MIRA INFORM REPORT

 

 

Report Date :

26.11.2012

 

IDENTIFICATION DETAILS

 

Name :

FEDBANK FINANCIAL SERVICES LIMITED

 

 

Registered Office :

Federal Towers, Alwaye, Ernakulam – 683101, Kerala

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

17.04.1995

 

 

Com. Reg. No.:

09-008910

 

 

Capital Investment / Paid-up Capital :

Rs.1900.000 Millions

 

 

CIN No.:

[Company Identification No.]

U65910KL1995PLC008910

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Provide Gold Loan.

 

 

No. of Employees :

700 (Approximately)

 

 

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 7400000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject operates as a subsidiary of Federal Bank Limited.

 

It provide financial products and services. It is well established and reputed company. Company get good support from its holding company. But in the current year their appears some accumulated loss. However creditworthy of the company is good. Fundamental are strong. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for normal business dealing 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.

 

 

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

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL - Non Banking Financial Company

Rating

A1+ (Short Term Debt)

Rating Explanation

Having very strong degree of safety regarding timely payments of financial obligation it carry lowest credit risk.

Date

November 2012

 

 

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 PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Amol

Designation :

Accounts Head

Contact No.:

91-22-42930799

Date :

24.11.2012

 

 

LOCATIONS

 

Registered Office :

Federal Towers, Alwaye, Ernakulam – 683101, Kerala, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

dilip.maloo@fedfina.com

amol.deshpande@fedfina.com

Website :

www.fedfina.com

Location :

Owned

 

 

Corporate Office :

C-6, Laxmi Tower, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-42930799

 

 

DIRECTORS

 

As on: 01.08.2012

 

Name :

Pullattel Chacko Cyriac

Designation :

Director

Address :

No. 28/3653, Soonoro Church Road, , Ernakulam – 682020, Kerala, India

Date of Birth/Age :

13.06.1942

Date of Appointment :

21.07.2006

DIN No.:

00022973

 

 

Name :

Mr. Suresh Muthukrishna Kumar

Designation :

Director

Address :

H. H. SH. Hamadan Bin Rashid Villa, 352/26B, Jumeirah Area, N R Arenco Villas, Villa-05(76), Dubai, UAE

Date of Birth/Age :

08.07.1950

Date of Appointment :

24.08.2007

DIN No.:

00494479

 

 

Name :

Mr. Hayagreeva Ravikumar Puranam

Designation :

Director

Address :

501, Yashowan Towers, Behind Mahim Post, Office TH Kataria Marg, Mahim (West), Mumbai – 400016, Maharashtra, India 

Date of Birth/Age :

20.07.1951

Date of Appointment :

24.09.2007

DIN No.:

00280010

 

 

Name :

Mr. Mohammad Yousuf Khan

Designation :

Director

Address :

S-378, Panchsheel Park, New Delhi – 110017, India

Date of Birth/Age :

24.06.1944

Date of Appointment :

13.09.2010

DIN No.:

00570339

 

 

Name :

Mr. Shyam Srinivasan

Designation :

Director

Address :

101, Nagarjuna Apartments, 36 Ram N St. T Nagar, Chennai – 600017, Tamilnadu, India

Date of Birth/Age :

02.02.1962

Date of Appointment :

03.08.2011

DIN No.:

02274773

 

 

KEY EXECUTIVES

 

Name :

Mr. Amol

Designation :

Accounts Head

 

 

Name :

Mr. Dilip Kr Radheshyam Maloo

Designation :

Secretary

Address :

C-106, Gayatri Shivam Co-operative Housing Society Limited, 90 Feet Road, Near Sai Hospital, Thakur Complex, Kandivali (East), Mumbai -  400101, Maharashtra, India

Date of Birth/Age :

04.07.1980

Date of Appointment :

13.05.2010

PAN No.:

AKHPM9725B

 

 

Name :

Mr. Pradosh Kumar Radhamohan Mohapatra

Designation :

Manager

Address :

41, Aishwarya Towers, CST Road, Kalina, Santacruz (East), Mumbai – 400098, Maharashtra, India

Date of Birth/Age :

05.05.1955

Experience :

01.10.2011

PAN No.:

AENPM6545B

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 01.08.2012

 

Names of Shareholders

 

No. of Shares

The Federal Bank Limited, India

 

499595

The Federal Bank Limited, India

 

189500000

Ganapathy Kumar Girish Jointly with The Federal Bank Limited, India

 

1

Joha C P Jointly with The Federal Bank Limited, India

 

100

Pullattel Chacko Cyriac

 

100

K Varghese George Jointly with The Federal Bank Limited, India

 

1

Jagadeesan S T Jointly with The Federal Bank Limited, India

 

1

Jimmy K P Jointly with The Federal Bank Limited, India

 

1

Srinivasan Tirunelvelu Shyam Jointly with The Federal Bank Limited, India

 

200

Varghese I K Jointly with The Federal Bank Limited, India

 

1

 

 

 

Total

 

190000000

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 01.08.2012

 

Category

 

Percentage

 

 

 

Nationalised or other banks

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Provide Gold Loan.

