MIRA
INFORM REPORT
|
Report Date : |
29.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
SAATCHI AND SAATCHI PRIVATE LIMITED (w.e.f. 25.09.1998) |
|
|
|
|
Formerly Known
As : |
SISTA SAATCHI AND SAATCHI ADVERTISING PRIVATE LIMITED (w.e.f.
31.03.1995) SISTA’S COMMUNICATIONS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
15th Floor, Tower ‘A’, Urmi Estate, 95, Ganpatrao Kadam
Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.05.1994 |
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|
|
|
Com. Reg. No.: |
11-078410 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1.500
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U84200MH1994PTC078410 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS42793C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS5255Q |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is
principally engaged in providing a range of advertising services, which primarily
relates to advertising by creative, production, media buying and planning,
artwork, digital designing, etc. |
|
|
|
|
No. of Employees
: |
104 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 201000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having a moderate track record. The company has incurred a loss from its operational activities during
the financial year 2013. However, trade relations are reported to be 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.
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.
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. Hakim Sitabkhan |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-9821184110 |
|
Date : |
27.11.2013 |
LOCATIONS
|
Registered Office : |
15th Floor, Tower ‘A’, Urmi Estate, 95, Ganpatrao Kadam
Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India |
|
Tel. No.: |
91-22-30019401 |
|
Mobile No.: |
91-9821184110 (Mr. Hakim) |
|
Fax No.: |
91-22-30019420 |
|
E-Mail : |
|
|
Website : |
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|
Area : |
9000 sq. ft. |
|
Location : |
Rented |
|
|
|
|
Branch Office : |
20/4, Palm Court, Ground Floor, Opposite
Huda Park,
Gurgaon, Haryana, India |
|
Tel. No.: |
91-124-4545900 |
|
|
|
|
Worldwide Headquarters Office : |
375, Hudson Street, New York, NY 10014, USA |
DIRECTORS
AS ON 17.06.2013
|
Name : |
Mr. Patrick Francis Brett |
|
Designation : |
Director |
|
Address : |
15, Sukhumvitwaite, Soi 34, Sukhumvit Road, Bangkok, Thailand |
|
Date of Birth/Age : |
15.09.1955 |
|
Date of Appointment : |
26.03.1997 |
|
DIN No.: |
02779557 |
|
|
|
|
Name : |
Mr. Mathew Roland Seddon |
|
Designation : |
Whole Time Director |
|
Address : |
107, Narra St, Ayala Alabang Village, Muntinlupa City, Philippines |
|
Date of Birth/Age : |
12.06.1967 |
|
Date of Appointment : |
10.01.2012 |
|
DIN No.: |
05174474 |
|
|
|
|
Name : |
Mr. Chiristopher Robert Foster |
|
Designation : |
Director |
|
Address : |
9, Holland Green, Singapore-276132 |
|
Date of Birth/Age : |
09.01.1965 |
|
Date of Appointment : |
10.01.2012 |
|
DIN No.: |
05190785 |
|
|
|
|
Name : |
Mr. Alan Harker |
|
Designation : |
Director |
|
Address : |
Mount Unique, Mount Mary Hill, Bandra, Mumbai-400050, Maharashtra,
India |
|
Date of Birth/Age : |
29.06.1965 |
|
Date of Appointment : |
10.01.2012 |
|
DIN No.: |
05190790 |
KEY EXECUTIVES
|
Name : |
Mr. Hakim Sitabkhan |
|
Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 17.06.2013
|
Names of Shareholders |
|
No. of Shares |
|
Publicis Groupe Holdings B V, The Netherlands |
|
149999 |
|
Arebu Holdings B V, The Netherland (As Nominee of Publicis Groupe
Holdings B V) |
|
1 *** |
|
Total
|
|
150000 |
*** beneficiary owner of these shares is Publicis Groupe Holdings B V
AS ON 17.06.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is
principally engaged in providing a range of advertising services, which primarily
relates to advertising by creative, production, media buying and planning,
artwork, digital designing, etc. |
|
|
|
|
Brand Names : |
“SAATCHI AND SAATCHI” “SAATCHI X” “SAATCHI FOCUS” |
GENERAL INFORMATION
|
Customers : |
·
Procter and Gamble · Novartis India Limited |
|
|
|
|
No. of Employees : |
104 (Approximately) |
|
|
|
|
Bankers : |
Citi Bank, Mumbai Branch |
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|
|
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Facilities : |
-- |
|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
12th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar
(West), Mumbai – 400 028, Maharashtra, India |
|
Tel. No.: |
91-22-61920000 |
|
Fax No.: |
91-22-61921000 |
|
PAN No.: |
ACHFS9118A |
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|
|
|
Holding Company : |
Publicis Groupe Holdings BV, Netherlands |
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|
Fellow Subsidiaries : |
·
ACE Saatchi and Saatchi Advertising ·
Guzel Sanatlar
Reklamcılık A.Ş. ·
MMS Communications Singapore Pte. Limited,
Singapore ·
Publicis Healthcare Pty Limited, Australia ·
Royalities SAS, France ·
Saatchi and Saatchi Fallon Tokyo K K, Japan ·
Saatchi and Saatchi GmbH, Frankfurt ·
Saatchi and Saatchi Great Wall Advertising Co.
