MIRA INFORM REPORT
|
Report Date : |
18.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
LILLIPUT KIDSWEAR LIMITED
(w.e.f.18.10.2006) |
|
|
|
|
Formerly Known
As : |
LILLIPUT KIDSWEAR PRIVATE LIMITED (w.e.f.15.07.2006) ANAND CHILDREN WEAR PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
D-95, Phase-1, Okhla Industrial Area, New Delhi -
110020 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
14.08.2003 |
|
|
|
|
Com. Reg. No.: |
55-121787 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1129.527
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U18202DL2003PLC121787 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELA12172G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECA3031E |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturing and Selling of Apparels and Related
Accessories. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 5000000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. Management has failed to file the latest financial of 2013 with the
government department. As per available, the company possesses a weakening financial profile
marked by a huge loss witnessed during 2012. Furthermore, even though the promoters have infused sizeable funds,
there seems to be a huge debt reported as a part of the capital structure. The ratings also factor in stretched liquidity position resulting from
high dependence on bank borrowings for working capital requirements, high
receivable and huge outside liabilities payable during the year under
consideration. However, trade relation appears to be fair. Business is active.
Payment terms are reported as slow. In view of promoters support, the subject can be considered for
business dealings with great 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
State-run banks hired nearly
300000 personnel including more than 94000 officers in the last four years, according
to the Indian Banks Association. A study by trade lobby Assocham in September
2013 indicated that banks would need 800000 people in the next six years. It
estimated that state-run lenders alone would hire 50000 people in 2013/14.
The Competition Commission of
India plans to issue final orders within a broad time-frame of one year in
matters where it decides to carry out detailed investigations. The number of
complaints received by the watchdog which keeps tabs on unfair trade practices
in the marketplace.
The government has detected
custom tax evasion totaling around Rs 37920 mn in 14 states until December.
Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140
mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.
Connaught Place in New Delhi
slipped four notches to become the world’s eighth most expensive office
locations. London’s West End is the world’s most expensive office market.
There are 4.072 mn number of
high value spenders under the scanner of the income tax department. The income
tax department has information that they have made cash deposits announcing to
Rs 1 mn or more in their savings bank accounts in the current financial year.
It plans to check potential evasion before the closing of the financial year on
March 31.
Estimated pharmaceutical sales
in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago.
The life sciences and health care industry is up against challenges such as
quality management, says a recent Deloitte report.
The gross non-performing assets
of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months
of the financial year. In absolute terms, the 40 listed banks added Rs 3386
crore to their gross NPAs in nine months with the State Bank of India leading
with the State Bank of India leading with an accretion of Rs 16610 crore.
The inflow of smuggled gold
doubled in 2013 following restrictions to curb the supply from official
channels to contain the current account deficit. China surpassed India in the
demand for gold for the first time in 2013 due to liberalization of gold
trading norms by its local governments.
