|
|
|
MIRA INFORM REPORT
|
Report No. : |
486590 |
|
Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
GHANSHYAM IMPEX |
|
|
|
|
Registered
Office : |
Plot No. 07, Shankar Industrial Estate, Kapodra Varachha Road, Surat –
395006, Gujarat |
|
Tel. No.: |
91-261-2570031 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Year of
Establishment : |
2010 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
INR 70.006 Million |
|
|
|
|
IEC No.: |
5210003515 |
|
|
|
|
GSTIN No.: |
24AAIFG8790K1ZU |
|
|
|
|
TIN No.: |
24222805386 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAIFG8790K |
|
|
|
|
Legal Form : |
Partnership Concern with an unlimited liability of the partners |
|
|
|
|
Line of Business
: |
Processor, Exporter and Importer of Diamonds. (Confirmed by
management) |
|
|
|
|
No. of Employees
: |
170 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a partnership firm established in the year 2010 and it is a
processor exporter and importer of diamonds. As per financial of March 2017, the subject has registered a growth of
27.27% in its sales turnover as compared to previous year’s sales turnover
and has reported average profitability margin of 1.14%. Rating takes into consideration the subject’s satisfactory track
record of business operations marked by sound capital base along with strong
debt coverage indicators and average liquidity position. However, rating strength partially offset by huge working requirement
and highly competitive diamond industry. Payments are reported to be slow but correct. In view of aforesaid, the subject can be considered for business
dealings 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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
31-03-2016.
BIFR (Board for Industrial & Financial Reconstruction) LISTING
STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 17.01.2018.
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION PARTED BY
|
Name : |
Mr. Sandeep |
|
Designation : |
Accountant |
|
Contact No.: |
91-7041121118 |
|
Date : |
16.01.2018 |
LOCATIONS
|
Registered Office/ |
Plot No. 07, Shankar Industrial Estate, Kapodra Varachha Road, Surat –
395006, Gujarat, India |
|
Tel. No.: |
91-261-2570031 |
|
Mobile No.: |
91-7041121118 (Mr. Ghanshyam) |
|
Fax No.: |
91-261-2570031 |
|
E-Mail : |
|
|
Location : |
Owned |
|
Locality : |
Industrial |
PARTNERS
|
Name : |
Mr. Jivrajbhai Laxmanbhia Mavani |
|
Designation : |
Partner |
|
Address: |
32, Swami Narayan Nagar, Varachh A Road, Surat – 395006, Gujarat, India |
|
|
|
|
Name : |
Mr. Himmatbhai |
|
Designation : |
Partner |
|
Address: |
178, Kamal Park Society, Varachh A Road, Surat – 395006, Gujarat, India |
|
|
|
|
Name : |
Mr. Ghanshyambhai |
|
Designation : |
Partner |
|
Address: |
178, Kamal Park Society, Varachh A Road, Surat – 395006, Gujarat, India |
|
|
|
|
Name : |
Mr. Valjibhai |
|
Designation : |
Partner |
|
Address: |
A-5, Ground Floor, Sneh Milan Bungl Chikuwadi, Varachha
Road, |
|
|
|
|
Name : |
Mr.
Jaysukhbhai |
|
Designation : |
Partner |
|
Address: |
62, Swami Narayan Nagar, Varachh A Road, Surat – 395006, Gujarat, India |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep |
|
Designation : |
Accountant |
BUSINESS DETAILS
|
Line of Business : |
Processor, Exporter and Importer of Diamonds. (Confirmed by
management) |
|
|
|
|
Products/ Services : |
Diamonds |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
|
|
Products : |
Polished Diamond |
|
Countries : |
|
|
|
|
|
Imports : |
|
|
Products : |
Rough Diamond |
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
Credit [60,120 Days] |
|
|
|
|
Purchasing : |
Credit [60,120 Days] |
GENERAL INFORMATION
|
Suppliers : |
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Customers : |
Retailers, End Users and OEM’s
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
No. of Employees : |
170 (Approximately) |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Bankers : |
|
|
Auditors : |
|
|
Name : |
Tejas Rajendrakumar Shah Chartered Accountant |
|
Address: |
Surat, Gujarat, India |
|
Membership No.: |
112016 |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Membership : |
Not Available |
|
|
|
|
Sister Concern : |
Not Divulged |
CAPITAL STRUCTURE
AS ON 31.03.2017
|
Capital Investment : |
|
|
Owned : |
INR 70.006 Million |
|
Borrowed : |
-- |
|
Total : |
INR 70.006 Million |
FINANCIAL DATA
[all figures are
INR Million]
Note: Sole Proprietary and Partnership concerns are
exempted from filing their financials with the Government Authorities or
Registry.
