|
Report Date : |
01.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
LANDMARK LIMITED (PART IX) |
|
|
|
|
Registered
Office : |
Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla
Complex, Bandra (East), Mumbai-400051, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
31.03.2006 |
|
|
|
|
Com. Reg. No.: |
11-160918 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.73.147
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U70109MH2006PLC160918 |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Books, Audio Compact Disc and Stationery. |
|
|
|
|
No. of Employees
: |
450 [Approximately]
|
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. There
appears some accumulated losses recorded by the company. However, trade relations
are reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. In view of strong holding 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 non co-operative.
LOCATIONS
|
Registered Office : |
Trent House, G Block, Plot No.C-60, Beside Citi Bank, Bandra Kurla
Complex, Bandra (East), Mumbai-400051, |
|
Tel. No.: |
91-22-26396010/67009026 |
|
Fax No.: |
91-22-22070216/67008100 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Branch Offices : |
Locate At: ·
Chennai ·
Gurgaon ·
Lucknow ·
Bangalore ·
Mumbai ·
Vadodara ·
Pune ·
Hyderabad ·
Ahmedabad |
DIRECTORS
As on 01.08.2011
|
Name : |
Noel Naval Tata |
|
Designation : |
Director |
|
Address : |
Windmere 55, Cuffe Parade, Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
12.11.1956 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00024713 |
|
|
|
|
Name : |
Shreeharsha Vasant Phene |
|
Designation : |
Director |
|
Address : |
901/902, Vaastu, 26, R.G. Thadani Marg, |
|
Date of Birth/Age : |
08.05.1955 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00103297 |
|
|
|
|
Name : |
Mr. Pradeep Kumar Anand |
|
Designation : |
Director |
|
Address : |
303/304, Gulshan, 14th A, Road, Khar (West), Mumbai –
400052, |
|
Date of Birth/Age : |
03.05.1953 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00108891 |
|
|
|
|
Name : |
Aspy Dady Cooper |
|
Designation : |
Director |
|
Address : |
Quest End -47, Cuffe Parade Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
23.08.1940 |
|
Date of Appointment : |
31.03.2006 |
|
Din No.: |
00026134 |
|
|
|
|
Name : |
Palaniswamy Venkatesalu |
|
Designation : |
Director |
|
Address : |
Tata Colony, Falcon Crest, Flat # 102, G.D. Ambedkar Marg, Parel Tank
Road, Parel, Mumbai-400017, Maharashtra, India |
|
Date of Birth/Age : |
27.02.1977 |
|
Date of Appointment : |
25.06.2008 |
|
Din No.: |
02190892 |
|
|
|
|
Name : |
Mr. Gopal Srinivasan |
|
Designation : |
Director |
|
Address : |
Old No. 2, New No. 3, West Side House, Adyar Club Gate Road,
Chennai-600028, Tamilnadu, India |
|
Date of Birth/Age : |
04.08.1958 |
|
Date of Appointment : |
04.11.2009 |
|
Din No.: |
00177699 |
KEY EXECUTIVES
|
Name : |
Mr. Ashutosh Pandey |
|
Designation : |
Manager |
|
Address : |
Fortune, Flat No. 3D, 3rd Floor, No. 15, Harrington Road, Chetpet,
Chennai-600031, Tamilnadu, India |
|
Date of Birth/Age : |
09.10.1971 |
|
Date of Appointment : |
14.07.2011 |
|
Pan No.: |
AGXPP7134K |
|
|
|
|
Name : |
Mr. Manish Parikh |
|
Designation : |
Company Secretary |
|
Address : |
B-103, Building No. 5, N.G. Park, Rawalpada, Dahisar (East),
Mumbai-400068, Maharashtra, India |
|
Date of Birth/Age : |
29.07.1976 |
|
Date of Appointment : |
14.07.2011 |
|
Pan No.: |
AMQPP5959H |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 01.08.2011
|
Names of Shareholders |
|
No. of Shares |
|
Trent Limited, |
|
4192344 |
|
Hemalatha Ramaiah |
|
100 |
|
Trent Brands Limited, |
|
264028 |
|
TVS Shriram Growth Funk I, India |
|
1825074 |
|
Flora Services Limited, |
|
2500 |
|
Flora Link Rod Properties Limited, India |
|
2500 |
|
Flora Link Rod Properties Limited, India |
|
1023079 |
|
Flora Services Limited, India |
|
11 |
|
Flora Link Rod Properties Limited, India |
|
13 |
|
Flora Services Limited, India Jointly with Noel Naval Tata |
|
1 |
|
Flora Services Limited, India Jointly with Palaniswamy Venkatesalu |
|
1 |
|
Trent Limited, India |
|
5026 |
|
|
|
|
|
Total |
|
7314677 |
As on 01.08.2011
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Books, Audio Compact Disc and Stationery. |
GENERAL INFORMATION
|
No. of Employees : |
450 [Approximately]
|
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Bankers : |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel
West, Mumbai-400013, |
|||||||||||||||||||||
|
|
|
|||||||||||||||||||||
|
Facilities : |
NOTE: ·
(A) Book Overdraft = 50.109 Millions Add: Others
(Amount repayable within one year - Rs.55.826 Millions) = 5.717 Millions
