MIRA
INFORM REPORT
|
Report Date : |
22.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
LEAR AUTOMOTIVE INDIA PRIVATE LIMITED (w.e.f. 29.03.2006) |
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Formerly Known
As : |
LEAR SEATING PRIVATE LIMITED |
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Registered
Office : |
E-25, 26 and 27, Bhosari MIDC, Bhosari – 411026, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
05.02.1996 |
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Com. Reg. No.: |
11-134085 |
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Capital
Investment / Paid-up Capital : |
Rs.300.051 Millions |
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CIN No.: [Company Identification
No.] |
U34300PN1996PTC134085 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELL02667A |
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PAN No.: [Permanent Account No.] |
AAACL1978K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Manufacturer and Designer of Automobile Seating and Interior Components for Various Automobiles. |
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No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Lear Corporation ( It is an established company having satisfactory track. Financially
company have performed well in the year 2011. 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global financial
crisis - in large part because of strong domestic demand - and growth exceeded
8% year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. Rajaram |
|
Designation : |
Not Divulged |
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Contact No.: |
91-20-66123005 |
LOCATIONS
|
Registered Office : |
E-25, 26 And 27, Bhosati MIDC, Saket District Centre, Saket, Bhosari-411026,
Maharashtra, India |
|
Tel. No.: |
91-20-66123005/ 66123425 |
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Fax No.: |
91-20-66123000 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
Taj Palace Hotel, Suit No. 268, 2 LSP Marg, New Delhi-110021, India |
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Tel. No.: |
91-11-24104537 |
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Fax No.: |
91-11-24104547 |
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E-Mail : |
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Mother Factory: |
Halol Highway Near Toll Naka, Halol-389350, Gujarat, India |
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Tel No.: |
91-2676-222700/222353/222600 |
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Branch Office : |
Located At: · Ahmedabad · Bengaluru · Chennai · Gurgaon ·
· Kolkata · Mumabi ·
·
Pune |
DIRECTORS
As on 30.09.2011
|
Name : |
Mr. Amit Sharma |
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Designation : |
Director |
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Address : |
444, Pocket – A, Sarita Vihar, New Delhi-110 076, India |
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Date of Birth/Age : |
10.05.1979 |
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Qualification : |
B. Com, LLB |
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Experience : |
8 Years |
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Date of Appointment : |
29.09.2010 |
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DIN No.: |
02513254 |
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Name : |
Mr. Amardeep Arepalli |
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Designation : |
Director |
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Address : |
Flat No.4A, Pavan Towers, 2nd Line, Gayatri Nagar,
Vijaywada – 520008, Andhra Pradesh, India |
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Date of Birth/Age : |
18.11.1966 |
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Qualification : |
BE, MBA |
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Experience : |
23 Years |
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Date of Appointment : |
30.09.2011 |
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DIN No.: |
03502721 |
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KEY EXECUTIVES
|
Name : |
Yogesh Dattatraya Mase |
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Designation : |
Secretary |
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Address : |
501, Kashinath Apartment, Walvekar Nagar, Pune Satara Road, Behind
Walvekar Lawn, Pune – 411009, Maharashtra, India |
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Date of Birth/Age : |
06.04.1974 |
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Date of Appointment : |
15.06.2009 |
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Pan No.: |
AEKPM5727L |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
S. Bhalchandra Bhalerao (under beneficial Ownership of
Lear Corporation ( |
|
1 |
|
Anil Khanna (under beneficial Ownership of Lear
corporation ( |
|
1 |
|
Lear Corporation ( |
|
31315425 |
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Total |
|
31315427 |
As on 30.09.2011
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Designer of Automobile Seating and Interior Components for Various Automobiles. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Actual
Production |
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Automotive Seating Systems |
Nos. |
2833346 |
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Interior Components |
Nos. |
2659352 |
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Metal Parts |
Nos. |
3194370 |
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Wiring harness |
Nos. |
394392 |
Notes:
1. Licensed capacity not being applicable has not been indicated.
2. Having regard to the nature of operations, changes in product mix and utilization of manufacturing facilities, it is impracticable to provide details about installed capacity.
3. Difference in quantitative tally represents free supplies/ captive consumption. Production includes free supplies/ captive consumption.
