MIRA INFORM REPORT
|
Report
Date : |
13th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
MMTC LIMITED |
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Registered
Office : |
Core 1, Scope Complex, 7 Institutional Area, Lodhi Road, New
Delhi – 110 003, INDIA |
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Country: |
India |
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Financials
(as on) : |
31.03.2005 |
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Date
of Incorporation : |
20.09.1962 |
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Com.
Reg. No.: |
55-4033 |
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CIN
No.: [Company
Identification No.] |
L51909DL1963PLC004033 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
DELM09574F DELM09969B DELM10208C DELM13098B |
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PAN
No.: [Permanent
Account No.] |
AAACM1433E |
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Legal
Form : |
Public
Limited Liability company. The company’s
shares are listed on the Stock Exchanges due to partial disinvestments by
Government of India. |
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Line
of Business : |
Trading of Minerals, Marine, Textiles, Leather and Gem,
Metals, Fertilizers, Gold, Silver, Jewellery, Agro Products and general
trading in many products. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
30000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject
is a well established and reputed International Trading House owned by the
Government of India. Available information indicates high financial responsibility
of the company. Their trade relations are reported as fair. Financial
position of the company is comfortable. Payments are usually correct and as
per commitments. The company can be considered good for any normal business
dealings. |
LOCATIONS
|
Registered
Office : |
Core 1, Scope Complex, 7 Institutional Area, Lodhi Road,
New Delhi – 110 003, INDIA |
|
Tel.
No.: |
91-11-24362200 |
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Fax
No.: |
91-11-24362077/24362224/24360724/24362072 |
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E-Mail
: |
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Website
: |
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Regional
Office : |
Express Building, 2nd Floor, 9-10 Bahadurshah Zafar
Marg, New Delhi – 110 002 |
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Fax
No.: |
91-11-2331
8593 |
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E-Mail
: |
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Regional
Office : |
Mittal Tower, 2nd Floor, `A&B’ Wing, Nariman
Point, Mumbai – 400 021, Maharashtra |
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Fax
No.: |
91-22-2204 5034 |
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E-Mail
: |
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Regional
Office : |
Ruby House, 4th & 5th Floor, 8 India
Exchange Place, Kolkata – 700 001, West Bengal |
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Fax
No.: |
91-33-2242 1292 |
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E-Mail
: |
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Regional
Office : |
No. 7, Chennai House, Esplanade, Chennai – 600 011,
Tamilnadu |
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Fax
No.: |
91-44-2534 0559 |
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E-Mail
: |
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Regional
Office : |
BWSSB Building, IV Floor, CBAB Complex, Cauvery Bhawan,
Kempegowda Road, Bangalore – 560 009, Karnataka |
|
Fax
No.: |
91-80-2227
2043 |
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E-Mail
: |
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Regional
Office : |
Colaco
Building, Swatantra Path, Vasco-De-Gama, Goa – 403 802, INDIA |
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Fax
No.: |
91-834-513
283 |
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Regional
Office : |
Alok Bharati Complex, Shahid Nagar, Bhubaneshwar – 751 007 |
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Fax
No.: |
91-674-2510
847 |
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E-Mail
: |
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Regional
Office : |
Budha Bawanam, 7th Floor, Near Boats Club,
Municipal Complex, M. G. Road, Secunderabad – 500 003, Hyderabad, Andhra
Pradesh |
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Fax
No.: |
91-40-2846
943 |
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E-Mail
: |
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Regional