Total = 55.826 Millions. ·
(B) Book Overdraft = 0 Add: Others (Amount
repayable within one year - Rs.1.834 Millions) = 1.834 Millions Total = 1.834
Millions. ·
Secured by first exclusive charge on entire current
assets of the Company and Equitable mortgage on immovable property (Amount
repayable within one year – 196.962 Millions Previous year - Rs.61.776
Millions) |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
52, |
|
Tel. No.: |
91-44-66885000 |
|
Fax No.: |
91-44-66885050 |
|
|
|
|
Holding Company:
|
Trent Limited CIN: L24240MH1952PLC008951 |
|
|
|
|
Associates: |
TVS Shriram Growth Fund I |
|
|
|
|
Subsidiaries : |
·
Trent Retail Services Private Limited (formerly
Regent Management Private Limited) ·
Landmark E-Tail Private Limited are 100%
subsidiaries of the Company |
|
|
|
|
Fellow Subsidiaries [Subsidiaries of Holding Company with whom
transactions have taken place during the year] : |
·
Trent Brands Limited ·
Trent Hypermarket Limited ·
Westland Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8700000 |
Equity Shares |
Rs.10/- each |
Rs.87.000 Millions |
|
1630000 |
Preferences Shares |
Rs.100/- each |
Rs.163.000 Millions |
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7314677 |
Equity Shares |
Rs.10/- each |
Rs.73.147
Millions |
NOTE:
·
Of the above, 4,192,344 (Previous year - 4,192,344)
Equity Shares are held by the Holding Company, TRENT Limited
·
Of the above, 525,000 Equity Shares (previous year
- 525,000) of Rs. 10 each fully paid up were issued for cash, upon conversion
of warrants
·
Of the above, 217,306 Equity Shares (previous year
- 217,306) of Rs. 10 each fully paid up were issued, pursuant to conversion of
preference shares, without consideration being received in cash
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 |
73.147 |
73.147 |
57.423 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
712.290 |
712.290 |
168.014 |
|
|
4] (Accumulated Losses) |
(22.881) |
(31.446) |
(14.687) |
|
|
NETWORTH |
762.556 |
753.991 |
210.750 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
196.962 |
61.775 |
333.390 |
|
|
2] Unsecured Loans |
55.826 |
1.834 |
50.897 |
|
|
TOTAL BORROWING |
252.788 |
63.609 |
384.287 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1015.344 |
817.600 |
595.037 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
440.300 |
398.510 |
368.441 |
|
|
Capital work-in-progress |
2.028 |
30.798 |
0.299 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.120 |
70.119 |
27.784 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.856 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
835.512
|
685.356
|
550.829
|
|
|
Sundry Debtors |
230.390
|
18.820
|
16.151
|
|
|
Cash & Bank Balances |
15.688
|
19.062
|
12.762
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
238.063
|
271.297
|
201.517
|
|
Total
Current Assets |
1319.653
|
994.535
|
781.259 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
549.864
|
510.652 |
467.080 |
|
|
Other Current Liabilities |
195.964
|
164.876
|
115.474
|
|
|
Provisions |
0.929
|
0.834
|
1.048
|
|
Total
Current Liabilities |
746.757
|
676.362
|
583.602 |
|
|
Net Current Assets |
572.896
|
318.173
|
197.657
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1015.344 |
817.600 |
595.037 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2616.515 |
2269.838 |
1964.935 |
|
|
|
Other Income |
2.753 |
15.042 |
0.568 |
|
|
|
TOTAL (A) |
2619.268 |
2284.880 |
1965.503 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption Materials Changes Inventories |
1741.994 |
1507.823 |
1285.481 |
|
|
|
Employee Related Expenses |
200.350 |
157.208 |
148.667 |
|
|
|
Administrative Selling and Other Expenses |
796.634 |
563.870 |
478.183 |
|
|
|
Extraordinary Items |
(196.581) |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
2542.397 |
2228.901 |
1912.331 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
76.871 |
55.979 |
53.172 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
8.583 |
27.441 |
42.032 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
68.288 |
28.538 |
11.140 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
57.592 |
44.597 |
37.062 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
10.696 |
(16.059) |
(25.922) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2.131 |
0.700 |
(6.622) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
8.565 |
(16.759) |
(19.300) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(31.445) |
(14.687) |
4.874 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Preference Dividend |
0.000 |
0.000 |
0.223 |
|
|
|
Corporate Dividend Tax |
0.000 |
0.000 |
0.038 |
|
|
BALANCE CARRIED
