MIRA INFORM REPORT

 

 

Report No. :

341909

Report Date :

21.09.2015

 

IDENTIFICATION DETAILS

 

Name :

HSBC INVESTDIRECT SECURITIES (INDIA) PRIVATE LIMITED (w.e.f. 01.11.2014)

 

 

Formerly Known As :

HSBC INVESTDIRECT SECURITIES (INDIA) LIMITED (w.e.f 15.07.2009)

IL AND FS INVESTSMART SECURITIES LIMITED

 

 

Registered Office :

Shiv Building, Plot No.139, 140B, 1st Floor, Western Express Highway, Sahar Junction, Vile Parle (East), Mumbai – 400057, Maharashtra

Tel. No.:

91-22-67897777 / 61872888 / 61946600

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

23.02.2006

 

 

Com. Reg. No.:

11-159988

 

 

Capital Investment / Paid-up Capital :

Rs. 1745.112 Million

 

 

CIN No.:

[Company Identification No.]

U67120MH2006PTC159988

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AABCI4793G

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Providing Retail Broking Services.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is wholly owned subsidiary of HSBC InvestDirect (India) Limited. It has moderate track record.

 

The company has incurred a losses from its operation since 2012. Further, the rating also takes into consideration modest financial risk profile marked by drastic dip in its revenue during FY2014.

 

As per Director’s report, the Board of Directors of the company at its meeting held on 14th October, 2013 approved the discontinuation of Retail Broking business, Depository Participant services and distribution of financial products business of the company, due to non-viability of business.

 

However, business is active. Trade relations are fair. Payment terms are reported to be slow but correct.

 

The company can be considered for business dealings with some caution.

 

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 DENIED BY

 

Management non-cooperative (91-22-40422424)

 

 

LOCATIONS

 

Registered Office :

Shiv Building, Plot No.139, 140B, 1st Floor, Western Express Highway, Sahar Junction, Vile Parle (East), Mumbai – 400057, Maharashtra, India

Tel. No.:

91-22-67897777 / 61872888 / 61946600

Fax No.:

91-22-61946699 / 67897968

E-Mail :

customerservice@hsbc.co.in

taxhidl@hsbc.co.in

Website :

www.hsbcinvestdirect.co.in

 

 

Branch Office 1 :

HSBC Umang, Fifth Floor, Mind Space, Link Road, Malad (West), Mumbai – 400064, Maharashtra, India

 

 

Branch Office 2 :

Also located at:

 

D.N. Road, Fort, Mumbai, Maharashtra, India

 

 

DIRECTORS

 

As on 17.09.2014

 

Name :

Mr. Dilip Balvantrai Mehta

Designation :

Director

Address :

B-204, Maitri Residence II CHS Limited, 90 Feet Road, Borsapada, Next to Poinsur Gymkhana, Kandivali (West), Mumbai – 400067, Maharashtra, India

Date of Birth/Age :

23.10.1969

Date of Appointment :

05.09.2012

DIN No. :

05265758

 

 

Name :

Mr. Vipul Kirit Malkan

Designation :

Director

Address :

A/1203, 12th Floor, Bhoomi Samkit, Mahavir Nagar, Near Pancsheel Garden, Kandivali (West), Mumbai - 400067, Maharashtra, India

Date of Birth/Age :

19.02.1975

Qualification :

B.Com, ACA

Date of Appointment :

05.09.2012

DIN No. :

05158393

 

 

Name :

Ms. Kashmira Joji Mathew

Designation :

Director

Address :

Flat No. G 1, Merwanjee Cama Park, Cama Road, Andheri (West), Mumbai – 400058, Maharashtra, India

Date of Birth/Age :

14.12.1970

Qualification :

B.Com, ACS

Date of Appointment :

18.02.2009

DIN No. :

02341875

 

 

Name :

Mr. Kapil Deepak Seth

Designation :

Director

Address :

B-61, Cozihom Co-Operative Housing Society, Pali Hill Road, Bandra (West), Mumbai – 400057, Maharashtra, India

Date of Birth/Age :

15.01.1974

Date of Appointment :

13.09.2011

DIN No. :

03596866

 

 

KEY EXECUTIVES

 

Name :

Manisha Kapoor

Designation :

Secretary

Address :

Flat No. H 701, Green Woods, Andheri – Kurla Road, Chakala, Andheri (East), Mumbai – 400093, Maharashtra, India

Date of Birth/Age :

01.12.1976

Date of Appointment :

28.06.2012

PAN No.:

