MIRA INFORM REPORT

 

 

Report Date :

15.04.2013

 

IDENTIFICATION DETAILS

 

Name :

NEXT RETAIL INDIA LIMITED (w.e.f. 26.04.2007)

 

 

Formerly Known As :

E MART INDIA LIMITED

 

 

Registered Office :

Auto Cars Compound, Adalat Road, Aurangabad – 431 005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

04.12.2003

 

 

Com. Reg. No.:

11-143371

 

 

Capital Investment / Paid-up Capital :

Rs.1112.000 millions

 

 

CIN No.:

[Company Identification No.]

U51395MH2003PLC143371

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NSKE00404F

 

 

PAN No.:

[Permanent Account No.]

AABCE3142P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is primarily engaged in trading of Electrical and Electronic Appliances.

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 6427000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Videocon Group.

 

It is an established company having a moderate track record. The latest financials are not made available with the Government Department.

 

As per previous year’s, the profitability of the company appears to be low. The external borrowing seems to be huge.

 

However, the subject gets strong support from its group companies. Trade relations are reported to be fair. Business is active. Payments are unknown.

 

The company can be considered for business dealings with some caution.

 

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

 

 

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. Chaitanya

Designation :

Account Executive

Contact No.:

91-240-2342265

Date :

13.04.2013

 

 

LOCATIONS

 

Registered Office :

Auto Cars Compound, Adalat Road, Aurangabad – 431 005, Maharashtra, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

secretarial1@gmail.com

nextretailindia@rediffmail.com   

gopal.somari@next.co.in    

rkguptacs@yahoo.co.in

rajendra.surve@next.co.in

Website :

www.next.co.in

Area :

3500 sq ft

Location :

Owned

 

 

Mumbai - Head Office :

Techweb Centre, Ground Floor, Next to Raigad Military School, New Link Road, Beharam Bagh, Oshiwara, Jogeshwari (West), Mumbai – 400 102, Maharashtra, India.

Tel No.:

91-22-42553000

 

 

Branch Office 1 :

Shahanur Wadi Road, Pratap Nagar, Near Akshay Dental Hospital, Aurangabad – 431 005, Maharashtra, India

Tel. No.:

91-240-2342265

 

 

Branch Office :

Also located at:

 

·         Gurgaon

·         Lucknow

·         Ghaziabad

·         Chandigarh

·         Jaipur

·         Kolkata

·         Ranchi

·         Raipur

·         Indore

·         Nagpur

·         Pune

·         Nasik

·         Surat

·         Ahmedabad

·         Bangalore

·         Hyderabad

·         Vijayawada

·         Tirupati

·         Calicut

·         Cochin

·         Chennai

·         Madurai

 

 

DIRECTORS

 

As on 29.09.2012

 

Name :

Mr. Krishnamahari Soundrarajan Raman

Designation :

Director

Address :

67, Mysore Colony, RCF P.O., Chembur, Mumbai – 400 074, Maharashtra, India 

Date of Birth/Age :

17.07.1947

Date of Appointment :

06.11.2004

DIN :

00096768

 

 

Name :

Mr. Sanjay Jugalkishore Karwa

Designation :

Director

Address :

Flat No.39, Ahinsa Nagar, Aurangabad – 431 001, Maharashtra, India

Date of Birth/Age :

17.08.1967

Date of Appointment :

06.01.2012

DIN :

03602469

 

 

Name :

Mrs. Radhika Saurabh Dhoot

Designation :

Additional Director

Address :

House No.61, Sector 5, Chandigarh – 160 005, India

Date of Birth/Age :

27.01.1984

Date of Appointment :

06.01.2012

DIN :

00007727

 

 

KEY EXECUTIVES

 

Name :

Mr. Bipinchandra Madhav Joglekar

Designation :

Secretary

Address :

Plot No.39, Manas Building, Sudarshan Nagar, Chinchwad, Pune – 411 033, Maharashtra, India

Date of Birth/Age :

01.01.1987

Date of Appointment :

10.09.2012

PAN No.:

AMXPJ2768D

 

 

Name :

Mr. Chaitanya

Designation :

Account Executive

E-Mail:

chaitanya.khule@next.co.in

 

 

Name :

Mr. Sunil Mehta

Designation :

Chief Executive Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2012

 

Names of Shareholders

 

 

No. of Shares

Platinum Appliances Private Limited, India

 

36000

Synergy Appliances Private Limited, India

 

36000

Dome-bell Electronics India Private Limited, India

 

15036000

Videocon Industries Limited, India

 

21036000

Greenfield Appliances Private Limited, India

 

36000

Shree Dhoot Trading and Agencies Limited, India

 

15010000

Solitaire Appliances Private Limited, India

 

10000

Force Appliances Private Limited, India

 

15000000

Applicomp (India) Limited, India

 

15000000

Electroparts (India) Private Limited, India

 

10000000

TekCare India Private Limited, India

 

5000000

Waluj Components Private Limited, India

 

5000000

Anirudha V. Dhoot

 

2000000

Saurabh P. Dhoot

 

2000000

Venugopal N. Dhoot

 

2000000

Pradipkumar N. Dhoot

 

