MIRA INFORM REPORT

 

 

Report No. :

355668

Report Date :

19.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KOTAK MAHINDRA GENERAL INSURANCE COMPANY LIMITED (w.e.f.12.12.2015)

 

 

Formerly Known As :

KOTAK MAHINDRA GENERAL INSURANCE LIMITED

 

 

Registered Office :

27 BKC, C27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra

Tel. No.:

91-22-66529191/ 66056825/ 61660001

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

20.12.2014

 

 

Com. Reg. No.:

11-260291

 

 

Capital Investment / Paid-up Capital :

Rs. 10.500 Million

 

 

CIN No.:

[Company Identification No.]

U66000MH2014PLC260291

 

 

IEC No.:

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMK24636D

 

 

PAN No.:

[Permanent Account No.]

AAFCK7016C

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged to carry on the business of General Insurance. [Registered Activity]

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Kotak Mahindra General Insurance Limited is a 100% subsidiary of Kotak Mahindra Bank Limited (KMBL), the flagship company of the Kotak Group having diversified business profile covering commercial vehicle financing, consumer loans, corporate finance, and asset reconstruction.

 

It was incorporated on December 20, 2014 and it is in the process of applying for a license as a general insurance company with Insurance Regulatory and Development Authority of India (IRDAI). It has filed its R1 application with IRDAI on January 9, 2015.

 

Further, as per our source and investigation, we found that in November 2015, the company has completed all registration formalities required by the regulators and has received permission to underwrite all classes of General Insurance business (Including Health Insurance).

 

KMBL was ranked 201st among the world’s top 500 banks with brand valuation of around USD 697million and market capitalization of around USD 15,354 millionalong with brand rating of AA.

 

Rating takes into consideration strong operational and financial support from its holding company, its established market positon, diversified business profile in banking and finance sector and decent brand recognition among the customer worldwide.

 

Trade relations are reported as fair. Payments are reported to be regular and as per commitments.

 

In view of strong holding support and its established market position, the company 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.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

 

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 31-03-2015.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE

 

(CONTACT NO.: 91-22-66529191/ 66056825)

 

 

LOCATIONS

 

Registered Office :

27 BKC, C27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra, India

Tel. No.:

91-22-66529191/ 66056825/ 61660001

Fax No.:

91-22-67132401

E-Mail :

gaurang.shah@kotak.com

mahesh.bala@kotak.com 

service.bank@kotak.com

Website :

http://www.kotak.com

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Mr. Gaurang Balkrishna Shah

Designation :

Director

Address :

1502, Crescent Heights, Forgett Street, Opposite Bhatia Hospital, Mumbai - 400036, Maharashtra, India

Date of Appointment :

20.12.2014

DIN No.:

00016660

 

 

Name :

Mr. Dhananjay Nilkanth Date

Designation :

Director

Address :

Plot No. 3, Rakshak Society, Pune - 411027, Maharashtra, India

Date of Birth/Age :

16.08.1956

Date of Appointment :

30.09.2015

DIN No.:

01030900

 

 

Name :

Mr. Murlidhar Gangadharan

Designation :

Director

Address :

Flat No.12, Gayathri, 160, Central Avenue Road, Chembur, Mumbai - 400071, Maharashtra, India

Date of Appointment :

20.12.2014

DIN No.:

03601196

 

 

Name :

Mr. Virat Sunil Diwanji

Designation :

Director

Address :

2B-23, Windermere, Off New Link Road, Oshiwara, Andheri [West], Mumbai - 400053, Maharashtra, India

Date of Appointment :

20.12.2014

DIN No.:

07021146

 

 

Name :

Mr. Arun Kumar Agarwal

Designation :

Director

Address :

D-2301, Lloyd's Estate, Salt Pan Road, Wadala [East], Mumbai - 400037, Maharashtra, India

Date of Birth/Age :

20.11.1952

Date of Appointment :

30.09.2015

DIN No.:

07299000

 

 

Name :

Anu Ram Aggarwal

Designation :

Director

Address :

11, Toscano, Manuel Gonsalves Road, Bandra West, Mumbai - 400050, Maharashtra, India

Date of Birth/Age :

31.03.1972

Date of Appointment :

30.09.2015

DIN No.:

07301689

 

 

KEY EXECUTIVES

 

Name :

Mr. Yash Jaisinh Kotak

Designation :

Chief Financial Officer

Address :

203/A, Shalimar Apartments, Tagore Road, Santacruz (West), Mumbai - 400054, Maharashtra, India

Date of Appointment :

27.08.2015

PAN No.:

AGMPK2765L

 

 

Name :

Mr. Rajarajeswari Ganapthyraman

Designation :

Secretary

Address :

No.4, A6/12, Wilderness CHSL, Jeevan Bima Nagar, Borivali (West), Mumbai - 400103, Maharashtra, India

Date of Appointment :

01.09.2015

PAN No.:

AGSPG6049D

 

 

Name :

Mahesh Balasubramanian

Designation :

Chief Executive Officer

Address :

Flat No.2, Tahiti Apartments, Juhu Versova Link Road, Andheri (West), Mumbai - 400058, Maharashtra, India

