MIRA
INFORM REPORT
|
Report Date : |
30.04.2014 |
Note :
Correct name of the company is “CARDOLITE
SPECIALTY CHEMICALS INDIA LLP”.
IDENTIFICATION DETAILS
|
Name : |
CARDOLITE SPECIALTY CHEMICALS INDIA LLP (w.e.f. 14.03.2014) |
|
|
|
|
Formerly Known
As : |
CARDOLITE SPECIALTY CHEMICALS INDIA PRIVATE LIMITED CIN No.: U24110TN2011PTC079364 |
|
|
|
|
Registered
Office : |
No. 61-63, DR. Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamil
Nadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
14.03.2014 [CARDOLITE SPECIALTY CHEMICALS INDIA LLP] 25.02.2011 [CARDOLITE SPECIALTY CHEMICALS INDIA PRIVATE LIMITED] |
|
|
|
|
Com. Reg. No.: |
18-079364 |
|
|
|
|
Total Obligation of Contribution: |
Rs.1,225.051 Millions |
|
|
|
|
LLPIN: |
AAC-1765 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECC3326L |
|
|
|
|
Legal Form : |
Limited Liability Partnership Firm |
|
|
|
|
Line of Business
: |
Manufacturer of Chemical and Chemical Products. |
|
|
|
|
No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4800000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Even though the company was established on 25th February,
2011 as a “Cardolite Specialty Chemicals India Private Limited”. Later it got
converted into “Cardolite Specialty Chemicals India Limited Liability
Partnership” concern as per Registrar of Companies status from 14th
March, 2014. It is having a moderate track record. Management remain non-cooperative. There seems accumulated loss recorded by the company during 2013. However, trade relations are reported as fair. Business is active.
Payment terms are unknown. The concern can be considered for business dealings with some caution. Note: The rating is taken into consideration on the basis of private
limited. |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
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 DENIED
Management non co-operative, Tel No.:
91-824-2888300
LOCATIONS
|
Registered Office : |
No. 61-63, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600004, Tamil
Nadu, India |
|
Tel. No.: |
91-44-28120000 |
|
Fax No.: |
91-44-28120001 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Bajpe Village and Post, Plot No. IP1 and IP2, A Unit Of Msez,
Mangalore – 574142, Karnataka, India |
|
|
|
DIRECTORS
As on: 30.09.2013
|
Name : |
Mr. Timothy Joseph Stonis |
|
Designation : |
Director |
|
Address : |
31 S Lincoln Avenue, Newton, 18940, United States of America |
|
Date of Birth/Age : |
19.11.1972 |
|
Date of Appointment : |
25.02.2011 |
|
DIN No.: |
03145645 |
|
|
|
|
Name : |
Mr. Anthony Michael Stonis |
|
Designation : |
Director |
|
Address : |
370, Bow Line Bend, Naples, Florida, 34103, United States of America |
|
Date of Birth/Age : |
14.10.1946 |
|
Date of Appointment : |
25.02.2011 |
|
DIN No.: |
03145658 |
|
|
|
|
Name : |
Mr. Sanjay Kumar Mehta |
|
Designation : |
Director |
|
Address : |
33, Kalavai Street, Chintadript, Chennai – 600002, Tami Nadu, India |
|
Date of Birth/Age : |
21.06.1972 |
|
Date of Appointment : |
31.08.2012 |
|
DIN No.: |
00793098 |
|
|
|
|
Name : |
Mr. Shailendra Shripad Bhatkhande |
|
Designation : |
Director |
|
Address : |
Flat No. 406, 4th Floor, Silver Streak Apartments, Near
Ashok Nagar Circle, Manglore – 575006, Karnataka, India |
|
Date of Birth/Age : |
12.10.1996 |
|
Date of Appointment : |
10.08.2013 |
|
DIN No.: |
06636043 |
OBLIGATION DETAILS
As on: 30.09.2013
|
Names of Persons |
No. of Shares |
|
Shailendra Shripad Bhatkhande |
50 |
|
Sanjay Kumar Mehta |
50 |
|
Hindustan Holding Partners Limited Company, Bermuda |
6124974 |
|
Hindustan Holding Partners Limited Company, Bermuda |
116380000 |
|
|
|
|
Total |
122505074 |
Equity Share Break up (Percentage of Total Equity)
As on: 30.09.2013
|
Category |
|
Percentage |
|
|
|
|
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
99.99 |
|
Directors or relatives of directors |
|
0.01 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Chemical and Chemical Products |
|
|
|
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
|
|
|
|
Bankers : |
Indian Overseas Bank, 41/1, Azizuddin Road, Bunder, Mangalore - 575001, Karnataka, India |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.H. Bhandari and Company Chartered Accountants |
|
Address : |
Bhandari Towers, 824, EVR Periyar Road, Kilpauk, Chennai – 600010,
Tamil Nadu, India |
|
Tel. No.: |
91-44-26412323 / 26612132 / 30486875 |
|
Fax No.: |
91-44-42662251 |
|
E-Mail : |
|
|
PAN No.: |
ABAFS8935K |
|
|
|
|
Enterprises
which are owned, or have
significant influence of or
are partners with Key
management personnel and
their relatives : |
CIN No. U24100TN2011PTC082741 |
|
|
|
|
Holding Company : |
Hindustan Investment Partners Limited, Bermuda |
CAPITAL STRUCTURE
As on: 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
123000000 |
Equity Shares |
Rs.10/- each |
Rs.1230.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
122505074 |
Equity Shares |
Rs.10/- each |
Rs.1225.051
Millions |
|
|
|
|
|
FINANCIAL DATA
[All figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
(CARDOLITE
SPECIALTY CHEMICALS INDIA PRIVATE LIMITED)
|
SOURCES
OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1,225.051 |
74.804 |
|
(b) Reserves & Surplus |
|
(24.583) |
(13.263) |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
320.157 |
|
Total Shareholders’ Funds (1) + (2) |
|
1200.468 |
381.698 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