2000000

Rajkumar N. Dhoot

 

2000000

Total

 

111200000

 

As on 29.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

91.01

Directors or relatives of directors

 

1.80

Other top fifty shareholders

 

7.19

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is primarily engaged in trading of Electrical and Electronic Appliances.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management

 

 

Bankers :

·         IDBI Bank Limited, IDBI Tower WTC Complex, Cuffe Parade, Mumbai - 400 005, Maharashtra, India

·         Allahabad Bank, Industrial Finance Branch, 2nd Floor, 37, Mumbai Samachar Marg, Mumbai – 400 023, Maharashtra, India

·         ICICI Bank Limited, Bandra Kurla Complex, Mumbai, Maharashtra, India

 

 

Facilities :

Secured Loans

31.03.2011

(Rs. in Millions)

31.03.2010

(Rs. in Millions)

Working capital loans banks secured

(A) 3040.525

(B) 2348.852

Loans taken for fixed assets secured

0.000

0.215

Total

3040.525

2349.067

 

Notes:

 

(A) Working capital loan from banks and financial institutions are secured by hypothecation of stocks of packing materials, finished goods, stores, book debts and all other current assets of the Company, including stock-in-transit, on pari passu basis. These are further secured by second charge over the fixed assets of the Company ranking pari passu.

(B) Working capital loan from banks and financial institutions are secured by hypothecation of stocks of packing materials, finished goods, stores, book debts and all other current assets of the Company, including stock-in-transit, on pari passu basis. These are further secured by second charge over the fixed assets of the Company ranking pari passu.

 

 

 

Banking Relations :

--

 

 

Financial Institution :

SBICAP Trustee Company Limited, 202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

 

 

Auditors :

 

Name :

KSS and Company

Chartered Accountants

Address :

3801, Barde Lane, Navi Peth, Ahmedabad – 414 001, Maharashtra, India

PAN No:

AAIFK3397A

 

 

CAPITAL STRUCTURE

 

As on 29.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

125000000

Equity Shares

Rs.10/- each

Rs.1250.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

111200000

Equity Shares

Rs.10/- each

Rs.1112.000 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

1112.000

1112.000

1002.000

2] Share Application Money

0.000

0.000

1000.000

3] Reserves & Surplus

494.825

477.084

13.874

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1606.825

1589.084

2015.874

LOAN FUNDS

 

 

 

1] Secured Loans

3040.525

2349.067

2300.646

2] Unsecured Loans

3538.675

999.990

997.851

TOTAL BORROWING

6579.200

3349.057

3298.497

DEFERRED TAX LIABILITIES

20.482

9.652

12.718

 

 

 

 

TOTAL

8206.507

4947.793

5327.089

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

419.447

388.056

328.793

Capital work-in-progress

82.272

82.342

77.284

 

 

 

 

INVESTMENT

2.090

11.000

11.000

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

3939.265
3290.583
2969.982

 

Sundry Debtors

1709.101
1137.888
901.904

 

Cash & Bank Balances

1570.780
180.266
266.953

 

Other Current Assets

152.662
130.430
159.175

 

Loans & Advances

1792.508
858.790
1998.882

Total Current Assets

9164.316

5597.957

6296.896

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditor

1149.169
849.408
1238.906

 

Other Current Liabilities

305.805
277.251
144.668

 

Provisions

6.644
4.903
3.310

Total Current Liabilities

1461.618

1131.562

1386.884

Net Current Assets

7702.698

4466.395

4910.012

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

8206.507

4947.793

5327.089

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Operating revenue, net

12532.960

10925.823

8270.988

 

 

Other Income

58.783

14.267

157.959

 

 

TOTAL                                    

12591.743

10940.090

8428.947

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Consumption materials changes inventories

9956.749

9392.457

6965.676

 

 

Employee related expenses

343.318

280.864

284.168

 

 

Administrative selling other expenses

1591.831

855.146

878.651

 

 

TOTAL                        

11891.898

10528.467

8128.495

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION

699.845

411.623

300.452

 

 

 

 

 

Less

INTEREST FINANCIAL EXPENSES                   

628.581

350.572

248.998

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION

71.264

61.051

51.454

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION        

40.910

41.004

31.158

 

 

 

 

 

 

PROFIT BEFORE TAX

30.354

20.047

20.296

 

 

 

 

 

Less

TAX                                                     

12.613

(3.163)

18.640

 

 

 

 

 

 

PROFIT AFTER TAX

17.741

23.210

1.656

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

37.084

13.874

12.218

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

54.825

37.084

13.874

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.16

0.22

0.02

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)

0.14
0.21
0.02

 

 

 
 
 

Net Profit Margin

(PBT/Sales)

(%)

0.24
0.18
0.24

 

 

 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)

0.32
0.33
0.31

 

 

 
 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.02
0.01
0.01

 

 

 
 
 

Debt Equity Ratio

(Total Debt/Networth)

 

4.09
2.11
1.64

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

6.27
4.95
4.54

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

Sundry Creditors

 

 

 

- Creditors due small micro enterprises

--

--

--

- Creditors due others

1149.169
849.408
1238.906

Total

1149.169
849.408
1238.906

 

 

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

Yes

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

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

No

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

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 Loans

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Rupee term loans banks unsecured

3538.675

999.990

Total

3538.675

999.990

 

OPERATIONS:

 

During the year, the Company has earned a total income of Rs.12591.740 millions as against Rs.10940.090 millions for the previous year representing an increase of 15.10% as compared to the previous year. Total Expenditure amounted to Rs.12561.380 millions as against Rs.10920.040 millions and the Net Profit after Tax amounted to Rs.18.040 millions as against Rs.23.110 million for the previous year.

