MIRA INFORM REPORT

 

 

Report Date :

12.11.2014

 

IDENTIFICATION DETAILS

 

Name :

THE RATNAKAR BANK LIMITED

 

 

Registered Office :

1st Lane, Shahupuri, Kolhapur – 416001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

14.06.1943

 

 

Com. Reg. No.:

11-007308

 

 

Capital Investment / Paid-up Capital :

Rs. 2720.402 Millions

 

 

CIN No.:

[Company Identification No.]

U65191PN1943PLC007308

 

 

IEC No.:

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KLPT01764A/ MUMT09278D/ KLPT01905B/ KLPT01845E/ KLPT01800B/ KLPT01797F/ KLPT01864C/ KLPT081858D/ PNET08057A/ PNET07964F/ MUMT09900C/ PNET03925F/ KLPT01783F/ MUMT03234A/ KLPT01940B/ KLPT01924G

 

 

PAN No.:

[Permanent Account No.]

AABCT3335M

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Banking Activities.

 

 

No. of Employees :

Information declined by the management.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular 

 

 

Litigation :

Exist

 

 

Comments :

Subject is a well-established and reputed bank having fine track record.

 

The ratings takes into consideration bank’s long track record supported experienced senior management team, diversifying revenue sources and comfortable capitalization level.

 

Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitment.

 

The bank can be considered good for normal business dealings at usual 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.

 

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

Verdict Implications : Apex court order may alter coal import dynamics. Traders go slow on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

 

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn business empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M A M Ramaswamy, a CBI official said.

 

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

 

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

 

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

 

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

 

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that It had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

 

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Fixed deposit programme MAA- 

Rating Explanation

High degree of safety and very Low credit risk.

Date

July 2014

 

Rating Agency Name

ICRA

Rating

Short term fixed deposit programme A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

July 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 31-03-2014.

 

 

 

INFORMATION DENIED

 

Management Non Co-operative (91-22-43020600)

 

 

LOCATIONS

 

Registered Office :

1st Lane, Shahupuri, Kolhapur – 416001, Maharashtra, India

Tel. No.:

91-231-2656831/ 2653006

Fax No.:

91-231-2653658

E-Mail :

vpjain@ratnakarbank.in

rajendrapatil@ratnakarbank.in

customercare@rbibank.com

Websites :

http://www.theratnakarbank.com

http://www.rblbank.com

 

 

Administrative Office :

Mahavir, 179/E Ward, Shri Shahu Market Yard, Kolhapur – 416005, Maharashtra, India

Tel. No.:

91-231-2650981 to 984

Fax No.:

91-231-2657386

 

 

Controlling Office :

One India Bulls Center, Tower 2B, 6th Floor, 841, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-43020600

Fax No.:

91-22-43020520

 

 

Branches

  • Margo
  • Ahmednagar
  • Aurangabad
  • Medankaewadi
  • Pune
  • Kolhapur
  • Karad
  • Sangli
  • Thane

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Mr. Vishwavir Ahuja

Designation :

Managing Director & CEO

 

 

Name :

Ms. Rama Bijapurkar

Designation :

Director

 

 

Name :

Mr. Bahubali Arwade

Designation :

Director

 

 

Name :

Mr. Girish Godbole

Designation :

Director

 

 

Name :

Mr. Jairaj Purandare

Designation :

Director

 

 

Name :

Mr. Kiran Patil

Designation :

Director

 

 

Name :

Mr. Narayan Ramachandran

Designation :

Director

 

 

Name :

Mr. Palepu. Sudhir Rao

Designation :

Director

 

 

Name :

Mr. Vimal Bhandari

Designation :

Director

 

 

Name :

Mr. D. Sivanandhan

Designation :

Director

 

 

Name :

Mr. Ajay Michyari

Designation :

RBI - Additional Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Rajeev Ahuja

Designation :

Head - Strategy

 

 

Name :

Mr. Nitin Chopra

Designation :

Head - Retail and Consumer Banking

 

 

Name :

Mr. R. Gurumurthy

Designation :

Head - Corporate and Institutional Banking

 

 