Date of Appointment :

27.07.2015

PAN No.:

AIGPB0250R

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2015

 

Names of Shareholders

No. of Shares

 

Percentage of Holding

Kotak Mahindra Bank Limited, India

1049994

100.00

Jaimin Bhatt as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

Paul Parambi as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

Gaurang Shah as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

Bina Chandarana as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

Mahesh Balasubramanian as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

Chetan Desai as a Nominee of Kotak Mahindra Bank Limited, India

1

0.00

 

 

 

Total

 

1050000

100.00

 

 

 

 

AS ON 15.07.2015

 

Names of Allottee

 

No. of Shares

 

Kotak Mahindra Bank Limited, India

 

24150000

 

 

 

Total

 

 

24150000

 

 

AS ON 01.09.2015

 

Names of Allottee

 

No. of Shares

 

Kotak Mahindra Bank Limited, India

 

109800000

 

 

 

Total

 

 

109800000

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged to carry on the business of General Insurance. [Registered Activity]

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

PRODUCTION STATUS: NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

Customers :

Reference:

Not Divulged

Name of the Person (Designation):

Not Divulged

Contact Number:

Not Divulged

Since how long known:

Not Divulged

Maximum limit dealt:

Not Divulged

Experience:

Not Divulged

Remark

Not Divulged

 

 

No. of Employees :

Not Divulged

 

 

Bankers :

Bank Name:

Not Divulged

Branch:

Not Divulged

Person Name (with Designation):

Not Divulged

Contact Number:

Not Divulged

Name of Account Holder:

Not Divulged

Account Number:

Not Divulged

Account Since (Date/ Year of A/c Opening):

Not Divulged

Average Balance Maintained (Optional):

Not Divulged

Credit Facilities Enjoyed (CC/OD/Term Loan):

Not Divulged

Account Operation:

Not Divulged

Remarks:

Not Divulged

 

 

Facilities :

--

 

Banking Relations :

--

 

 

Auditors 1 :

 

Name :

V.C. Shah and Company

Chartered Accountants

Address :

22, Rajgir Chambers, 3rd Floor, 12-14, Shahid Bhagat Singh Road, Opposite Old Customs House, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-43440123

Fax No.:

91-22-22662667

E-Mail :

viralshah@vcshah.com

Income-tax PAN of auditor or auditor's firm :

AADFV8088N

 

 

Auditors 2 :

 

Name :

K.S. Aiyar and Company

Chartered Accountants

Address :

F-7, Laxmi Mills, Shakti Mills Lane, Off Dr. E. Moses Road, Mahalaxmi, Mumbai – 400011, Maharashtra, India

E-Mail :

mail@ksaiyar.com

Income-tax PAN of auditor or auditor's firm :

AAAFK6843P

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding Company :

Kotak Mahindra Bank Limited (L65110MH1985PLC038137) (Holds 100% of the equity share capital)

 

 

CAPITAL STRUCTURE

 

AFTER 15.05.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

150,000,000

Equity Shares

Rs. 10/- each

Rs. 1500.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

135,000,000

Equity Shares

Rs. 10/- each

Rs. 1350.000 Million

 

 

 

 

 

 

AS ON 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

15,000,000

Equity Shares

Rs. 10/- each

Rs. 150.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1,050,000

Equity Shares

Rs. 10/- each

Rs. 10.500 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2015

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

 

 

10.500

(b) Reserves & Surplus

 

 

(2.674)

(c) Money received against share warrants

 

 

0.000

 

 

 

 

(2) Share Application money pending allotment

 

 

0.000

Total Shareholders’ Funds (1) + (2)

 

 

7.826

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) Long-term borrowings

 

 

0.000

(b) Deferred tax liabilities (Net)

 

 

0.000

(c) Other long term liabilities

 

 

0.000

(d) long-term provisions

 

 

0.000

Total Non-current Liabilities (3)

 

 

0.000

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

 

 

0.000

(b) Trade payables

 

 

0.000

(c) Other current liabilities

 

 

2.804

(d) Short-term provisions

 

 

0.000

Total Current Liabilities (4)

 

 

2.804

 

 

 

 

TOTAL

 

 

10.630

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

 

 

0.000

(ii) Intangible Assets

 

 

0.000

(iii) Capital work-in-progress

 

 

0.000

(iv) Intangible assets under development

 

 

0.000

(b) Non-current Investments

 

 

0.000

(c) Deferred tax assets (net)

 

 

0.000

(d)  Long-term Loan and Advances

 

 

0.000

(e) Other Non-current assets

 

 

0.000

Total Non-Current Assets

 

 

0.000

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

 

 

0.000

(b) Inventories

 

 

0.000

(c) Trade receivables

 

 

0.000

(d) Cash and cash equivalents

 

 

10.500

(e) Short-term loans and advances

 

 

0.130

(f) Other current assets

 

 

0.000

Total Current Assets

 

 

10.630

 

 

 

 

TOTAL

 

 

10.630

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

 

 

31.03.2015

 

SALES

 

 

 

 

 

