MIRA INFORM REPORT
|
Report Date : |
02.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
VAIBHAV YARN MILLS
PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
33-I, Sarabha Nagar,
Ludhiana – 141 001, Punjab |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
19.10.2005 |
|
|
|
|
Com. Reg. No.: |
16-029103 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.114.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U17110PB2005PTC029103 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCV1461E |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Subject is engaged in the business of manufacturing of cotton yarn and
also undertakes trading of knitted cloth and raw wool. |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 595000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an
established company having moderate track record. The rating
reflects moderate financial risk profile marked by low profitability levels
and increased in external borrowing of the company over previous year. However, trade
relations are fair. Business is active. Payment terms are be slow but
correct. The company can
be considered for business dealing 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 – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities: B+ |
|
Rating Explanation |
Risk prone credit quality and high risk of default. |
|
Date |
March 06, 2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities: A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
March 06, 2014 |
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. Vishal Bhalla |
|
Designation : |
Director |
|
Contact No.: |
91-9815200026 |
|
Date : |
01.04.2014 |
LOCATIONS
|
Registered Office : |
33-I, Sarabha Nagar,
Ludhiana – 141 001, Punjab, India |
|
Tel. No.: |
Not Available |
|
Mobile No.: |
91-9815200026 (Mr. Vishal) |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Factory : |
Village Khandoor, Khandoor Road, Jodhan, Mohie, District Ludhiana –
141 103, Punjab, India |
|
Tel. No.: |
91-161-2841220 |
|
Fax No.: |
91-161-2841221 |
|
|
|
|
Correspondence Address : |
432-B, Bhai Randhir Singh Nagar, Ludhiana – 141 004, Punjab, India |
|
Tel. No.: |
91-161-4612929 |
DIRECTORS
AS ON 30.09.2013
|
Name : |
Mr. Vishal Haridev Bhalla |
|
Designation : |
Director |
|
Address : |
33-I, Sarabha Nagar,
Ludhiana – 141 001, Punjab, India |
|
Date of Birth/Age : |
15.09.1971 |
|
Date of Appointment : |
19.10.2005 |
|
DIN No.: |
00905206 |
|
PAN No.: |
AAOPB8415G |
|
|
|
|
Name : |
Mrs. Ritu Vishal Bhalla |
|
Designation : |
Director |
|
Address : |
33-I, Sarabha Nagar,
Ludhiana – 141 001, Punjab, India |
|
Date of Birth/Age : |
02.05.1972 |
|
Date of Appointment : |
19.10.2005 |
|
DIN No.: |
02390912 |
|
PAN No.: |
AAOPB8416F |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of Shareholders |
|
No. of Shares |
|
Vishal Haridev Bhalla |
|
3916621 |
|
Ritu Vishal Bhalla |
|
3083374 |
|
Deluxe Enterprises |
|
1 |
|
Haridev Raj Bhalla |
|
1 |
|
Neelam Haridev Bhalla |
|
1 |
|
Anjali Vivek Bhalla |
|
1 |
|
Gopal International |
|
1 |
|
Total
|
|
7000000 |
AS ON 30.09.2013
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
0.01 |
|
Directors
or relatives of directors |
|
99.99 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of manufacturing of cotton yarn and
also undertakes trading of knitted cloth and raw wool. |
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Rotors |
No. |
1440.00 |
1440.00 |
|
Particulars |
Unit |
Actual
Production |
|
Cotton
Yarn |
KG |
4834700.000 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
||||||||||||||||||
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|
||||||||||||||||||
|
Bankers : |
Punjab
National Bank, Chandigarh Road, Ludhiana – 141 001, Punjab, India |
||||||||||||||||||
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|
|
||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Nanda
and Bhatia Chartered Accountants |
|
Address : |
Red
Cross Bhawan, The Mall, Ludhiana – 141 001, Punjab, India |
|
PAN No.: |
AABFN8498E |
CAPITAL STRUCTURE
AS ON 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11400000 |
Equity Shares |
Rs.10/- each
|
Rs.114.000
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 |
114.000 |
70.000 |
70.000 |
|
(b) Reserves & Surplus |
34.677 |
25.677 |
27.700 |
|
(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) |
148.677 |
95.677 |
97.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
121.315 |
142.037 |
145.580 |
|
(b) Deferred tax liabilities (Net) |
5.527 |
7.508 |
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) |
