MIRA INFORM REPORT

 

 

Report Date :

16.03.2012

 

IDENTIFICATION DETAILS

 

Name :

ADITYA BIRLA RETAIL LIMITED (w.e.f  01.09.2006)

 

 

Formerly Known As :

PUSHPAK FINANCE AND INVESTMENTS LIMITED

 

 

Registered Office :

Skyline Icon, 86/92, 5th and 6th Floor, Near Mittal, Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

14.07.1988

 

 

Com. Reg. No.:

11-48117

 

 

Capital Investment / Paid-up Capital :

Rs.1225.000 Millions

 

 

CIN No.:

[Company Identification No.]

U65990MH1988PLC048117

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA28583C

 

 

PAN No.:

[Permanent Account No.]

AAACP2678Q

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Chain of Departmental Stores.

 

 

No. of Employees :

Information declined by management 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Aditya Birla Group. It is an established company having moderate track. There appears to be huge accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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 DENIED BY

 

Name :

Mr. Amit Bhatt

Designation :

Deputy Manager 

Date :

15.03.2012

 

 

LOCATIONS

 

Registered Office :

Skyline Icon, 86/92, 5th and 6th Floor, Near Mittal, Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharasahtra, India

Tel. No.:

91-22-22073341/ 66525000/ 24995000/ 66805555

Fax No.:

91-22-66525841/ 24995841 / 66805394

E-Mail :

investorrelations@adityabirla.com

atul.daga@retail.adityabirla.com

milind@adityabirla.com

Website :

http://www.adityabirla.com

 

 

Branch Office

Located at:

 

·         Thane

·         Aurangabad

·         Baroda

·         Mysore

·         Bangalore

·         Indore

 

 

DIRECTORS

 

As on 11.07.2011

 

Name :

Mr. Gopi Krishna Tulsian

Designation :

Director

Address :

32 Peacock Palace, 69 Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

02.02.1937

Date of Appointment :

12.03.2008

DIN No.:

00017786

 

 

Name :

Mr. Girish Mohanlal Dave

Designation :

Director

Address :

Dave and Girish and Company, Advocates, 1st Floor, Sethna Building, 55 Maharshi Karve Road, Marine Lines, Mumbai – 400002, Maharashtra, India

davegirish@vsnl.com

Date of Birth/Age :

12.07.1938

Date of Appointment :

12.03.2008

DIN No.:

00036455

 

 

Name :

Mr. Kamlesh Shivji Vikamsey

Designation :

Director

Address :

194, Kalpataru Habitat, Tower – A, Dr. S S Road, Parel, Mumbai – 400012, Maharashtra, India

kamlesh@khimjimunverji.com

Date of Birth/Age :

06.12.1960

Date of Appointment :

22.04.2008

DIN No.:

00059620

 

 

Name :

Mr. Thomas Varghese

Designation :

Director and Manger

Address :

Flat No. 502, Park Lane Apartments, 26th Road, Tips – III, St. Theresa’s School, Bandra (West), Mumbai – 400050, Maharashtra, India

Date of Birth/Age :

03.03.1961

Date of Appointment :

01.08.2008

DIN No.:

02263496

 

 

Name :

Mr. Pranab Barua

Designation :

Director

Address :

D-1, Cedar Crest, 258, 10th Main, Defence colony, Indira Nagar, Bangalore – 560038, Karnataka, India

Date of Birth/Age :

21.09.1952

Date of Appointment :

01.02.2009

DIN No.:

00230152

 

 

KEY EXECUTIVES

 

Name :

Mr. Sushil Kumar Agarwal

Designation :

Secretary

Address :

Flat A-301, Harmony, Siddheswar Gardens, Kolshet Road, Thane (West), Mumbai – 400607, Maharashtra, India

Date of Birth/Age :

29.08.1970

Date of Appointment :

01.12.2010

 

 

Name :

Mr. Amit Bhatt

Designation :

Deputy Manager 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 11.07.2011

 

Names of Shareholders

 

No. of Shares

Kanishtha Finance and Investment Private Limited, India 

 

122499930

G K Tulsian and Kanishtha Finance and Investment Private Limited, India 

 

