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MIRA INFORM REPORT
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Report No. : |
494627 |
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Report Date : |
06.03.2018 |
IDENTIFICATION DETAILS
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Name : |
KOTAK MAHINDRA MUTUAL FUND |
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Registered
Office : |
27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051,
Maharashtra |
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Tel. No.: |
91-22-62185000 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
1998 |
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IEC No.: [Import-Export Code No.] |
Not Divulged |
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GSTN : [Goods & Service Tax
Registration No.] |
Not Divulged |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Divulged |
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PAN No.: [Permanent Account No.] |
Not Divulged |
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Legal Form : |
Trust |
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Line of Business
: |
Providing
mutual fund. [From Indirect Sources] |
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No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Kotak Mahindra Mutual Fund was set up in the year 1998. Kotak Mahindra Asset Management Company Limited, a wholly owned subsidiary of Kotak Mahindra bank Limited is the asset manager of Kotak Mahindra Mutual Fund. Rating factors in the high credit quality of the underlying assets of the schemes, comfortable asset coverage for the bank facilities and low duration of the majority of the schemes. Rating also factors in the sponsorship from Kotak Mahindra Bank Limited and the experience of the fund management team. Kotak Mahindra Mutual Fund also benefits from the brand equity of Kotak Group. Business is active. Payment terms seems to be regular and as per commitments. In view of aforesaid, Kotak Mahindra Mutual Fund can be considered good for normal business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Short-term bank facilities : A1+ |
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Rating Explanation |
Very strong degree of safety and carry
lowest credit risk |
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Date |
26.04.2017 |
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 06.03.2018.
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 DENIED BY
Tel No.:91-22-62185000 (Office executive)
LOCATIONS
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Registered Office : |
27 BKC, C-27, G Block, Bandra Kurla Complex, Bandra (East), Mumbai –
400051, Maharashtra, India |
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Tel. No.: |
91-22-61152100 |
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Fax No.: |
91-22-67082213 |
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E-Mail : |
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Website : |
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Corporate Office: |
Kotak Mahindra
Asset Management Company 2nd Floor, 12-BKC, Plot No. C-12, G Block, BKC, Bandra
(East), Mumbai – 400051, Maharashtra, India |
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Tel. No.: |
91-22-62185000 (Board Line) |
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Fax No.: |
91-22-67082213 |
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Service team address : |
Kotak Mahindra
Asset Management Company 6th Floor, Kotak Towers, Building No:21, Infinity Park, Off
Western Express Highway, Goregaon – Mulund Link Road, Malad (East), Mumbai –
400097, Maharashtra, India |
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Branches : |
Located at :
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MANAGEMENT
AS ON 2017
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BOARD
OF DIRECTORS Kotak Mahindra Trustee Company Limited CIN: U65990MH1995PLC090279 (Trustee to Kotak Mahindra Mutual Fund) |
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BOARD
OF DIRECTORS
Kotak Mahindra Asset Management Company Limited CIN: U65991MH1994PLC080009 (Investment Manager to Kotak Mahindra Mutual Fund) |
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KEY EXECUTIVES
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Investor Relations Officer |
Ms. Sushma Mata |
BUSINESS DETAILS
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Line of Business : |
Providing
mutual fund. [From Indirect Sources] |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountants |
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Membership No : |
55913 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Sponsor : |
Kotak Mahindra Bank Limited |
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Associate: |
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FINANCIAL DATA
FINANCIAL DETAILS
FILE ATTACHED
LOCAL AGENCY FURTHER INFORMATION
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Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
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1 |
Year of establishment |
Yes |
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2 |
Constitution of the entity -Incorporation
details |
Yes |
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3 |
Locality of the entity |
Yes |
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4 |
Premises details |
No |
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5 |
Buyer visit details |
-- |
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6 |
Contact numbers |
Yes |
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7 |
Name of the person contacted |
No |
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8 |
Designation of contact person |
No |
