MIRA
INFORM REPORT
|
Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BARBEQUE-NATION HOSPITALITY LIMITED (w.e.f. 04.03.2008) |
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|
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Formerly Known
As : |
BARBEQUE-NATION HOSPITALITY PRIVATE LIMITED |
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Registered
Office : |
C/o M/S Sayaji Hotels Limited, H-1, Scheme No. 54, Vijay Nagar, Indore-452010, Madhya Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
13.10.2006 |
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Com. Reg. No.: |
10-019014 |
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Capital
Investment / Paid-up Capital : |
Rs. 95.653 millions |
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CIN No.: [Company Identification
No.] |
U55101MP2006PLC019014 |
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PAN No.: [Permanent Account No.] |
AAKCS3053N |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Providing Food and Beverages Services (Restaurant Chain). |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of “Sayaji Hotels Limited” It is an established company having a satisfactory track record. It has achieved better growth in its income earned and profits during
2012. Trade relations are reported as fair. Business is active. Payment
terms are slow but correct. The company can be considered for business dealings at usual trade
terms and conditions. Note: ICRA has rated the company as BB (Moderate risk of default)
because they have taken into consideration the proposed expansion plan of the
company which may pull down the company’s liquidity. However, the company has satisfactory financial strength and
established presence in the hospitality segment. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces of
its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to become
a major exporter of information technology services and software workers. In
2010, the Indian economy rebounded robustly from the global financial crisis -
in large part because of strong domestic demand - and growth exceeded 8%
year-on-year in real terms. However, India's economic growth in 2011 slowed
because of persistently high inflation and interest rates and little progress
on economic reforms. High international crude prices have exacerbated the
government's fuel subsidy expenditures contributing to a higher fiscal deficit,
and a worsening current account deficit. Little economic reform took place in
2011 largely due to corruption scandals that have slowed legislative work.
India's medium-term growth outlook is positive due to a young population and
corresponding low dependency ratio, healthy savings and investment rates, and
increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term loan and Cash Credit : BB |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
January 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
Bank guarantee facilities : BB |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
January 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
C/o M/S Sayaji Hotels Limited, H-1, Scheme No. 54, Vijay Nagar, Indore-452010, Madhya Pradesh, India |
|
Tel. No.: |
91-731-4006666 |
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Fax No.: |
91-731-4003131 |
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E-Mail : |
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Website : |
DIRECTORS
As on 20.09.2012
|
Name : |
Prosenjit Roy Choudhury |
|
Designation : |
Whole-time director |
|
Address : |
138/B, Sangam Nagar, Indore-452010, Madhya Pradesh, India |
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Date of Birth/Age : |
20.01.1974 |
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Qualification : |
PGDHM |
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Date of Appointment : |
05.02.2008 |
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DIN No.: |
02038768 |
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|
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|
Name : |
Thottapuly Narayanan Unni |
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Designation : |
Director |
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Address : |
402, Alankar Point, Geeta Bhawan Sqr, Indore-452001, Madhya Pradesh, India |
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Date of Birth/Age : |
08.12.1940 |
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Qualification : |
C.A. |
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Date of Appointment : |
09.02.2009 |
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DIN No.: |
00079237 |
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Name : |
Mr. Anil Dhupar |
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Designation : |
Additional Director |
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Address : |
246, A G Scheme No. 74 C, Indore-452010, Madhya Pradesh, India |
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Date of Birth/Age : |
11.05.1953 |
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Date of Appointment : |
21.09.2012 |
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DIN No.: |
06398918 |
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Name : |
Mr. Kayum Abdularazak Dhanani |
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Designation : |
Additional director |
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Address : |
65, 4th Cross, 36A Main, BTM 1st Stage, Dollars Scheme Bangalore-560068, Karnataka, India |
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Date of Birth/Age : |
07.05.1972 |
|
Date of Appointment : |
30.11.2012 |
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DIN No.: |
00987597 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 20.09.2012
|
Names of Shareholders |
|
No. of Shares |
|
Sajid R. Dhanani |
|
1 |
|
Suchitra Dhanani |
|
1 |
|
SA Yaji Hotels Limited |
|
6464998 |
|
Prosenjit Roy Choudhary |
|
1 |
|
S.K. Khandelwal |
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2 |
|
Capt. Salim Sheikh |
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1 |
|
Blue Deebaj Chemical LLC. |
|
2800000 |
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Sana Dhanani |
|
150150 |
|
Nasreen Dhanani |
|
105105 |
|
Abdulgani Dhanani |
|
45045 |
|
Total |
|
9565304 |
Equity Share Break up (Percentage of Total Equity)
As on 20.09.2012
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
32.41 |
|
Bodies corporate |
67.59 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Food and Beverages Services (Restaurant Chain). |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
State Bank of India, Commercial Branch, A. B. Road, Near G. P. O., Indore - 452001, Madhya Pradesh, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Shah Gandhi and Shah Chartered Accountants |
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Address : |
220, Phoniex Complex, Near Suraj Plaza, Sayaji Gunj Vadodara-05, Gujarat, India |
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PAN No.: |
ABFFS7712P |
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Associates/Subsidiaries : |
Sayaji Hotels Limited CIN No.: L51100GJ1982PLC005131 |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs. 200.000 Millions |
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|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9565304 |
