MIRA INFORM REPORT
|
Report Date : |
05.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
VOLVO BUSES INDIA PRIVATE LIMITED (w.e.f.30.05.2008) |
|
|
|
|
Formerly Known
As : |
VOLVO BUS BODY TECHNOLOGY INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Yalachahally, Tavarekere Post, Hosakote Taluka, Bangalore - 562122,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
28.11.2006 |
|
|
|
|
Com. Reg. No.: |
08-041071 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.388.600 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U34201KA2006FTC041071 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCV3912F |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer
of Luxury Buses,
Trucks and Construction Equipment. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 100000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of ‘Volvo Bus Corporation, Sweden’. It is an
established company having a moderate track record. The management has failed to file its financials with the government
department for the year 2012. As per previous year’s record, there appeared huge accumulated losses
recorded by the company. It has incurred loss from its operation from past
years. However, trade relations are reported as fair. Business is active.
Payment terms are slow. The company can be considered for business dealings with great
caution. |
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
LOCATIONS
|
Registered Office/ Service Workshop : : |
Yalachahally, Tavarekere Post, Hosakote Taluka, Bangalore - 562122,
Karnataka, India |
|
Tel. No.: |
91-80-67121200/ 7965251 – 60 / 7965204 |
|
Fax No.: |
91-80-67121222/ 7965204 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on: 14.09.2011
|
Name : |
Mr. Akash Passey |
|
Designation : |
Managing Director |
|
Address : |
Tjadergatan 27, Vastra Frolunda, Gothenburg - 42669, Sweden |
|
Date of Birth/Age : |
26.11.1967 |
|
Date of Appointment : |
28.11.2006 |
|
DIN No.: |
01198068 |
|
|
|
|
Name : |
Fredrik Bertil Howing |
|
Designation : |
Director |
|
Address : |
Hammarvagen 292, Gothenburg
42165, Sweden |
|
Date of Birth/Age : |
28.10.1966 |
|
Date of Appointment : |
12.07.2012 |
|
DIN No.: |
06390776 |
|
|
|
|
Name : |
Mr. Manish Sahi |
|
Designation : |
Managing Director |
|
Address : |
17097, Prestige Shantiniketan, Near ITPL Whitefield Road, Bangalore – 560048, Karnataka, India |
|
Date of Birth/Age : |
16.02.1971 |
|
Date of Appointment : |
15.03.2012 |
|
DIN No.: |
06380150 |
KEY EXECUTIVES
|
Name : |
Mr. Kempalingaiah Ramamurthy |
|
Designation : |
Secretary |
|
Address : |
No.132, Studio Udayaravi Kalappa Block, Bangalore - 560050, Karnataka,
India |
|
Date of Birth/Age : |
01.10.1968 |
|
Date of Appointment : |
18.09.2007 |
|
Pan No.: |
AGKPR7188Q |
|
|
|
|
Name : |
Gierc Ewa |
|
Designation : |
Chief Financial Officer |
|
Date of Birth/Age : |
40 Years |
|
Qualification : |
Degree in Economics |
|
Experience : |
18 Years |
|
Date of Appointment : |
03.11.2008 |
|
|
|
|
Name : |
Helmut Schwartz |
|
Designation : |
Head - Industry |
|
Date of Birth/Age : |
51 Years |
|
Qualification : |
Engineer |
|
Experience : |
26 Years |
|
Date of Appointment : |
01.08.2009 |
|
|
|
|
Name : |
Clarence D’Souza |
|
Designation : |
Head - HR |
|
Date of Birth/Age : |
45 Years |
|
Qualification : |
MSW |
|
Experience : |
21 Years |
|
Date of Appointment : |
01.08.2009 |
|
|
|
|
Name : |
Gert Karlsson |
|
Designation : |
Executive Manager |
|
Date of Birth/Age : |
59 Years |
|
Qualification : |
Engineer |
|
Experience : |
33 |
|
Date of Appointment : |
06.08.2009 |
|
|
|
|
Name : |
Stefan Lindberg |
|
Designation : |
Manager |
|
Date of Birth/Age : |
Head - Aftermarket |
|
Qualification : |
Engineer |
|
Experience : |
24 Years |
|
Date of Appointment : |
01.09.2009 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 14.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
Volvo Bus Corporation, Sweden |
|
38859999 |
|
Volvo Holding Corporation, Sweden |
|
1 |
|
|
|
|
|
Total |
|
38860000 |
Equity Share Break up (Percentage of Total Equity)
As on: 14.09.2011
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Luxury Buses,
Trucks and Construction Equipment. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
31.03.2011 |
|
Installed
Capacity |
Nos. |
1000 |
|
|
|
|
|
Actual
Production |
Nos. |
569 |
NOTES:
i)
The Company is exempt from the licensing provisions
of the Industries (Development and Regulation) Act, 1951
ii)
The Installed Capacity is based on single shift working
and has been certified by the Company’s management and relied upon by the
auditors, this being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||
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|
||||||||||||
|
Bankers : |
HSBC Limited, MG Road, Bangalore - 560001, Karnataka, India |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountant |
|
Address : |
Bangalore, Karnataka, India |
|
PAN No.: |
AADFP9359C |
|
|
|
|
Parties having substantial interest in the Company : |
Jaico Automobile
Engineering Company Private Limited (Jaico) – up to Nov 25, 2010 |
|
|
|
|
Ultimate Holding Company : |
AB Volvo, Sweden
(ABV) |
|
|
|
|
Holding Company : |
Volvo Bus Corporation,
Sweden (VBC) |
|
|
|
|
Fellow Subsidiaries : |
|
CAPITAL STRUCTURE
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38860000 |
Equity Shares |
Rs.10/- each |
Rs.388.600
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
388.600 |
388.600 |
388.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(361.790) |
(252.270) |
(109.575) |
|
|
NETWORTH |