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
(CONTACT NO.: 91-11-66462000)
LOCATIONS
|
Registered/ Head Office : |
D-95, Phase-1, Okhla Industrial Area, New Delhi –
110020, India |
|
Tel. No.: |
91-11-66462000/ 66462001 |
|
Fax No.: |
91-11-26818282 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 26.11.2012
|
Name : |
Mr. Sanjeev Narula |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Managing director |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
E-109, GK Part II, New Delhi – 110048, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
26.08.1965 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Qualification : |
Graduate |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
09.10.2009 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PAN No.: |
AABPN4342B |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
00774002 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Mr. Arun Jain |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Designation : |
Whole-time director |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Address : |
Villa No. 50, Block V, First Floor, Eros Gardens, Charmswood Village,
Faridabad – 121009, Haryana, India |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Birth/Age : |
05.09.1966 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Qualification : |
Chartered Accountant |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Date of Appointment : |
09.10.2009 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
PAN No.: |
AAAPJ1163B |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
DIN No.: |
01931891 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Other Directorship :
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 26.11.2012
|
Names of Shareholders |
|
No. of Shares |
|
Sanjeev Narula |
|
111432024 |
|
Bindiya Narula |
|
600000 |
|
Madan Lal Narula |
|
12000 |
|
Sanjay Narula |
|
12000 |
|
Nirmal Narula |
|
895200 |
|
Seema Puri |
|
1200 |
|
Arun Jain |
|
20 |
|
|
|
|
|
Total |
|
112952444 |
|
Names of Allottee |
|
No. of Shares |
|
Sanjeev Narula |
|
6683750 |
|
|
|
|
|
Total |
|
6683750 |
AS ON 26.11.2012
|
Equity Share Breakup |
Percentage of Holding |
|
Category |
|
|
Directors
or relatives of directors |
100.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of Apparels and Related
Accessories. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity per annum |
Actual
Production |
|
|
|
|
|
|
|
Garments |
(Pieces) |
N.A |
12,000,000 |
10,220,531 |
|
|
|
|
|
|
Note:
The Company is not operating under the Licence hence the Licence capacity is not applicable.
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· Oriental Bank of Commerce Overseas Branch, M-33 Greater Kailash Part-2, New Delhi - 110048, Delhi, India · Allahabad Bank (Lead Bank) International Banking Branch, 17, Parliament Street, New Delhi - 110001, Delhi, India · Yes Bank Limited 9th Floor, Nehru Centre, Discovery Of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India · Standard Chartered Bank Credit Documentation Unit, Narain Manzil, 23 Barakhamba Road, New
Delhi - 110001, India · Bank Of India New Delhi Large Corporate Branch, PTI Building, 4, Parliament Street,
New Delhi - 110001, India · ICICI Bank Limited Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.M. Agarwal And Company Chartered Accountants |
|
Address : |
36, Netaji Subhash Marg, Daryaganj, New Delhi, India |
|
Income-tax
PAN of auditor or auditor's firm : |
AALFS0506L |
|
|
|
|
Enterprises which
are owned, or have significant influence of or are partners with Key
management personnel and their relatives : |
Apex Travel and Tours |
|
|
|
|
Subsidiaries : |
· Lilliput Kidswear (Sourcing) Limited [U51909DL2011PLC216352] · Lilliput E-commerce Limited [U72200DL2011PLC221010] · Lilliput Middle - East Holding (W.L.L) ·
Lilliput Kidswear China Limited |
