MIRA
INFORM REPORT
|
Report Date : |
07.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE TRENDS LIMITED |
|
|
|
|
Registered
Office : |
3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai –
400002, Maharashtra, India |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
13.12.2006 |
|
|
|
|
Com. Reg. No.: |
11-166165 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.10.500
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U51909MH2006PLC166165 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR22188F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AADCR7079N |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company. |
|
|
|
|
Line of Business
: |
Manufacturer, Trader and Retailer of Apparel |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary of “Reliance Retail Limited”. It is an
established and reputed company having a moderate track record. There appears
some accumulated huge accumulated losses recorded by the company. It has
incurred loss during 2012. However trade relations are reported as fair.
Business is active. Payment terms are slow but correct. In view of strong promoters, the company can be considered normal for
business dealings with slight 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. Ranjit Patel |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-80-41499870 |
|
Date : |
06.03.2013 |
LOCATIONS
|
Registered Office : |
3rd Floor, Court House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai –
400002, Maharashtra, India |
|
Tel. No.: |
91-22-44770000 |
|
Fax No.: |
91-22-44771882 |
|
E-Mail : |
DIRECTORS
As on 04.08.2012
|
Name : |
Mr. Pankaj Mohan Pawar |
|
Designation : |
Director |
|
Address : |
302, Archana Saurabh, Plot No.20, Sector – 7, Koparkhairne, Navi
Mumbai – 400709, Maharashtra, India |
|
Date of Birth/Age : |
14.07.1972 |
|
Date of Appointment : |
24.03.2012 |
|
DIN No.: |
00085077 |
|
|
|
|
Name : |
Mr. Sriram Srinivasan |
|
Designation : |
Director |
|
Address : |
354, 6th Main I Block, Koramangala, Banglore – 560034,
Karnataka, India |
|
Date of Birth/Age : |
02.12.1955 |
|
Date of Appointment : |
13.04.2012 |
|
DIN No.: |
00473346 |
|
|
|
|
Name : |
Mr. Akhilesh Prasad |
|
Designation : |
Whole-time director |
|
Address : |
301, Brigade Regency #75, 8th main Road, Malleshwaram,
Bangalore – 560003, Karnataka, India |
|
Date of Birth/Age : |
23.10.1961 |
|
Date of Appointment : |
24.03.2012 |
|
DIN No.: |
01757265 |
KEY EXECUTIVES
|
Name : |
Mr. Ranjit Patel |
|
Designation : |
Accounts Department |
|
|
|
|
Name : |
Mr. Subhayu Basu |
|
Designation : |
Vice President |
|
|
|
|
Name : |
Mr. Sriram Srinivasan |
|
Designation : |
President |
|
|
|
|
Name : |
Mr. Vipin Tyagi |
|
Designation : |
Sr. Vice President |
|
|
|
|
Name : |
Mr. Jagdish Chawla |
|
Designation : |
Sr. Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 04.08.2012
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Sudhakar Saraswatula Jointly with Reliance Fresh Limited |
|
1 |
|
Madhavan Ganesan Jointly with Reliance Fresh Limited |
|
1 |
|
A Ramaswamy Jointly with Reliance Fresh Limited |
|
1 |
|
Rajendra Madhav Kamath Jointly with Reliance Fresh Limited |
|
1 |
|
Subramaniam Venkatachalam Jointly with Reliance Fresh Limited |
|
1 |
|
Sridhar Kothandaraman Jointly with Reliance Fresh Limited |
|
1 |
|
Reliance Fresh Limited |
|
1049994 |
|
Total |
|
1050000 |
Equity Share Break up (Percentage of Total Equity)
As on 04.08.2012
|
Category |
|
Percentage |
|
Bodies corporate |
|
100.00 |
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Trader and Retailer of Apparel |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
|||||||||||||||
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|
|||||||||||||||
|
Bankers : |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg,
Lower Parel West, Mumbai - 400013, Maharashtra, India |
|||||||||||||||
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|
|||||||||||||||
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Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Dhoundiyal Atma and Associates Chartered Accountants |
|
Address : |
