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MIRA INFORM REPORT
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Report No. : |
509730 |
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Report Date : |
17.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
NAROLA GEMS |
|
|
|
|
Registered
Office : |
Office No.4, 15/B, 1st Floor, Sopariwala Estate, Prasad Chamber,
1st Compound, Opera House, Mumbai-400004, Maharashtra |
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Tel. No.: |
91-22-40664444 |
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|
Country : |
India |
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Financials (as
on) : |
31.03.2017 (Turnover) (Indirect Sources) 31.03.2016 (Financial) |
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Year of
Establishment : |
19.09.2001 |
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Capital
Investment / Paid-up Capital : |
INR 425.995 million (31.03.2016) |
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IEC No.: [Import-Export Code No.] |
0301039186 |
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TIN No: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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GSTN : [Goods & Service Tax
Registration No.] |
27AADFN0658G1ZC |
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PAN No.: [Permanent Account No.] |
AADFN0658G |
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Legal Form : |
Partnership Concern with an Unlimited Liability of the Partners |
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Line of Business
: |
Trader, Exporter and Importer of uncut and unpolished diamonds and
manufacturing doing through job work. [Confirmed by management] |
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|
|
No. of Employees
: |
30 (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 |
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|
|
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a partnership concern established in the year 2001. It is a trader, exporter and importer of uncut and unpolished
diamonds. Mr. Balwant (Accounts Manager) gave general information but denied to
provide any financial details. As per information gathered from other sources, the subject has
achieved revenue of INR 5363.800 million for the FY 2017. Rating continues to derive strength from well-established and
experienced promoters having proven track record in cut and polish diamond
(CPD) industry, presence of concern in key gems and Jewellery (G&J)
markets and well established clientele. Rating is constrained on account of working capital intensive nature
of business, volatility in diamond prices, foreign exchange rate fluctuation
risk and prevalent completion in CPD industry. Business is active. Payment seems to be slow but correct. In view of aforesaid, the
concern can be considered for 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 |
CARE |
|
Rating |
Long Term Bank Facilities (BBB-) |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
13.07.2017 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities (A3) |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
13.07.2017 |
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
31-03-2018.
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 17.08.2018
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. Balwant |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-22-40664444 |
|
Date : |
16.05.2018 |
LOCATIONS
|
Registered Office : |
Office No.4, 15/B, 1st Floor, Sopariwala Estate, Prasad Chamber,
1st Compound, Opera House, Mumbai-400004, Maharashtra, India |
|
Tel. No.: |
91-22-40664444 |
|
Mobile No.: |
91-9913233000 |
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Fax No.: |
91-22-40660000 |
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E-Mail : |
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Website : |
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Sales/ Marketing/
Branch Office |
CC-2201, 2nd Floor, Bharat Diamond Bourse, Bandra Kurla Comlpex, Bandra (East), Mumbai 400-051, Maharashtra, India |
PARTNERS
|
Name : |
Mr. Dalsukhbhao L. Narola |
|
Designation : |
Partner |
|
Address: |
27, Udaynagar Society, Near Madhavanand Ashram, Katargam Road, Surat-395003, Gujarat, India |
|
|
|
|
Name : |
Mr. Dhirubhai L. Narola |
|
Designation : |
Partner |
|
Address: |
27, Udaynagar Society, Near Madhavanand Ashram, Katargam Road, Surat-395003, Gujarat, India |
|
|
|
|
Name : |
Mr. Kanayalal L. Narola |
|
Designation : |
Partner |
|
Address: |
A-4, Jeram Morani Wadi, Katargam Road, Surat-395003, Gujarat, India |
KEY EXECUTIVES
|
Name : |
Mr. Balwant |
|
Designation : |
Accounts Manager |
BUSINESS DETAILS
|
Line of Business : |
Trader, Exporter and Importer of uncut and unpolished diamonds and
manufacturing doing through job work. [Confirmed by management] |
|
|
|
|
Products : |
Diamond |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
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Products : |
Finished Goods |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
Cash, L/C and Credit (30 Days) |
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Purchasing : |
Cash, L/C and Credit (30 Days) |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
Wholesalers, Retailers, End Users
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No. of Employees : |
30 (Approximately) |
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Bankers : |
|
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Auditors : |
|
|
Name : |
V.A. Parikh and Associates Chartered Accountants |
|
Address : |
BKC, Bandra, Mumbai, Maharashtra, India |
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Membership No.: |
111155 |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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|
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Sister Concern: |
Not Divulged |
CAPITAL STRUCTURE
As on: 31.03.2016
|
Particular |
Amount (INR In
Million) |
|
Fixed Capital |
0.030 |
|
Current Capital |
425.965 |
|
Total |
425.995 |
FINANCIAL DATA
[all figures are
in INR Million]
(INR
in million)
|
Particulars |
31.03.2017 |
|
Total Operating Income |
5363.800 |
|
PBILDT |
242.800 |
|
PAT |
130.600 |
|
Overall Gearing (Times) |
7.000 |
|
Interest Coverage (Times) |
75.600 |
Note: The above information has been taken from indirect source (Care Rating).
