|
Report Date : |
23.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK INVESTMENT ADVISORS LIMITED |
|
|
|
|
Registered
Office : |
27 BKC, 7th
Floor, Plot No. C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
31.03.1994 |
|
|
|
|
Com. Reg. No.: |
11-077472 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 45.920
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U65990MH1994PLC077472 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMK11171G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACK5933H |
|
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|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Providing Investment Management/Advisory Services to Private Equity/ Venture Capital and also provides Non-Binding Advisory Services. |
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|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 8900000 |
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|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Kotak Group Company. It is well established and reputed company having fine track record. There appears some dip in the turnover and profitability of the
company during current year. However, networth of the company is strong. The
company receives good support from its group company. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment.
The company can be considered good for any normal 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.
INDIAN ECONOMIC OVERVIEW
Uptick in
agriculture and construction spread some cheer as the economy grew a
higher-than-expected 4.8 % in the three months through September. Manufacturing
rose an annual rate per cent during the quarter and mining fell by 0.4 %,
government data showed while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the time
taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of Investigation
has booked State Bank of India, Deputy Managing Director Shyamal Acharya and
others in a graft case related to distribution of a loan of over Rs 4000 mn.
Gold and jewellery worth Rs 6.7 mn have been recovered from the residence
of Acharya.
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
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-22-66260500)
LOCATIONS
|
Registered Office : |
27 BKC, 7th
Floor, Plot No. C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, Maharashtra, India |
|
Tel. No.: |
91-22-43360000/ 66529191/ 66260500 |
|
Fax No.: |
91-22-67132430 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Nitin Deshmukh |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. S Sriniwasan |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. C. Jayaram |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jaimin Bhatt |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Shanti Ekambaram |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Deepak Mukhija |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Naozad Sirwalla |
|
Designation : |
Chief Operating Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Names of Shareholders |
|
No. of Shares |
|
Kotak Mahindra Bank Limited |
|
2341930 |
|
Kotak Mahindra Capital Company Limited (60 Shares are held jointly with its nominees) |
|
2250070 |
|
|
|
|
|
Total |
|
4592000 |
BUSINESS DETAILS
|
Line of Business : |
Providing Investment Management/Advisory Services to Private Equity/ Venture Capital and also provides Non-Binding Advisory Services. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAEFP3641G |
|
|
|
|
Holding Company : |
· Kotak Mahindra Bank Limited (holds 51% of the equity share capital) Effective October 15, 2007, Uday S. Kotak
along with relatives and entities controlled by him ceased to hold more than
50% of the equity share capital of Kotak Mahindra Bank Limited. Uday S. Kotak
along with relatives and entities controlled by him holds 44.96% of the
equity share capital of Kotak Mahindra Bank Limited as on March 31, 2013. Kotak Mahindra Capital Company Limited (holds 49% of the equity share capital) |
|
|
|
|
Fellow Subsidiaries
: |
· Kotak Mahindra Capital Company Limited Kotak Securities Limited Kotak Mahindra Asset Management Company Limited Kotak Mahindra Prime Limited Kotak Mahindra Investments Limited Kotak Mahindra (International) Limited Kotak Mahindra (UK) Limited Kotak Mahindra Old Mutual Life Insurance Company Limited
(Kotak Life) |
|
|
|
|
Funds managed by
the Company : |
· Kotak SEAF India Fund and it’s scheme - India Growth Fund Kotak Mahindra Realty Fund and it’s schemes Kotak India Real Estate Fund – I Kotak India Real Estate Fund - IV Kotak India Real Estate Fund – V Kotak Alternate Opportunities (India) Fund Kotak Employees Investment Trust Kotak India Venture Fund I Kotak India Growth Fund II |
|
|
|
|
Mutual Fund managed
by the fellow
Subsidiaries : |
Kotak Mahindra Mutual Fund managed by Kotak Mahindra Asset Management Company Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4,592,000 |
Equity Shares |
Rs. 10/- each |
Rs. 45.920
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
45.920 |
45.920 |
45.920 |
|
(b) Reserves & Surplus |
2182.879 |
1876.132 |
1514.853 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2228.799 |
1922.052 |
1560.773 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
9.581 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
19.591 |
17.475 |
22.296 |
|
Total Non-current
Liabilities (3) |
19.591 |
27.056 |
22.296 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
5.104 |
10.051 |
41.551 |
|
(c)
Other current liabilities |
36.204 |
450.128 |
13.889 |
|
(d) Short-term
provisions |
5.790 |
5.269 |
12.279 |
|
Total Current
Liabilities (4) |
47.098 |
465.448 |
67.719 |
|
|
|
|
|
|
TOTAL |
2295.488 |
2414.556 |