Office : |
2
Nagindas Chambers, Usmanpura, Ashram Road, Ahmedabad – 380 014, Gujarat |
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Fax
No.: |
91-79-2754
3739 |
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E-Mail
: |
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Regional
Office : |
MMTC
Bhawan, Port Area, Vishakhapatnam – 530 035 (Vizag), Andhra Pradesh |
|
Fax
No.: |
91-891-2561
761 |
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Regional
Office : |
Red Cross
Road, Main Road, P. B. No. 60, Satyanarayanpet, Bellary – 583 103 |
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Fax
No.: |
91-8392-2742
78 |
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Regional
Office : |
Nalda, P. O. Barbil District, Keonjhar, Barbil, Nalda |
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Fax
No.: |
91-6767-2305
80 |
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Regional
Office : |
Indore,
Victory Chamber, 3F, 4A, Ratlam Kothi, AB Road, Indore – 462 009, Madhya
Pradesh |
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E-Mail
: |
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Overseas
Office : |
5Fc, YU Building 1-5-7-, Horidomecho, Nihonbashi, Chou-Ku,
Tokyo – 103, Japan |
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Fax
No.: |
0081-3-3808-2268 |
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E-Mail
: |
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Overseas
Office : |
P. O. Box
61177, Jebel Ali Free Zone, Dubai, U.A.E. |
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Fax
No.: |
00971-4-817799) |
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E-Mail
: |
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Overseas
office: |
Also
offices at Amman (Jordan), New York (U.S.A.), Singapore, Berlin (Germany) and
Moscow (Russia) |
DIRECTORS
|
Name : |
Mr. S. D. Kapoor |
|
Designation
: |
Chairman & Managing Director [w.e.f. 13-08-1998] |
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|
Name : |
Dr. D. B. L. Madhukar |
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Designation
: |
Executive Director |
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|
Name : |
Mr. S. M. Dewan |
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Designation
: |
Director |
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|
Name : |
Mr. P. R. Tripathi |
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Designation
: |
Director |
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|
Name : |
Mr. M. P. Gupta |
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Designation
: |
Director (Marketing) |
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|
Name : |
Mr. Sanjay Batra |
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Designation
: |
Executive Director |
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Name : |
Mr. A. N. Tiwari |
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Designation
: |
Director |
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Name : |
Mr. Vijay Bansal |
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Designation
: |
Director |
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|
Name : |
Dr. Arvind Pandalai |
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Designation
: |
Director |
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|
Name : |
Mr. L. Mansingh |
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Designation
: |
Director |
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|
Name: |
Mr. N. K. Nirmal |
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Designation: |
Director C. G. M (F & A) |
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|
Name: |
Mr. S. K. Kar |
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Designation: |
Director (Finance) |
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|
Name: |
Mrs. Asha Swarup |
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Designation: |
Executive Officio Part Time Director (w.e.f. 10.08.2004) |
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|
Name: |
Mr. Dr. Christy L Fernandez |
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Designation: |
Executive Officio Part Time Director (w.e.f. 05.11.2004) |
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|
Name: |
Mr. Sanjiv Batra |
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Designation: |
Director (Marketing) up to 18.08.2005 |
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|
Name: |
Mr. Adarsh Goyal |
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Designation: |
Director (Marketing) |
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|
Name: |