TO THE B/S |
(22.880) |
(31.446) |
(14.687) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
73.906 |
72.451 |
79.545 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
NA |
11.376 |
2.978 |
|
|
|
Stores & Spares |
NA |
20.347 |
0.000 |
|
|
TOTAL IMPORTS |
NA |
31.723 |
2.978 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
1.17 |
(2.63) |
(3.47) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.33
|
(0.73) |
(0.98) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.41
|
(0.71) |
(1.32) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.61
|
(1.15) |
(2.25) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
(0.02) |
(0.12) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.31
|
0.98 |
4.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77
|
1.47 |
1.34 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY CREDITORS:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
|
Sundry Creditors |
549.864
|
510.652 |
467.080 |
Registered Office of the
company has been shifted from Enterprise Centre, Off Nehrurd, Beside
Orchid Hotel Vile Parle East, Mumbai,
OPERATIONS:
The Financial Year
2010-11 proved to be a difficult year for the Company from an operating
perspective. Company recorded a 15% growth in total income which stood at Rs.
2619.200 millions during the period as compared to Rs. 2284.800 millions for
the FY 2009-10. The profit after tax for the period was Rs 8.564 millions as
compared to loss of Rs 16.900 millions in FY 2009-10, primarily due to the
underperformance of select stores, muted same store sales growth, one time
charges relating to rationalization/ shifting of certain stores and
significantly, part monetization of a freehold property.
BANKERS CHARGES
REPORT AS PER REGISTRY
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10008058 |
|
Corporate identity
number of the company |
U70109MH2006PLC160918 |
|
Name of the
company |
LANDMARK LIMITED
(PART IX) |
|
Address of the
registered office or of the principal place of business in |
|
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel
West, Mumbai-400013, Email ID: |
|
Nature of
description of the instrument creating or modifying the charge |
No separate
instrument has been executed for modification of charge as equitable mortgage
is an oral transaction. Memorandum relating to extension of mortgage by
constructive delivery of title deeds of immovable properties belonging to the
Company dated 13th August, 2008. |
|
Date of
instrument Creating the charge |
13.08.2008 |
|
Amount secured by
the charge |
Rs.571.500
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Any such rate as may
be advised to the Company from time to time in respect of the credit
facilities. Terms of
Repayment Term Loan I of
Rs.21.500 Millions - Unless demanded earlier the loan is repayable in 3
years. Term Loan II of
Rs.100.000 Millions - Unless demanded earlier the loan is
repayable in 5 years with 6 months moratorium Term Loan III of
Rs.100.000 Millions - Unless demanded earlier the loan is repayable in 4.5
years with moratorium of 1 year. Term Loan IV (Additional) of Rs.100.000
Millions - Unless demanded earlier the loan is repayable in 5.5 years Cash Credit /
WCDL of Rs.250.000 Millions - Repayable on Demand. Margin As may be
prescribed by the Bank from time to time for the credit facilities. Extent and
Operation of the charge The Company
created charge by extension of mortgage by constructive delivery of title
deeds in respect of immovable properties as security for repayment of credit
facilities granted /to be granted to the Company aggregating to Rs.571.500
Millions together with interest, costs, charges and other dues any time
hereafter may become due and owing to the bank in respect of and under the
credit facilities and interest and all the other cost thereto. |
|
Particulars of
the present modification |
HDFC Bank Limited
has granted / agreed to grant to the Company Term Loan IV (Additional) of
Rs.100.000 millions and enhanced Cash Credit/WCDL of Rs.100.000 Millions
thereby total credit facilities granted to the Company have been enhanced
from Rs.371.500 Millions to Rs.571.500 Millions and the Company has extended
its immovable properties as security to cover for the enhanced credit
facilities. |
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2011 (Rs. in millions) |
31.03.2010 (Rs. in millions) |
|
Bank Guarantees (collateralized by bank deposits of Rs.2.811 millions
(Previous year Rs.0.350 million) |
4.660 |
0.350 |
FIXED ASSETS:
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.94 |
|
|
1 |
Rs.77.95 |
|
Euro |
1 |
Rs.65.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.