 

During the year, the Company has made a steady growth in the field of trading of Electrical and Electronic Appliances and there has been a considerable increase in the number of retail outlets of the Company throughout India.

 

During the year, Planet ‘M’ Retail Limited ceased to be the subsidiary of the Company.

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U51395MH2003PLC143371

Name of the company

NEXT RETAIL INDIA LIMITED

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

Auto Cars Compound, Adalat Road, Aurangabad -  431 005, Maharashtra, India

E-Mail: nextretailindia@rediffmail.com

This form is for

Creation of charge

Type of charge

Uncalled share capital

Immovable property

Any interest in immovable property

Book debts

Movable property (not being pledge)

Floating charge

Others (Onshore Trust and Retention Account, Current Assets)

Calls made but not paid

Goodwill

Patent, license under a patent

Trademark

Copyright or license under a copyright

Particular of charge holder

CIN No.: U65991MH2005PLC158386

SBICAP Trustee Company Limited, 202, Maker Tower, 'E', Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India

E-Mail: corporate@sbicaptrustee.com

Nature of instrument creating charge

Indenture of Mortgage dated March 20, 2013 executed by Next Retail India Limited (the Company) in favour of SBICAP Trustee Company Limited, the Onshore Security Trustee acting for and on behalf of all the Rupee Term Loan Lender Banks.

Date of instrument Creating the charge

20.03.2013

Amount secured by the charge

Rs.174720.000 millions

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

Margin: Nil

 

Extent and Operation of the charge: The Charge operates as inter alia, security for the due repayment, redemption and discharge of RTL Facility availed by the Company together with group Companies from the Lenders together with all interest, additional interest, default interest and any other amounts, fees, costs, charges, expenses and other monies due and payable to the Lender under various Financing Documents, more specifically described in Clause 5 and 6 of the Indenture of Mortgage.

 

Others:

As agreed to between the Company and all the Lender Banks from time to time.

Short particulars of the property charged

The PART of piece or parcel of 50.00 sq. mtrs. (Hissa No.2) out of Plot No. 20 total admeasuring 511.00 sq. mtrs. out of Survey No.121/4 situated at Chahurana Bk., Ahmednagar and all of Company's movables, plant and machinery, more particularly described in clause 5(a)(ii) of the Indenture of Mortgage; all rights, title, interest, benefit, claims and demands whatsoever in respect of Accounts, operating cash flows, receivable more particularly described in Clause 5(a) (iii) of the Indenture of Mortgage; all other assets of the Company, including cash in hand, investments made by Company, more particularly described in Clause 5 (a)(iv) of the Indenture of Mortgage; General Assets of the Company, more particularly described in Clause 5 (a)(v) of the Indenture of Mortgage.

 

FIXED ASSETS:

Tangible Assets:

·         Building

·         Electrical Installation

·         Computers

·         Furniture and Fixtures

·         Office Equipments

·         Vehicle

Intangible Assets:

·         Computer Software

 

WEBSITE DETAILS:

 

NEWS:

 

VIDEOCON TO SELL 40% IN NEXT RETAIL

 

MUMBAI, JUNE 27 2012

 

Television and electronic appliance maker Videocon Industries, which has interest in oil and natural gas, will sell a 40 per cent stake in its retail chain Next Retail India, a senior company official said.

 

“The company has appointed investment banker Morgan Stanely India to find a buyer,” Videocon Industries chairman Venugopal Dhoot said on Monday. “We are in talks with four retail chains from the US and Europe, which operate in the same segment.” He, however, refused to divulge names of buyers as the deal is still in the works.

 

Next Retail, set up in 2003 sells mobiles, television sets, cameras, washing machines, home and kitchen appliances through 730 stores in India. “We will sell a 40 per cent now and later sell an additional 11 per cent later,” Dhoot said.

 

In December 2011, the retail chain planned to sell a controlling stake in its retail chain to the $50-billion US electronic retail chain Best Buy, but talks failed as the world’s largest electronics retail chain got involved in a legal tussle over delayed shipments of HTC phones.

 

Consultants say margin from electronic retail chains is lower compared to food and grocery and apparel chains. “While gross margins in food and grocery are 18-20 per cent, in apparel 35-40 per cent and in luxury goods it is as high as 60 per cent, consumer durables and electronics give only 10-12 per cent margins”, said Arvind Singhal, chairman of Technopak Advisors.

 

 


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 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.54.44

UK Pound

1

Rs.83.77

Euro

1

Rs.71.33 

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

3

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

NO 

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

27

 

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.