Mr. G P Sharma |
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Designation: |
Director (Personnel) |
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Name: |
Mr. S K Arora |
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Designation: |
Executive Officio Part Time Director |
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Name: |
Mr. Gopal K Pillai |
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Designation: |
Executive Officio Part Time Director |
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|
Name: |
Mr. K K Jha |
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Designation: |
Chief Vigilance Officer (w.e.f. 08.12.2004) |
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|
Name: |
Mr. A K Verma |
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Designation: |
Senior Executives Director (up to 30.06.2005) |
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|
Name: |
Mr. Y N Bhargava |
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Designation: |
Senior Executives Director |
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Name: |
Mr. P K Maheshwary |
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Designation: |
Senior Executives Director |
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|
Name: |
Mr. N K Mathur |
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Designation: |
Senior Executives Director (up to 25.07.2005) |
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|
Name: |
Mr. J P Srivastava |
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Designation: |
Senior Executives Director |
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|
Name: |
Mr. N K Chauhan |
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Designation: |
Senior Executives Director |
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|
Name: |
Mr. Lekh Chand |
|
Designation: |
Senior Executives Director |
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|
Name: |
Mr. C H Rao |
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Designation: |
Senior Executives Director |
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|
Name: |
Mr. Sunir Khurana |
|
Designation: |
Senior Executives Director |
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|
Name: |
Mr. Ashish Majumdar |
|
Designation: |
Senior Executives Director |
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|
Name: |
Mr. Rajeev Jaideva |
|
Designation: |
Senior Executives Director |
KEY EXECUTIVES
|
Name : |
Mr. Manohar Balwaj |
|
Designation
: |
Company Secretary |
BUSINESS DETAILS
|
Line
of Business : |
Trading of Minerals, Marine, Textiles, Leather and Gem,
Metals, Fertilizers, Gold, Silver, Jewellery, Agro Products and general
trading in many products. |
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Products: |
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Exports
to : |
Mauritius,
South Africa, Tunisia, Bangladesh, China, Hongkong, Indonesia, Japan, Korea, Malaysia,
Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand,
Vietnam, Croatia, CIS, Czech Republic, Hungary, Poland, Romania, Austria,
Belgium, France, Germany, Italy, Netherlands, Norway, Portugal, Spain,
Switzerland, U.K., Chile, Canada, U.S.A., Abu Dhabi, Bahrain, Dubai, Iraq,
Israel, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, U.A.E. and New
Zealand. |
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|
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Imports
from : |
Algeria, Kenya, Libya, South Africa, Zaire, Zambia, Bangladesh,
China, Indonesia, Korea, Malaysia, Pakistan, Singapore, Thailand, Bulgaria,
CIS, Macedonia, Romania, Belgium, Finland, France, Germany, Luxembourg,
Netherlands, Norway, Spain, Switzerland, U.K., Argentina, Brazil, Chile,
Canada, U.S.A., Bahrain, Dubai, Iran, Israel, Jordan, Kuwait, Qatar, Saudi
Arabia, Syria, U.A.E. and Australia. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Silver Medallion |
Nos. |
NA |
NA |
62269.00 |
|
Sanchi |
Kgs. |
NA |
NA |
4626.36 |
|
Gold Medallion |
Nos. |
NA |
NA |
43371.00 |
GENERAL INFORMATION
|
No. of
Employees : |
2399 |
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|
Bankers
: |
+
State
Bank of India +
Canara
Bank +
Indian
Bank +
Indian
Overseas Bank +
Oriental
Bank of Commerce +
State
Bank of Hyderabad +
Dena
Bank +
Syndicate
Bank +
Vysya
Bank Limited +
IndusInd
Bank +
Bank
of Baroda +
Central
Bank of India +
Deutsche
Bank +
H.D.F.C.
Bank +
Punjab
National Bank +
Bank
of India +
Bank
of Maharashtra +
State
Bank of Bikaner & Jaipur +
Vijaya
Bank +
IDBI
Bank +
Bank
of America |
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Facilities : |
