|
Report Date : |
24.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KOTAK MAHINDRA (UK) LIMITED |
|
|
|
|
Office : |
36-38A, 3rd Floor, Nariman Bhavan, 227, Nariman Point,
Mumbai-400021, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
Not Available |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.70.078
Millions |
|
|
|
|
Legal Form : |
Foreign Registered Company |
|
|
|
|
Line of Business
: |
The company’s primary focus is investment management, broker and
corporate finance. |
|
|
|
|
No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4056000 |
|
|
|
|
Status : |
Foreign Registered Company |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a foreign registered company having satisfactory track
record. Company has incurred loss from its operation in 2013. However
networth of the company appears to strong. Trade relations are fair. Business is active. Payment terms are
usually correct. In view of strong holding, the company can be considered for business
dealing at usual trade terms and condition. |
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 co-operative. [91-22-66341110]
LOCATIONS
|
Office : |
36-38A, 3rd Floor, Nariman Bhavan, 227, Nariman Point,
Mumbai-400021, Maharashtra |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
|
|
|
UK Office : |
8th Floor, Portsoken House, 155-157, Minories London EC3N 1LS,
United Kingdom |
|
Tel. No.: |
+44-20-79776900 |
|
Fax No.: |
Not Available |
|
|
|
|
Branch Office : |
Located At: ·
Dubai ·
Singapore |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Varadarajan Viswanathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gaurang Shah |
|
Designation : |
Director |
|
Date of Appointment : |
04.07.2012 |
|
|
|
|
Name : |
Mr. Abhishek Bhalotia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. Jayaram |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Hasan Askari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ruchit Puri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Gijo Joseph |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
|
NUMBER |
% OF HOLDING |
|
Kotak Mahindra Bank Limited, holding company |
489200 |
51.00 |
|
Kotak Mahindra
(International) Limited, subsidiary of Kotak Mahindra Bank Limited |
470000 |
49.00 |
|
TOTAL |
959200 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company’s primary focus is investment management, broker and
corporate finance. |
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V.C. Shah and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Holding Company : |
·
Kotak Mahindra
Bank Limited Address: 36-38A, Nariman
Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra, India |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
£ 1 each |
£ 1000000 |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
959200 |
Equity Shares |
£ 1 each |
Rs.70.078
Millions |
NOTES:
EQUITY SHARES
|
RECONCILIATION OF EQUITY SHARE CAPITAL |
AS ON 31.03.2013 |
|
|
|
QUANTITY |
RS. IN MILLIONS |
|
Share capital outstanding at the beginning of the year |
959200 |
70.078 |
|
Issued during the period |
-- |
-- |
|
Share capital outstanding at the end of the year |
959200 |
70.078 |
TERMS/RIGHTS ATTACHED TO EQUITY SHARES
The Company has
only one class of equity shares having a par value of £ 1 per share. Each
holder of equity shares is entitled to one vote per share.
Each shareholder
is entitled to receive dividend as may be approved by Board/ Annual General
Meeting. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.
SHARES HELD BY HOLDING/ULTIMATE HOLDING COMPANY AND/OR THEIR
SUBSIDIARIES/ASSOCIATES
Out of equity shares issued by the company, shares held by its holding
company, ultimate holding company and their subsidiaries/ associates are as
below:
|
NUMBER OF EQUITY SHARE |
AS ON 31.03.2013 |
|
Kotak Mahindra Bank Limited, the holding company |
489200 |
|
Kotak Mahindra (International) Limited, subsidiary of Kotak Mahindra
Bank Limited |
470000 |
DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY
EQUITY SHARES OF £ 1 FULLY PAID UP
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
|
NUMBER |
% OF HOLDING |
|
Kotak Mahindra Bank Limited, holding company |
489200 |
51.00 % |
|
Kotak Mahindra
(International) Limited, subsidiary of Kotak Mahindra Bank Limited |
470000 |
49.00 % |
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 |
70.078 |
70.078 |
70.078 |
|
(b) Reserves & Surplus |
944.138 |
1007.112 |
885.505 |
|
(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) |
1014.216 |
1077.190 |
955.583 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
4.125 |
4.072 |
3.574 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
15.584 |
11.347 |
2.253 |
|
Total Non-current
Liabilities (3) |
19.709 |
15.419 |
5.827 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b)
Trade payables |
1114.865 |
598.518 |
1595.830 |
|
(c) Other
current liabilities |
24.531 |
10.533 |
19.976 |
|
(d) Short-term
provisions |
44.851 |
31.444 |
23.311 |
|
Total Current
Liabilities (4) |
1184.247 |
640.495 |
1639.117 |
|
|
|
|
|
|
TOTAL |
2218.172 |
1733.104 |
2600.527 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
23.213 |
21.695 |
16.111 |
|
(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 |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax
assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
11.459 |
21.469 |
16.275 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
34.672 |
43.164 |
32.386 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
0.000 |
0.000 |
0.000 |
|
(c)
Trade receivables |
699.459 |
515.802 |
1152.790 |
|
(d) Cash
and cash equivalents |
1447.152 |
1138.793 |
1395.337 |
|
(e)
Short-term loans and advances |
34.413 |
32.055 |
18.705 |
|
(f) Other
current assets |
2.476 |
3.290 |
1.309 |
|
Total
Current Assets |
2183.500 |
1689.940 |
2568.141 |
|
|
|
|
|
|
TOTAL |
2218.172 |