10

Sushil Ganesham Agarwal and Kanishtha Finance and Investment Private Limited, India 

 

10

Suresh Pitale and Kanishtha Finance and Investment Private Limited, India 

 

10

Anil Chirania and Kanishtha Finance and Investment Private Limited, India 

 

10

Omprakash Jajodia and Kanishtha Finance and Investment Private Limited, India 

 

10

Vivek Pendharkar and Kanishtha Finance and Investment Private Limited, India 

 

10

Nitin Madhura and Kanishtha Finance and Investment Private Limited, India 

 

10

TOTAL

 

122500000

 

As on 11.07.2011

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Chain of Departmental Stores.

 

 

Products :

Supermarkets

 

 

Brand Names :

MORE

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by management 

 

 

Bankers :

Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110002, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2010

As on

31.03.2009

Term loan From Banks

(Secured by first pari passu charge on company’s all present and future movable fixed assets and second pari passu charge on all present and future current assets) 

5570.000

3250.000

Short Term loans from Banks *

(Secured by First pari passu charge on company’s all present and future current assets and second pari passu charge on present and future movable fixed assets)

 

 

Buyers Credit

428.500

473.600

Working Capital

157.900

136.500

Others

3160.000

2300.000

Total

9316.400

6160.100

* Includes Rs.2000.000 Millions for which registration of charge is pending and Rs.200.000 Millions (Previous Year: Rs.2000.000 Millions) for which hypothecation formalities are in progress as on 31st March. 2010.

 

Unsecured Loan

As on

31.03.2010

As on

31.03.2009

Long Term Loans:

 

 

From Holdings Company

10852.800

9755.800

From Others

1500.000

0.000

From Banks

4000.000

4000.000

Short Term Loans:

 

 

Working Capital from Bank

47.100

42.700

Others

2400.000

900.000

Total

18799.900

14698.500

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr. Annie Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India

Tel. No.:

91-22-66679000

Mobile No.:

91-22-66679025

PAN.:

AADFD2337G

 

 

Holding Company :

·         Kanishtha Finance and Investment Private Limited

CIN No.: U65990MH1988PTC48498

 

 

Subsidiaries :

·         Trinethra Superretail Private Limited

      CIN No.: U52520AP1990PTC011172

 

·         H A S Two Holdings Private Limited (Subsidiary Company of Trinethra Superretail Private Limited )

      CIN No.: U64202KA1999PTC025649

 

·         Terrafirma Agroprocessing (India) Private Limited (Subsidiary Company of H A S Two Holdings Private Limited)

      CIN No.: U15499AP2005PTC047082

 

·         Fabmall (India) Private Limited (Subsidiary Company of H A S Two Holdings Private Limited)

      CIN No.: U18101KA2002PTC031385

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

122500000

Equity Shares

Rs.10/- each

Rs.1225.000 Millions

 

 

 

 

 

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1225.000

1000.000

500.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(15516.500)

(10105.000)

(3790.563)

NETWORTH

(14291.500)

(9105.000)

(3290.563)

LOAN FUNDS

 

 

 

1] Secured Loans

9316.400

6160.100

1786.873

2] Unsecured Loans

18799.900

14698.500

9737.522

TOTAL BORROWING

28116.300

20858.600

11524.395

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

Employee Stock Option Outstanding

871.100

700.200

465.462

 

 

 

 

TOTAL

14695.900

12453.800

8699.294

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1429.300

1628.000

1144.439

Capital work-in-progress

223.200

354.900

340.356

 

 

 

 

INVESTMENT

12425.000

9796.000

7166.022

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

628.700
605.200
698.822

 

Sundry Debtors

85.200
55.700
12.087

 

Cash & Bank Balances

359.700
513.800
73.659

 

Other Current Assets

28.500
13.700
3.948

 

Loans & Advances

1253.900
1142.000
818.627

Total Current Assets

2356.000
2330.400
1607.143

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

542.100
523.800
664.698

 

Current Liabilities

1158.300
1089.200
870.677

 