Limited, China ·
Saatchi and Saatchi Group Limited, London ·
Saatchi and Saatchi Limited Sri Lanka ·
Saatchi and Saatchi Limited Thailand, Bangkok ·
Saatchi and Saatchi Middle East Holdings FZ LLC,
Dubai ·
Saatchi and Saatchi North America, USA ·
Saatchi and Saatchi Services (HK) Limited, Hong
Kong ·
Saatchi and Saatchi Switzerland ·
Saatchi and Saatchi Worldwide Sdn Bhd, Malaysia ·
Saatchi and Saatchi X Inc., Springdale ·
Saatchi and Saatchi X, Moscow ·
Saatchi and Saatchi, PCI, Korea ·
Hanmer MSL Communications Private Limited, India ·
Orchard Advertising Private Limited, India ·
Publicis Communications Private Limited, India ·
TLG India Private Limited, India |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs.10/- each |
Rs.5.000 millions |
|
1500000 |
Unclassified Shares |
Rs.10/- each |
Rs.15.000 millions |
|
|
Total |
|
Rs.20.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000 |
Equity Shares |
Rs.10/- each
|
Rs.1.500
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
1.500 |
1.500 |
1.500 |
|
(b) Reserves & Surplus |
48.676 |
142.581 |
181.003 |
|
(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) |
50.176 |
144.081 |
182.503 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(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) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
26.905 |
24.951 |
0.000 |
|
(b)
Trade payables |
144.136 |
165.697 |
58.161 |
|
(c)
Other current liabilities |
62.583 |
43.791 |
28.698 |
|
(d) Short-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Current
Liabilities (4) |
233.624 |
234.439 |
86.859 |
|
|
|
|
|
|
TOTAL |
283.800 |
378.520 |
269.362 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
22.731 |
10.736 |
12.442 |
|
(ii)
Intangible Assets |
0.329 |
0.762 |
2.121 |
|
(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 |
3.021 |
|
(d) Long-term Loan and Advances |
89.105 |
49.989 |
40.398 |
|
(e) Other
Non-current assets |
1.000 |
1.041 |
1.000 |
|
Total Non-Current
Assets |
113.165 |
62.528 |
58.982 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Work
in Progress |
4.919 |
8.126 |
0.379 |
|
(c)
Trade receivables |
115.595 |
150.970 |
71.882 |
|
(d) Cash
and cash equivalents |
0.000 |
124.500 |
96.206 |
|
(e)
Short-term loans and advances |
26.963 |
22.330 |
18.247 |
|
(f)
Asset held for sale (freehold land) |
8.974 |
8.974 |
8.974 |
|
(g)
Other current assets |
14.184 |
1.092 |
14.692 |
|
Total
Current Assets |
170.635 |
315.992 |
210.380 |
|
|
|
|
|
|
TOTAL |
283.800 |
378.520 |
269.362 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
251.875 |
259.881 |
273.723 |
|
|
|
Other Income |
4.430 |
7.314 |
11.955 |
|
|
|
TOTAL (A) |
256.305 |
267.195 |
285.678 |
|
|
|
|
|
|
|
|
Less |
|
|
|
|
|
|
|
|
Office Expenses |
344.919 |
|
|
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL (B) |
344.919 (Including
Financial Expenses and Depreciation) |
302.596 (Including
Financial Expenses and Depreciation) |
265.260 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
|
20.418 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
|
0.211 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
|
20.207 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
|
7.138 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(88.613) |
(35.401) |
13.069 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5.292 |
3.021 |
3.521 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(93.905) |
(38.422) |
9.548 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
118.675 |
157.097 |
147.549 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
24.770 |
118.675 |
157.097 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Gross Billings (including commission) |
18.956 |
26.698 |
36.602 |
|
|
TOTAL EARNINGS |
18.956 |
