MIRA INFORM REPORT

 

 

Report Date :

18.11.2013

 

IDENTIFICATION DETAILS

           

Name :

PHORUM JEWELS LIMITED (w.e.f. 05.11.2008)

 

 

Formerly Known As :

PHORUM JEWELS PRIVATE LIMITED

 

 

Registered Office :

103/D, Sukh Sagar Building, 1st Floor, Huges Road, Mumbai – 400007, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

10.12.2002

 

 

Com. Reg. No.:

11-138186

 

 

Capital Investment / Paid-up Capital :

Rs.18.469 Millions

 

 

CIN No.:

[Company Identification No.]

U36911MH2002PLC138186

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP20041A

 

 

PAN No.:

[Permanent Account No.]

AACCP7843D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Diamond Jewellery.

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 200000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

This rating reflects PJL’s small net worth, high total outside liabilities to tangible net worth ration and modest debt protection metrics, its modest scale of operations and working-capital-intensive nature of its operations.

 

However, profit and sales turnover of the company appears to be fair.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

 

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

 

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

 

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1st November.

 

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

BB- (Long Term Rating)

Rating Explanation

Moderate risk of default and high credit risk.

Date

September 11, 2013

 

 

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 PARTED BY (GENERAL DETAILS)

 

Name :

Mr. Anup

Designation :

Account Department

Contact No.:

91-22-61362700

Date :

01.11.2013

 

 

LOCATIONS

 

Registered Office :

103/D, Sukh Sagar Building, 1st Floor, Huges Road, Mumbai – 400007, Maharashtra, India

Tel. No.:

91-22-61362700/ 23683487

Fax No.:

91-22-23678863

E-Mail :

info@phorumjewels.com

phorumjewels@hotmail.com

Website :

http://www.phorumjewels.com

Location :

Owned

 

 

Branch Office :

7H, AG Tower, Jumeriah Lake Tower (JLT),  Sheikh Zayed Road,  Dubai, U.A.E. 

Tel. No.:

971-50-8833152 

Fax No.:

971-50-4297694 

E-Mail :

phorumdmcc@yahoo.in

 

 

Workshop :

Shop No.4, Sukh Sagar Bldg, Hughes Road, Girgaum Chowpatty, Mumbai - 400007, Maharashtra, India

 

 

DIRECTORS

 

As on: 30.09.2013

 

Name :

Mr. Bharat Vasant Mewawala

Designation :

Managing Director

Address :

27/B, Jayant Mahal, D’Road, Churchgate,  Mumbai – 400020, Maharashtra, India

Date of Appointment :

10.12.2002

DIN No.:

00859448

 

 

Name :

Mrs. Nafisa Abdulla Nimakwala

Designation :

Whole-Time Director

Address :

101, Ajanta Apartment, Shahid Bhagatisingh Road, Colaba, Mumbai – 400005, Maharashtra, India

Date of Appointment :

10.12.2002

DIN No.:

00859476

 

 

Name :

Mrs. Falguni Bharat Mewawala

Designation :

Whole-Time Director

Address :

27/B, Jayant Mahal, D’Road, Churchgate,  Mumbai – 400020, Maharashtra, India

Date of Appointment :

01.04.2003

DIN No.:

00859498

 

 

Name :

Mr. Ummehani Hasan Nagarwala

Designation :

Director

Address :

101, Mehar Dad,  Cuffee Parade , Colaba,  Mumbai- 400005, Maharashtra, India

Date of Appointment :

01.04.2003

DIN No.:

00859513

 

 

KEY EXECUTIVES

 

Name :

Mr. Anup

Designation :

Account Department

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 30.09.2013

 

Names of Shareholders

 

No. of Shares

Bharat V. Mewawala

 

10168611

Nafisa A. Nimakwala

 

3855111

Bharat V. Mewawala – HUF

 

707500

Falguni Mewawala

 

1009400

Abdulla T. Nimakwala

 

383000

Krish B. Mewawala

 

100000

Hansa Mewawala

 