ARNPK0784F

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 17.09.2014

 

Names of Shareholders

 

No. of Shares

HSBC InvestDirect (India) Limited, India

 

51628891

HSBC Securities and Capital Markets (India) Private Limited, India

 

5882352

HSBC InvestDirect Financial Services (India) Limited, India

 

30000000

HSBC InvestDirect (India) Limited, India jointly with Amit Moghav

 

1

HSBC InvestDirect (India) Limited, India jointly with Abasan V

 

1

HSBC InvestDirect (India) Limited, India jointly with Ravi Menon

 

1

HSBC InvestDirect (India) Limited, India jointly with Arun Boyina

 

1

HSBC InvestDirect (India) Limited, India jointly with Prabhakar Varadarjan 

 

1

HSBC InvestDirect (India) Limited, India jointly with Vikram Tondon

 

1

Total

 

87511249

 

Names of Preference Shareholders

 

No. of Shares

HSBC Securities and Capital Markets (India) Private Limited

8700000

 

 

Total

8700000

 

 

Equity Share Break up (Percentage of Total Equity)

 

As on 17.09.2014

 

Category

Percentage

Bodies corporate

100.00

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Retail Broking Services.

 

 

Products :

Item Code No.

Product Description

9715210

Broking income on secondary market

security trades is recognised on trade

date

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

Not Divulged

 

 

PRODUCTION STATUS NOT AVAILABLE

 

GENERAL INFORMATION

 

Suppliers :

Reference :

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 :

Reference :

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 :

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 Account Opening)

Not Divulged

Average Balance Maintained (If Possible)

Not Divulged

Credit Facilities Enjoyed (If any)

Not Divulged

Account Operation

Not Divulged

Remarks (If any)

Not Divulged

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Short-term borrowings

 

 

Term loans from banks

0.000

100.000

Total

0.000

100.000

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S R and Company

Chartered Accountants

Address :

Lodha Excelus, 1st Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalakshmi, Mumbai – 400011, Maharashtra, India

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

AAAFB9852F

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Holding company :
  • HSBC InvestDirect (India) Limited

CIN No.: U67120MH1997PLC110386

 

 

Fellow Subsidiary company :
  • HSBC InvestDirect Sales & Marketing (India) Limited

CIN No.: U67100MH2001PLC133074

  • HSBC InvestDirect Financial Services (India) Limited

CIN No.: U67190MH1996PLC097473

  • IL&FS Investsmart Asia Pacific Private Limited, Singapore

 

 

Enterprises that have Control over the Company :
  • HSBC Securities and Capital Markets (India) Private Limited
  • HSBC Holdings Plc
  • HSBC Finance (Netherland)
  • HSBC Holdings BV
  • HSBC Investment Bank Holdings BV
  • HSBC Violet Investments (Mauritius) Limited
  • The Hongkong and Shanghai Banking Corporation Limited, Hongkong
  • The Hongkong and Shanghai Banking Corporation Limited, India Branch
  • HSBC Asia Holdings BV
  • HSBC Asia Holdings (UK)

 

 

CAPITAL STRUCTURE

 

As on 17.09.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

105000000

Equity Shares

Rs.10/- each

Rs.1050.000 Million

8700000

Preference Shares

Rs.100/- each

Rs.870.000 Million

 

 

 

 

 

Total

 

Rs.1920.000 Million

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

87,511,249

Equity Shares

Rs.10/- each

Rs. 875.112 Million

8700000

Preference Shares

Rs.100/- each

Rs. 870.000 Million

 

 

 

 

 

Total

 

Rs.1745.112 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

1745.112

1542.171

1553.109

(b) Reserves & Surplus

(1630.322)

(1368.337)

(1041.745)

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

150.000

0.000

Total Shareholders’ Funds (1) + (2)

114.790

323.834

511.364

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

13.089

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

0.000

0.000

13.089

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

40.000

762.900

1191.900

(b) Trade payables

42.656

322.152

445.058

(c) Other current liabilities

27.787

33.974

77.825

(d) Short-term provisions

33.316

25.568

19.932

Total Current Liabilities (4)

143.759

1144.594

1734.715

 

 

 

 

TOTAL

258.549

1468.428

2259.168

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1.186

9.957

63.032

(ii) Intangible Assets

0.000

5.558

161.550

(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

47.600

47.620

68.222

(e) Other Non-current assets

33.648

159.053

145.050

Total Non-Current Assets

82.434

222.188

437.854

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.589

0.569

0.000

(b) Inventories

0.000

0.000

0.000

(c) Trade receivables

0.000

150.090

578.180

(d) Cash and cash equivalents

68.580

754.182

661.580

(e) Short-term loans and advances

105.887

314.501

546.477

(f) Other current assets

1.059

26.898

35.077

Total Current Assets

176.115

1246.240

1821.314

 