26.698 |
36.602 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(626.03) |
(256.15) |
63.65 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(36.64) |
(14.38)
|
3.34
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(35.18) |
(13.62)
|
4.77
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(31.22) |
(9.35)
|
4.91
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.77) |
(0.25)
|
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.54 |
0.17
|
0.00
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73 |
1.35
|
2.42
|
LOCAL AGENCY FURTHER INFORMATION
Details of Current Maturities of Long Term
Debt: Not Available
|
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 |
Yes |
|
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 |
Yes |
|
19) Payments terms |
Yes |
|
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 Loans |
31.03.2013 (Rs. in Millions) |
31.03.2012 (Rs. in Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Cash Credit from
Bank |
26.851 |
24.951 |
|
Interest Accrued
and Due |
0.054 |
0.000 |
|
Total |
26.905 |
24.951 |
Notes:
SHORT TERM BORROWINGS
Cash credit facility from Bank is unsecured in nature and are repayable
on demand and carry an interest rate in the range of 11.00% to 11.50%
(31.03.2012: 9.75% to 11.50%) per annum.
INDEX OF CHARGES:
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90359213 |
14/08/1997 |
5,000,000.00 |
INDIAN OVESEAS
BANK |
FORT BRANCH,
MUMBAI, MAHARASHTRA, INDIA |
- |
|
2 |
90358950 |
09/09/1996 * |
5,000,000.00 |
INDIAN OVESEAS
BANK |
FORT BRANCH,
MUMBAI, MAHARASHTRA, INDIA |
- |
* Date of charge modification
CORPORATE INFORMATION:
The company was incorporated in India on May 17, 1994 as “Sista’s Communications
Private Limited” and is the subsidiary of Publicis Groupe Holdings BV,
Netherlands. Subsequantly on March 31, 1995 the company changed its name to
“Sista Saatchi and Saatchi Advertising Private Limited”. Effective September
25, 1998, the name of the company has been changed to “Saatchi and Saatchi
Private Limited”. The Company is principally engaged in providing a range of
advertising services, which primarily relates to advertising by creative,
production, media buying and planning, artwork, digital designing, etc.
FINANCIAL RESULTS:
The year saw
negative growth due to the full effect of continuance of global slowdown having
adversely affected some of the European Union Countries. During the year, the
Company has earned revenue of Rs.251.800 millions (previous year: Rs.259.800
millions), reflecting a negative growth of 3.07% over last year. On the other
hand, the expenses have increased by 12.27%. After providing for taxation as
per the Indian Income Tax Act, the resultant loss is Rs.94.000 millions
(previous year: Rs.38.000 millions).
BUSINESS OVERVIEW:
The Company is principally engaged in
providing Creative Advertising services under the brands Saatchi and Saatchi,
Saatchi X, Saatchi Focus.
During the year the Company has suffered a loss,
which is mainly driven by decline in revenue and inflationary pressure on cost.
The Company continues to remain focused in
targeting growth industries and focusing on winning new clients and thus reap
the benefits in the coming years, while remained focused in developing and
retaining quality talent.
TRADE REFERENCES:
·
Procter and
Gamble
· Novartis India Limited
FIXED ASSETS:
Tangible Assets:
·
Computer and Peripherals
·
Office Equipment
·
Furniture and Fixtures
·
Leasehold Improvements
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,
1] INFORMATION ON DESIGNATED
PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.101.80 |
|
Euro |
1 |
Rs.84.75 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
32 |
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.