Note: Sole Proprietory and Partnership concerns are exempted
from filing their financials with the Government Authorities or Registry
Records
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1 Partner Capital |
425.995 |
369.636 |
236.159 |
|
|
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 |
425.995 |
369.636 |
236.159 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
371.610 |
158.386 |
191.967 |
|
|
2] Unsecured Loans |
35.422 |
33.577 |
29.361 |
|
|
TOTAL BORROWING |
407.032 |
191.963 |
221.328 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
833.027 |
561.599 |
457.487 |
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|
|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
23.436 |
19.606 |
12.480 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.625 |
0.625 |
0.625 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
746.153 |
484.706 |
570.766 |
|
|
Sundry Debtors |
376.744 |
486.363 |
521.956 |
|
|
Cash & Bank Balances |
50.819 |
17.638 |
4.585 |
|
|
Loan and Advances and Deposit |
53.183 |
72.455 |
49.558 |
|
Total
Current Assets |
1226.899
|
1061.162
|
1146.865
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000 |
0.000 |
0.000 |
|
|
Current Liabilities and Provision |
417.933 |
519.794 |
702.483 |
|
Total
Current Liabilities |
417.933 |
519.794 |
702.483 |
|
|
Net Current Assets |
808.966
|
541.368
|
444.382
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
833.027 |
561.599 |
457.487 |
|
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2941.222 |
4993.815 |
3130.442 |
|
|
|
Other Income |
11.315 |
1.659 |
4.933 |
|
|
|
TOTAL |
2952.537 |
4995.474 |
3135.375 |
|
|
|
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|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Sold |
2774.205 |
4679.611 |
2941.863 |
|
|
|
Administrative Expenses |
23.487 |
17.156 |
7.081 |
|
|
|
Selling and Distribution Expenses |
33.450 |
103.093 |
63.531 |
|
|
|
Remuneration to Partners |
1.800 |
1.500 |
1.200 |
|
|
|
Donation |
0.055 |
1.670 |
1.001 |
|
|
|
TDS/Tax |
0.191 |
0.000 |
0.113 |
|
|
|
TOTAL |
2833.188 |
4803.030 |
3014.789 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
119.349 |
192.444 |
120.585 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
23.041 |
20.604 |
14.501 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND
AMORTISATION |
96.308 |
171.840 |
106.085 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
3.784 |
2.919 |
1.299 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
92.524 |
168.921 |
104.786 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
32.091 |
57.699 |
35.800 |
|
|
|
|
|
|
|
|
|
|
NET PROFIT |
60.433 |
111.222 |
68.986 |
|
.
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
46.75 |
35.55 |
60.86 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
7.81 |
10.27 |
6.00 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.16 |
0.40 |
0.21 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
5.09 |
9.82 |
9.66 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.66 |
0.66 |
0.80 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
0.96 |
0.52 |
0.94 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
1.06 |
1.50 |
3.10 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.06 |
0.05 |
0.05 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
5.18 |
9.34 |
8.32 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
2.05 |
2.23 |
2.20 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
4.83 |
10.29 |
5.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
14.19 |
30.09 |
29.21 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2016 |
31.03.2015 |
31.03.2014 |
|
Current Ratio (Current Assets / Current Liabilities) |
2.71 |
1.92 |
1.57 |
|
|
|
|
|
|
Quick Ratio ((Current Assets
– Inventories) / Current Liabilities) |
1.06 |
1.04 |
0.79 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.34 |
0.34 |
0.20 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
0.96 |
0.52 |
0.94 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
2.71 |
1.92 |
1.57 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
FINANCIAL ANALYSIS
[all figures are
in INR Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Partner Capital |
236.159 |
369.636 |
425.995 |
|
Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
Net
worth |
236.159 |
369.636 |
425.995 |
|
|
|
|
|
|
Secured Loan |
191.967 |
158.386 |
371.610 |
|
Unsecured Loan |
29.361 |
33.577 |
35.422 |
|
Total
borrowings |
221.328 |
191.963 |
407.032 |
|
Debt/Equity
ratio |
0.937 |
0.519 |
0.955 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
3130.442 |
4993.815 |
2941.222 |
|
|
|
59.524 |
(41.103) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2014 |
31.03.2015 |
31.03.2016 |
|
|
(INR
In Million) |
(INR
In Million) |
(INR
In Million) |
|
Sales |
3130.442 |
4993.815 |
2941.222 |
|
Profit/ (Loss) |
68.986 |
111.222 |
60.433 |
|
|
2.20% |
2.23% |
2.05% |
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 |
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 |
No |
|
26 |
Turnover of firm for last four 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 |
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 67.83 |
|
|
1 |
INR 91.68 |
|
Euro |
1 |
INR 80.29 |
INFORMATION DETAILS
|
Information
Gathered by : |
SWT |
|
|
|
|
Analysis Done by
: |
PYK |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE FACTORS
|
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 |
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.