100000

Vasant D. Mewawala

 

161000

Ummehani Nagarwala

 

5000

Chhaya Shah

 

1000

Hasmukh Shah

 

1000

Dharmesh Mojaria

 

1000

Janak Shivkumar Shah

 

1000

Kumar Mepani

 

1000

Rashid Qadir

 

1000

Sakina Chiba

 

1000

Sanaya Bearingwala

 

1000

Shital Zaveri

 

1000

Phorum Gold Private Limited, India

 

3900000

Vasant D. Mantora

 

28650

Kusum V. Mantora

 

264000

 

 

 

Total

 

20691272

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 30.09.2013

 

Category

 

Percentage

Bodies corporate

 

18.85

Directors or relatives of directors

 

79.69

Other top fifty shareholders

 

1.46

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Diamond Jewellery.

 

 

Exports :

 

Products :

Finished Goods

Countries :

  • UK
  • USA
  • UAE

 

 

Terms :

 

Selling :

Credit

 

 

Purchasing :

Credit

 

 

GENERAL INFORMATION

 

Customers :

End Users

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :

  • State Bank of India, SME Dadar Branch, Shop No. 5, 1st Floor, Kumar Fun N Shop, Dr. B.A. Road ,Hindmata, Dadar (East), Mumbai - 400014, Maharashtra, India

Tel. No.: 91-22-24118793

 

  • Small Industries Development Bank of India, Samrudhi Venture Park, Upper Ground Floor, MIDC Road, MIDC Industrial Area, Marol, Andheri (East), Mumbai - 400093, Maharashtra, India
  • Bank of Baroda

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

SHORT TERM BORROWINGS

 

 

Cash Credit with State Bank of India

76.238

62.131

 

 

 

Total

76.238

62.131

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

K.B. Jain and Associates

Chartered Accountants

Address :

7, Oceanic House, 1st Floor, 310, JSS Road, Thakurdwar Karelwadi, Mumbai – 400002, Maharashtra, India

PAN No.:

AABPJ2176K

 

 

Subsidiary Company :

Phorum Jewels DMCC

 

 

CAPITAL STRUCTURE

 

As on: 30.09.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000

Equity Shares

Rs.1/- each

Rs.25.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20691272

Equity Shares

Rs.1/- each

Rs.20.691 Millions

 

 

 

 

 

 

As on: 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

20000000

Equity Shares

Rs.1/- each

Rs.20.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

18469050

Equity Shares

Rs.1/- each

Rs.18.469 Millions

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

18.469

18.469

18.469

(b) Reserves & Surplus

32.286

24.792

18.766

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.500

Total Shareholders’ Funds (1) + (2)

50.755

43.261

37.735

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.857

5.694

0.015

(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

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.857

5.694

0.015

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

86.173

69.257

39.412

(b) Trade payables

19.929

34.747

5.236

(c) Other current liabilities

31.428

2.684

2.492

(d) Short-term provisions

8.381

5.268

3.542

Total Current Liabilities (4)

145.911

111.956

50.682

 

 

 

 

TOTAL

197.523

160.911

88.432

 

 

 

 

ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

16.486

18.291

17.368

(ii) Intangible Assets

0.013

0.022

0.037

(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

5.708

4.357

3.138

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

22.207

22.670

20.543

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

149.496

105.833

38.940

(c) Trade receivables

3.549

15.950

17.974

(d) Cash and cash equivalents

1.430

1.957

1.939

(e) Short-term loans and advances

0.000

0.000

0.000

(f) Other current assets

20.841

14.501

9.036

Total Current Assets

175.316

138.241

67.889

 

 

 

 

TOTAL

197.523

160.911

88.432

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

402.256

323.872

210.689

 

 

Other Income

0.642

0.682

0.251

 

 

TOTAL                                     (A)

402.898

324.554

210.940

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

331.097

284.593

79.159

 

 

Purchase of stock-In-trade

0.000

0.000

92.344

 

 

Changes in inventories of finished goods, work-in- progress-and stock-in-trade

(24.410)