Provisions

37.200
42.500
23.291

Total Current Liabilities

1737.600
1655.500
1558.666

Net Current Assets

618.400
674.900
48.477

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

14695.900

12453.800

8699.294

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

6049.100

4655.300

951.300

 

 

Other Income

324.500

147.700

33.600

 

 

TOTAL                                     (A)

6373.600

4803.000

984.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of goods sold

5412.100

4249.500

875.000

 

 

Administrative Expenses

2552.100

3261.200

1647.700

 

 

Employees Cost

1746.600

2235.800

1657.200

 

 

TOTAL                                     (B)

9710.800

9746.500

4179.900

 

 

 

 

 

Less

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

(3337.200)

(4943.500)

(3195.00)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1568.000

873.100

119.400

 

 

 

 

 

 

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

(4905.200)

(5816.600)

(3314.400)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

506.300

479.300

144.400

 

 

 

 

 

 

PROFIT/ LOSS  BEFORE TAX (E-F)                   (G)

(5411.500)

(6295.900)

(3458.800)

 

 

 

 

 

Less

TAX                                                                  (H)

0.000

18.500

14.000

 

 

 

 

 

 

PROFIT/ LOSS  AFTER TAX (G-H)                    (I)

(5411.500)

(6314.400)

(3472.800)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(10105.000)

(3790.600)

(317.800)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(15516.500)

(10105.000)

(3790.600)

 

 

 

 

 

 

 

Capital Goods

29.000

113.800

343.800

 

 

Trade Goods

30.800

9.100

5.300

 

TOTAL IMPORTS

59.800

122.900

349.100

 

 

 

 

 

 

Earnings Per Share (Rs.)

(54.05)

(72.94)

(69.46)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

(84.90)

(131.47)

(352.60)

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(89.46)

(131.08)

(363.59)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(142.96)

(159.05)

(125.70)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.38)

(0.69)

(1.05)

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.09

2.47

3.98

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.36

1.41

1.03

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS:

                                                                                                                                         (Rs. in Millions)

Particulars

31.03.2010

31.03.2009

31.03.2008

Micro , Small and Medium Enterprises

0.000

0.000

1.294

Others

542.100

523.800

663.404

 

542.100

523.800

664.698

 

Notes: The registered office of the company has been shifted from “More Centre”, Sahar Airport Road, Andheri (East), Mumbai – 400099, Maharashtra, India to Present Address w.e.f 18.04.2011

 

BACKGROUND:

 

Subject is engaged in the business of retailing under the brand name “MORE” as at 31st March, 2010 the company operated through 146 supermarkets and 5 hypermarkets located in various cities across the country.

 

BUSINESS PERFORMANCE:

 

During the year the company launched 4 new hypermarkets under the brand name More, Megamart at different locations across the country which received overwhelming response from the consumers. The sales from the Hypermarket as a consequence increased significantly from the previous year and constituted about 25% of the total sales of the company. In respect of supermarkets the focus continued on relentless pursuit of cost reduction, closure of unviable and non performing stores, development and strengthening of private labels and continuous improvement in gross margin to ensure that the business moves towards achieving profitability.

 

During the year the company closed the year with 146 supermarkets and 5 hypermarket covering 6.96 Iacs sq. feet of retail space. The Company’s subsidiary Trinethra Superretail Private Limited closed the year with 379 Supermarkets and 1 Hypermarket covering an area of 9.12 lacs sq feet.

 

More. is covering 155 cities and towns across 12 Indian states. It is India’s second largest supermarket chain and enjoys a high top of mind recall in catchments where it is present.

 

FINANCE:

 

The company has been assigned a rating of “A2+” for Short-Term Loans-Fund Based limits and Non-Fund Based Limits and “LBBB +”for Long term Loans and Fund Based Limits. Both the ratings are investment grade.

 

During the year, for meeting its capex and opex requirements, the company raised resources through a mix of debt and equity (including 1% Optionally Convertible Bonds). the Company issued and allotted 2,25,00,000 Equity Shares of the face value of Rs.10/- each for cash at par aggregating to Rs.225.000 Millions and issued and allotted 2,59,70,000, 1% Optionally Convertible Bonds -Series-lV of the face value of Rs.100/- each for cash at par aggregating to Rs.2597.000 Millions.