|
103.748 |
98.904 |
|
(b) Deferred tax
liabilities (Net) |
|
0.000 |
0.012 |
|
(c)
Other long term liabilities |
|
47.934 |
68.477 |
|
(d)
long-term provisions |
|
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
|
151.682 |
167.393 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
0.000 |
0.000 |
|
(b)
Trade payables |
|
0.000 |
0.000 |
|
(c)
Other current liabilities |
|
196.684 |
139.253 |
|
(d)
Short-term provisions |
|
1.376 |
0.186 |
|
Total
Current Liabilities (4) |
|
198.060 |
139.439 |
|
|
|
|
|
|
TOTAL |
|
1550.210 |
688.530 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
172.053 |
175.860 |
|
(ii)
Intangible Assets |
|
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
|
671.219 |
46.253 |
|
(iv) Intangible assets under
development |
|
0.000 |
0.000 |
|
(b)
Non-current Investments |
|
0.000 |
0.000 |
|
(c)
Deferred tax assets (net) |
|
0.020 |
0.000 |
|
(d) Long-term Loan and Advances |
|
125.079 |
40.867 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
Total
Non-Current Assets |
|
968.371 |
262.980 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
0.000 |
0.000 |
|
(c)
Trade receivables |
|
0.000 |
0.000 |
|
(d)
Cash and cash equivalents |
|
304.180 |
320.506 |
|
(e)
Short-term loans and advances |
|
169.576 |
2.158 |
|
(f)
Other current assets |
|
108.083 |
102.886 |
|
Total
Current Assets |
|
581.839 |
425.550 |
|
|
|
|
|
|
TOTAL |
|
1550.210 |
688.530 |
PROFIT & LOSS
ACCOUNT
(CARDOLITE
SPECIALTY CHEMICALS INDIA PRIVATE LIMITED)
|
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
0.000 |
0.000 |
|
|
|
Other Income |
|
0.000 |
0.709 |
|
|
|
TOTAL |
|
0.000 |
0.709 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Pre- Incorporation Expenses |
|
0.000 |
2.366 |
|
|
|
Administrative and Other Expenses |
|
0.000 |
6.886 |
|
|
|
Other Expenses |
|
8.915 |
0.000 |
|
|
|
Prior Period Adjustment |
|
(2.188) |
0.000 |
|
|
|
|
TOTAL |
|
6.727 |
9.252 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
(6.727) |
(8.543) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
0.722 |
2.380 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
(7.449) |
(10.923) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
|
3.903 |
2.328 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
(11.352) |
(13.251) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
|
(0.032) |
0.012 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
|
(11.320) |
(13.263) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(0.22) |
(3.28) |
|
KEY RATIOS
(CARDOLITE
SPECIALTY CHEMICALS INDIA PRIVATE LIMITED)
|
PARTICULARS |
|
|
31.03.2013 |
31.03.2012 |
|
PAT / Total
Income |
(%) |
|
0.00 |
(1870.66) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
(1.29) |
(2.06) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
(0.01) |
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.09 |
0.26 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.94 |
3.05 |
FINANCIAL ANALYSIS
[All figures are
in Rupees Millions]
(CARDOLITE
SPECIALTY CHEMICALS INDIA PRIVATE LIMITED)
DEBT EQUITY RATIO
|
Particular |
|
31.03.2012 |
31.03.2013 |
|
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
|
74.804 |
1,225.051 |
|
Reserves & Surplus |
|
(13.263) |
(24.583) |
|
Share Application money
pending allotment |
|
320.157 |
0.000 |
|
Net
worth |
|
381.698 |
1,200.468 |
|
|
|
|
|
|
long-term borrowings |
|
98.904 |
103.748 |
|
Short term borrowings |
|
0.000 |
0.000 |
|
Total
borrowings |
|
98.904 |
103.748 |
|
Debt/Equity
ratio |
|
0.259 |
0.086 |
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 one years |
Yes |
|
12] |
Profitability for last two 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 |
No |
|
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
(Rs.
In Millions)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
Long Term
Borrowings |
|
|
|
Term loans from banks unsecured |
103.748 |
98.904 |
|
|
|
|
|
Total |
103.748 |
98.904 |
Note :
Long Term
Borrowings
FCNR Term Loan
sanctioned by Indian Overseas Bank - Sanction Limit of Rs.661.500 millions
secured by Corporate Guarantee of Cardolite Corporation USA, - Rs 347.100 millions
and Personal guarantee from the Directors Cardolite Trading Private Limited, an
associate company has lien a Fixed Deposit for Rs. 110.000 millions for the
above loan – 2013.
REVIEW OF OPERATIONS AND OUTLOOK:
During the year
the company was in the process of setting up the manufacturing facility and
there were no sales. The Company did not earn any income during the financial
year (Previous F. Y. Rs. 0.709 Million). The company has incurred a net loss of
Rs. Rs. 11.320 Millions (Previous F. Y. Net Loss of Rs. 13.263 Millions). The
Directors are hopeful that though the Company is making initial losses as
expected, the Company after setting up of the manufacturing facility, will
achieve profits.
Note : No Charges Exist for Company.
FIXED ASSETS
- Motor Vehicle
- Office
Equipments
- Computer
- Furniture and
Fittings
- Plant and
Machinery
- Lease Land
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 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] 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.60.53 |
|
|
1 |
Rs.101.77 |
|
Euro |
1 |
Rs.83.92 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
26 |
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 unfavorable 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.