 

 

 

TOTAL

258.549

1468.428

2259.168

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

97.975

441.250

659.224

 

 

Other Income

0.694

0.245

1.080

 

 

TOTAL                                     (A)

98.669

441.495

660.304

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Employees benefits expense

237.270

334.215

491.063

 

 

Other expenses

342.210

367.420

530.492

 

 

TOTAL                                     (B)

579.480

701.635

1021.555

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

(480.811)

(260.140)

(361.251)

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

18.218

73.811

87.497

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

(499.029)

(333.951)

(448.748)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

10.015

203.579

95.549

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

(509.044)

(537.530)

(544.297)

 

 

 

 

 

Less

TAX (H)

0.000

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-H)   (I)

(509.044)

(537.530)

(544.297)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(7.39)

(11.94)

(12.57)

 

 

 

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 flows from (used in) operation

43.071

332.179

(561.115)

 

 

KEY RATIOS

 

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin

(PAT / Sales)

(%)

(519.57)

(121.82)

(82.57)

 

 

 

 

 

Operating Profit Margin

(PBIDT/Sales)

(%)

(490.75)

(58.96)

(54.80)

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(196.88)

(36.61)

(24.09)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(4.43)

(1.66)

(1.06)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

0.35

2.36

2.33

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.23

1.09

1.05

 

 

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

1553.109

1542.171

1745.112

Reserves & Surplus

(1041.745)

(1368.337)

(1630.322)

 Share Application money pending allotment

0.000

150.000

0.000

Net worth

511.364

323.834

114.790

 

 

 

 

long-term borrowings

0.000

0.000

0.000

Short term borrowings

1191.900

762.900

40.000

Total borrowings

1191.900

762.900

40.000

Debt/Equity ratio

2.331

2.356

0.348

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

659.224

441.250

97.975

 

 

(33.065)

(77.796)

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

659.224

441.250

97.975

Profit

(544.297)

(537.530)

(509.044)

 

(82.57%)

(121.82%)

(519.57%)

 

 

 

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

Yes

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

 

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 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 office of the company has been shifted from HSBC Umang, Fifth Floor, Mind Space Link Road, Malad (West), Mumbai – 400064, Maharashtra, India to the present address w.e.f. 14.05.2012

 

 

UNSECURED LOAN

 

PARTICULARS

31.03.2014

(Rs. in Million)

31.03.2013

(Rs. in Million)

Short-term borrowings

 

 

Loans and advances from related parties

40.000

662.900

 

 

 

Total

40.000

662.900

 

INDEX OF CHARGES NO CHARGES EXIST FOR COMPANY

 

 

OPERATIONS AND OUTLOOK FOR THE CURRENT YEAR

 

During the financial year 2013-14, The Company incurred net loss of Rs. 509.000 Million as against Rs. 538.000 Million incurred in the previous year.

 

To address the ongoing losses, The Company had commenced a strategic review of its operations. After exploring all possible options, the Board of Directors of the Company at its meeting held on 14 October 2013 approved the discontinuation of Retail Broking business, Depository Participant services and distribution of financial products (wealth management products and corporate agency) businesses of the Company, due to non-viability of businesses and in alignment with the long term strategy of the HSBC Group.

 

Upon discontinuation of the Company’s businesses, the Company has applied for the surrender of the Stock Broking, Depository Participant, Mutual Fund and Corporate Agency registration certificates to the BSE Limited, National Stock Exchange of India Limited, Securities and Exchange Board of India (SEBI), Central Depository Services (India) Limited, the National Securities Depository Limited, the Association of Mutual Fund of India and Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited (CHOICe) respectively. The application for surrender of all aforesaid registration certificates is under process with respective regulators.

 

 

FIXED ASSETS

 

v  Tangible Assets

·         Furniture and Fixtures

·         Vehicles

·         Office Equipment

·         Computer Equipments

·         Other Equipments

 

v  Intangible Assets

·         Goodwill

·         Brands and Trade Marks

·         Computer Software

 

 

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.65.92

UK Pound

1

Rs.102.75

Euro

1

Rs.75.12

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

RSM

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

2

--CREDIT LINES

1~10

3

--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

 

30

 

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.