CAPITAL STRUCTURE
AFTER 26.11.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
119,636,194 |
Equity Shares |
Rs. 10/- each |
Rs. 1196.362
Millions |
|
|
|
|
|
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
112,952,744 |
Equity Shares |
Rs. 10/- each |
Rs. 1129.527
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
1129.527 |
282.381 |
|
(b) Reserves & Surplus |
|
176.367 |
2823.587 |
|
(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) |
|
1305.894 |
3105.968 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
2611.169 |
1013.556 |
|
(b) Deferred tax liabilities (Net) |
|
0.000 |
52.219 |
|
(c)
Other long term liabilities |
|
45.524 |
50.580 |
|
(d)
long-term provisions |
|
7.765 |
7.765 |
|
Total
Non-current Liabilities (3) |
|
2664.458 |
1124.120 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
|
6005.967 |
1756.312 |
|
(b)
Trade payables |
|
693.687 |
509.139 |
|
(c)
Other current liabilities |
|
404.542 |
76.878 |
|
(d)
Short-term provisions |
|
4.876 |
4.576 |
|
Total
Current Liabilities (4) |
|
7109.072 |
2346.905 |
|
|
|
|
|
|
TOTAL |
|
11079.424 |
6576.993 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
|
3427.189 |
2273.011 |
|
(ii)
Intangible Assets |
|
14.460 |
18.058 |
|
(iii)
Capital work-in-progress |
|
69.964 |
271.891 |
|
(iv) Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
1.000 |
6.861 |
|
(c) Deferred tax assets
(net) |
|
707.870 |
0.000 |
|
(d) Long-term Loan
and Advances |
|
10.216 |
8.938 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
Total
Non-Current Assets |
|
4230.699 |
2578.759 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
0.000 |
0.000 |
|
(b)
Inventories |
|
4267.437 |
2269.685 |
|
(c)
Trade receivables |
|
1720.275 |
845.355 |
|
(d)
Cash and cash equivalents |
|
108.358 |
244.491 |
|
(e)
Short-term loans and advances |
|
744.774 |
631.997 |
|
(f)
Other current assets |
|
7.881 |
6.706 |
|
Total
Current Assets |
|
6848.725 |
3998.234 |
|
|
|
|
|
|
TOTAL |
|
11079.424 |
6576.993 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
236.184 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
1111.167 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
1347.351 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
1346.940 |
|
|
2] Unsecured Loans |
|
|
489.180 |
|
|
TOTAL BORROWING |
|
|
1836.120 |
|
|
DEFERRED TAX LIABILITIES |
|
|
51.305 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3234.776 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
1523.409 |
|
|
Capital work-in-progress |
|
|
33.511 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
7.404 |
|
|
DEFERRED TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
1009.829 |
|
|
Sundry Debtors |
|
|
591.205 |
|
|
Cash & Bank Balances |
|
|
322.915 |
|
|
Other Current Assets |
|
|
3.296 |
|
|
Loans & Advances |
|
|
275.042 |
|
Total
Current Assets |
|
|
2202.287 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
296.890 |
|
|
Other Current Liabilities |
|
|
228.460 |
|
|
Provisions |
|
|
6.485 |
|
Total
Current Liabilities |
|
|
531.835 |
|
|
Net Current Assets |
|
|
1670.452 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
3234.776 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5822.555 |
6565.761 |
3391.691 |
|
|
|
Other Income |
96.379 |
161.494 |
115.336 |
|
|
|
TOTAL (A) |
5918.934 |
6727.255 |
3507.027 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1016.344 |
1504.967 |
|
|
|
|
Purchases of Stock-in-Trade |
4181.158 |
2403.718 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(1784.393) |
(1156.265) |
|
|
|
|
Employees benefits expense |
901.801 |
782.763 |
|
|
|
|
Other expenses |
2880.986 |
2192.307 |
|
|
|
|
Extraordinary Items |
348.320 |
0.000 |
|
|
|
|
TOTAL (B) |
7544.216 |
5727.490 |
2833.335 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(1625.282) |
999.765 |
673.692 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
