MIRA INFORM REPORT

 

 

Report No. :

325454

Report Date :

05.06.2015

 

IDENTIFICATION DETAILS

 

Name :

BHARTI AXA LIFE INSURANCE COMPANY LIMITED

 

 

Registered Office :

Unit 601 and 602, 6th Floor, Raheja Titanium House, Off Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra

Tel. No.:

91-22-40306300

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

27.10.2005

 

 

Com. Reg. No.:

11-157108

 

 

Capital Investment / Paid-up Capital :

Rs.19782.010 Million

 

 

CIN No.:

[Company Identification No.]

U66010MH2005PLC157108

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB15728G

 

 

PAN No.:

[Permanent Account No.]

AACCB7227P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

To undertake and carry on the business of life insurance.

 

 

No. of Employees :

Information denied by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (42)

 

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 joint venture of Bharti Insurances Holding Private Limited, First American Securities Private Limited and Foreign Entity AXA Group. It is established company and having satisfactory track record.

 

Bharti AXA Life is a life Insurance player, offers a range of innovative products and services that cater to specific insurance and wealth management needs of customers.

 

The company have incurred losses from its operational activities over a past two years.

 

However, rating take in account of strong financial and managerial support which company received from its joint venture entities.

 

Trade relation are fair. Business is active. Payment terms are reported to be slow but correct.

 

In view of strong support from its joint venture entities, the company can be considered for the business dealings with 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.

 

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 31-03-2013.

 

INFORMATION DENIED

 

Management Non Co-operative (91-22-40306300)

 

LOCATIONS

 

Registered/ Head Office :

Unit 601 and 602, 6th Floor, Raheja Titanium House, Off Western Express Highway, Goregaon (East), Mumbai – 400063, Maharashtra, India

Tel. No.:

91-22-40306300

Fax No.:

91-22-40306347

E-Mail :

compliance@bharti-axalife.com

Website :

http://www.bharti-axalife.com

 

 

Branches :

Located at :

 

Agra

Ahmadnagar

Ajmer

Alappuzha

Aligarh

Allahabad

Amravati

Amritsar

Asansol

Aurangabad

Bangalore

Burdwan

Bareilly

Belgaum

Bhatinda

Bhavnagar

Bhilainagar

Bhilwara

Bhopal

Bhubaneshwar

Calicut

Chandigarh

Chennai

Cochin

Coimbatore

Cuttack

Davangere

Derhradun

Delhi

Dhanbad

Faridabad

Ghazibabad

Goa

Gorakhpur

Guntur

Gurgaon

Guwahati

Gwalior

Haldwani

Hazaribagh

Hyderabad

Indore

Jabalpur

Jaipur

Jalandhar

Jammu

Jamanagar

Jamshedpur

Junagadh

Kannur

Kanpur

Karnal

Karur

Kharagpur

Kolhapur

Kolkata

Kollam

Kottayam

Kurnool

Lucknow

Ludhiana

Madurai

Mangalore

Meerut

Mehsana

Moga

Moradabad

Mumbai

Muzaffarpur

Mysore

Nagercoil

Nagpur

Nanded

Nasik

Navsari

Noida

Pallakad

Panipat

Patiala

Patna

Raipur

Rajahmundry

Rajkot

Ranchi

Rohtak

Roorkee

Rourkela

Salem

Sambalpur

Sangli

Shimla

Sholapur

Silchar

Surat

Thrissur

Tirupati

Trichy

Trivandrum

Udaipur

Udipi

Ujjain

Vadodara

Varanasi

Vellore

Vijaywada

Vizag

Warangal

Yamunanagar

 

 

DIRECTORS

 

AS ON 06.06.2014

 

Name :

Mr. Sandeep Ghosh

Designation :

Managing Director

Address :

1302, PETIT Towers, August Kranti Marg, Kemps Corner, Mumbai - 400036, Maharashtra, India

Date of Birth/Age :

14.10.1968

Qualification :

Master’s in Business Administration (Marketing and Strategy) Bachelor of Commerce (Accountancy and Financial Management)

Date of Appointment :

09.06.2011

DIN No.:

01448091

 

 

Name :

Mr. Jitender Balakrishnan

Designation :

Director

Address :

208, Tower - 2 Casa Grande, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, Maharashtra, India

Date of Birth/Age :

08.05.1949

Qualification :

B.E.(Mech.) NIT, Madras University & Post Graduate Diploma in Industrial Management, Bombay University

Date of Appointment :

01.06.2010

DIN No.:

00028320

 

 

Name :

Mr. Akhil Kumar Gupta

Designation :

Director

Address :