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

 

GENERAL INFORMATION

 

Customers :

OEM’s

 

 

No. of Employees :

700 (Approximately)

 

 

Bankers :

·         IDBI Bank Limited, 224 A Mittal Court , A Wing, Nariman Point, Mumbai - 400021, Maharashtra, India

·         The Federal Bank Limited, Federal Towersp B No 103, Alwaye, Eranakulam - 683101, Kerala, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

 

As on

31.03.2012

Cash Credit Facility

 

 

From Federal Bank

 

1345.957

From IDBI Bank

 

250.082

 

 

 

Total

 

1596.039

 

Note: The above facilities are secured by way of hypothecation on Gold Loan Receivables.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Varma and Varma

Chartered Accountants

Address :

Sriniketan, Nettipadam Road, P B No.2350, Kochi – 682016, Kerala, India

PAN No.:

AABFV9555E

 

 

Holding Company :

The Federal Bank Limited

CIN No.: L65191KL1931PLC000368

 

 

CAPITAL STRUCTURE

 

As on: 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.10/- each

Rs.1900.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

190000000

Equity Shares

Rs.10/- each

Rs.1900.000 Millions

 

 

 

 

 

 

All the above shares are held by the Holding Company. The Federal Bank Limited and its nominees.

 

 

1. Reconciliation of the number of shares issued, subscribed and paid up at the beginning and the end of the year.

No. in Thousand

Particular

31.03.2012

No of Shares Outstanding at the beginning of the year

35000

Add Additional Shares issued during the year

155000

Less Shares Forfeited/Bought Back during the year

--

No of Shares Outstanding at the end of the year

190000

 

 

2. Number of shares held by each shareholder holding more than 5% shares in the company

No. in Thousand

Particular

31.03.2012

Equity Shares held by the Holding Company

 

- Federal Bank Limited

190000

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

1900.000

350.000

100.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

(35.653)

38.093

24.210

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1864.347

388.093

124.210

LOAN FUNDS

 

 

 

1] Secured Loans

1596.039

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

1596.039

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

3460.386

388.093

124.210

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

121.461

31.023

5.979

Capital work-in-progress

24.508

9.149

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.853

0.425

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

10.909

26.055

24.829

 

Cash & Bank Balances

82.130

275.895

85.146

 

Other Current Assets

7.773

16.261

0.000

 

Loans & Advances

3324.129

102.649

25.284

Total Current Assets

3424.941

420.860

135.259

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

29.216

21.751

12.154

 

Other Current Liabilities

53.413

49.771

4.624

 

Provisions

27.895

2.270

0.675

Total Current Liabilities

110.524

73.792

17.453

Net Current Assets

3314.417

347.068

117.806

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3460.386

388.093

124.210

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

375.799

145.556

123.428

 

 

Other Income

1.091

9.600

6.369

 

 

TOTAL                                     (A)

376.890

155.156

129.797

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employee Benefit Expenses

155.957

52.726

38.744

 

 

Other Expenses

168.700

79.334

57.422

 

 

TOTAL                                     (B)

324.657

132.060

96.166

 

 

 

 

 

Less

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

52.233

25.096

33.631

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

104.336

0.000

0.000

 

 

 

 

 

 

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

(52.103)

25.096

33.631

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

20.790

2.277

2.114

 

 

 

 

 

 

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

(72.893)

22.819

31.517

 

 

 

 

 

Less

TAX                                                                  (H)

0.853

8.936

7.230

 

 

 

 

 

 

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

(73.746)

13.883

24.287

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

NA

17.105

(7.182)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

NA

2.777

0.000

 

 

Dividend

 

 

 

 

 

Tax on Dividend

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

28.211

17.105

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

(1.12)

0.85

2.43

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

(19.57)

8.95

18.71

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(19.40)

15.68

25.53

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(2.05)

5.05

22.31

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.04)

0.06

0.25

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.92

0.19

0.14

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

30.99

5.70

7.75

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

(Rs. In Millions)

Particulars

31.03.2012

31.03.2011

31.03.2010

Sundry Creditors

 

 

 

Trade Payables

29.216

21.751

12.154

 

 

 

 

Total

29.216

21.751

12.154

 

 

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

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

Yes

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

Yes

 

 

Bankers Charges Report as per Registry

 