Equity Shares |
Rs.10/- each |
Rs. 95.653 Millions |
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|
|
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|
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 |
95.653 |
92.650 |
92.650 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
283.478 |
119.046 |
100.501 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
379.131 |
211.696 |
193.151 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
173.052 |
127.806 |
219.304 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
9.922 |
|
|
TOTAL BORROWING |
173.052 |
127.806 |
229.226 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
552.183 |
339.502 |
422.377 |
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|
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|
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APPLICATION OF FUNDS |
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|
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|
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FIXED ASSETS [Net Block] |
341.765 |
311.390 |
336.957 |
|
|
Capital work-in-progress |
49.094 |
7.584 |
17.220 |
|
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|
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INVESTMENT |
|
|
|
|
|
DEFERRED TAX ASSETS |
25.000 |
0.000 |
0.200 |
|
|
|
12.114 |
29.305 |
33.700 |
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
36.044
|
20.937 |
15.433 |
|
|
Sundry Debtors |
12.381
|
20.614 |
8.366 |
|
|
Cash & Bank Balances |
2.667
|
7.661 |
7.729 |
|
|
Other Current Assets |
23.461
|
9.802 |
0.000 |
|
|
Loans & Advances |
353.146
|
177.279 |
89.570 |
|
Total
Current Assets |
427.699
|
236.293 |
121.098 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
83.802
|
46.008 |
62.350 |
|
|
Other Current Liabilities |
189.213
|
172.718 |
1.703 |
|
|
Provisions |
30.474
|
26.344 |
22.745 |
|
Total
Current Liabilities |
303.489
|
245.070 |
86.798 |
|
|
Net Current Assets |
124.210
|
(8.777) |
34.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
552.183 |
339.502 |
422.377 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1294.730 |
1028.048 |
843.089 |
|
|
|
Other Income |
2.510 |
3.504 |
0.968 |
|
|
|
TOTAL (A) |
1297.240 |
1031.552 |
844.057 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
482.569 |
|
|
|
|
|
Employee benefit expense |
173.075 |
134.035 |
783.204 |
|
|
|
Other expenses |
475.769 |
374.843 |
|
|
|
|
Exceptional items |
11.226 |
18.430 |
|
|
|
|
TOTAL (B) |
1142.639 |
935.126 |
783.204 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
154.601 |
96.426 |
60.853 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
31.653 |
35.990 |
25.323 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
122.948 |
60.436 |
35.530 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
38.322 |
37.495 |
37.839 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
84.626 |
22.941 |
(2.309) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
17.191 |
4.395 |
(2.141) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
67.435 |
18.546 |
(0.168) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
45.725 |
11.524 |
33.045 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
7.05 |
2.00 |
0.00 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.20
|
1.80 |
(0.02) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.54
|
2.23 |
(0.27) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.00
|
4.19 |
(0.50) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.11 |
(0.01) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.46
|
0.60 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.41
|
0.96 |
1.40 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
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 |
Yes |
FINANCIAL PERFORMANCE
The total income of the company increased to Rs. 1297.240 millions from Rs. 1031.552 millions in the previous year, thus a growth of 20.48% over the previous year.
The Profit before Depreciation, Interest, Exceptional Items and Tax amounted to Rs 165.827 millions (12.78 % of the revenue) as against Rs. 114.856 millions (11.13% of revenue) in the previous year.
The Net Profit after tax was Rs. 67.435 millions as against Rs.18.446 millions in the previous year registering a growth of 265.58%
STATE OF COMPANY
AFFAIRS
As the members are aware, the restaurant business in the country has been growing rapidly and is poised to grow faster in the future. The management strongly believes that the company can be a part of this growth story and therefore has undertaken ambitious expansion plans. During the year under review, the company operated twenty restaurants located at various places of the Country.
In the coming years, the company has plans to open 15 more restaurants in different part of India.
FIXED ASSETS
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
· Computer
PRESS RELEASE
CX PARTNERS SET TO ACQUIRE STAKE IN BARBEQUE NATION
17 JANUARY 2013
CX Partners is planning to invest Rs. 1000.000 millionsin Barbeque Nation Hospitality Limited, a restaurant subsidiary of Sayaji Hotels Limited for minority stake.
The company is in final stage of closing the deal, ET stated. With this
investment, the company plans to double its presence by fiscal 2014.
It will open 36 outlets before the financial year ends and are targeting
another 24 outlets with the investment from CX Partners.
Last year, New Silk Route and Bain Capital were planning to invest in Barbeque Nation. The chain failed to clinch a deal with another PE Multiples Alternate Asset Management on valuation mismatches.
Started in 2006 in Mumbai, Barbeque Nation owns and operates restaurants. It has the concept of Live Grill, allowing customers to make food on their personal grills. It operates 28 restaurants spread across India as on October 30, 2012. All the outlets are on lease and operated directly by Barbeque Nation.
Promoted by Sajid Dhanani, Sayaji Hotels operates chain of restaurants and hospitality
properties in India. Sayaji currently operates three properties in Vadodara,
Indore and Pune. It also has two subsidiaries - Barbeque-Nation Hospitality Ltd
and Malwa Hospitality Pvt Ltd. Acacia Partners holds 7.54% in Sayaji Hotels.
The dining out market is expected to reach $16 bn by 2016 and over 40% will be
controlled by restaurant chains,a report by consultant Technopak Emerging
Trends in Retail and Consumer,released in 2011,said.
In this pace, recently Jiggs Kalra entered into a new JV - Massive Restaurants
with Mirah Hospitality to set up restaurant chain and sweet shops which will
operate under three brand verticals of Fine-Dining Restaurants, Smart Casual
Dining Restaurants and Luxury Mithai.
In October Olive Bar & Kitchen raised funds from Aditya Birla PE’s Sunrise
Fund for a minority stake to expand into new geographies and recently launched
two new formats: gastro pub and bistros.
JSM Corp, which has Hard Rock Café and California Pizza Kitchen under its hood,
was also set to receive $25 Mn from Wipro founder Azim Premji.
Helion Ventures along with Footprint Ventures invested additional R32.5 Cr ($6
Mn) in Mast Kalandar, a QSR chain run by Spring Leaf Retail Private Limited.
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.54.44 |
|
|
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
44 |
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.