Revenue from Operations

 

 

0.000

 

 

Other Income

 

 

0.000

 

 

TOTAL                                    

 

 

0.000

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Other Expenses

 

 

2.674

 

 

TOTAL                                    

 

 

2.674

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX

 

 

(2.674)

 

 

 

 

 

Less

TAX                                                                 

 

 

0.000

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX

 

 

(2.674)

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

 

 

(51.46)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

PARTICULARS

 

 

 

31.03.2015

Current Maturities of Long term debt

 

 

NA

 

 

 

 

Cash generated from/ (used in) operations

 

 

0.000

 

 

 

 

Net Cash generated from/ (used in)  Operating activities

 

 

0.000

 

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2015

Net Profit Margin

(PAT / Sales)

(%)
 

 

0.00

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

(25.16)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

(0.34)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

0.00

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

3.79

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report

(Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

No

21

Banking facility details

No

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last one year

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last one year

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

No

32

Litigations that the firm/promoter involved in

--

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR COMPANY

 

 

CORPORATE INFORMATION

 

Kotak Mahindra General Insurance Limited (“the Company) was incorporated on December 20, 2014.

 

The Company is in the process of applying for a license as a general insurance company with Insurance Regulatory and Development Authority of India (IRDAI). The Company has filed its R1 application with IRDAI on January 9, 2015.

 

 

OPERATIONS

 

The Company has been incorporated to carry on the business of general insurance and is awaiting the issuance of license by Insurance Regulatory and Development Authority of India (IRDAI) to commence the general insurance business. The Company filed the R1 application with IRDAI on January 9, 2015 and received the approval on April 13, 2015. Meanwhile, the Company has not been in receipt of any significant or material order passed by any regulator or court or tribunal that may impact the going concern status and Company’s operations in future. The Company proposes to develop and implement a risk management policy in due course. There are no material changes and commitments affecting the financial position of the Company which have occurred between the end of the financial year to which the financial statements relate and date of the report. No amount is proposed to be carried to any reserve account for the period ended March 31, 2015.

 

 

PRESS RELEASE

 

KOTAK MAHINDRA GENERAL INSURANCE RECEIVES IRDAI APPROVAL TO COMMENCE BUSINESS

 

MUMBAI, NOVEMBER 20:  

 

Kotak Mahindra General Insurance announced that it has been granted the certificate of registration (Form IRDA/R3) to commence business as an Indian Insurance company.

 

With this, the company has completed all registration formalities required by the regulators said the company in a release issued today. Kotak General Insurance has received permission to underwrite all classes of General Insurance business (Including Health Insurance).

 

Gaurang Shah, President – Asset Management, Insurance and International Business, Kotak Mahindra Bank Limited, said, “It is a momentous occasion for us at Kotak Mahindra Group to receive the license on the eve of our 30th anniversary. Kotak General Insurance is a 100 per cent subsidiary of Kotak Mahindra Bank Limited, which makes the Company the only bank promoted general insurance company without a foreign joint venture partner.”

 

Shah added, “As per industry estimates, General Insurance market in India is currently at Rs. 840000.000 Million premium per annum and has been growing at a healthy rate of 15% for the last five years. With the addition of General Insurance business, Kotak Mahindra Group with existing presence across banking, wealth management, life insurance, broking, mutual funds and alternate asset management will be able to offer the complete range of financial products and services to our retail and wholesale customers. The merger of ING Vysya Bank with Kotak Mahindra Bank has also given us a larger customer base and an increased geographical footprint of more than 650 locations and 1280 branches. Our knowledge and experience across the BFSI spectrum generates excellent cross synergies in our operations. We hope to leverage this advantage in our General Insurance business to the benefit of our customers and stakeholders alike.”

 

Mahesh Balasubramanian is the Chief Executive Officer of Kotak General Insurance. He brings with him over two decades of cross functional experience in financial services. Balasubramanian has spent over a decade with Kotak Mahindra Group. He was an integral part of the team that helped grow the consumer bank and its branch network.

 

Balasubramanian said, “With increasing distribution network of Kotak Mahindra Group, growing brand equity and consumer franchise, we believe that we will be able to leverage synergies and add significant value to our general insurance business. Being a new entrant, we will have opportunities to embrace new technologies and developments in the digital world to provide innovative products and solutions, which will deliver superior customer experience.”

 

“We have already put together a team of experienced people both from the industry and from within Kotak Group. All critical functions have already been staffed. We have also filed our initial set of products with the regulators and are awaiting approval. The team at Kotak General is expeditiously working towards a launch by the year end”, Balasubramanian added.

 

Kotak General Insurance will initially focus on the retail side of the business comprising Motor Insurance, Health Insurance, Home Insurance and Travel Insurance. The company will soon expand into the commercial lines of business, which includes Fire, Burglary, Marine, etc.

 

At inception, Kotak General Insurance Company Limited has been capitalised at Rs. 1350.000 Million.

 

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. 66.42

UK Pound

1

Rs. 99.17

Euro

1

Rs. 72.14

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

HNA

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

72

 

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

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NB

                                       New Business

 

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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.