589.362 |
254.398 |
191.107 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(2214.644) |
745.367 |
482.585 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
345.220 |
176.520 |
104.416 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(2559.864) |
568.847 |
378.169 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(759.790) |
171.134 |
128.043 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(1800.074) |
397.713 |
250.126 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export of Goods at FOB value |
1278.299 |
1714.959 |
1170.433 |
|
|
|
Royalty Income |
0.000 |
4.254 |
4.600 |
|
|
TOTAL EARNINGS |
1278.299 |
1719.213 |
1175.033 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
76.263 |
30.958 |
|
|
|
Finished Goods and Accessories |
|
734.613 |
76.222 |
|
|
|
Capital Goods |
|
71.891 |
0.000 |
|
|
TOTAL IMPORTS |
NA
|
882.767 |
107.180 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
|
|
|
|
|
|
Basic
|
(15.94) |
3.53 |
2.31 |
|
|
|
Diluted
|
(15.94) |
3.53 |
2.28 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(30.41)
|
5.91 |
7.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(43.96)
|
8.66 |
11.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(24.85)
|
9.03 |
10.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(1.96)
|
0.18 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.60
|
0.89 |
1.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96
|
1.70 |
4.14 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
282.381 |
1129.527 |
|
Reserves & Surplus |
2823.587 |
176.367 |
|
Net
worth |
3105.968 |
1305.894 |
|
|
|
|
|
long-term borrowings |
1013.556 |
2611.169 |
|
Short term borrowings |
1756.312 |
6005.967 |
|
Total
borrowings |
2769.868 |
8617.136 |
|
Debt/Equity
ratio |
0.892 |
6.599 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3391.691 |
6565.761 |
5822.555 |
|
|
|
93.584 |
(11.319) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3391.691 |
6565.761 |
5822.555 |
|
Profit/ (Loss) |
250.126 |
397.713 |
(1800.074) |
|
|
7.37% |
6.06% |
(30.92%) |
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 |
Yes |
|
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 |
Yes |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
LITIGATION DETAILS
IN THE HIGH COURT OF DELHI AT
NEW DELHI
CO.PET. 338/2013
M/S SIFY TECHNOLOGIES LTD
..... Petitioner
Through Mr Sujeet K. Mishra,
Advocate
Versus
M/S LILIPUT KIDSWEAR LTD
..... Respondent
Through Mr Rohit Gupta,
Advocate
CORAM:
HON'BLE MR. JUSTICE VIBHU
BAKHRU
O R D E R
06.02.2014
Notice was issued in the
present petition on 09th July, 2013 which was accepted by the learned counsel
appearing for the respondent. Four weeks time was granted to file the reply.
The learned counsel for the
respondent again sought time on 08th October, 2013 and was granted
yet another opportunity to file a reply within four weeks from the date of the
order. No reply has been filed on behalf of the respondent as yet. Seven months
have already elapsed and I find not reason to give any further time to the respondent
to file a reply in this matter.
Accordingly, the averments
made in the petition stand uncontroverted. The present petition is admitted and
the petitioners are directed to publish a citation in ?Statesman? (English) and
?Jan Satta? (Hindi).
The citation be also
published in Delhi Gazette.
This Court has already
appointed the Official Liquidator as a Provisional Liquidator in Company
Petition 66/2012. Accordingly, no orders for appointment of a Provisional
Liquidator are passed in this matter.
Renotify on 28th April, 2014.
VIBHU BAKHRU, J
FEBRUARY 06, 2014
pkv
$ 17
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10452757 |
13/08/2013 |
8,521,200,000.00 |
ALLAHABAD BANK
(LEAD BANK) |
INTERNATIONAL
BANKING BRANCH, 17, PARLIAMENT STREET, NEW DELHI - 110001, INDIA |
B86538196 |
|