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Partner’s Capital |
70.006 |
50.240 |
38.818 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
70.006 |
50.240 |
38.818 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
29.462 |
24.395 |
22.808 |
|
|
2] Unsecured Loans |
4.150 |
0.000 |
0.333 |
|
|
TOTAL BORROWING |
33.612 |
24.395 |
23.141 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
103.618 |
74.635 |
61.959 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11.747 |
12.397 |
13.159 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.049 |
0.038 |
0.049 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
272.586 |
142.061
|
111.905
|
|
|
Sundry Debtors |
88.873 |
39.103
|
14.489
|
|
|
Cash & Bank Balances |
0.261 |
0.066
|
0.488
|
|
|
Other Current Assets |
0.000 |
0.010
|
0.000
|
|
|
Loans & Advances |
4.121 |
2.059
|
1.113
|
|
Total
Current Assets |
365.841 |
183.299
|
127.995
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
|
|
|
Other Current Liabilities |
274.025 |
120.628
|
78.996
|
|
|
Provisions |
0.226 |
0.608
|
0.388
|
|
Total
Current Liabilities |
274.251 |
121.236
|
79.384
|
|
|
Net Current Assets |
91.590 |
62.063
|
48.611
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.232 |
0.137 |
0.140 |
|
|
|
|
|
|
|
|
TOTAL |
102.618 |
74.635 |
61.959 |
|
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
561.751 |
441.395 |
|
|
Other Income |
|
15.090 |
3.894 |
|
|
TOTAL |
|
576.841 |
445.289 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
515.043 |
391.086 |
|
|
Direct
Expenses |
|
30.635 |
27.104 |
|
|
Selling
and Distribution Expenses |
|
0.340 |
0.137 |
|
|
Indirect
Expenses |
|
15.784 |
14.580 |
|
|
TOTAL |
|
561.802 |
432.907 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, DEPRECIATION |
|
15.039 |
12.382 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
7.421 |
7.515 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
DEPRECIATION |
|
7.618 |
4.867 |
|
|
|
|
|
|
|
Less |
DEPRECIATION |
|
1.204 |
0.888 |
|
|
|
|
|
|
|
|
NET PROFIT |
|
6.414 |
3.979 |
|
|
PARTICULARS |
|
|
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
|
|
278.047 |
|
|
Other Income |
|
|
2.116 |
|
|
TOTAL |
|
|
280.163 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
|
244.88 |
|
|
Direct
Expenses |
|
|
17.797 |
|
|
Indirect
Expenses |
|
|
14.106 |
|
|
TOTAL |
|
|
276.783 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
DEPRECIATION |
|
|
3.380 |
|
|
|
|
|
|
|
Less |
DEPRECIATION |
|
|
1.081 |
|
|
|
|
|
|
|
|
NET PROFIT |
|
|
2.299 |
Expected Sales (2017-2018): INR 800.000 Million
The above information has been parted by Mr. Sandeep [Accountant]
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days [Sundry Debtors / Income *
365] |
57.75 |
32.34 |
19.02 |
|
|
|
|
|
|
Account Receivables Turnover [Income / Sunday Debtors] |
6.32 |
11.29 |
19.19 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.06 |
0.09 |
0.03 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
1.28 |
1.00 |
0.26 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.81 |
0.74 |
0.73 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.48 |
0.49 |
0.60 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
3.98 |
2.41 |
2.05 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.17 |
0.25 |
0.34 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
2.03 |
1.65 |
NA |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
PAT to Sales ((PAT / Sales) * 100) |
% |
1.14 |
0.90 |
0.83 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets)
* 100) |
% |
1.70 |
2.03 |
1.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
9.16 |
7.92 |
5.92 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.31 |
1.51 |
1.61 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
0.33 |
0.34 |
0.20 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.19 |
0.26 |
0.27 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.48 |
0.49 |
0.60 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
1.31 |
1.51 |
1.61 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Partner’s Capital |
38.818 |
50.240 |
70.006 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net
worth |
38.818 |
50.240 |
70.006 |
|
|
|
|
|
|
Secured Loans |
22.808 |
24.395 |
29.462 |
|
Unsecured Loans |
0.333 |
0.000 |
4.150 |
|
Total
borrowings |
23.141 |
24.395 |
33.612 |
|
Debt/Equity
ratio |
0.596 |
0.486 |
0.480 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
278.047 |
441.395 |
561.751 |
|
|
|
58.748 |
27.267 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Sales
|
278.047 |
441.395 |
561.751 |
|
Profit |
2.299 |
3.979 |
6.414 |
|
|
0.83% |
0.90% |
1.14% |
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 |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
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 |
No |
|
18 |
Major suppliers |
Yes |
|
19 |
Major customers |
Yes |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
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 |
No |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
No |
|
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 |
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible
only due to combination of the manufacturing skills of the Indian workforce and
the untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a global
voluntary regulatory standard on bank capital adequacy, stress testing and
market liquidity.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 63.76 |
|
|
1 |
INR 87.91 |
|
Euro |
1 |
INR 78.20 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
VVK |
|
|
|
|
Report Prepared
by : |
GEET |
SCORE FACTORS
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.