Name :

Mr. Sunil Gulati

Designation :

Chief Risk Officer

 

 

Name :

Mrs. Shanta Vallury

Designation :

Head – Corporate Afffairs, Organisational Effectiveness and Special

 

 

Name :

Mr. Suhas Sahakari

Designation :

Head - Kolhapur Region

 

 

Name :

Mr. Sandeep Thapliyal

Designation :

Head - Commercial Banking

 

 

Name :

Mr. Andrew Gracias

Designation :

Head - Financial Markets

 

 

Name :

Mr. Surinder Chawla

Designation :

Head - Branch Banking

 

 

Name :

Mr. Rana Vikram Anand

Designation :

Head – Business Banking and Emerging Enterprise Finance

 

 

Name :

Mr. Harjeet Toor

Designation :

Head – Retail Assets and Small Business Lending

 

 

Name :

Mr. Aseem Gandhi

Designation :

Head - Development Banking and Financial Inclusion

 

 

Name :

Mr. Manoj Rawat

Designation :

Head - Agri Business

 

 

Name :

Mr. Naresh Karia

Designation :

Chief Financial Officer

 

 

Name :

Mr. Tajinder Kumar

Designation :

Head - Human Resources

 

 

Name :

Mr. Joginder Singh Rana

Designation :

Chief Operations Officer

 

 

Name :

Mr. Sanjay Sharma

Designation :

Head - Technology, Innovation and Customer Fulfilment

 

 

Name :

Mr. Satish Dhawan

Designation :

Chief Infrastructure and Administration Officer

 

 

Name :

Mr. Sanjit Chowdhry

Designation :

Head - Wholesale Credit Risk

 

 

BUSINESS DETAILS

 

Line of Business :

Banking Activities.

 

 

Products :

Not Divulged

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

GENERAL INFORMATION

 

Suppliers :

Not Divulged

 

 

Customers :

Not Divulged

 

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

Reserve Bank of India

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

Borrowing in India

 

 

Reserve Bank of India

4580.000

7023.000

Other Banks

6000.000

1000.000

Other Institution and Agencies

25040.286

18121.803

 

 

 

Borrowing Outside India

3335.152

1228.688

Total

38955.438

27373.491

 

 

 

Banking Relations :

--

 

 

Statutory Auditors :

 

Name :

S. R. Batliboi and Company LLP

Chartered Accountants

Address :

14th Floor, The Ruby, 29, Senapati Bapat Marg, Dadar (W), Mumbai – 400028, Maharashtra, India

 

 

Associates/Subsidiaries :

Not Divulged

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

400000000

Ordinary  Shares

Rs.10/- each

Rs. 4000.000 Millions

 

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

272040198

Ordinary  Shares

Rs.10/- each

Rs.2720.402 Millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

CAPITAL AND LIABILITIES

 

 

 

1]  Capital

2720.402

2529.247

2149.474

2] Share Application Money

1295.024

0.000

0.000

3] Reserves & Surplus

16132.172

13538.214

9282.471

4] Deposits

115986.021

83405.186

47393.299

5] Borrowings

38955.438

27373.491

11985.517

6] Other Liabilities and Provision

6892.271

2787.483

1242.489

 

 

 

 

TOTAL

181981.328

129633.621

72053.250

 

 

 

 

ASSETS

 

 

 

Cash and Balances With Reserve Bank of India

9807.335

2908.405

2633.028

Balances With Banks and Money at Call and Short Notice

2115.155

3977.427

3228.160

Investment

65180.386

55714.205

23338.347

Advances

98350.473

63762.120

41322.694

Fixed Assets

1343.485

942.624

588.951

Other Assets

5184.494

2328.840

942.070

 

 

 

 

TOTAL

181981.328

129633.621

72053.250

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

 

INCOME

 

 

 

 

 

Interest Earned

13516.153

8793.209

4650.835

 

 

Other Income

2609.715

1264.381

671.327

 

 

TOTAL                                     (A)

16125.868

10057.590

5322.162

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Interest Expanded

10099.892

6217.734

2782.912

 

 