2 |
10439346 |
06/06/2013 |
245,300,000.00 |
STANDARD
CHARTERED BANK |
CREDIT
DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI - 110001,
INDIA |
B80556434 |
|
3 |
10439942 |
06/06/2013 |
1,063,700,000.00 |
BANK OF INDIA |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4, PARLIAMENT STREET, NEW DELHI - 110001,
INDIA |
B80819485 |
|
4 |
10369582 |
07/08/2012 |
4,220,900,000.00 |
ALLAHABAD BANK |
INTERNATIONAL
BRANCH, 17, PARLIAMENT STREET, NEW DELHI - 110001, INDIA |
B45330537 |
|
5 |
10360551 |
30/06/2012 * |
917,000,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
M-33 GREATER KAILASH PART-2, NEW |
B44484509 |
|
6 |
10360545 |
21/05/2012 |
89,700,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
M-33 GREATER KAILASH PART-2, NEW |
B41600180 |
|
7 |
10360548 |
21/05/2012 |
275,700,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
M-33 GREATER KAILASH PART-2, NEW |
B41601295 |
|
8 |
10351495 |
18/04/2012 |
250,000,000.00 |
BANK OF INDIA |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4 |
B38132163 |
|
9 |
10303378 |
15/07/2011 |
150,000,000.00 |
FIRST LEASING
COMPANY OF INDIA LIMITED |
749, ANNA SALAI,
CHENNAI- 600002, TAMILNADU, INDIA |
B19247220 |
|
10 |
10302432 |
13/07/2011 |
940,000,000.00 |
IDBI TRUSTEESHIP
SERVICES LIMITED |
ASIAN BLDG.,
GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI - 400001,
MAHARASHTRA, INDIA |
B18891325 |
|
11 |
10285571 |
04/06/2013 * |
1,110,500,000.00 |
ICICI BANK
LIMITED |
LANDMARKRACE COURCE
CIRCLE, ALKAPURI, BARODA - 390015, GUJARAT, INDIA |
B78116613 |
|
12 |
10241639 |
18/04/2012 * |
750,000,000.00 |
BANK OF INDIA |
NEW DELHI LARGE
CORPORATE BRANCH, PTI BUILDING, 4 SANSAD MARG, NEW DELHI - 110001, INDIA |
B38131801 |
|
13 |
10226856 |
28/02/2011 * |
100,000,000.00 |
FIRST LEASING
COMPANY OF INDIA LIMITED |
749, ANNA SALAI,
CHENNAI- 600002, TAMILNADU, INDIA |
B10888501 |
|
14 |
10213074 |
28/03/2013 * |
1,164,400,000.00 |
AXIS BANK
LIMITED |
SHOP NO. 1- 6
& 8 -10, GROUND FLOOR, NINEX TIME CENTRE, SUN CITY, SECTOR 54,
GURGAON - 122002, HARYANA, INDIA |
B72735475 |
|
15 |
10214509 |
09/04/2010 |
250,000,000.00 |
AXIS BANK LTD. |
SG 21 & 22, DLF
GALLERIA SHOPPING COMPLEX, DLF CITY, PHASE-IV, GURGAON, HARYANA - 122002,
INDIA |
A83344556 |
|
16 |
10192016 |
18/04/2011 * |
5,396,400,000.00 |
ALLAHABAD BANK |
INTERNATIONAL
BRANCH, 17, PARLIAMENT STREET,, NEW |
B12552162 |
|
17 |
10170104 |
22/01/2009 |
75,000,000.00 |
ORIENTAL BANK OF
COMMERCE |
M-33, OVERSEAS
BRANCH G. K. - II, NEW DELHI, DELHI - 110049, INDIA |
A59423855 |
|
18 |
10111230 |
18/06/2010 * |
735,500,000.00 |
3I INFOTECH
TRUSTEESHIP SERVICES LIMITED |
36, RANI JHANSI
ROAD, RAM KUMAR MARG (OPP JHANDEWALAN MANDIR), NEW DELHI - 110055, INDIA |
A87672085 |
|
19 |
10051531 |
26/03/2010 * |
370,000,000.00 |
STANDARD
CHARTERED BANK |
CREDIT RISK
CONTROL, NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI, DELHI - 110001,
INDIA |
A85698728 |
|
20 |
10054274 |
19/05/2007 * |
100,000,000.00 |
ORIENATL BANK OF
COMMERCE |
M-33 OVERSEAS
BRANCH, G.K.-II, NEW DELHI, DELHI - 110048, INDIA |
A26573683 |
|
21 |
10054275 |
30/06/2012 * |
2,667,400,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
M-33 GREATER KAILASH PART-2, NEW DELHI, DELHI - 110048, INDIA |
B44425627 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Rupee term loans from banks |
183.766 |
0.000 |
|
Commercial paper |
108.200 |
350.000 |
|
Other loans and advances |
1225.773 |
226.262 |
|
|
|
|
|
Total |
1517.739 |
576.262 |
NATURE OF OPERATIONS
The Company is engaged in the business of manufacturing/selling of apparels and related accessories.
FINANCIAL RESULTS/
OPERATIONS
There is difference of Rs. 17.600 Millions in disclosed figures for the Financial Year 2011 in finance cost due to regrouping of figures for previous year, however it has no effect on Profit/ Loss of that year due to regrouping.