126.842 |
149.545 |
145.580 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
237.013 |
170.688 |
169.632 |
|
(b)
Trade payables |
130.768 |
69.596 |
62.975 |
|
(c)
Other current liabilities |
28.647 |
46.410 |
29.810 |
|
(d)
Short-term provisions |
6.875 |
6.705 |
5.255 |
|
Total
Current Liabilities (4) |
403.303 |
293.399 |
267.672 |
|
|
|
|
|
|
TOTAL |
678.822 |
538.621 |
510.952 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
216.343 |
203.139 |
190.510 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.137 |
0.137 |
0.108 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and
Advances |
1.023 |
1.023 |
1.023 |
|
(e)
Other Non-current assets |
6.986 |
5.942 |
2.160 |
|
Total
Non-Current Assets |
224.489 |
210.241 |
193.801 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
231.997 |
189.567 |
195.233 |
|
(c)
Trade receivables |
171.946 |
105.153 |
90.174 |
|
(d)
Cash and cash equivalents |
1.660 |
14.957 |
14.220 |
|
(e)
Short-term loans and advances |
26.588 |
8.389 |
8.267 |
|
(f)
Other current assets |
22.142 |
10.314 |
9.257 |
|
Total
Current Assets |
454.333 |
328.380 |
317.151 |
|
|
|
|
|
|
TOTAL |
678.822 |
538.621 |
510.952 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
1051.343 |
702.109 |
653.723 |
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
1051.343 |
702.109 |
653.723 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
1013.853 |
681.367 |
609.626 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
37.490 |
20.742 |
44.097 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
28.699 |
13.807 |
25.958 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX |
8.791 |
6.935 |
18.139 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(0.209) |
1.450 |
3.747 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX |
9.000 |
5.485 |
14.392 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
0.79 |
0.78 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.86
|
0.78 |
2.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.30
|
1.29 |
3.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.07 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.41
|
3.27 |
3.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.13
|
1.12 |
1.18 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
70.000 |
70.000 |
114.000 |
|
Reserves & Surplus |
27.700 |
25.677 |
34.677 |
|
Net worth |
97.700 |
95.677 |
148.677 |
|
|
|
|
|
|
Long-term borrowings |
145.580 |
142.037 |
121.315 |
|
Short term borrowings |
169.632 |
170.688 |
237.013 |
|
Total borrowings |
315.212 |
312.725 |
358.328 |
|
Debt/Equity ratio |
3.226 |
3.269 |
2.410 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Total Income |
653.723 |
702.109 |
1051.343 |
|
|
|
7.402 |
49.741 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Total Income |
653.723 |
702.109 |
1051.343 |
|
Profit |
14.392 |
5.485 |
9.000 |
|
|
2.20% |
0.78% |
0.86% |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
No |
|
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 |
Yes |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
INDEX OF CHARGES:
|
S.No |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
10013662 |
06/01/2007 * |
208,750,000.00 |
PUNJAB NATIONAL BANK |
CHANDIGARH ROAD,
LUDHIANA, LUDHIANA, PUNJAB - 141010, INDIA |
A03438926 |
|
2 |
10013618 |
26/03/2013 * |
695,187,000.00 |
PUNJAB NATIONAL BANK |
CHANDIGARH ROAD,
LUDHIANA, PUNJAB - 141001, INDIA |
B74918434 |
|
3 |
10013549 |
01/08/2006 |
5,000,000.00 |
PUNJAB NATIONAL BANK |
CHANDIGARH ROAD, LUDHIANA,
PUNJAB - 141008, INDIA |
A03440740 |
|
4 |
10013647 |
01/08/2006 |
7,500,000.00 |
PUNJAB NATIONAL BANK |
CHANDIGARH ROAD,
LUDHIANA, PUNJAB - 141008, INDIA |
A03439254 |
|
5 |
10013649 |
01/08/2006 |
85,000,000.00 |
PUNJAB NATIONAL BANK |
CHANDIGARH ROAD,
LUDHIANA, PUNJAB - 141008, INDIA |
A03439551 |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG-TERM
BORROWINGS |
|
|
|
Loans and advances from directors |
12.686 |
34.375 |
|
Loans and advances from others |
14.902 |
11.109 |
|
Total
|
27.588 |
45.484 |
OPERATIONS:
The Profit for the year was
Rs.9.000 millions as against previous year Rs.5.485 millions. The working of the
company during the year and director hopes the better results in the current
financial year.
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Computer Equipments
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.60.10 |
|
|
1 |
Rs.99.85 |
|
Euro |
1 |
Rs.82.57 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
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.