MIRA INFORM REPORT
|
Report Date : |
27.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
POPATLAL NATHALAL SHAH |
|
|
|
|
Registered
Office : |
1802, Panchratna, Opera House, Mumbai - 400004, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Year of
Establishment : |
1956 |
|
|
|
|
Capital
Investment : |
Rs. 509.599 Millions |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMP04028D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAAFP0468K |
|
|
|
|
Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
|
|
|
|
Line of Business
: |
Trader of Diamonds. |
|
|
|
|
No. of Employees
: |
20 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established partnership concern having a satisfactory
track record. The rating takes into consideration extensive experience of PNS’
partners in the diamond industry supported by established track record of
operations in diamond business, sound financial base and fair profitability
margins of the concern. Trade relations are fair. Business is active. Payment terms are
reported to be slow but correct. The concern can be considered for 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.
ECGC Country Risk Classification List – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
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
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 |
CRISIL |
|
Rating |
Long term rating: “BB-” |
|
Rating Explanation |
Inadequate degree of safety and high credit risk. |
|
Date |
07.11.2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: “A4+” |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
07.11.2014 |
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 PARTED BY
|
Name : |
Mr. Jignesh Shah |
|
Designation : |
Accountant |
|
Contact No.: |
91-22-23611280 |
|
Date : |
27.11.2014 |
LOCATIONS
|
Registered Office : |
1802, Panchratna, Opera House, Mumbai - 400004,
Maharashtra, India |
|
Tel. No.: |
91-22-23611280/ 23693863/ 4782 |
|
Fax No.: |
91-22-23630083 |
|
E-Mail : |
|
|
Website : |
|
|
Location : |
Owned |
|
Locality : |
Commercial |
|
|
|
|
Corporate Office : |
GW-7022, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra East,
Mumbai – 400051, Maharashtra, India |
|
Location : |
Owned |
|
|
|
|
Branch Office : |
Mahavir Chamber, Tartiya Hanuman Sheri, Surat, Gujarat, India |
|
Location : |
Leased |
PARTNERS
|
Name : |
Mr. Ajay P. Shah |
|
Designation : |
Partner |
|
|
|
|
Name : |
Mr. Priti Ajay Shah |
|
Designation : |
Partner |
|
|
|
|
Name : |
Mr. Nirav Ajay Shah |
|
Designation : |
Partner |
KEY EXECUTIVES
|
Name : |
Mr. Jignesh Shah |
|
Designation : |
Accountant |
BUSINESS DETAILS
|
Line of Business : |
Trader of Diamonds. |
|
|
|
|
Exports : |
|
|
Products : |
Diamonds |
|
Countries : |
· Hong Kong · America · Shanghai · UAE · Middle East |
|
|
|
|
Imports : |
|
|
Products : |
Rough Diamond |
|
Countries : |
Israel |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, Advance Payment and Credit (90 Days) |
|
|
|
|
Purchasing : |
Cash, Advance Payment and Credit (90 Days) |
GENERAL INFORMATION
|
Suppliers : |
· Pan International DMCC · Paras Gems NV · Aurostar Jewellery India Private Limited · Mayur Exports · Shasvat Diam · Shital Gems Private Limtied · Vaibhav Gems · HRD Diamond Institute Private Limited · International Gemological Inst. (India) Private Limited ·
Oscar Décor Private Limited |
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|
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|
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|
Customers : |
Wholesalers, Retailers and End Users · Ami Impex Company Limited · Diamond Deal LLC · Samir Gems HK Limited · Blue Star Diamonds Private Limited · AJS Exports · Jewelex India Private Limited · R.N. Gems · Remy Diamonds Private Limited · Sheel Gems · Star Brillan · Veer Gems |
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No. of Employees : |
20(Approximately) |
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|
Bankers : |
· State Bank of India, Diamond Branch, 1st Floor Majestic Shopping Centre, 144, J.S.S. Road, Mumbai – 400004, Maharashtra, India · The Vysya Bank Limited · Antwerp Diamond Bank NV |
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Facilities : |
|
|||||||||||||||||||||||||||||||||
|
Auditors : |
|
|
Name : |
Sampat Mehta and Associates Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Related Parties : |
· Nirjay Diamond · Shatrunjay Diamond · Paras Gems NV · Ashwin Gems |
CAPITAL STRUCTURE
As on 31.03.2014
|
Capital Investment : |
|
|
Owned : |
Rs. 509.599 Millions |
|
Borrowed : |
-- |
|
Total : |
Rs. 509.599
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
Expected Sales (2014-2015) : Rs. 3000.000 Millions
The above information has been parted by Mr. Jignesh Shah (Accountant).
Note: Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or Registry.