B-11, 2nd Floor, Satyam, M G Road, Ghatkopar (East), Mumbai – 400077, Maharashtra, India |
|
Tel No.: |
91-22-21028309 / 91-22-21027884 (O) 91-22-28674595 (R) |
|
Mobile No.: |
91-9820328645 |
|
|
|
|
Ultimate Holding Company: |
· Reliance Industries Limited CIN No.: L17110MH1973PLC019786 |
|
|
|
|
Holding Company : |
· Reliance Retails Limited CIN No.: U17120MH1998PLC114010 |
|
|
|
|
Subsidiaries : |
· Reliance Footprint Limited (From 31st January, 2012) · Reliance Leisures Limited (From 31st January, 2012) ·
Reliance Universal Ventures Limited (From 31st
January, 2012) |
|
|
|
|
Fellow Subsidiaries : |
· Reliance Corporate IT Park Limited · Reliance Digital Media Limited · Reliance Fresh Limited · Reliance People Serve Limited · Reliance Supply Chain Solutions Limited · Reliance Digital Retail Limited · Strategic Manpower Solutions Limited · Reliance Autozone Limited · RESQ Limited · Reliance Brands Limited · Reliance Gems and Jewels Limited · Reliance Lifestyle Holdings Limited · Delight Proteins Limited · Reliance Office Solutions Private Limited · Indiawin Sports Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1050000 |
Equity Share |
Rs.10/- each |
Rs.10.500 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1050000 |
Equity Share |
Rs.10/- each |
Rs.10.500 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10.500 |
10.500 |
0.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(273.681) |
(160.148) |
(44.924) |
|
|
NETWORTH |
(263.181) |
(149.648) |
(44.424) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12.451 |
0.152 |
4.639 |
|
|
2] Unsecured Loans |
7758.731 |
2539.010 |
1651.752 |
|
|
TOTAL BORROWING |
7771.182 |
2539.162 |
1656.391 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7508.001 |
2389.514 |
1611.967 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2708.618 |
1524.174 |
683.741 |
|
|
Capital work-in-progress |
465.481 |
190.154 |
678.821 |
|
|
|
|
|
|
|
|
INVESTMENT |
21.598 |
0.098 |
0.098 |
|
|
DEFERREX TAX ASSETS |
124.876 |
73.779 |
19.165 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1681.856
|
951.388
|
637.190
|
|
|
Sundry Debtors |
20.184
|
32.637
|
53.153
|
|
|
Cash & Bank Balances |
44.454
|
6.435
|
4.812
|
|
|
Other Non-Current Assets |
0.000
|
0.002
|
0.000
|
|
|
Other Current Assets |
0.034
|
0.024
|
0.008
|
|
|
Loans & Advances |
3688.366
|
424.734
|
166.060
|
|
Total
Current Assets |
5434.894
|
1415.220
|
861.223
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
935.396
|
700.614
|
618.809
|
|
|
Other Current Liabilities |
291.155
|
98.494
|
0.000
|
|
|
Provisions |
20.915
|
14.803
|
12.276
|
|
Total
Current Liabilities |
1247.466
|
813.911
|
631.085
|
|
|
Net Current Assets |
4187.428
|
601.309
|
230.138
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.004 |
|
|
|
|
|
|
|
|
TOTAL |
7508.001 |
2389.514 |
1611.967 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
4890.027 |
3332.390 |
1841.993 |
|
|
|
|
Other Income |
0.043 |
2.150 |
10.499 |
|
|
|
|
TOTAL (A) |
4890.070 |
3334.540 |
1852.492 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Purchases of stock-in-trade |
3754.729 |
2469.363 |
|
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(730.421) |
(309.333) |
|
|
|
|
|
Employee benefit expense |
349.165 |
280.190 |
|
|
|
|
|
Other expenses |
1533.700 |
999.534 |
|
|
|
|
|
TOTAL (B) |
4907.173 |
3439.754 |
1831.777 |
|
|
|
|
|
|
|
||
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(17.103) |
(105.214) |
20.715 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
0.503 |
0.392 |
0.777 |
||
|
|
|
|
|
|
||
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(17.606) |
(105.606) |
19.938 |
||
|
|
|
|
|
|
||
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
147.023 |
64.232 |
41.123 |
||
|
|
|
|
|
|
||
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(164.629) |
(169.838) |
(21.185) |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
(51.096) |
(54.614) |
(7.301) |
||
|
|
|
|
|
|
||
|
|
PROFIT AFTER TAX
(G-H) (I) |
(113.533) |
(115.224) |
(13.884) |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(160.148) |
(44.924) |
(31.040) |
||
|
|
|
|
|
|
||
|
|
BALANCE CARRIED
TO THE B/S |
(273.681) |
(160.148) |