GENERAL INFORMATION
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
Citi Bank, Pune Branch, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. R. Batliboi and Associates Chartered Accountants |
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Address : |
C – 401, 4th floor, |
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Tel. No.: |
91-20-66036000 |
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Fax No.: |
91-20-66015900 |
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PAN.: |
AABFS3421N |
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Ultimate holding
Company : |
Lear Corporation Inc. |
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Holding Company : |
Lear Corporation (Mauritius) Limited |
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Fellow subsidiaries
: |
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Entities where Key
management personnel have significant influence: |
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CAPITAL STRUCTURE
After 30.09.2011
Authorised Capital : Rs.350.000
Millions
Issued, Subscribed & Paid-up Capital: Rs.321.938 Millions
As on 30.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
31315427 |
Equity Shares |
Rs.10/- each |
Rs.313.154
Millions |
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As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000 Millions |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
|
|
30005064 |
Equity Shares |
Rs.10/- each |
Rs.300.051
Millions |
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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 |
|
|
|
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|
1] Share Capital |
300.051 |
296.251 |
282.581 |
|
|
2] Share Application Money |
452.500 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
861.665 |
514.902 |
180.517 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1614.216 |
811.153 |
463.098 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
630.281 |
880.281 |
920.281 |
|
|
TOTAL BORROWING |
630.281 |
880.281 |
920.281 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
2244.497 |
1691.434 |
1383.379 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
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|
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FIXED ASSETS [Net Block] |
1463.384 |
1394.853 |
976.671 |
|
|
Capital work-in-progress |
41.013 |
18.957 |
207.857 |
|
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
47.415 |
71.132 |
92.775 |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
654.149
|
277.455 |
159.042 |
|
|
Sundry Debtors |
1945.573
|
1092.628 |
858.666 |
|
|
Cash & Bank Balances |
360.112
|
19.187 |
13.567 |
|
|
Other Current Assets |
199.547
|
421.806 |
186.809 |
|
|
Loans & Advances |
425.240
|
301.232 |
314.374 |
|
Total
Current Assets |
3584.621
|
2112.308 |
1532.458 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2441.047
|
1453.365 |
1115.742 |
|
|
Other Current Liabilities |
317.684 |
349.364 |
231.817 |
|
|
Provisions |
133.205
|
103.087 |
78.823 |
|
Total
Current Liabilities |
2891.936
|
1905.816 |
1426.382 |
|
|
Net Current Assets |
692.685
|
206.492 |
106.076 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2244.497 |
1691.434 |
1383.379 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
7617.832 |
4186.362 |
2952.648 |
|
|
|
Service Income |
437.910 |
405.817 |
399.336 |
|
|
|
Other Income |
87.949 |
58.791 |
29.081 |
|
|
|
TOTAL |
8143.691 |
4650.970 |
3381.065 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
4580.744 |
3557.864 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
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TOTAL |
7814.998 |
4580.744 |
3557.864 |
|
|
|
|
|
|
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|
PROFIT / (LOSS)
BEFORE TAX |
328.693 |
70.226 |
(176.799) |
|
|
|
|
|
|
|
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|
Less |
TAX |
171.930 |
22.905 |
(35.605) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
156.763 |
47.321 |
(141.194) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
219.809 |
172.488 |
313.682 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
376.572 |
219.809 |
172.488 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
|
618.905 |
77.852 |
42.954 |
|
|
|
|
414.622 |
423.841 |
396.743 |
|
|
|
Other Income |
0.000 |
0.000 |
10.216 |
|
|
|
Reimbursement of Expenses |
35.069 |
26.409 |
30.796 |
|
|
TOTAL EARNINGS |
1068.596 |
528.102 |
480.709 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1622.131 |
679.687 |
293.821 |
|
|
|
Stores & Spares |
8.105 |
8.248 |
2.153 |
|
|
|
Capital Goods |
21.261 |
88.753 |
29.695 |
|
|
TOTAL IMPORTS |
1651.497 |
776.688 |
325.669 |
|
|
|
|
|
|
|
|
|
|
Earnings/loss
Per Share (Rs.) |
5.27 |
1.63 |
(5.00) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total
Income |
(%) |
1.92
|
1.02
|
(4.18)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.31
|
1.68
|
(5.99)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.51
|
2.00
|
(7.05)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.09
|
(0.38)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.18
|
3.37
|
5.07
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.11
|
1.07
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
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 |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
OPERATIONS
During the financial year 2010-2011, the Company
successfully launched three new seating programs for its customers Volkswagen
The Company’s turnover, i.e., sale of goods and services increased by about 75% over the previous year and the Company earned net profit of Rs.156.760 millions after tax and prior period items. In accordance with the provisions of Accounting Standard 22 on Accounting for taxes on income, the current years deferred tax charge of Rs.23.720 millions has been recorded in the profit and loss account. Deferred income taxes reflect the impact of the current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. The profit available for appropriations and the surplus carried to the Balance Sheet is Rs.376.570 millions. The Director General of Central Excise Intelligence (DGCEI) for the year 2003-04, caused the Company to pay an amount of Rs.25.000 millions on certain aspects which includes, valuation of finished goods for the purpose of excise duty with reference to: a) the free inputs and engineering costs received from customer, b) tooling advance received from customer, and, c) difference due to inventory cycle count during course of business during a certain period. The Company had deposited the above amount under protest in the earlier years. Further, during past years, the Company, based on legal opinion, had provided for a sum of Rs.6.850 millions regarding undisputed liability.