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Partners Capital |
509.599 |
459.173 |
394.230 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Profit and Loss Account |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
509.599 |
459.173 |
394.230 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
708.751 |
703.413 |
658.614 |
|
|
2] Unsecured Loans |
6.898 |
1.355 |
1.355 |
|
|
TOTAL BORROWING |
715.649 |
704.768 |
659.969 |
|
|
DEFERRED TAX LIABILITIES |
2.370 |
1.901 |
1.795 |
|
|
|
|
|
|
|
|
TOTAL |
1227.618 |
1165.842 |
1055.994 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
188.505 |
185.093 |
173.586 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
815.765
|
708.989 |
502.596 |
|
|
Sundry Debtors |
394.950
|
725.594 |
547.730 |
|
|
Cash & Bank Balances |
16.888
|
15.882 |
19.438 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
22.654
|
27.449 |
27.707 |
|
Total
Current Assets |
1250.257
|
1477.914 |
1097.471 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
211.144
|
497.165 |
215.063 |
|
|
Other Current Liabilities |
0.000
|
0.000 |
0.000 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
211.144
|
497.165 |
215.063 |
|
|
Net Current Assets |
1039.113
|
980.749 |
882.408 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1227.618 |
1165.842 |
1055.994 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2749.674 |
2175.112 |
2105.553 |
|
|
|
Other Income |
6.115 |
12.053 |
4.120 |
|
|
|
TOTAL |
2755.789 |
2187.165 |
2109.673 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
2487.814 |
2002.464 |
1950.826 |
|
|
|
Labour Charges |
47.765 |
36.838 |
30.320 |
|
|
|
Salaries |
3.607 |
1.328 |
1.237 |
|
|
|
Foreign Tour Expenses |
1.483 |
2.144 |
1.237 |
|
|
|
Printing and Stationery |
0.182 |
0.133 |
0.114 |
|
|
|
Telephone Expenses |
0.601 |
0.572 |
0.473 |
|
|
|
Internet Expenses |
0.107 |
0.028 |
0.022 |
|
|
|
Electricity Expenses |
0.699 |
0.491 |
0.388 |
|
|
|
Export Clearing Charges |
0.632 |
0.405 |
0.126 |
|
|
|
Exports Freight |
2.994 |
2.000 |
1.887 |
|
|
|
Import License Fees |
0.000 |
0.005 |
0.000 |
|
|
|
Office Repairs and Maintenance |
1.509 |
1.379 |
1.512 |
|
|
|
Bank Charges |
16.297 |
14.789 |
27.167 |
|
|
|
Loan Rating Charges |
0.000 |
0.101 |
0.132 |
|
|
|
Motor Car Expenses |
1.149 |
0.955 |
0.436 |
|
|
|
Audit Fees |
0.337 |
0.337 |
0.168 |
|
|
|
Other Expenses |
145.132 |
91.823 |
67.842 |
|
|
|
TOTAL |
2710.308 |
2155.792 |
2083.887 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE DEPRECIATION AND AMORTISATION |
45.481 |
31.373 |
25.786 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
5.694 |
3.970 |
3.772 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT/
(LOSS) |
39.787 |
27.403 |
22.014 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
1.45 |
1.26 |
1.05 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
100.22 |
100.55 |
100.20 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.77
|
0.02 |
1.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.06 |
0.06 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.40
|
1.53 |
1.67 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.92
|
2.97 |
5.10 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
394.23 |
459.173 |
509.599 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net
worth |
394.230 |
459.173 |
509.599 |
|
|
|
|
|
|
Secured Loans |
658.614 |
703.413 |
708.751 |
|
Unsecured Loans |
1.355 |
1.355 |
6.898 |
|
Total
borrowings |
659.969 |
704.768 |
715.649 |
|
Debt/Equity
ratio |
1.674 |
1.535 |
1.404 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2105.553 |
2175.112 |
2749.674 |
|
|
|
3.304 |
26.415 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
2105.553 |
2175.112 |
2749.674 |
|
Profit |
22.014 |
27.403 |
39.787 |
|
|
1.05% |
1.26% |
1.45% |
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 |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
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 |
Yes |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
No |
|
29] |
Last accounts filed at
ROC |
No |
|
30] |
Major Shareholders, if
available |
No |
|
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 |
Yes |
DIAMOND INDUSTRY –
-
From time immemorial,
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem and Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
UNSECURED LOAN
|
PARTICULAR |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
Loan and
Borrowings From Others |
|
|
|
Paruben N. Shah Estate A/C |
0.024 |
0.024 |
|
Popatlal N. Shah Estate A/C |
1.330 |
1.331 |
|
Nirjay Diamond |
5.544 |
0.000 |
|
Total |
6.898 |
1.355 |
FIXED ASSETS
· Air Condition
· Computer and Software
· Electric Scale
· Godrej Safe
· Machinery
· Office Furniture
· Office Premises
· Safeguard
· Telephone System
· CCTV Camera
· Office Furniture
· Honda Motor Car
· Computers
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.61.87 |
|
|
1 |
Rs.97.23 |
|
Euro |
1 |
Rs.77.21 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
43 |
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.