The year has been very challenging for the Company. As the members are aware that during the year the Company was planning to bring its Initial Public Offering (‘IPO’) hence the Company was on an aggressive expansion plan. However in September 2011, the representatives of then shareholders namely BC India Private Investors I and Star Markets Asia Inc. received certain anonymous calls about certain financial irregularities in the Company. Acting on such baseless anonymous calls, they withdrew their consent to the IPO and hence started the dispute among its shareholders interse. The company and the Promoter went into litigation against the investors against such unreasonable withdrawal. Although the same was a internal matter to the Company but due to high profiling of the company and investor shareholders, the matter was covered extensively in financial media which created negative publicity for the Company and resulted in the Banking facilities of the Company being put on hold as both the investors and the Banks sought the scrutiny of the Books of Accounts of the Company.
The main lender Bank had appointed Aggarwal Anil and Company Chartered Accountants as Special Auditors for conducting special audit as per scope assigned by the Bank who conducted detailed audit into the operations and books of accounts and submitted satisfactory report to the bankers. However due to the exaggerated reaction from all the corners, the business suffered. The bankers stopped releasing sanctioned limits and went into panic mode for reducing their exposures, thereby aggravating liquidity position of the company. Aggressive expansion plans went awry and company suffered heavy losses due to capital expenditure already committed. The primary reason for the panic among the suppliers was that the Banks started dishonoring the LC?s that they had issued to suppliers by pointing out minor discrepancies and returning the documents unpaid which created insecurity among the suppliers who then in turn refused to deliver the merchandise without 100% advance payment. Although the dispute was over domestic business of the company, its ramifications spilled over to the export division also as due to their investors profile the matter was covered by US media also and the buyers became apprehensive about financial stability of the company and timely deliveries of the export orders, hence they shifted/cancelled the orders already confirmed which resulted in extra-ordinary losses. Due to prolonged dispute, operations of the company suffered due to financial crunch. Although they decided to consolidate their operations and focus on the sustaining the retail operations of the Company, the operations of the Company suffered greatly therefore though they were able to retain their sales their margins came really under pressure as the stores were offering discount on merchandise throughout the year then and because they had to take such a huge write off due to these extra-ordinary reasons.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2012 (Rs.
In Millions) |
31.03.2011 (Rs.
In Millions) |
|
Other cases* |
Amount unascertainable |
Amount unascertainable |
|
Letters of Credit discounted with the bank |
0.000 |
339.582 |
|
|
|
|
|
Total |
0.000 |
339.582 |
|
* The Company has some pending legal cases against which the amount is
not ascertainable. On the basis of current status of individual case and as
per legal advice obtained by the Company, wherever applicable, the Company is
confident of winning the above cases and is of view that no provision is
required in respect of these cases. |
||
FIXED ASSETS:
· Land
· Buildings
· Plant and equipment
· Furniture and fixtures
· Vehicles
·
Computer software
PRESS RELEASES:
CASH-STRAPPED
LILLIPUT PLANS TO FLOAT IPO
Mumbai
February 13, 2013
Strapped apparel company Lilliput Kidswear plans to cash in on the booming stock market. It is in talks with merchant bankers to float an initial public offering (IPO) the next financial year. According to sources, the company has plans to raise Rs 4000.000 Millions through the IPO.
The company was in talks with a few private equity players, including Chinese
ones, to raise another round of funds.
The company, with a debt of Rs 8500.000 Millions, had restructured Rs 5860.000
Millions last year. Lilliput founder Sanjeev Narula confirmed the plan to enter
the public market, without giving further details. The retailer had hit the
headlines after its battle with private equity investors Bain Capital and TPG.
In 2011, Bain and TPG had accused promoter Narula of fudging the books and not
providing auditors access to financials. Narula alleged the investors were
trying to stall the IPO plans and seize majority control.
In October, Sanjeev Narula, who had approached the company law board, withdrew
all the cases against the investors, after they sold their 45 per cent stake to
Narula, with no returns. Bain and TPG had together invested $86 million in
Lilliput in 2010.
