MIRA INFORM REPORT
|
Report No. : |
343124 |
|
Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN PAINTS PPG PRIVATE LIMITED [w.e.f. 28.08.2011] |
|
|
|
|
Formerly Known
As : |
ASIAN PAINTS PPG LIMITED |
|
|
|
|
Registered
Office : |
6A, Shantinagar, Santacruz (East), Mumbai – 400055, Maharashtra |
|
Tel. No.: |
91-22-30568700 / 8800 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation
: |
05.08.2011 |
|
|
|
|
Com. Reg. No.: |
11-220557 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.104.879 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
U24110MH2011PTC220557 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAJCA7128D |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacturer of Industrial Paints. |
|
|
|
|
No. of Employees
: |
155 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (56) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a joint venture between ‘Asian Paints Limited’ and ‘PPG
Industries Securities LLC’. It is a manufacturer of financial paints. For the financial year ended 2014, company possess moderate
operational performance and incurred losses from its operations activities. However, rating takes into consideration company’s satisfactory financial
profile backed by adequate net worth base along with zero debt balance and
healthy debt protection metrics of the company. Company also receives strong financial and managerial support from its
joint venture entities. Trade relations are reported as fair. Payments are reported to be
regular and as per commitment. In view of aforesaid, 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
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 PARTED BY
|
Name : |
Mr. Amit Tandekar |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-22-61089948 |
|
Date : |
13.08.2015 |
LOCATIONS
|
Registered Office : |
6A, Shantinagar, Santacruz (East), Mumbai – 400055, Maharashtra, India
|
|
Tel. No.: |
91-22-30568700 / 8800 |
|
Fax No.: |
91-22-26528044 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Plot No. 5, Gaidwadi Industrial Estate, Off. S.V. Road, Goregaon
(West), Mumbai – 400062, Maharashtra, India |
DIRECTORS
As on 30.09.2014
|
Name : |
Mr. Jayesh Tulsidas Merchant |
|
Designation : |
Director |
|
Address : |
4 Sai Manjil, 18 Altamount Road, Mumbai – 400026, Maharashtra, India |
|
Date of Birth/Age : |
27.11.1957 |
|
Date of Appointment : |
11.07.2013 |
|
DIN No.: |
00555052
|
|
|
|
|
Name : |
Mr. Jalaj Ashwin Dani |
|
Designation : |
Director |
|
Address : |
Home Villa CHS, 48 Krishna Sanghi Path, Gamdevi, Mumbai – 400007,
Maharashtra, India |
|
Date of Birth/Age : |
20.10.1969 |
|
Date of Appointment : |
14.10.2013 |
|
DIN No.: |
00019080
|
|
|
|
|
Name : |
Mr. Somasundaram Swaminathan |
|
Designation : |
Director |
|
Address : |
No.8, Jalan 10/14, Taman Jaya, Petalina Jaya, Selangor 46000, Malaysia |
|
Date of Birth/Age : |
14.10.1966 |
|
Date of Appointment : |
14.10.2013 |
|
DIN No.: |
06655654
|
|
|
|
|
Name : |
John Bruno |
|
Designation : |
Director |
|
Address : |
50 Fox Pointer Dr Pittsburgh, USA |
|
Date of Birth/Age : |
20.07.1967 |
|
Date of Appointment : |
21.03.2014 |
|
DIN No.: |
06809248
|
|
|
|
|
Name : |
Michael Horton |
|
Designation : |
Nominee Director |
|
Address : |
Windsor Place, House No. 72, 2222, Jian He Road, Shanghai, Shanghai, 200336, , China |
|
Date of Appointment : |
28.04.2015 |
|
DIN No.: |
05343902 |
KEY EXECUTIVES
|
Name : |
Mr. Amit Tandekar |
|
Designation : |
Accounts Department |
|
|
|
|
Name : |
Mr. Sagar Shrikrishna Khade |
|
Designation : |
Secretary |
|
Address : |
C-9, Royal Diamond Park Chs,, Datt Mandir Road, Vakola, Santacruz (East),, Mumbai, 400055, Maharashtra, India |
|
Date of Appointment : |
01.02.2013 |
|
PAN No.: |
AHXPK5536D |
|
|
|
|
Name : |
Mr. Jaideep Prodyot Nandi |
|
Designation : |
Chief Executive Officer |
|
Address : |
211 Netaji Subhas Road, Behala, N B, Kolkata, 700034, West Bengal, India |
|
Date of Appointment : |
01.08.2014 |
|
PAN No.: |
ABQPN4534K |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Names of Shareholders |
|
No. of Shares |
|
Asian Paints Limited |
|
5243961 |
|
PPG Industries Securities LLC, USA |
|
5243958 |
|
PPG Industries Incorporation Jointly with PPG Coatings(Hong Kong)
Company Limited, USA |
|
1 |
|
PPG Industries Securities Incoporation Jointly with PPG Coatings (Malaysia)
Sdn.Bhd., USA |
|
1 |
|
PPG Industries Securities Incorporation Jointly with PPG Coatings
(Singapore) Private Limited, USA |
|
1 |
|
|
|
|
|
Total |
|
10487922 |
Equity Share Break up (Percentage of Total Equity)
As on 30.09.2014
|
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 |
50.00 |
|
Bodies corporate |
50.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Industrial Paints |
||||||||||
|
|
|
||||||||||
|
Products : |
|
||||||||||
|
|
|
||||||||||
|
Brand Names : |
Not Divulged |
||||||||||
|
|
|
||||||||||
|
Agencies Held : |
Not Divulged |
||||||||||
|
|
|
||||||||||
|
Exports : |
Not Divulged |
||||||||||
|
|
|
||||||||||
|
Imports : |
|
||||||||||
|
Products : |
Raw Material |
||||||||||
|
Countries : |
|
||||||||||
|
|
|
||||||||||
|
Terms : |
|
||||||||||
|
Selling : |
Cash and Cheque |
||||||||||
|
|
|
||||||||||
|
Purchasing : |