1733.104 |
2600.527 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Service Income |
658.046 |
712.693 |
630.291 |
|
|
|
Interest Income |
16.117 |
14.690 |
26.154 |
|
|
|
Other Income |
0.692 |
2.783 |
9.856 |
|
|
|
TOTAL (A) |
674.855 |
730.166 |
666.301 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Cost |
540.650 |
466.481 |
367.033 |
|
|
|
Other Expenses |
251.244 |
267.300 |
160.956 |
|
|
|
TOTAL (B) |
791.894 |
733.781 |
527.989 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(117.039) |
(3.615) |
138.312 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.829 |
1.531 |
1.772 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(118.868) |
(5.146) |
136.540 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.579 |
10.056 |
7.984 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(135.447) |
(15.202) |
128.556 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
(3.020) |
36.702 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(135.447) |
(12.182) |
91.854 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(141.21) |
(12.70) |
95.76 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(20.07)
|
(1.67) |
13.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(20.09)
|
(2.09) |
19.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.11)
|
(0.87) |
4.94 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.13)
|
(0.01) |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84
|
2.64 |
1.57 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF CURRENT MATURITIES OF LONG TERM
DEBT: NOT AVAILABLE
|
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
|
Unsecured Loan |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|
Long Term
Borrowings |
|
|
|
Loans From Fellow Subsidiary |
4.125 |
4.072 |
|
TOTAL
|
4.125 |
4.072 |
|
NOTES: The long term borrowing
represents a long term subordinated loan of Rs.4.125 millions (Previous Year
Rs.4.072 millions) form the fellow subsidiary company, Kotak Mahindra
(International) Limited. The loan is unsecured interest-free and constitutes
regulatory capital as approved by the Regulatory Authority – FSA. It is
repayable upon giving or receiving two years notice to or from the fellow
subsidiary company. No such notice had been given or received as at 31st
March, 2013. |
||
PRINCIPAL ACTIVITY AND BUSINESS REVIEW:
The Company’s
primary focus is investment management, broker dealing and corporate finance.
As a broker dealer the Company arranges deals in bonds as well as in depository
receipts. The Company is authorized and regulated by the Financial Services
Authority (“FSA”). The Company has two branches – Dubai (regulated by the Dubai
Financial Services Authority) and Singapore (regulated by the Monetary
Authority of Singapore).
The financial year
2012-13 was a challenging year for the Indian economy as a whole with various
macro-economic concerns like GDP growth, fiscal and the current account deficit
and the overall political scenario. Despite these, the benchmark index, Nifty
reported marginal gains of approximate 1% in US Dollar terms.
India dedicated
equity funds witnessed outflows during the year reflecting investor’s
preference for diversified country exposures. In this difficult environment,
the Company focused on providing access solutions to India (through its sub-accounts),
discretionary debt and fixed income trading opportunities.
The limits for
Foreign Institutional Investors (“FII”) in Indian debt have been progressively
increased and the Company has capitalized on this to raise Rs. 24808.000
millions in newly launched debt-oriented funds (net inflow was Rs.5157.000
millions after considering redemptions of Fixed Maturity Plans to the tune of
Rs.19651.000 millions). In March 2013, The Company also completed the first
closing of Rs. 4831.000 millions into a fund investing into infrastructure
opportunities located in India.
The expanded
strong network of market counterparties and clients also helped in growing the
fixed income trading business. The assets managed/ advised by the Company
closed the year at Rs. 98147.000 millions (2012: Rs.79111.000 millions).
FUTURE OUTLOOK:
India’s Finance
Minister was changed during the year, post which the much needed growth
momentum has picked up. Several macro-economic variables are likely to show
gradual improvement during the financial year 2013-14. This will likely be
driven by easing monetary policy, tighter focus on fiscal deficit, improvement
in India’s high current account deficit and a mild economic recovery. The
recent correction in gold and oil prices augurs well for India. Indian
political scenario is also likely to be watched very closely as the General
Elections are currently scheduled for mid-2014.
During the year,
the company re-aligned its sales force, improved its sales processes, sharpened
its focus on key market segments and laid emphasis on building a high quality
customer base to enhance sales productivity. The Company expects the benefits
of these initiatives to pay off in the coming years. The company is reasonably
positioned to meet the challenges ahead and capitalize on a market upturn.
FINANCIAL RESULTS:
The loss on
ordinary activities after taxation for the year ended 31 March 2013 was
Rs.135.446 Millions (2012: Rs. 12.181 Millions).
CONTINGENCIES LIABILITIES:
During the year the
Company’s banker have issued a guarantee for Rs.87.440 Millions
(Previous year Rs. 80.955 Millions) in favour of the Monetary
Authority of Singapore. No loss is expected on this guarantee at the Balance
Sheet date.
FIXED ASSETS:
·
Computer and Software
·
Furniture and Fixture
·
Motor Vehicles
·
Office Equipment
·
Leasehold Improvements
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.61.99 |
|
|
1 |
Rs.101.37 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
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.