Admitting the $4-million default by Lilliput Kidswear to Bangladeshi garment
exporters, Narula said, "At the time, the dispute between the shareholders
had occurred, due to which the banks had put on hold the banking facilities,
and the letters of credit (LoCs) could not be honoured."
“We had a complete intention to pay, which is a reason why we accepted the
documents under the expired LoCs also. The first thing we have done is to
invite them to India for arriving at a repayment schedule," he added.
Narula said all disputes with foreign investors have been resolved and 100 per
cent equity is with the promoter.
"After multiple audits by the bankers, we were fortunate enough to receive
their full support. Of our total banking limits of Rs 8500.000 Millions, 85 per
cent of debt is restructured and the rest is under the process, expected to be
complete by February- end," he said.
Major lenders Allahabad Bank, Axis Bank and Oriental Bank of Commerce had
agreed to pay Rs 1000.000 Millions as working capital with an 18-month
moratorium.
"The banks have been supportive in releasing the additional limits to the
company and it is currently working on positive cash flows," added Narula.
As on date, Lilliput owns 240 stores across 165 cities with a retailing space
of around 6,50,000 sq. ft.
NO CHILD'S PLAY
HOME-GROWN RETAILERS
OF CHILDREN'S WEAR ARE STRUGGLING ALONG A STEEP LEARNING CURVE.
Being taken to court by a private equity investor in May was just the latest on the list of troubles of home-grown kids' wear retailer Catmoss. The private equity firm, SAIF Partners, alleged that Catmoss was selling company assets, doctoring its books and fudging meeting minutes. Last year, SAIF roped in accounting firm KPMG to carry out a limited audit of Catmoss Retail, suspecting that Catmoss's management mismanaged its Rs 1000.000 Millions investment.
In 2011, PE firms Bain Capital and TPG Capital took Lilliput Kidswear to court
over alleged accounting fraud. In a compromise last October, both the PE
investors wrote off their entire investment in Lilliput and transferred their
holdings to the promoters.
The organised children's wear market is suffering from
growing pains. Catmoss and Lilliput are two of its three organised retail
chains - and the third retailer, Gini & Jony, is not in great shape either.
The organised segment, according to PwC, accounts for about five per cent of
the market. It is paying the price for reckless expansion, in the form of heavy
debt, poor brand recall, high rent costs, and continued competition from
mom-and-pop shops in a highly fragmented market.
Things need not have been this way. The potential market - children up to 12 years old - is a good 23 per cent of the population. The kids' wear segment is one of the fastest growing in the country's apparel industry.
KPMG estimates the size of the kids' wear market in India at Rs
280000.000-300000.000 Millions, and expects it to reach Rs 430000.000 Millions
by 2016 and Rs 720000.000 Millions by 2021. Given such expectations, companies
went on expansion sprees, and PE investors backed them.
"One calculates as per the market forecast," says Anil Lakhani,
Executive Director of Gini & Jony, which opened India's first exclusive
kids' wear store in 1996/97 in Hyderabad. "Before 2009, everyone bought
into the India shining story." Such was the euphoria that the company was
set to go public in 2008, and planned to have a total of 260 exclusive brand
outlets by the end of 2009 and 300 a year later. "Gradually, we went
through a learning curve and corrected as per the new market reality," he
says. Gini & Jony shelved its IPO plans and now depends heavily on internal
accruals for expansion. The number of its exclusive outlets went up from 191 in
2010/11 to 203 in 2011/12, and dropped to 188 in 2012/13.
Lilliput, which had exported to international retailers since 1991, ventured
into direct retail in India with its first store in New Delhi in 2003. By
September 2011, it had 290 exclusive stores in India and 40 in 10 other
countries. It has since shut down international operations, and the number of
stores in India had dropped to 240 by 2012.
