MIRA
INFORM REPORT
|
Report Date : |
27.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
NIKE INDIA PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
701, 7th Floor, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.05.2012 |
|
|
|
|
Date of
Incorporation : |
17.08.2004 |
|
|
|
|
Com. Reg. No.: |
08-034515 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 86.786 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U36939KA2004PTC034515 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRN02535B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCN9612K |
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|
|
|
Legal Form : |
Private Limited Liability Company |
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|
|
|
Line of Business
: |
Subject is engaged in wholesale trade of sports goods like
Footwear, Apparel and Equipment. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (16) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject is an established company having moderate track record. The management has file its latest financial for the year 2013 with government
department but same could not be made available. As per available financial of 2012, the company has incurred huge
accumulated losses, which has eroded the net worth of the company.
Profitablitiy of the company seems to be under pressure. Business is active. Payment terms are slow and delayed. The company can be considered for business dealings on safe and
secured trade terms and conditions. |
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
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital firms
in India during 2013, registering a drop of about 18 % over the previous year.
The Information Technology and IT-Enabled Services Industry retained its
status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
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
MANAGEMENT NON-COOPERATIVE (Tel. No.: 91-80-41343100)
LOCATIONS
|
Registered Office : |
701, 7th Floor, |
|
Tel. No.: |
91-80-41343100/ 51343100 |
|
Fax No.: |
91-80-51343116 |
|
E-Mail : |
DIRECTORS
As on 30.09.2013
|
Name : |
Mr. Manish Jain |
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|
Designation : |
Director |
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|
Address : |
16796, SW, Whitetail LN, Beaverton, Oregon - 97007 |
|||||||||||||||||||||||||||
|
Date of Birth/Age : |
24.08.1976 |
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|
Date of Appointment : |
21.06.2013 |
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DIN No. : |
05325475 |
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|
Other Directorship :
|
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|
|||||||||||||||||||||||||||
|
Name : |
Mr. John Francis Coburn III |
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|
Designation : |
Director |
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|
Address : |
4-B2, Binny Crecent, Off Nandidurgrd, 16, |
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|
Date of Birth/Age : |
25.11.1961 |
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|
Date of Appointment : |
03.09.2010 |
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|
DIN No. : |
03171531 |
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KEY EXECUTIVES
|
Name : |
Mr. Vijay Rajan |
|
Designation : |
Finance Director |
|
|
|
|
Name : |
Mr. Sandeep Sokhanda |
|
Designation : |
Territory Stores Director |
|
|
|
|
Name : |
Mr. Ravishankar Kallayil |
|
Designation : |
Operations Director |
|
|
|
|
Name : |
Mr. Sandeep Sokhanda |
|
Designation : |
Territory Stores Director |
|
|
|
|
Name : |
Mr. Ravishankar Kallayil |
|
Designation : |
Operations Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Names of Shareholders |
No. of Shares |
|
Nike Group Holding BV, Netherlands |
1 |
|
Nike India Holdings BV, Netherlands |
8678570 |
|
Total |
8678571 |
As on 30.09.2013
Equity Share Break up (Percentage of Total Equity)
|
Category |
Percentage of Holding |
|
Foreign holdings( Foreign institutional
investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident
Indian(s) or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in wholesale trade of sports goods like Footwear, Apparel and Equipment. |
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Products : |
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Brand Name: |
“NIKE” |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
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|
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|
Bankers : |
Not Divulged |
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Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Price Waterhouse chartered accountants |
|
Address : |
10th Floor, 'C' Wing, Mittal Tower, 47/6, Mahatma Gandhi Road , Bangalore-560001, Karnataka, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AAEFP3641G |
|
|
|
|
Holding Company: |
Nike India Holdings B.V., Netherlands |
|
|
|
|
Ultimate Holding
Company: |
Nike Inc.USA |
|
|
|
|
Fellow Subsidiary
Companies: |
· Nike International Limited ,USA Nike Singapore Pte Limited Nike European Operations Netherlands B.V. Nike Phillipines Inc. Nike Sports Korea Nike Sourcing India Private Limited Nike Thailand Limited |
CAPITAL STRUCTURE
As on 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22500000 |
Equity Shares |
Rs.10/- Each |
Rs.225.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8678571 |
Equity Shares |
Rs.10/- Each |
Rs.86.786
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.05.2012 |
31.05.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
86.786 |
86.786 |
|
(b) Reserves & Surplus |
|
(2,953.477) |
(2,110.197) |
|
(c) Money
received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
|
(2,866.691) |
(2,023.411) |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
5,275.400 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
0.000 |
|
(c) Other long term liabilities |
|
344.021 |
106.452 |
|
(d) long-term provisions |
|
70.275 |
24.368 |
|
Total Non-current Liabilities (3) |
|
5,689.696 |
130.820 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
0.000 |
2,107.907 |
|
(b) Trade payables |
|
575.757 |
483.304 |
|
(c) Other current
liabilities |
|
698.842 |
688.097 |
|
(d) Short-term provisions |
|
46.605 |
25.678 |
|
Total Current Liabilities (4) |
|
1,321.204 |
3,304.986 |
|
|
|
|
|
|
TOTAL |
|
4,144.209 |
1,412.395 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
31.925 |
17.133 |
|
(ii) Intangible Assets |
|
0.563 |
0.603 |
|
(iii) Capital
work-in-progress |
|
0.000 |
0.000 |
|
(iv) Intangible
assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
55.032 |