In addition, the Tax Authorities had issued notices against the Company under Central Excise, VAT and Service Tax Acts for which the Company has filed necessary replies and responses with the respective authorities. The appeals are pending with Central Excise and Service Tax Appellate Tribunal (CESTAT) and various Commissioners. The aggregate amount under dispute is about Rs.84.000 millions; however no deposits have been made by the Company towards these cases.
The Income Tax assessing officers reopened the assessments for assessment years 2004-05 and 2005-06 during the year. The Company has received income tax demands for assessment 2004-05 and 2005-06 where an amount aggregating to Rs.155.720 millions was disallowed by the tax authorities. The aforesaid disallowance represents: (i) provisions amounting to Rs.14.820 millions towards certain expenditure (the case has already been decided in Company’s favour by CIT (Appeals) on the ground of reopening and is now pending with Income Tax Appellate Tribunal (ITAT) for final hearing); and (ii) sums of Rs.140.899 millions incurred towards obtaining exclusive vendor status considered to be of capital nature by assessing officer and therefore not allowable as business expenditure (Company has filed an appeal before the CIT(A) and the matter is due for hearing).
The Company has also received draft assessment order for assessment year 2007-08 wherein the assessing officer has disallowed a sum of Rs.57.877 millions, which primarily consists of transfer pricing adjustments for transactions with associated enterprises. The Company has filed necessary clarifications with Dispute Resolution Panel (DRP) and CIT (Appeals), respectively, which are presently pending for hearing. Based on the legal opinion obtained by the Company and further discussions with the solicitors, the Company believes that there is a fair chance of decision in its favour in respect of the matters listed above and accordingly no provision has been considered necessary.
The Company has also re-hired Price water house Coopers for conducting a Transfer Pricing Study to determine the arms length pricing of the international transactions that the Company has entered into in the financial year ending March 31, 2011.
FUTURE GROWTH
As expected, the business growth was better during the year.
The Company was awarded several seating programs by General Motors India,
Mahindra and Mahindra, Mahindra Reva, BMW India and Volkswagen
NATURE OF OPERATIONS
Subject was incorporated in
CONTINGENT
LIABILITIES NOT PROVIDED FOR
Rs. in Millions
|
Particulars |
As at March 31,
2011 |
As at March 31,
2010 |
|
Claims by the excise authorities |
24.173 |
23.447 |
|
Claims by Sales tax authorities |
33.693 |
33.693 |
|
Income tax cases for Transfer Pricing |
25.248 |
16.447 |
|
Income tax case pending before ITAT, CIT (Appeals) and Dispute Resolution Panel |
38.864 |
19.239 |
|
Labour Industrial dispute cases |
0.411 |
0.000 |
|
Total |
122.389 |
92.826 |
FIXED ASSETS
·
Land – Freehold
·
Land – Leasehold
·
·
·
Leasehold Improvement
·
Furniture and Fixture
·
Computers (Hardware and Software)
·
Plant and Machinery
·
Equipment and Fittings
·
Office Equipments
·
Vehicles
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.55.20 |
|
|
1 |
Rs.87.79 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Information
Gathered by : |
SBA |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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.