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|
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Banking Relations : |
Good |
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|
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|
Auditors
: |
+
S N
Dhawan & Company Chartered Accountants |
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|
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|
Associates/Subsidiaries
: |
+
MMTC
Transnational Pte Limited 20 Cecel Street, 14-03/04
The Exchange, Singapore – 049705 Fax No. 0065-538 5316 E-Mail mtplsing@signet.com.sg +
MMTC
Transnational (Moscow) Pte Limited Kransopresnenskaya Nab. 12, Room No. 424, Moscow – 123
609, Russia |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs.10/- each |
Rs.1,000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
50,000,000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
500.000 |
500.000 |
500.000 |
|
|
2]
Reserves & Surplus |
7034.888 |
6218.745 |
5853.514 |
|
NETWORTH
|
7534.888 |
6718.745 |
6353.514 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
3025.061 |
4012.868 |
1851.576 |
|
|
2]
Unsecured Loans |
49.985 |
0.171 |
0.218 |
|
TOTAL
BORROWING
|
3075.046 |
4013.039 |
1851.794 |
|
|
|
|
|
|
|
TOTAL
|
10609.934 |
10731.784 |
8205.308 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
288.678 |
306.667 |
342.119 |
|
Capital work-in-progress
|
29.226 |
31.566 |
28.983 |
|
|
|
|
|
|
|
INVESTMENT
|
2268.622 |
1984.535 |
2108.345 |
|
DEFERREX TAX ASSETS
|
483.240 |
533.110 |
748.210 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1108.889
|
1611.506
|
1263.428 |
|
|
Sundry Debtors
|
6844.053
|
4559.942
|
2431.809 |
|
|
Cash & Bank Balances
|
46932.420
|
28187.851
|
2294.961 |
|
|
Loans & Advances
|
6110.698
|
5477.497
|
5740.431 |
Total Current Assets
|
60996.060 |
39836.796 |
11730.629 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
52496.323
|
31739.217
|
6519.026 |
|
|
Provisions
|
1041.459
|
404.609
|
467.911 |
Total Current Liabilities
|
53537.782 |
32143.826 |
6986.937 |
|
Net Current
Assets
|
7458.278 |
7692.970 |
4743.692 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
81.890 |
182.936 |
233.959 |
|
|
|
|
|
|
|
TOTAL
|
10609.934 |
10731.784 |
8205.308 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS ` |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
15138.672 |
91417.750 |
62592.023 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
1763.225 |
801.016 |
357.744 |
Provision for Taxation
|
691.482 |
294.768 |
107.319 |
Profit/(Loss) After Tax
|
1071.743 |
506.248 |
250.425 |
|
|
|
|
|
Export Value
|
|
67.236 |
37.301 |
|
|
|
|
|
Import Value
|
166.448s |
210.891 |
153.987 |
|
|
|
|
|
Total Expenditure
|
4359.008 |
1452.838 |
62234.279 |
SUMMARISED RESULTS
|
PARTICULARS |
31.03.2006 (Full Year) |
|
Sales Turnover |
16,3858.8 |
|
Other Income |
28.1.5 |
|
Total Income |
16,4140.3 |
|
Total Expenditure |
16,3037.4 |
|
Operating Profit |
1102.9 |
|
Interest |
-290.6 |
|
Gross Profit |
1393.5 |
|
Depreciation |
41.0 |
|
Tax |
410.0 |
|
Reported PAT |
942.5 |
|
Dividend (%) |
00.0 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
0.50 |
0.45 |
0.41 |
|
Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
1.10 |
1.17 |
1.43 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
213.72 |
128.79 |
90.32 |
|
Inventory |
110.72 |
63.29 |
51.44 |
|
Debtors |
26.55 |
26.15 |
22.63 |
|
Interest Cover Ratio |
1.62 |
4.14 |
2.38 |
|
Operating Profit Margin (%) |
3.08 |
1.20 |
1.05 |
|
Profit Before Interest and Tax Margin
(%) |
3.05 |
1.15 |
0.98 |
|
Cash Profit Margin (%) |
0.74 |
0.60 |
0.47 |
|
Adjusted Net Profit Margin (%) |
0.71 |
0.55 |
0.40 |
|
Return on Capital Employed (%) |
43.85 |
11.39 |
7.15 |
|
Return on Net Worth (%) |
15.04 |
7.75 |
3.99 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 442.60 |
|
Low |
Rs. 442.60 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company
was incorporated on 26th September, 1962 at New Delhi having Company
Registration Number 4033 under the name and style of “Minerals & Metals
Trading Corporation Limited” as a state-owned International Trading Corporation
primarily for exports of minerals and import of critical raw materials for the
domestic industries. The name of the company was subsequently changed to the
present.
In 1994,
the company set up a wholly owned subsidiary in Singapore which commenced
operation as a separate company from April, 1995. It has also set up a wholly
owned subsidiary in Moscow in 1994-95. During 1996-97, MITCO - a wholly owned
subsidiary company of the company was merged with the company as per
Government's directive.