Sanjeev Narula, Lilliput's Chairman and Managing Director, says: "We have
shut down international operations. The focus now is on cash sales to improve
cash flow." Lilliput, which is servicing debt of Rs 8500.000 Millions,
says its entire debt has been restructured by 10 banks.
Rival Catmoss - which opened its first store in New Delhi in 2004 and had 165 exclusive outlets as of last year - had secured loans of Rs 768.200 Millions and unsecured loans of Rs 77.000 Millions, according to its filing with the Registrar of Companies on March 31, 2010. More recent figures are not available.
PwC Associate Director Rashmi Upadhya says funding will remain the biggest
challenge for companies in this sector. Accusations of financial irregularities
have sent out the wrong signals to investors, making growth harder for these
cash-strapped companies, which are already wrestling with huge debts.
Analysts say that all three retailers expanded too quickly to achieve deeper
penetration in a nascent market.
PwC's Upadhya says that given the high cost of real estate, even though
revenues grew in some cases, revenue per store lagged, and this hurt cash flow.
Stretched balance sheets became a breeding ground for financial irregularities.
Ritu Marya, Editor-in-Chief at Franchise India Holdings Limited, a franchise
and retail solutions company and publisher of Retailer magazine, says some
companies dabbled in too many things, although they did not have adequate
resources and supply chain support. They lacked not only the funds necessary
for the aggressive expansion of company-owned and -operated stores, but also
the organisational strength to service franchisees.
Besides, these companies could not build brand recall, especially as their
products did not stand apart from the offerings in the larger unorganised
market. Nor were they able to overcome the personal relationships that mom-and-pop stores had with customers . Giny &
Jony's Lakhani says the biggest competition for branded products is the value
market.
Take the example of art teacher and customer Shikha Joshi,
who shops for her 20-month-old daughter at a local store in her West Delhi
neighbourhood. She says: "A branded dress costs Rs 500 to Rs 600. Even on
sale, it would cost at least Rs 350. I can get a similar one from the local store
for Rs 200." She adds that she does buy her daughter branded clothes, but
only for special occasions; most of her child's clothes are from the local
shop.
As if they don't have enough on their hands, the three branded wear companies
now have to worry about new rivals entering the market - rivals with deep
pockets and a clear strategy. Mahindra Retail Private Limited, part of the
$15.9-billion Mahindra Group, launched a venture called Mom & Me in
Ahmedabad and Ludhiana in 2009, which quickly gained a foothold in the infant
market. Mahindra Retail Managing Director K. Venkataraman says: "We
entered with a focus on the mother and child segment and developed
relationships with customers so that they grow with us. Women who have used our
products during maternity continue to do so in the baby's infant years,
followed by toddler years."
Mahindra is not the only threat to the older kids' wear brands. Shoppers Stop
has launched its own brand, Carrot, in the segment. Benetton, Pantaloons and
Allen Solly have also jumped on to the children's wear bandwagon. So have
international luxury brands such as Zara, Gucci, Fendi and Dior. Analysts say
this rising tide has helped create brand awareness and clearly segment the
market.
"With less time on hand, the family would like to complete its entire
apparel shopping under one roof, rather than going ... to an exclusive kids
wear store," says Lakhani of Giny & Jony. "These retailers give
them the comfort of shopping for everything under the same roof." He says
his company plans to concentrate on kids' wear, as that is its area of
expertise.
Most companies agree that there is a market for just about every player in India. Home-grown children's wear brands are banking on their expertise in production, sourcing, and design. Lilliput's Narula says: "We have learnt the hard way how this market works, the power of regional designing - what sells in the North does not sell in the South - and how colours work in different markets."
Lessons learned, Lilliput plans to float an IPO. Narula says: "India is
the biggest kids' wear market in the world. The Indian consumption story is
intact. It's a great opportunity. In the next 10 months, we will hit the
market."
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. 61.52 |
|
|
1 |
Rs. 102.22 |
|
Euro |
1 |
Rs. 85.23 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
28 |
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.