1650.788 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
11.884 |
10.867 |
10.851 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1664.116 |
1239.459 |
1354.393 |
|
(c) Deferred tax assets (net) |
11.343 |
0.000 |
10.853 |
|
(d) Long-term Loan and Advances |
35.130 |
40.654 |
18.321 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
1722.473 |
1290.980 |
1394.418 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
462.110 |
915.814 |
100.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c)
Trade receivables |
5.378 |
0.850 |
13.194 |
|
(d) Cash
and cash equivalents |
71.146 |
108.923 |
79.848 |
|
(e)
Short-term loans and advances |
12.754 |
14.671 |
9.374 |
|
(f)
Other current assets |
21.627 |
83.318 |
53.954 |
|
Total
Current Assets |
573.015 |
1123.576 |
256.370 |
|
|
|
|
|
|
TOTAL |
2295.488 |
2414.556 |
1650.788 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
688.391 |
817.649 |
856.886 |
|
|
|
Other Income |
161.623 |
150.972 |
110.604 |
|
|
|
TOTAL (A) |
850.014 |
968.621 |
967.490 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Benefit Expenses |
280.559 |
275.515 |
263.127 |
|
|
|
Other expenses |
101.520 |
126.551 |
199.195 |
|
|
|
TOTAL (B) |
382.079 |
402.066 |
462.322 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
467.935 |
566.555 |
505.168 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
29.867 |
38.850 |
6.514 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
438.068 |
527.705 |
498.654 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5.276 |
5.578 |
6.430 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
432.792 |
522.127 |
492.224 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
126.045 |
160.848 |
165.083 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
306.747 |
361.279 |
327.141 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
66.80 |
78.68 |
71.24 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
36.09
|
37.30 |
33.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
62.87
|
63.86 |
57.44 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
69.80
|
44.43 |
172.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.27 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
12.17
|
2.41 |
3.79 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG TERM DEBT
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
|
|
|
|
|
Current Maturities of Long Term Borrowings * |
0.000 |
400.000 |
0.000 |
|
|
|
|
|
|
Note: * Term loan from
L&T Finance Limited amounting Rs. Nil (Previous Year Rs.400.000 Millions)
was taken on 28th April 2011 and was secured against non-convertible
debentures of Kotak Mahindra Prime Limited, having a face value of Rs.500.000
Millions. |
|||
|
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 |
No |
|
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 |
No |
|
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 |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
BACKGROUND
Subject is a public company domiciled in India and incorporated
under the provisions of the Companies Act, 1956. The Company acts as the investment
manager to seven domestic venture capital and private equity operating in the
alternate assets domain and also provides non-binding advisory services to
offshore funds managed by Kotak Group’s international subsidiaries.
OPERATIONS
The Company acts as investment manager for domestic venture capital and
private equity funds operating in the alternate assets domain, the aggregate
corpus of which as on 31st March 2013, is Rs. 30590.000 Millions.
During the year ended 31st March 2013, certain funds managed by the Company
made distributions to investors aggregating to Rs. 3473.600 Millions comprising
of income and divestment proceeds.
The Company also provides non-binding advisory services to offshore
funds managed by Kotak Group’s international subsidiaries.
Fee income from the business of investment management/advisory was Rs.
688.400 Millions for the year ended 31st March 2013 as compared to Rs. 817.700
Millions for the previous year. The earnings per share of the Company were Rs.
66.80 per share for the year ended 31st March 2013 as compared to Rs. 78.68 per
share during the previous year.
CONTINGENT
LIABILITIES (AS ON 31.03.2013):
a) The Company has
the following contingent liabilities:
i) Calls on 4,000
partly paid units of Kotak India Growth Fund II aggregating Rs.168.000 Millions
(Previous year Rs.186.000 Millions),
ii) Calls on
7,000,000 partly paid units of SBI Macquarie Infrastructure Trust aggregating
Rs.33.548 Millions (Previous year Rs.45.174 Millions)
iii) Calls on 10,000
partly paid units of LICHFL Urban Development Fund aggregating Rs.80.000
Millions (Previous year Rs.80.000 Millions)
iv) Amount
aggregating to Rs. Nil (previous year Rs.139.800 Millions) (Face value Rs.1000
p.u.) towards drawdowns of Kotak India Real Estate Fund IV Class A units
b) The Company is
contingently liable in respect of future investment commitment to S. H.
Mangalam Realty Private Limited of Rs.1.430 Millions (Previous year Rs.1.430
Millions)
c) The Company is
contingently liable in respect of future investment commitment to Ravechi
Infrastructure Projects Private Limited of Rs. Nil (Previous year Rs.37.500).
d) The Company is
contingently liable in respect of future investment commitment to Mahindra
Aerospace Limited of Rs.8.424 Millions (Previous year Rs.12.670 Millions)
FIXED ASSETS:
· Vehicles
Computers
Software
Office
Equipments
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. 62.24 |
|
|
1 |
Rs. 101.81 |
|
Euro |
1 |
Rs. 84.88 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Report Prepared by
: |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
63 |
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.