Operating Expenses

4239.032

2272.961

1390.967

 

 

Provision and Contingencies

860.245

642.207

490.990

 

 

TOTAL                                     (B)

15199.169

9132.902

4664.869

 

 

 

 

 

Less

NET PROFIT/(LOSS) FOR THE YEAR

926.699

924.688

657.293

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2.179

0.589

3.987

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to Statutory Reserve

240.000

240.000

165.000

 

 

Transfer to Capital Reserve

18.520

20.436

14.409

 

 

Transfer to Revenue and Other Reserves

370.000

485.000

405.000

 

 

Transfer to Investment Reserve

0.000

0.000

1.503

 

 

Proposed Dividend

245.821

151.871

64.484

 

 

Tax on Dividend

41.777

25.791

10.295

 

Balance carried to the b/s

12.760

2.179

0.589

 

 

928.878

925.277

661.280

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

3.63

4.19

3.06

 

Diluted

3.61

4.16

3.04

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBTS: NOT AVAILABLE

 

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

No

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

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

Yes

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

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

Yes

 

 

LITIGATION DETAILS

 

HIGH COURT OF BOMBAY

CASE DETAILS

BENCH: BOMBAY

 

Presentation Date :- 18.09.2014

Lodging No: WPST/24980/2014     Filing Date: 18.09.2014  

 

Petitioner:- M/S ASHOK ENTERPRISES THROUGH ITS   Respondent:- RATNAKAR BANK LTD. AND ANR. -

 

Petn. Adv. :- PRAMOD GOKUL KATHANE (13295)             Resp. Adv.:-  0 (0)

District :-       KOLHAPUR

 

Bench :-      DIVISION

Status:-       Pre-Admission                                                         

Last Date:- 25/09/2014                                                                Stage:

 

Last

Coram:-      REGISTRAR (JUDICIAL)

 

Act:       Debt Tribunal Recovery Act                                                    

 

FINANCIAL PERFORMANCE

 

The Bank posted a net total income of Rs. 6026.000 Millions and net profit of Rs. 1335.600 Millions [#before acquisition expense towards purchase of business portfolios from Royal Bank of Scotland in India (as explained in more detail in notes to accounts)], as against a net total income of Rs. 3839.900 Millions and net profit of Rs. 924.700 Millions for FY13, respectively. Accordingly, the net profit has increased by 44.43%.The net profit after considering the acquisition expense referred above is Rs. 926.700 Millions. Appropriations from net profit have been done as detailed herein above.

 

 

REVIEW OF OPERATIONS

 

Armed with a vision of being a pan-India banker, the Bank continues to stay on course, leveraging on its strength of passion, legacy, achievements and penetration in new regions. Continuing on its journey of ‘Building it Right,’ today the Bank is infused with “New Energy” and is “Gaining Momentum”. It took strides towards establishing itself firmly in the Indian private banking space. The Bank focused on its strategy to meet the changing needs of customers. It is focusing on value addition and building capabilities with a view to build long-term relationships and also on improving its service standards. It has achieved this through the following initiatives:

 

 

FINANCIAL OVERVIEW

 

The year FY14, was a milestone year for the Bank as it continued to focus on expanding its presence, widening its offerings apart from making strategic acquisition and mobilising additional capital. Besides, it also focused on customer centricity backed by implementation of various technology initiatives. The Bank recorded commendable The increase in Net total Income financial numbers during the year as tabulated in the Directors Report.

 

 

CONTINGENT LIABILITIES:

 

Particular

31.03.2014

(Rs. In Millions)

31.03.2013

(Rs. In Millions)

1. Claims against the Bank not acknowledged as debts

18.955

5.455

2. Liability for Partly Paid Investment

8.500

21.358

3. Liability on Account of Outstanding forward Exchange contracts

54131.435

37752.173

4. Liability on Account Of Outstanding derivative contracts

 

 

i) Interest Rate Swaps

30000.000

250.000

ii) Cross Currency Swaps

747.528

0.000

iii) Currency Options

9256.735

4772.600

5. Guarantees given on behalf of constituents

 

 