Corporate identity number (CIN) or foreign company

registration number of the company

U65910KL1995PLC008910

Name of the company

ANJ TURNKEY PROJECTS PRIVATE LIMITED

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

Federal Towers, Alwaye, Ernakulam – 683101, Kerala, India

E-mail: dilip.maloo@fedfina.com

This form is for

Creation of charge

Type of charge

Book debts

Particular of charge holder

IDBI Bank Limited, 224 A Mittal Court , A Wing, Nariman Point, Mumbai - 400021, Maharashtra, India

E-mail: vijaya.sekhar@idbi.co.in

Nature of instrument creating charge

Deed of Hypothecation dated March 29, 2012 creating First Pari passu charge on standard assets portfolio of receivables with assets cover of 1.25 times

Date of instrument Creating the charge

29.03.2012

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

At the rate of BBR plus 125 bps fully floating payable on first day of each month falling after the date of first disbursement of the financial assistance.

 

Terms of Repayment

On demand

 

Margin

25%, as per the sanction letter as may be modified from time to time.

 

Extent and Operation of the charge

The charge would be First Pari passu charge on standard assets portfolio of receivables of the company both present and future with an asset coverage of 1.25 times to secure the due repayment of working capital facilities of Rs.500.000 Millions together with interest and other costs.

 

Others

Other terms and condition as per Deed of Hypothecation dated March 29, 2012 executed in favor of IDBI Bank Limited and sanction letter dated February 3, 2012

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

Company's Current Assets in the form of receivables, book-debts, bills whether documentary or clean, outstanding monies receivables, both present and future.

 

 

FIXED ASSETS:

 

·         Tangible Assets

·         Leasehold Improvement

·         Furniture and Fixture

·         Vehicles – Cars

·         Office Equipments

·         Computers

 

Intangible Assets

·         Computer Software

 

 

AS PER WEBSITE DETAILS:

 

Press release

 

FEDBANK DEPLOYS IBM SOLN FOR BUSINESS GROWTH

 

Wednesday, July 27,2011

 

BANGALORE, INDIA: IBM on Wednesday announced that FEDBANK Financial Services Limited, a wholly-owned subsidiary of The Federal Bank Limited, has selected IBM Power systems to run its business critical loan origination application.

 

FEDBANK has selected IBM Power Systems over Oracle and HP because of the IBM platform’s ease of management, cost-effectiveness and price-performance ratio, it claimed in a press release.

 

According to FEDBANK, the company’s plans for the rapid growth of its Gold Loans, Mortgage Loans and Car Loans were being impacted by the existing manual loan processes which hindered performance. As a result, FEDBANK set out to implement a faster, accurate and more efficient system for their internal processes to enable the desired business growth.

 

“As a company, FEDBANK has been committed to transform itself into a leader amongst our peer group of Non Banking Financial Corporations. Investment in technology plays an important role in this transformation - helping improve speed and time to market, increasing the visibility of information, growing our client base and providing the highest level of service to our end users, said Shome Sengupta, MD and CEO of FEDBANK.

 

He added that IBM’s vast experience of working with leading banks across the globe and in India will bring significant help to the bank.

 

The average number of loans booked today by FEDBANK is 275 per day; these are expected to reach 5000 per day by 2013. In addition, FEDBANK expects to grow the current number of 92 branches to 1250 branches by 2013.

 

To address this aggressive business growth, IBM is delivering a solution comprising the software application ‘FinnOne’, from ISV Nucleus software, to handle loan origination, loan services and delinquency/collection management and IBM’s Power Systems hardware to run the application.

 

“IBM is pleased to further extend our engagement with FEDBANK with this recent implementation,” said Viswanath Ramaswamy, VP – Power Systems, Systems and Technology Group, IBM India/South Asia.

 

“IBM Power Systems clearly offer clients an unmatched value proposition, in addition to a robust technology roadmap. The FEDBANK solution is a perfect example of companies turning to IBM's Power Systems to improve efficiencies, cut costs and better manage their operations while planning for growth,” he added.

 

 

FEDERAL BANK TO INFUSE RS 250 MLN IN ARM FEDBANK FINANCIAL SERVICES

 

December 17 2010 4:56PM

 

MUMBAI, DEC 17 (TickerNews Service): Federal Bank Limited Friday said its board has approved infusion of Rs 250 million fresh capital in wholly-owned subsidiary, Fedbank Financial Services Limited.

 

Thursday, the Federal Bank stock ended at Rs 402.80 on National Stock Exchange, down 0.8% from Wednesday. Friday, the local stock exchanges are closed on account of Muharram. (End)


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 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 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 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.55.34

UK Pound

1

Rs.88.30

Euro

1

Rs.71.37

 

 

INFORMATION DETAILS

 

Information Gathered by :

PJA

 

 

Report Prepared by :

VRN

 


 

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

NO

--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.