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9 |
Promoter’s background |
No |
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10 |
Date of Birth of Proprietor / Partners / Directors |
No |
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11 |
Pan Card No. of Proprietor / Partners |
No |
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12 |
Voter Id Card No. of Proprietor / Partners |
No |
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13 |
Type of business |
Yes |
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14 |
Line of Business |
Yes |
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15 |
Export/import details (if applicable) |
No |
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16 |
No. of employees |
No |
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17 |
Details of sister concerns |
Yes |
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18 |
Major suppliers |
No |
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19 |
Major customers |
No |
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20 |
Banking Details |
No |
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21 |
Banking facility details |
No |
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22 |
Conduct of the banking account |
-- |
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23 |
Financials, if provided |
Yes |
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24 |
Capital in the business |
No |
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25 |
Last accounts filed at ROC, if applicable |
No |
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26 |
Turnover of firm for last three years |
Yes |
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27 |
Reasons for variation <> 20% |
-- |
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28 |
Estimation for coming financial year |
No |
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29 |
Profitability for last three years |
Yes |
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30 |
Major shareholders, if available |
No |
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31 |
External Agency Rating, if available |
Yes |
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32 |
Litigations that the firm/promoter
involved in |
-- |
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33 |
Market information |
-- |
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34 |
Payments terms |
No |
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35 |
Negative Reporting by Auditors in the
Annual Report |
No |
SCHEME PERFORMANCE,
FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES
OUTLOOK ON THE EQUITY
MARKETS
FY17 witnessed some key events like the passage of the Goods and Services Tax Bill (GST) in India, Britain voting in favor of a Brexit, the demonetization drive of the Indian Government to combat black money and corruption, the election of Donald Trump as the new US President, the appointment of Dr. Urjit Patel as the new RBI Governor, the appointment of a new Monetary Policy Committee (MPC) in India for the formulation of monetary policy and the US Federal Reserve hiking rates in Dec ‘16.
OUTLOOK ON THE DEBT
MARKETS
On the fixed income front, expectations of monetary easing by the Reserve bank of India (RBI) led to easing across the yield curve. RBI changed its Monetary Policy stance to neutral from accommodative. The 10 year benchmark Gilt yield ended the year FY 17 at 6.68% from 7.46% at the start of the financial year. In FY17 the benchmark repo rate was cut by 50 bps to 6.25%. It was also heartening to note that the government continued to adhere to fiscal prudence by targeting 3.0% fiscal deficit for FY18.
Global markets painted a bleak picture through the last year. Liquidity injection measures by Central Banks continued in most developed economies. Deflationary expectations, declining global commodity prices, negative treasury yields in most parts of Euro zone, Japan, etc. theyre some of the key focus points last year. The US Fed has hiked rate by 50 bps and seems committed to gradually increase rates going forward in com.
A brief commentary on the operations and performance of our schemes are as follows:
KOTAK SELECT FOCUS
FUND:
Kotak Select Focus outperformed its benchmark in FY 2017. This was driven by both sector allocation as theyll as positive selection of stocks. The fund has consistently delivered better than benchmark
returns since inception.
KOTAK OPPORTUNITIES:
Kotak Opportunities outperformed its benchmark in FY 2017. This was largely on account of positive selection of stocks. The scheme has also outperformed the benchmark in the period since inception.
KOTAK MIDCAP SCHEME:
Despite marginal underperformance against the benchmark during the year under the review, the fund has outperformed its benchmark since inception owing to the positive sector and stock selection.
KOTAK EMERGING EQUITY
SCHEME:
The scheme has outperformed its benchmark in FY 2017. This was on account of positive selection of sectors and stocks. The returns since inception till date have exceeded benchmark returns.
KOTAK MAHINDRA 50
UNIT SCHEME:
The scheme has outperformed its benchmark in FY 2017. This was largely on account of positive selection of stocks. The returns since inception till date have also been higher than the benchmark.
KOTAK CLASSIC EQUITY:
The scheme has outperformed its benchmark in FY 2017 on account of positive selection of sectors and stocks. The fund has marginally underperformed its benchmark since inception.
KOTAK MAHINDRA
BALANCE UNIT SCHEME 99:
The scheme has outperformed its benchmark in FY 2017. The scheme has been in inception much before the formation of its benchmark and therefore its returns during this period cannot be accurately compared with the benchmark.