(i) In India

9401.907

6391.823

(ii) Outside India

7572.303

9958.060

6. Acceptances, Endorsements and other Obligations

8239.860

2851.552

7. Other items for which the Bank is contingently liable

 

 

a) Income tax and other matters (under appeal)

61.384

78.140

b) Others

3300.127

1400.520

Total

122738.734

63481.681

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

PRESS RELEASE

 

RBL Bank to raise about Rs 500 cr from IPO in Q4 FY15

PTI May 9, 2014, 08.55AM IST

 

 

NEW DELHI: RBL Bank, formerly known as Ratnakar Bank, today said it plans to raise a minimum Rs 500 crore through an initial public offer in the fourth quarter of current financial year.

 

"We will start the basic process for IPO in the next 2-3 months ... we hope to hit the market in the early part of the next year," RBL Bank Managing Director Vishwavir Ahujatold PTI.

 

"The quantum of offer is not finalised yet but we plan to raise minimum Rs 5000.000 Millions or 10 per cent of stake dilution," he said.

 

The bank has build scale and size so that bank get right valuation for its shares, he added.

 

The bank currently services more than 0.500 Million customers and has a total business size of over Rs 210000.000 Millions. It got capital support of about Rs 15000.000 Millions from global and domestic investors in the last three years.

 

Last month, the bank raised Rs. 3280.000 Millions from a group of global investors, including CDC Group and Asia Capital and Advisors.

 

Existing investors, including International Finance Corporation (IFC) and Gaja Capital, also participated in the capital infusion.

 

With this capital infusion, the total Tier I capital rose to Rs 20000.000 Millions.

 

Meanwhile, the bank launched co-branded cricket credit card tailored to offer lifestyle and sporting privileges to growing community of cricket fans.

 

The launch of a cricket credit presents a platform for the growing fans of the game and the club to engage with their team, he said.

 

Powered with host of features, the annual fee for this card would be Rs 1,000.

 

Currently, the bank has 1 lakh credit card customers and aims to increase the number to 0.500 Million in the next 4-5 years.

 

Last year, the bank acquired some assets of Royal Bank of Scotland Group (RBS), including the UK bank's mortgages, credit card and loan-against-property portfolios.

 

 

RBL Bank plans to launch IPO in next three quarters

PTI Nov 9, 2014, 10.54AM IST

 

NEW DELHI: RBL Bank, formerly known as Ratnakar Bank, plans to raise funds through an initial public offer which will hit the market in the next 8-9 months.

"We are preparing ourselves for the IPO and it may hit market in 8-9 months. It would not happen this fiscal but next calender year," RBL Bank Managing Director Vishwavir Ahuja told PTI.

 

The quantum of offer has not been finalised by the board of the bank, he said, adding that the decision will be taken in the next few months after taking into account various factors including Basel III requirement.

 

The bank has been able to build scale and size in the last four years so that it gets right valuation, he said.

 

The capital is required for the next phase of operation as the bank has already done with transformation stage, he said, adding it has got high technology and risk management system.

 

The bank services more than 0.600 Million customers and has a total business size of over Rs 260000.000 Millions. As of September total deposits were Rs 120000.000 Millions while advances stood at Rs 140000.000 Millions.

 

The bank posted a net profit of Rs 870.000 Millions for six months ended September 2014, while for the entire 2013-14 the profit stood at Rs 930.000 Millions.

 

"So we have almost matched the net profit of the last fiscal in the first two quarters of the current financial year," he said.

 

It got capital support of about Rs 15000.000 Millions from global and domestic investors in the last three years.

 

The bank had raised Rs 3280.000 Millions from a group of global investors, including CDC Group and Asia Capital and Advisors in April 2014.

 

Existing investors, including International Finance Corporation (IFC) and Gaja Capital, also participated in the capital infusion.

 

Last year, the bank acquired some assets of Royal Bank of Scotland Group (RBS), including the UK bank's mortgages, credit card and loan-against-property portfolios.

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 61.55

UK Pound

1

Rs. 97.52

Euro

1

Rs. 76.48

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

TRU


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

70

 

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

 

--

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.