Cash and Cheque |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Customers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
No. of Employees : |
155 (Approximately) |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Associates Chartered Accountants |
|
Address : |
Lodha Excelus 5th floor, Apollo Mills Compound, N M Joshi Marg,
Mahalakshmi, Mumbai-400011, Maharashtra, India |
|
PAN N Income-tax PAN of auditor or auditor's firm : |
AADFB6889R |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Joint Venture : |
(CIN
No.: L24220MH1945PLC004598)
|
|
|
|
|
Fellow Subsidiary
company : |
(CIN
No.: U24200MH1997PTC105961) |
CAPITAL STRUCTURE
As on 30.09.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12000000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10487922 |
Equity Shares |
Rs. 10/-
each |
Rs. 104.879 Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
104.879 |
92.712 |
2.500 |
|
(b) Reserves & Surplus |
853.672 |
608.796 |
(0.693) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’
Funds (1) + (2) |
958.551 |
701.508 |
1.807 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
15.382 |
18.065 |
0.000 |
|
Total Non-current
Liabilities (3) |
15.382 |
18.065 |
0.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade
payables |
392.362 |
581.995 |
0.000 |
|
(c) Other
current liabilities |
152.881 |
324.166 |
0.326 |
|
(d) Short-term
provisions |
10.743 |
8.715 |
0.000 |
|
Total Current
Liabilities (4) |
555.986 |
914.876 |
0.326 |
|
|
|
|
|
|
TOTAL |
1529.919 |
1634.449 |
2.133 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
3.394 |
2.367 |
0.000 |
|
(ii)
Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
4.326 |
2.172 |
0.210 |
|
(e) Other
Non-current assets |
0.495 |
1.282 |
0.231 |
|
Total Non-Current
Assets |
8.215 |
5.821 |
0.441 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
683.062 |
688.043 |
0.000 |
|
(c) Trade
receivables |
678.888 |
812.926 |
0.000 |
|
(d) Cash
and cash equivalents |
113.283 |
51.132 |
1.618 |
|
(e)
Short-term loans and advances |
40.399 |
59.768 |
0.000 |
|
(f) Other current
assets |
6.072 |
16.759 |
0.074 |
|
Total
Current Assets |
1521.704 |
1628.628 |
1.692 |
|
|
|
|
|
|
TOTAL |
1529.919 |
1634.449 |
2.133 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
NA |
3143.035 |
0.000 |
|
|
|
Other Income |
NA |
13.061 |
0.045 |
|
|
|
TOTAL (A) |
NA |
3156.096 |
0.045 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
TOTAL (B) |
NA |
3213.969 |
0.738 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
NA |
(57.873) |
(0.693) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
NA |
1.351 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
NA |
(59.224) |
(0.693) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
NA |
0.440 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F)
(G) |
NA |
(59.664) |
(0.693) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
NA |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
(62.957) |
(59.664) |
(0.693) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Materials |
494.636 |
504.043 |
NA |
|
|
|
Packaging Material |
2.137 |
1.596 |
NA |
|
|
|
Others |
199.900 |
26.549 |
NA |
|
|
|
TOTAL
IMPORTS |
696.673 |
532.188 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(6.00) |
(5.69) |
(0.07) |
|
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 |
|
Net cash flow from operating activity |
(256.789) |
(41.130) |
(0.702) |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
NA
|
(1.89) |
0.00 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
NA
|
(1.84) |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA |
(3.65) |
(32.49) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA |
(0.09) |
(0.38) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
NA |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.74 |
1.78 |
5.19 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
2.500 |
92.712 |
104.879 |
|
Reserves & Surplus |
(0.693) |
608.796 |
853.672 |
|
Net
worth |
1.807 |
701.508 |
958.551 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
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 |
Yes |
|
8 |
Designation of contact person |
Yes |
|
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) |
Yes |
|
16 |
No. of employees |
Yes |
|
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 two years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last two 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 |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX
OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10391357 |
15/11/2012 |
300,000,000.00 |
HDFC BANK LIMITED |
HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, Maharashtra
- 400013, INDIA |
B63898704 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
|
Tax matters under dispute |
7.183 |
0.000 |
FIXED ASSETS
- Plant and
Equipment
- Furniture and
Fixture
- 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,
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.66.74 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.79 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SUD |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILITY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
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 |
|
56 |
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.