KOTAK TAX SAVER:
The scheme has outperformed its benchmark in FY 2017 on account of positive selection of sectors and stocks. The returns since inception till date have also been higher than the benchmark returns.
KOTAK EQUITY
ARBITRAGE SCHEME:
The scheme outperformed its benchmark in FY 2017. The scheme has been in inception much before the formation of its benchmark and therefore its returns during this period cannot be accurately compared with the benchmark.
KOTAK EQUITY SAVINGS
FUND:
Despite underperformance against its benchmark in FY 2017, the fund has delivered better than benchmark returns since inception till date.
KOTAK INFRASTRUCTURE
AND ECONOMIC REFORM FUND:
The scheme has outperformed its benchmark during FY 2017 and in period since inception. This can be attributed to the portfolio strategy of having invested in a down cycle in flow related companies exhibiting consistently high return ratios.
KOTAK WORLD GOLD
FUND:
The fund has underperformed its benchmark in FY 2017. This is attributable to the underperformance of the underlying fund to its benchmark. Kotak World Gold Fund has outperformed its benchmark in period since inception.
KOTAK US EQUITY FUND:
The fund underperformed its benchmark in FY 2017 and in period since inception. This is attributable to underperformance in the underlying fund.
KOTAK ASSET ALLOCATOR
FUND:
The scheme has outperformed its benchmark during FY 2017. This is attributable to a low equity exposure as assigned by the quantitative model run for portfolio construction. The fund has also outperformed the benchmark since inception till date.
KOTAK GLOBAL EMERGING
MARKET FUND:
The scheme has underperformed its benchmark in FY 2017. This is attributable to underperformance in the underlying funds. The scheme return since inception till date has exceeded benchmark returns.
KOTAK MAHINDRA GILT
UNIT SCHEME 98– INVESTMENT PLAN:
The scheme outperformed its benchmark in FY 2017 as the fund was positioned for rally in bond prices. However, towards the end of the year, the fund witnessed some underperformance as RBI decision to hold rates and change stance from accommodative to neutral was contrary to our expectations.
KOTAK MAHINDRA BOND
UNIT SCHEME 99:
The scheme underperformed its benchmark in FY 2017. The scheme did well throughout the year. However, during the last few months of the year, the RBI decision to hold rates and change the stance from accommodation to neutral was in contradiction to our expectation.
KOTAK BANKING AND PSU
DEBT FUND:
The scheme outperformed its benchmark in FY 2017. The scheme has been in inception much before the formation of the benchmark and therefore does not have an appropriate comparison for that period under assessment.
KOTAK BOND SHORT TERM
PLAN:
The scheme outperformed its benchmark in FY 2017. The fund was positioned a tad conservative in terms of the portfolio duration and hence was able to deliver outperformance.
KOTAK MEDIUM TERM
FUND:
The scheme underperformed its benchmark in FY 2017 and in the period since inception. The underperformance is attributable to relatively lower duration of the fund in comparison to the benchmark.
KOTAK LOW DURATION
FUND:
The scheme has outperformed its benchmark in FY 2017 and has marginally underperformed the benchmark in the period since inception. The outperformance can be attributed to the higher duration and aggressive portfolio approach relative to the benchmark. The fund also had a reasonably high YTM (Yield to maturity) which aided performance.
KOTAK MONTHLY INCOME
PLAN:
The scheme has outperformed its benchmark in FY 2017 and has marginally underperformed in the period since inception. Active management in both fixed income and equities led to such outperformance.
KOTAK MAHINDRA LIQUID
SCHEME AND KOTAK FLOATER SHORT TERM SCHEME:
The performances of both the schemes exceeded the benchmark returns in FY 2017. This was largely attributable to the relatively higher duration and higher portfolio yield as compared to the benchmark. The returns since inception till date have also exceeded benchmark returns.