26.810 |
136.330 |
279.025 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3.652 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
8.856 |
8.839 |
29.120 |
|
|
TOTAL BORROWING |
12.508 |
8.839 |
29.120 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39.318 |
145.169 |
308.145 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
354.019 |
358.182 |
373.670 |
|
|
Capital work-in-progress |
16.348 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
791.245
|
439.359 |
315.660 |
|
|
Sundry Debtors |
445.627
|
577.643 |
225.742 |
|
|
Cash & Bank Balances |
203.046
|
27.942 |
0.246 |
|
|
Other Current Assets |
22.048
|
21.546 |
15.548 |
|
|
Loans & Advances |
13.027
|
7.183 |
15.158 |
|
Total
Current Assets |
1474.993
|
1073.673 |
572.354 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1115.203
|
664.986 |
491.782 |
|
|
Other Current Liabilities |
575.176
|
442.898 |
116.001 |
|
|
Provisions |
115.663
|
178.802 |
30.096 |
|
Total
Current Liabilities |
1806.042
|
1286.686 |
637.879 |
|
|
Net Current Assets |
(331.049)
|
(213.013) |
(65.525) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
39.318 |
145.169 |
308.145 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Services |
4248.640 |
4190.133 |
3007.093 |
|
|
|
Other Income |
8.880 |
6.237 |
5.556 |
|
|
|
TOTAL |
4257.520 |
4196.370 |
3012.649 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
|
3332.221 |
2554.337 |
|
|
|
Manufacturing and Other Expenses |
|
962.695 |
487.099 |
|
|
|
TOTAL |
4397.620 |
4294.916 |
3041.436 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
(140.100) |
(98.546) |
(28.787) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
11.129 |
8.711 |
|
|
|
|
[Including
Financial Expenses and
Depreciation] |
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
(109.675) |
(37.498) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
33.020 |
29.847 |
|
|
|
|
|
|
|
|
|
Add |
PRIOR PERIOD
ITEMS |
72.080 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
(109.410) |
(142.695) |
(67.345) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(0.110) |
0.000 |
2.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS) AFTER
TAX |
(109.520) |
(142.695) |
(69.488) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(252.270) |
(109.575) |
(40.087) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
(252.270) |
(109.575) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
139.989 |
17.702 |
|
|
|
TOTAL EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
58.423 |
105.680 |
108.146 |
|
|
|
Capital Goods |
0.050 |
0.007 |
0.216 |
|
|
TOTAL IMPORTS |
58.473 |
105.687 |
108.362 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(2.82) |
(3.67) |
(1.79) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(2.57)
|
(3.40) |
(2.31) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.58)
|
(3.41) |
(2.24) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.98)
|
(9.97) |
(7.12) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(4.08)
|
(1.05) |
(0.24) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.47
|
0.06 |
0.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.82
|
0.83 |
0.90 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
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 |
No |
|
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 |
No |
|
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 |
Unsecured Loan
(Rs. In Millions)
|
Particular |
As
on 31.03.2011 |
As
on 31.03.2010 |
|
RUPEE TERM LOANS
UNSECURED |
|
|
|
Rupee term loans banks unsecured |
8.856 |
8.839 |
|
|
|
|
|
Total |
8.856 |
8.839 |
FINANCIAL RESULTS AND APPROPRIATIONS
There was marginal
improvement in the revenues generated by the company, an increase of 1.4% as
compared to the period ended 31st March 2010. However, the operation
of the Company has resulted in a pretax loss of 109.41 MINR. While the Company
had better operational results the losses are mainly attributed to lost
production due to adverse industrial relations situation. As the Company is
stabilizing its operations and increased the product range, the Directors are
confident of profitable operations in the near future.
PRODUCTION PERFORMANCE
The period the
company witnessed adverse industrial relations situation and significant amount
of productive hours was lost in handling the issues. The company had to undergo
slow rate of production, a strike for 22 days and stage managed petty issues in
the shop floor targeted to reduce the output to pressurize the management.
Inspite of the adverse conditions the Company managed to run the production
program to a reasonably good extent and achieved an output of 569 units as
against 591 units in the previous reporting period. The Directors place on
record sincere appreciation for the Management team for handling the situation.
CONTINGENT LIABILITIES:
(Rs. In Millions)
|
Particulars |
As on 31.03.2011 |
As on 31.03.2010 |
|
i) Bank Guarantees |
139.742 |
108.795 |
|
ii) Sales Tax
matters under dispute |
4.181 |
-- |
Note:
The Company has
paid Rs. 2.091 Millions under protest subsequent to the year end.
FIXED ASSETS
- Building
- Plant and Machinery
- Computer systems
- Office Equipments
- Furniture and Fixtures
- Motor Vehicles
- Computer Software
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 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 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.54.65 |
|
|
1 |
Rs.82.41 |
|
Euro |
1 |
Rs.70.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
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.