011. The commercial vehicles sales reported a continuing robust growth of 27.1% in the year 2010-2011 as compared to 38.2% in the year 2009-2010.

 

ABF division has a very strong and unique distribution model of branch, hub and spoke with strong geographical coverage across country and enjoys a preferred financer's position at all the counters of key manufactures and dealers of commercial vehicle and construction equipment.

 

ABF division has transformed its distribution model from predominantly direct marketing associate based reach to direct origination and the product offerings have been well aligned with the market which encourage quality sourcing,

 

ABF division has a very strong functional and management structure with independent risk, collection and compliance which ensures strong control and risk environment.

 

ABF division. with its reach and distribution network has a unique ability to generate PSL assets while maintaining favorable risk-return balance. Keeping in view the potential and ability to generate PSL assets, ABF division under CFIL continues to fulfill the captive PSL asset requirement of Citibank. Given the premium these assets command in market place, they can also be sold to any bank which is short an PSL assets providing a potential upside to revenues. During the year, CFIL sold PSL assets of Rs 7224.100 Millions and also assigned Rs 6100.000 Millions PSL assets via on-lending to Citibank.

 

ABF division now completely relies on direct origination post exit from franchisees and other channel partners. The proportion of the franchisee portfolio has reduced to 300.000 Millions from 320.000 Millions which is fully provided. The revised PSL strategy also led to discontinuation of large ticket deal sourcing with undiluted focus an generating retail assets that qualify as PSL. This has helped reduce risk exposure per borrower, The ABF division disbursed about Rs 15780.000 Millions to the transportation and construction equipments segment during the year.

 

ABF division has embedded a strong collection architecture, resulting in reduction of the >30 dpd inventory to Rs 1430.000 Millions as of March 2011 from Rs 2680.000 Millions as of March 2010. There has been a significant reduction In the Net Credit Losses to Rs (67.000) Millions (net recovery) in the year 2010-2011 as compared to 290.000 Millions in 2009-2010

 

 

SUBSIDIARIES

 

Citicorp Maruti Finance Limited (CMFL)

 

CMFL is a joint venture between the Company and Maruti Udyog Limited, set up with the objective of providing finance for purchase of Maruti range of cars. The Company has invested Rs. 740.000 Millions in the equity capital of CMFL, representing a 74% shareholding therein and Rs. 630.000 Millions in Non-convertible Preference Shares of CMFL.

 

During the year CMFL assets base showed a decline from Rs 3008.300 Millions for the year ended 31" March 2010 to Rs 1716.400 Millions for the year ended 31" March 2011. This was mainly on account of the rundown of the existing car loan portfolio and no new disbursements made. The Company earned a profit of Rs 67.300 Millions after tax as against loss of Rs. 23.800 Millions during the corresponding previous year on account of the reduced activities and cost. CMFL is exploring revenue alternatives to augment business.

 

 

Citicorp Capital Markets Limited (CCML)

 

CCML is a wholly owned subsidiary of the Company. It currently functions as a flagship vehicle for Citigroup's Debt Capital Markets Underwriting and Distribution Business in India.

 

CCML achieved a turnover of Rs. 159.200 Millions for the year ended March 31, 2011 compared to Rs. 309.800 Millions achieved in the year ended March 31, 2010. The Company earned a profit after tax of Rs. 91.400 Millions for the year ended March 31, 2011 compared to a profit of Rs. 191.300 Millions in the year ended March 31, 2010.

 

 

 

Citicorp Clearing Services India Limited (CCSIL)

 

CCSIL, a wholly owned subsidiary has helped to mark the group's presence in the derivative segment. CCSIL has obtained SEBI registration as clearing member on the National Securities Clearing Corporation Limited and on the MCX stock exchange limited. During the current year CCSIL has achieved revenue of Rs. 484.100 Millions and a Net Profit after tax of Rs 311.700 Millions as against a revenue of 815.600 Millions and a Net Profit after tax of 526.800 Millions for the year ended March 31, 2010.

 

 

CitiFinancial Retail Services India Limited (CFRSIL)

 

CFRSIL is registered with Insurance Regulatory and Development Authority of India (IRDA) to act as a corporate agent of New India Assurance (NIA) to sell its insurance products. It is actively engaged in the business of sourcing customers for the products offered by NIA.

 

CFRSIL reported a net profit after tax of Rs 52.300 Millions for the current year as against a net profit after tax of Rs. 44.500 Millions in corresponding previous year.

 

The Directors report, Auditors report, Audited accounts of all subsidiaries of the Company for the year ended March 31, 2011 along with the statements required under Section 212 of the Companies Act are attached with this report.

 

 

FIXED ASSETS

 

·         Building

·         Electrical Installation

·         Computer Equipments

·         Furniture and Fixtures

 


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]         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. 56.42

UK Pound

1

Rs. 87.37

Euro

1

Rs. 69.95

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

DPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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.