KOTAK TREASURY
ADVANTAGE FUND:
The fund outperformed its benchmark in FY 2017 and in the period since inception. The fund was running higher duration relative to the benchmark and this resulted in outperformance during the year. The portfolio had a bias towards higher rated assets in FY 17
KOTAK FLEXI DEBT
SCHEME:
The fund outperformed its benchmark in FY 2017 and in the period since inception. This can be attributed to the active duration management strategy of the fund against the benchmark.
KOTAK INCOME
OPPORTUNITIES FUND:
The fund outperformed its benchmark in FY 2017 and in the period since inception. The fund increased exposure to non AAA rated issuers vis-ŕ-vis the benchmark. The spreads of such category vis a vis AAA assets witnessed some compression leading to outperformance.
KOTAK CORPORATE BOND
FUND:
The fund has underperformed its benchmark in FY 2017. This is attributable to relatively lower duration as compared to the benchmark. The scheme has outperformed its benchmark in the period since inception.
KOTAK MULTI ASSET
ALLOCATION FUND:
The scheme has outperformed the benchmark in FY 2017. The scheme has underperformed the benchmark since inception due to the conservative approach adopted by the scheme earlier. The lag effect of underperformance in the previous years and the recent volatility witnessed is getting reflected in the inception performance.
KOTAK HYBRID FIXED
TERM PLAN - SERIES II:
The scheme underperformed the benchmark in FY 2017 till its maturity date of January 30, 2017. This is attributable to the fact that the predominant debt component of the benchmark comprises composite duration fund index. On the other hand, the debt component of the scheme comprises hold-to-maturity portfolio devised during the inception of the scheme. Thus the fund is unable to actively churn and rebalance the portfolio as need may arise
KOTAK GOLD FUND:
The scheme has underperformed the benchmark in FY 2017 and in period since inception. This is attributable to the fact that the exchange prices are trading at a discount (to physical gold which is the benchmark) due to 1% VAT impact.. Also, the gold ETF cannot generate alpha and has to mirror the underlying asset (gold). Thus, the expense ratio difference, which is not present in the physical gold prices, shows as underperformance for the scheme.
KOTAK GOLD ETF:
The ETF scheme has underperformed the benchmark (physical gold price) in FY 2017 and also in the period since inception. This is attributable to the fact that gold ETF cannot generate alpha and has to mirror the underlying asset (gold). Thus, the expense ratio difference, which is not present in the physical gold prices, shows as underperformance for the scheme.
KOTAK PSU BANK ETF:
The ETF scheme has outperformed the Nifty PSU Bank Index benchmark since inception. The scheme has also outperformed the benchmark in the FY 2017 period. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents.
KOTAK SENSEX ETF:
The scheme has outperformed its commensurate benchmark in the financial year and in the period since inception. The out performance is due to reinvestment of dividend amount into the scheme received from index constituents.
KOTAK NIFTY ETF:
The scheme has outperformed its commensurate benchmark in the financial year and in the period since inception. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents.
KOTAK BANKING ETF:
The fund outperformed its benchmark in FY 2017 and in the period since inception. The outperformance is due to reinvestment of dividend amount into the scheme received from index constituents.
KOTAK FIXED MATURITY
PLANS (FMPS) AND KOTAK QUARTERLY INTERVAL PLANS (QIPS):
These are passive managed funds and hence can’t be compared with the benchmark. This is because the portfolios are normally HTM and are not dynamically managed like the benchmark and the portfolio construction is based on a narrowly defined setup, the limitations of which are not incumbent on the benchmark. Therefore they typically underperform the benchmark.
BRIEF BACKGROUND OF
SPONSOR, TRUST, TRUSTEE COMPANY AND AMC
A) SPONSOR
Kotak Mahindra Mutual Fund is sponsored by Kotak Mahindra Bank Limited (KMBL). The Sponsor is the Settlor of the Mutual Fund Trust. The Sponsor has contributed INR 0.100 Million as the initial contribution to the corpus for the setting up of the Trust. The Sponsor has also contributed 0.150 Million as additional corpus. KMBL started with a capital base of INR 3.088 Million. From being a provider of a single financial product, KMBL grew substantially into a highly diversified financial services company. As on March 31, 2017, the net worth (capital plus reserves & surplus) of Kotak Bank is INR 276160.000 Million. The Sponsor and its subsidiaries/associates offer wide ranging financial services such as loans, lease and hire purchase, consumer finance, home loans, commercial vehicles and car finance, investment banking, stock broking, mutual funds, primary market distribution of equity and debt products and life insurance.