 

During the year, the company subscribed for 25,45,150 1%Optionally Convertible Bonds Series-Ill of Rs.30Sf- each aggregating to Rs.776.300 Millions issued by Trinethra Superretail Private Limited to enable meet its capex and opex requirements. These OCBs at the sole option of the holder thereof will be converted into I fully paid-up equity shares of the company of the face vale of Rs.10/- per share at a premium of Rs.295/- per share at anytime from the date of allotment but before the due date for redemption or it shall be redeemed in full at a premium of 16% on the due date for redemption.

 

CONTINGENT LIABILITY

 

a) The Company has given collateral Security of Rs.550.000 Millions. (Previous year: Rs.550.000 Millions)to Banks for loans taken by Trinethra Supertetall Private Limited (TSPL) (Subsidiary Company).

 

                                                                                                                                      (Rs. in millions)

Bank Name

Nature of Security Provided

2009-10

2008-2009

Axis Bank Limited

Letter of Undertaking

500.000

500.00

HDFC Bank Limited

Letter of comfort

50.000

50.00

 

Further, the Company has iren an undertaking, not to dispose of its investment in the Subsidiary during the peudency of the credit fai1ity.

 

b) Premium on redemption of 1% Optionally Convertible Bonds (Refer note 3 below): Rs.4020.200 millions (Previous year: Rs.3604.700 millions).

 

c) Custom duty against import of capital. Goods which may arise if the obligation for exports is not fulfilled is its  Rs. 90.900 millions (Previous year Rs.90.900 millions)

 

d) Disputed dues towards leased property to the .extent of Rs.102.700 millions (Previous year: Rs.102.700 millions)

 

e) Liabilities towards certain leased properties. To the extent of Rs.5.400 millions (Previous year: Rs.5.50 Millions)

 

f) Other claims against the Company not acknowledged as debts (to the extent quantifiable) Rs.4.400 millions. (Previous year: Rs.1.90 millions)

 

FORM 8:

 

Corporate identity number of the company

U65990MH1988PLC048117

Name of the company

ADITYA BIRLA RETAIL LIMITED

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

Skyline Icon, 86/92, 5th Floor, Near Mittal Industrial Estate, Andheri Kurla Road, Andheri (East), Mumbai – 400059, Maharashtra, India

Email Id: atul.daga@retail.adityabirla.com

This form is for

Creation of Charge

Type of charge

·         Book debts

·         Others

Particular of charge holder

Axis Bank Limited, 4/10, OPG House, Asaf Ali Road, New Delhi – 110002, India

Email : form8.axisbank@gmail.com

Nature of instrument creating charge

Deed of hypothecation of current assets (Stocks and Book debts)

Date of instrument Creating the charge

20.07.2011

Amount secured by the charge

Rs.500.000 Millions

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

Rate of Interest :

As per sanction Letter No. AXISB/CO/2011-12/15183 dated 01.07.2011 to be amended from time to time

 

Terms of Repayment:

As per sanction Letter No. AXISB/CO/2011-12/15183 dated 01.07.2011 to be amended from time to time

 

Margin:

As per sanction Letter No. AXISB/CO/2011-12/15183 dated 01.07.2011 to be amended from time to time

 

Extent and operation of the charge:

First Pari Passu Charge

 

Others:

The above is to secure the following

Overdraft Rs.500.000 Millions

Letter of Credit Rs.500.000 Millions (Sub limit of Over draft)

Bank Guarantee Rs.500.000 Millions  (Sub limit of Over draft)

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Hypothecation by way of first Pari Passu charge over all present and future current assets of the company stored or to be stored at the company’s godowns or premises or where ever else same may be.

 

 

FIXED ASSETS:

 

·         Leasehold Improvements

·         Furniture and Fixtures

·         Vehicles

·         Plant and Machinery

·         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.50.22

UK Pound

1

Rs.78.64

Euro

1

Rs.65.54

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

-

--CREDIT LINES

1~10

3

--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

 

30

 

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.