(44.924) |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Traded Goods |
1.099 |
8.818 |
9.245 |
|
|
|
TOTAL EARNINGS |
1.099 |
8.818 |
9.245 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Components and spare parts |
64.682 |
4.468 |
0.000 |
|
|
|
|
Capital Goods |
31.539 |
9.441 |
3.360 |
|
|
|
TOTAL IMPORTS |
96.221 |
13.909 |
3.360 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
(108.13) |
(455.90) |
(277.68) |
||
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(2.32)
|
(3.46)
|
(0.75) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.37)
|
(5.10)
|
(1.15) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.02)
|
(5.78)
|
(1.37) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.63
|
1.13
|
0.48 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(29.53)
|
(16.97)
|
(37.29) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.36
|
1.74
|
1.36 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS
OF SUNDRY CREDITORS
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Sundry Creditors |
935.396 |
700.614 |
618.809 |
|
|
935.396 |
700.614 |
618.809 |
|
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 |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
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 |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
|
UNSECURED LOAN |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
|
|
|
|
Loans and advances
from others (Represents loan from the holding company for a period of 5 years.) |
7758.731 |
2539.010 |
|
Total |
7758.731 |
2539.010 |
OPERATIONAL REVIEW
During the year the Company has achieved the distinction of becoming India’s largest fashion destination with 90 Reliance Trends stores in operation spread across 59 cities and 18 States. The significant milestone was achieved in just 4 years of its operations. The Company continuously strives to redefine and reinvent the fashion and lifestyle market with value-based products and services matched with innovative product ideas. Reliance Trends stores offer great quality products at most competitive prices in a well-designed ambience and shopping experience to its customers. The Company shall endeavor to achieve dominant share in the organized apparel retail market in India
BANKERS CHARGES
REPORT AS PER REGISTRY
|
Corporate
identity number of the company |
U51909MH2006PLC166165 |
|
Name of the
company |
RELIANCE TRENDS
LIMITED |
|
Address of the
registered office or of the principal place of business in |
3rd Floor, Court
House, Lokmanya Tilak Marg, Dhobi Talao, Mumbai – 400002, Maharashtra, India E-mail Id : radhika.thorat@ril.com |
|
This form is for |
Creation of charge |
|
Type of charge |
Movable property (not being pledge) |
|
Particular of
charge holder |
HDFC Bank
Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai -
400013, Maharashtra, India E-Mail Id : cpu-retailassetoperations.rocefiling@hdfcbank.com
|
|
Nature of
instrument creating charge |
Agreement for
Auto Loan dated 31/10/2012 |
|
Date of
instrument Creating the charge |
31.10.2012 |
|
Amount secured by
the charge |
Rs.15.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest Presently rate of
interest is 11% p.a. and interest at such rate/s as may be determined by the
bank from time to time. Terms of Repayment
As per the Agreement for Auto Loan Extent and
Operation of the charge First and
exclusive charge on the present and future vehicles (purchased under the loan
facility) hypothecated and the charge shall stand as security to the
repayment and payment by the Company to the Bank for all monies payable under
the Agreement for Autoloan entered into between the Company and the Bank. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
Vehicles to be
purchased under the loan facility. |
FIXED ASSETS:
· Building
· Plant and Machinery
· Electrical Installations Equipments
· Furniture and Fixtures
· Vehicles
· Leasehold Improvement
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.54.71 |
|
|
1 |
Rs.82.79 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--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 |
|
TOTAL |
|
28 |
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.