B) KOTAK MAHINDRA
MUTUAL FUND
Kotak Mahindra Mutual Fund (the “Mutual Fund”) has been constituted as a trust on May 20, 1996, in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882) with Kotak Mahindra Bank Limited, as the Sponsor and Kotak Mahindra Trustee Company Limited as the Trustee. The Trust Deed has been registered under the Indian Registration Act, 1908. Kotak Mahindra Asset Management Company Limited has been appointed as the Asset Management Company of the Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 20, 1996, as amended up to date, and executed between the Trustee and the AMC. The Mutual Fund was registered with SEBI on June 23, 1998 under Registration Code MF/038/98/1.
c) KOTAK MAHINDRA
TRUSTEE COMPANY LIMITED
Kotak Mahindra Trustee Company Limited is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. However, under Regulation 18(26) of SEBI (Mutual Funds) Regulations, 1996, the Trustees shall not be liable for acts done in good faith if they have exercised adequate due diligence honestly.
D) KOTAK MAHINDRA
ASSET MANAGEMENT COMPANY LIMITED
Kotak Mahindra Asset Management Company Limited (AMC) is a limited company incorporated under the Companies Act, 1956 on August 2, 1994. Kotak Mahindra Asset Management Company Limited has been appointed as the Asset Management Company of the Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 20, 1996, as amended up to date, and executed between the Trustee and the AMC.
Kotak Mahindra Asset Management Company Limited is a wholly owned subsidiary of the Sponsor, Kotak Mahindra Bank Limited. An approval by the Division of Funds, Investment Management Department under the SEBI (Portfolio Manager) Regulations, 1993 and Mutual Funds Division of SEBI under the SEBI ('Mutual Funds') Regulations, 1996, has been granted to the AMC for undertaking Portfolio Management Service (PMS). There is no conflict of interest between the Mutual Fund and the PMS activity. Kotak Mahindra Pension Fund Limited, a subsidiary of Kotak Mahindra Asset Management Company Limited is providing pension fund management services. Kotak Mahindra Asset Management Company has received a no objection certificate from SEBI for management of pension funds through the subsidiary.
WEBSITE DETAILS:
News/ Press Releases:
SEBI has taken right
steps to rationalise categories for MF schemes: Nilesh Shah
Date: Oct 09, 2017
In a move to declutter and rationalise mutual funds, Securities and Exchange Board of India (SEBI) sets 5 broad categories for mutual fund (MF) schemes. Also defines largecap, midcap and smallcap companies by market capitalisation. In an interview to CNBC-TV18, Nilesh Shah, Managing Director, Kotak Mahindra AMC shared his views and outlook on the same.
In a move to declutter and rationalise mutual funds, Securities and Exchange Board of India (SEBI) sets 5 broad categories for mutual fund (MF) schemes. Also defines largecap, midcap and smallcap companies by market capitalisation.
In an interview to CNBC-TV18, Nilesh Shah, Managing Director, Kotak Mahindra AMC shared his views and outlook on the same.
SEBI has done this with twin objective, one from an investor point of view, there were too many schemes which were confusing investors. So SEBI has taken the right steps to rationalize the categories. Second, also to diversify and create a level-playing field in MF industry, he said.
Both from a customer point of view as well as from an industry point of view, this is a path-breaking move and we are very thankful to SEBI for doing this, he added.
As of today, this 10 categorization is good enough, if there is a need to launch more, certainly you can request SEBI to consider and create a category over a period of time, said Shah.
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 |
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US Dollar |
1 |
INR 65.05 |
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|
1 |
INR 89.70 |
|
Euro |
1 |
INR 80.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
PON |
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Analysis Done by
: |
PRY |
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Report Prepared
by : |
BHG |
SCORE FACTORS
|
DEMERIT POINTS |
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|
--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--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.