(43.477)

(9.735)

 

 

Conversion charges

19.129

21.379

9.309

 

 

Employee benefit expense

7.425

6.493

4.738

 

 

Other expenses

44.487

35.340

24.217

 

 

Exceptional items

0.068

0.000

0.000

 

 

TOTAL                                     (B)

377.796

304.328

200.032

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

25.102

20.226

10.908

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

10.951

8.509

4.109

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

14.151

11.717

6.799

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1.912

2.065

1.210

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

12.239

9.652

5.589

 

 

 

 

 

Less

TAX                                                                  (H)

4.324

3.183

1.732

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

7.915

6.469

3.857

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

0.267

3.102

1.355

 

TOTAL EARNINGS

0.267

3.102

1.355

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.43

0.35

0.21

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

1.96

1.99

1.83

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

3.04

2.98

2.65

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.38

6.17

6.55

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.24

0.22

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.71

1.73

1.04

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.20

1.23

1.34

 

 

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

Yes

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

Yes

20]

Export / Import details (if applicable)

Yes

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

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

Yes

 

 

Note:

 

The Registered Office of the company has been shifted from 2-H, Navratna Benham Halldr, D D  Sathe Marg, Opera House, Mumbai – 400004, Maharashtra, India to the present address w.e.f. 13.02.2007

 

 

UNSECURED LOAN

(Rs. In Millions)

Particular

As on

31.03.2013

As on

31.03.2012

LONG TERM BORROWINGS

 

 

Loans payable to Banks and NBFC

0.857

5.694

SHORT TERM BORROWINGS

 

 

Current Maturities of Long term debts

4.839

7.126

Bank of Baroda (O/D)

0.096

0.000

Loans form Directors

5.000

0.000

 

 

 

Total

10.792

12.820

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10426646

23/10/2013 *

25,000,000.00

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

SAMRUDHI VENTURE PARK, UPPER GROUND FLOOR, MIDC RD,  MIDC INDUSTRIAL AREA, MAROL, ANDHERI (EAST), MUMBAI, MAHARASHTRA - 400093, INDIA

B88127550

2

10318734

08/08/2012 *

80,000,000.00

STATE BANK OF INDIA

SME DADAR BRANCH, SHOP NO. 5, 1ST FLOOR, KUMAR FUN N SHOP, DR.B.A.ROAD,HINDMATA, DADAR (E), MUMBAI, MAHARASHTRA - 400014, INDIA

B62271747

 

* Date of charge modification

 

 

DIAMOND INDUSTRY – INDIA

 

-            From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-            The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-            The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-            Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-            Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-            Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-            Excerpts from Times of India dated 30th October 2010 is as under –

 

-            Gem and Jewellery Export Promotion Council in its statistical data has shown the export of polished diamonds to have increase by 28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012, India exported $ 1.84 billion worth of polished diamonds in February 2013. A senior executive of GJEPC said, “Export of cut and polished diamonds started falling month-wise after the imposition of 2 % of import duty on the polished diamonds. But February, 2013 has given a new ray of hope to the industry as the export of polished diamonds has actually increased by 28 %. It means the industry  is on the track of recovery and round tripping of diamonds has stopped completely.” Demand has started coming from the US, the UK, Japan and China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.

 

-            The banking sector has started exercising restraint while following prudent risk management norms when lending money to gems and jewellery sector. This follows the implementation of Basel III accord – a global voluntary regulatory standard on bank capital adequacy, stress testing and market liquidity.

 

 

FIXED ASSETS

 

Tangible Assets

  • Building Office Premises
  • Plant and Equipment
  • Furniture and Fixture
  • Vehicle
  • Office Equipment
  • Computer
  • Safe
  • Air Conditioners
  • Camera and CCTV
  • Digital Copy Printer

 

Intangible Assets 

  • Computer Software

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         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.63.06

UK Pound

1

Rs.101.15

Euro

1

Rs.84.95

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

VRN

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

0

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

3

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

 

 

 

TOTAL

 

34

 

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

 

--

 

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.