B-27, Maharani Bagh, New Delhi, India

Date of Birth/Age :

22.12.1995

Qualification :

Chartered Accountant

Date of Appointment :

27.10.2005

DIN No.:

00028728

 

 

Name :

Mr. Rakesh Bharti Mittal

Designation :

Director appointed in casual vacancy

Address :

E-26 Vasant Marg, Visant Vihar, New Delhi - 110057, India

Date of Birth/Age :

18.09.1955

Qualification :

Electronics Engineering from YMCA Institute of Engineering

Date of Appointment :

10.09.2009

DIN No.:

00042494

 

 

Name :

Mr. Bharat Sumant Raut

Designation :

Director

Address :

8, French bridge, (Haldankar Bridge), Mumbai - 400007, Maharashtra, India

Date of Birth/Age :

31.08.1949

Qualification :

B.Com, LLB. Chartered Accountant

Date of Appointment :

31.03.2010

DIN No.:

00066080

 

 

Name :

Mr. Bharat Garg

Designation :

Director

Address :

No. 10, Nizamuddin East, New Delhi – 110013, India

Date of Birth/Age :

27.08.1949

Date of Appointment :

12.01.2013

DIN No.:

00084182

 

 

Name :

Mr. Manoj Kumar Kohli

Designation :

Additional Director

Address :

D-5/2, Phase I, Dlf City, Gurgaon - 122002, Haryana, India

Date of Birth/Age :

03.12.1958

Date of Appointment :

07.03.2014

DIN No.:

00162071

 

 

Name :

Mr. Michael Stephen Bishop

Designation :

Director appointed in casual vacancy

Address :

Flat A 23/ F Tower 2,Tregunter, 14 Tre Gunter Path, Mid-Levels H K, Hong Kong

Date of Birth/Age :

06.09.1961

Qualification :

National Diploma in Business Studies and Associate of Chartered Institute of Bankers

Date of Appointment :

23.01.2009

DIN No.:

02486617

 

 

Name :

Mr. Kevin John Wright

Designation :

Director

Address :

Suite 2402, Pacific Place Apartment, 88, Queensway, Hongkong

Date of Birth/Age :

27.12.1953

Date of Appointment :

09.08.2012

DIN No.:

05351419

 

 

Name :

Mr. Benoit Michel Claveranne

Designation :

Additional Director

Address :

32 Rue la Boetie, Paris, 75008, France

Date of Birth/Age :

02.03.1975

Date of Appointment :

13.02.2014

DIN No.:

06782593

 

 

KEY EXECUTIVES

 

Name :

Mr. Conjeevaram Lakshminarasimhan Baradhwaj

Designation :

Secretary

Address :

A 104, Anmol, Off. S. V. Road, Goregaon (West), Mumbai – 400062, Maharashtra, India

Date of Birth/Age :

19.03.1975

Date of Appointment :

20.10.2008

PAN No.:

AACPB6389B

 

 

MAJOR SHAREHOLDERS

 

AS ON 06.06.2014

 

Names of Shareholders

 

No. of Shares

Sunil Bharti Mittal

1

Rakesh Bharti Mittal

1

Alok Roongta

1

Vinod Dsouza

1

Nilesh Kothari

1

Monoj Jaju

1

Bharti Insurance Holdings Private Limited

791280386

First American Securities Private Limited

747321469

Axa India Holdings

439599115

 

 

Total

1978200976

 

 

Equity Share Break up (Percentage of Total Equity)

 

AS ON 06.06.2014

 

Category

Percentage

Foreign holdings [Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others]

22.22

Bodies corporate

77.78

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

To undertake and carry on the business of life insurance.

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

PRODUCTION STATUS – NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

Company Name :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark :

Not Divulged

 

 

Customers :

Company Name :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Not Divulged

Remark :

Not Divulged

 

 

No. of Employees :

Information declined by the management

 

 

Bankers :

Banker Name :

Aurangabad District Central Co­operative Bank Limited

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 Account Opening) :

Not Divulged

Average Balance Maintained :

Not Divulged

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

Not Divulged

Account Operation :

Not Divulged

Remark :

Not Divulged

 

·         Parbhani District Central Co­operative Bank Limited

 

 

Auditors :

 

Name :

Khimji Kunverji and Company

Chartered Accountant

Address :

Sunshine Tower, Level 19, Senapati Bapat Marg, Dadar, Mumbai – 400028, Maharashtra, India

PAN No. :

AAAFK1142M

 

 

Memberships :

Not Divulged

 

 

Collaborators :

Not Divulged

 

 

Joint Venture :

·         Bharti Insurance Holdings Private Limited

·         First American Securities Private Limited

·         AXA India Holdings (Mauritius)