34.620 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
Total Non-Current Assets |
|
87.520 |
52.356 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
599.752 |
414.360 |
|
(c) Trade receivables |
|
944.476 |
749.567 |
|
(d) Cash and cash
equivalents |
|
2,179.450 |
0.023 |
|
(e) Short-term loans and
advances |
|
305.213 |
196.089 |
|
(f) Other current assets |
|
27.798 |
0.000 |
|
Total Current Assets |
|
4,056.689 |
1,360.039 |
|
|
|
|
|
|
TOTAL |
|
4,144.209 |
1,412.395 |
|
SOURCES OF FUNDS |
|
|
31.05.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
86.786 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
138.214 |
|
|
4] (Accumulated Losses) |
|
|
(1737.034) |
|
|
NETWORTH |
|
|
(1512.034) |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
0.000 |
|
|
2] Unsecured Loans |
|
|
1567.875 |
|
|
TOTAL BORROWING |
|
|
1567.875 |
|
|
DEFERRED TAX LIABILITIES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
55.841 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
23.397 |
|
|
Capital work-in-progress |
|
|
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
0.000 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
278.130 |
|
|
Sundry Debtors |
|
|
635.791 |
|
|
Cash & Bank Balances |
|
|
2.484 |
|
|
Other Current Assets |
|
|
29.784 |
|
|
Loans & Advances |
|
|
161.767 |
|
Total
Current Assets |
|
|
1107.956 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
124.517 |
|
|
Other Current Liabilities |
|
|
901.748 |
|
|
Provisions |
|
|
49.247 |
|
Total
Current Liabilities |
|
|
1075.512 |
|
|
Net Current Assets |
|
|
32.444 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
55.841 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.05.2012 |
31.05.2011 |
31.05.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
TOTAL |
3687.666 |
2529.160 |
1861.182 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL |
4516.334 |
3121.858 |
2241.912 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
(828.668) |
(592.698) |
(380.730) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
14.612 |
10.677 |
10.365 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(843.280) |
(511.377) |
(391.095) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
(843.280) |
(511.377) |
(391.095) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(2248.411) |
(1737.034) |
(1335.574) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(3091.691) |
(2248.411) |
(1737.034) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Cricket related expense recovered |
0.000 |
|
|
|
|
|
Sale of goods |
18.384 |
28.115 |
|
|
|
|
Expenses recovered from Nike Inc and group companies |
0.000 |
19.611 |
|
|
|
TOTAL EARNINGS |
18.384 |
139.724 |
171.227 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Traded Goods |
1240.100 |
711.982 |
NA |
|
|
TOTAL IMPORTS |
1240.100 |
711.982 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(97.17) |
(58.92) |
(45.06) |
|
.
KEY RATIOS
|
PARTICULARS |
|
31.05.2012 |
31.05.2011 |
31.05.2010 |
|
PAT / Total Income |
(%) |
(22.87)
|
(20.22) |
(21.01) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(20.35)
|
(36.21) |
(34.57) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.25 |
0.26 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
(1.84)
|
(1.04) |
(1.04) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.07
|
0.41 |
1.03 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.05.2011 |
31.05.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
86.786 |
86.786 |
|
Reserves & Surplus |
(2110.197) |
(2953.477) |
|
Net
worth |
(2,023.411) |
(2,866.691) |
|
|
|
|
|
Long-term borrowings |
0.000 |
5275.400 |
|
Short term borrowings |
2107.907 |
0.000 |
|
Total
borrowings |
2,107.907 |
5,275.400 |
|
Debt/Equity
ratio |
(1.042) |
(1.840) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.05.2010 |
31.05.2011 |
31.05.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Total Income |
1861.182 |
2529.16 |
3687.666 |
|
|
|
35.890 |
45.806 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.05.2010 |
31.05.2011 |
31.05.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Total Income |
1861.182 |
2529.160 |
3687.666 |
|
Profit |
(391.095) |
(511.377) |
(843.280) |
|
|
(21.01%) |
(20.22%) |
(22.87%) |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
No |
|
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 |
INDEX OF CHARGES: NO
CHARGES EXIST FOR COMPANY
UNSECURED LOANS
|
PARTICULAR |
31.05.2012 (Rs.
In Millions) |
31.05.2011 (Rs. In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Fully convertible debentures intercorporate |
5275.400 |
0.000 |
|
Total |
5275.400 |
0.000 |
|
NOTE The Company has allotted 5,275,000 Unsecured compulsorily
convertible debentures during the year aggregating to Rs. 5275.400 Millions
which carry an interest rate of 12% p.a. The first interest is due on the
fourth anniversary of the date of issue of the debentures and on each annual
anniversary thereafter.b) These debentures are redeemable at the end of 20
years from the date of allotment. However, the debentures may, be completely
converted into fully paid up shares at any time prior to the expiry of the
term, at the option of the subscriber. The debentures were issued in March
2012, which are convertible into 263,770,000 Equity Shares of Rs.10 each, in
March 2032, in accordance with the terms of the issue. |
||
GENERAL INFORMATION
The Company, registered under the Companies Act, 1956, are engaged in wholesale trade of sports goods like Footwear, Apparel and Equipment under the brand name of Nike. The Company was incorporated in the year 2004. Nike India manages its operations in three operating business segments: Footwear, Apparel and Equipment.
PERFORMANCE
The Company has earned a total income is Rs.3687.700 Millions against which the Company has reported a total
loss of Rs 843.200 Millions.
Cricket, being amongst the most popular sports in India, the directors are confident that its continued focus in contributing to the development of the sport or cricket in India will derive long term benefits to the Company by emotionally connecting the Nike brand with the Indian consumers through the game of cricket and developing the market for Nike products in India by sponsoring cricketing events. The Company are confident that the Company will be profitable at EBIT level by FY 2016.
FIXED ASSETS
v
Tangible
Assets
Furniture
and Fixtures
Office
Equipment
Computer
Equipments
Other
Equipments
Leasehold
Improvements
v
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 records 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.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
16 |
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.