 

 

Associate Companies with whom the Company had done transactions :

·         Bharti Airtel Limited

·         AXA Asia

·         AXA Business Services Private Limited

·         AXA Technology Services (India) Private Limited

·         BOI AXA Investment Managers Private Limited

·         Bharti AXA General Insurance Company Limited

·         Bharti Enterprises Limited

·         AXA University

·         PT AXA Services Indonesia

 

 

CAPITAL STRUCTURE

 

AS ON 06.06.2014

 

Authorised Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

3000000000

Equity Shares

Rs.10/- each

Rs.30000.000 Million

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1978200976

Equity Shares

Rs.10/- each

Rs.19782.010 Million

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2014

31.03.2013

31.03.2012

SHAREHOLDERS FUNDS

 

 

 

Share Capital

19782.010

18072.010

17186.510

Share Application Money Pending Allotment

0.000

0.000

0.000

Reserves & Surplus

1984.442

1924.442

1859.942

Credit/ (Debit) Fair Value Change Account (Net)

(2.490)

(11.476)

0.156

Sub Total

21764.022

19984.976

19046.608

Borrowings

0.000

0.000

0.000

Policyholders' Funds:

 

 

 

Credit/(Debit) Fair Value Change Account (Net)

(23.723)

(26.227)

(2.219)

Policy Liabilities

4626.921

2131.311

1214.685

Insurance Reserves

0.000

0.000

0.000

Provision for Linked Liabilities

16727.431

17157.059

15902.554

Sub-Total

21330.629

19262.143

17115.020

Funds for Future Appropriations

0.000

0.000

0.000

Discontinuance Fund on account of non-payment of premium

1090.842

443.664

128.486

Discontinuance Fund others

0.000

0.000

0.000

Total

44185.493

39690.783

36290.114

 

 

 

 

APPLICATION OF FUNDS

 

 

 

Investments

 

 

 

Shareholders'

1483.729

1205.787

1745.507

Policyholders'

4850.796

2096.585

1249.820

Assets Held to Cover Linked Liabilities*

17818.273

17600.723

16031.040

Loans

0.000

0.000

0.000

Fixed Assets
102.863
93.015
107.448

 
 
 
 

Current Assets
 
 
 

Cash and Bank Balances
684.420
369.838
251.531

Advances and Other Assets

1123.364
1119.324
1050.602

Sub-Total (A)

1807.784

1489.162

1302.133

 

 

 

 

Sundry Creditor

935.296

710.419

1125.083

Other Liabilities

1106.551

675.169

440.964

Provisions

109.032

84.794

62.778

Sub-Total (B)

2150.879

1470.382

4233.091

Net Current Assets (C) = (A - B)

(343.095)

18.780

(326.692)

(to the extent not Witten off or adjusted)

 

 

 

Debit Balance of Profit and Loss Account

20272.927

18675.893

17482.991

Total

44185.493

39690.783

36290.114

 

 

PROFIT & LOSS ACCOUNT (NON TECHNICAL ACCOUNT)

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Amounts transferred from Policyholders' Account (Technical Account)

(87.434)

112.127

(526.763)

income from investments

 

 

 

(a) Interest, Dividends and Rent - Net of amortization (The above includes income accretion of Rs. 20.025 Millions, Previous year Rs. 37.289 Millions

105.089

109.325

113.591

(b) Profit on Sale/Redemption of Investments

37.933

29.389

25.904

(c) (Loss on Sale/ Redemption of Investments)

(9.587)

(2.084)

(3.135)

Other Income

0.000

0.000

0.000

Total (A)

46.001

248.757

(390.403)

Expense other than those directly related to the insurance business

22.423

39.934

33.459

Bad debts written off

0.000

0.000

0.000

Provisions (Other than Taxation)

0.000

0.000

0.000

(a) For Diminution in the value of investments (net)

0.000

0.000

0.000

(b) Provision for Doubtful Debts

 

 

 

(c) Others

 

 

 

Contribution to the Policyholders Account (Technical Account)

1620.612

1401.725

1474.559

Total(B)

1643.035

1441.659

1508.018

Profit/ (Loss) before Taxation

(1597.034)

(1192.902)

(1898.421)

Provision for Taxation

0.000

0.000

0.000

Profit / (Loss) after Taxation

(1597.034)

(1192.902)

(1898.421)

Appropriations

 

 

 

(a) Balance at the beginning of the period

(18675.893)

(17482.991)

(15584.570)

(b) Interim dividends paid during the period

0.000

0.000

0.000

(c) Proposed Final Dividend

0.000

0.000

0.000

(d) Dividend Distribution on Tax

0.000

0.000

0.000

(e) Transfer to Reserves/Other Accounts

0.000

0.000

0.000

Profit/ (Loss) carried to the Balance Sheet

(20.272.927)

(18875.893)

(17482.991)

Earnings Per Share  (Face Value Rs. 10 per share) Basic and Diluted

(0.84)

(0.68)

(1.17)

 

 

 

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2014

31.03.2013

31.03.2012

Current Maturities of Long term debt

NA

NA

NA

Cash generated from operations

NA

NA

NA

 

 

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

Yes

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 three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

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

 

 

NOTE:

 

The registered address of the company has been shifted from 704-706, 7th Floor, Embassy Center, Nariman Point, Mumbai – 400021, Maharashtra, India w.e.f. 16.05.2006

 

 

CURRENT YEAR PERFORMANCE AND OUTLOOK- LIFE INSURANCE INDUSTRY

 

India’s economic growth rate in the current financial year has been estimated at 4.9%, up from decade’s low of 4.5% posted in the previous financial year. However, inflation level is estimated to be at 8.1% (CPI) during FY 2013-14. Also, Industry is estimated to grow to 5.5% during FY 2014-15 as per report published by FICCI.

 

For last few years the life insurance market in India is facing number of challenges involving the macro-economic environment, consumer sentiment and rapid regularly changes. Despite the challenged, the overall industry recorded 3% increase in weighted new business premium although the private industry showed negative growth of 5% due to contraction in most of the insurers’ new premium income.

 

With industry tilt towards traditional products, the trend this financial year shows a higher focus on group business as both, the LIC and private insurer’s recorded positive growth in this segment, most of the players lay greater emphasis in maintaining renewal premium volume and boosting persistency to counter the long standing issues of high lapse rates in the industry.

 

The IRDA has finalized regulations which allow banks to act as insurance brokers, although it seems unlikely that banks promoting insurance companies will utilize this option in the near future due to conflict of interest. However, it provides opportunity to non bancassurance players to lap this distribution segment. Most notable is the finalization of traditional product regulations in December 2013. Throughout this year the focus has been to get approvals and launch products filed in compliance with this new product guidelines. Major changes include aligning commission payout in-line with the term of the policy, reducing the cap on commission payable, defining minimum tenure and sim assured for traditional products. Also, lot of efforts are made to train salesforce to adapt to the new product regime as a result of the same last quarter has lacked luster growth compared to any other season quarter in the previous in the previous years.

 

Grappling with the growth, the sector continuous to be on a consolidation phase. Efforts are made by promoters to juice maximum returns from current infrastructure rather than growing in investment in industry,

 

The long-term growth prospects for the Life Insurance industry remain intact. Given the favorable base and structural growth drivers in pace, as per the industry reports industry growth is expected to normalize post H2 FY 2014-15 with 10% CAGR in weighted new business premiums over FY14-17E.

 

 

 

 

CURRENT YEAR (FY 2013-14) COMPANY PERFORMANCE

 

·         The company has achieved new business premium of Rs.3756.000 Million during FY 2013-14 (Rs.2489.000 Million in FY 2012-13), showing a substantial growth of 51% compared to last year due to favorable product mix and higher ticket size. However, renewal premium remains flat at Rs.4970.000 Million during the year (last year Rs.4956.000 Million)

 

·         During the course of the year, company has revamped the products portfolio by successfully launching new products such as Flexi Save, Secure Income Plan, Aajeevan Sampatti+, Monthly Income Plan+, Future Invest etc. Company has also successfully re-filed all products as per new guidelines issued by IRDA.

 

 

NO CHARGES EXIST FOR COMPANY

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2014

Rs. In Million

31.03.2013

Rs. In Million

Partly paid - up investments

--

--

Claims,   other  than   against   policies, not acknowledged as debts by the Company

3.279

0.798

Underwriting commitments outstanding

--

--

Guarantees given by or on behalf of the Company

--

--

Statutory demands/ liabilities in dispute, not provided for

5.140

--

Reinsurance obligations to the extent not provided for in accounts

--

--

Insurance claims disputed by the Company, to the extent not provided/ reserved

64.371

44.066

Total

72.790

44.863

 

 

FIXED ASSETS:

 

·         Software

·         Leasehold improvements

·         Furniture and Fittings

·         Information Technology

·         Equipments

·         Vehicles

·         Office Equipment

 

 

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.64.18

UK Pound

1

Rs.98.30

Euro

1

Rs.72.25

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Analysis Done by :

KAS

 

 

Report Prepared by :

NKT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILITY

1~10

--

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

 

42

 

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.