The company
also introduced a new range of branded silverware 'SANCHI' and achieved a
modest turnover of Rs. 5.800 millions during the year. A new Buillion Delivery
Centre was opened at Raipur to cater to customers across the country and to a
vast cross-section of the bullion market. The company has taken up ERP
implementation in 3 phases considering the application modules and the
criticality of the operations at over 40 locations of the company.
The company
promoted two major joint venture projects in Orissa i.e. Neelachal Ispat Nigam
Limited (NINL) - Blast furnace is getting ready for producing Pig Iron by
December, 2001 and Konark Met Coke Limited (KMCL) - project is being set up a
backward integration of the Steel Plant to produce Metallurgical Coke and its
by-products as also 55 MW Power is in advance stage of completion and is
scheduled for commission by December, 2001.
The company
has implemented Ramco e. Application an ERP package and is catering to all
major business commodity line as well as support services and help in
standardising the business processes across the board in the company.
The company
wholly owned subsidiary viz. MMTC Transnational Pte Limited, Singapore
incorporated in 1994 is performing well.
During the
year 2001-02 the Neelachal Ispat Nigam Limited a JV Project between the company
and the government of Orissa was implemented successfully and a state-of-
the-art of fully automated plant has started its commercial production. The
total manufacturing capacity is 1.1 millions tonnes per year of Hotal Metal.
The company has started exporting Pig Iron produced by NINL through Paradeep
Port and has targeted to export around 0.100 million metric tonnes of Pig Iron
by the end of December, 2002.
Business:
The company
is a Government of India owned Industrial Trading House. It is engaged in
trading of Minerals, marine, textiles, leather and gem, Metals, Fertilizers,
Gold, Silver, Jewellery, Agro Products and general trading in many products.
Corporate governance
The principles of good corporate governance are
enriched in each of the activity of the company. It wishes to reaffirm its
faith in development, adoption and continued dedication towards best Corporate
Governance practices by adopting highest standards of transparency,
accountability professionalism, social responsiveness and ethical business
practices as self discipline code for achieving Corporate excellence which in
turn leads to increased value to the shareholders.
A separate report on corporate governance along with Statutory Auditor's
certificate regarding compliance of the stipulations relating to corporate
governance specified in clause 49 of the listing agreement(s) signed with stock
exchanges is annexed to and forms part of this report.
FIXED ASSETS
The company
fixed asset of important value includes Freehold Land, Leasehold Land,
Building, Water Supply & Drainage, Electrical Installations, Audio/Fire/Airconditioning,
Roads & Culverts, Residential Flats, Sewerage, Plant & Machinery,
Furniture & Fixtures, Computer/Data
Processors, Fans, Typewriters & Other Machines and Vehicles.
AWARDS & LAURELS
During the year 2003-04, the Company won following awards:
(a) CAPEXILs top export award for the 13th time in a row for the highest
export of Minerals & Ores.
(b) Federation of Indian Export Organization (FIEO) awarded "Niryat
Shree" Gold trophy for the year 2002-03 to MMTC in the Agricultural &
plantation products - Non SSI category.
(c) The company was also awarded "Gold Trophy" for the year
2002-03 in the Engineering and Metaliurgical Products - Non SSI category by
Federation of Indian Export Organization (FIEO).
(d) Engineering Export Promotion Council (EEPC) Selected MMTC for All
India award for highest Exporters for its outstanding export performance during
2002-03 under "Prime Metal Ferrous & Non ferrous" - Non SSI
sector.
(e) Based on the performance during 2002-03, MMTC has been awarded
overall globalization rank of 9 amongst the top 100 Indian Companies in the
first ever analysis of global competitive Indian Companies conducted by
"Business World" published in its issue dated 7th June 2004.
Performance of the Company
Ongoing
efforts for a continuous realignment of its trade strategies for availing the
emerging opportunities provided by the multilateral trading platform, paid rich
dividends, with the company, for the first time since its inception in 1963,
crossing the milestone of achieving business volume of over Rs. 150000.000
Millions during 2004-05.During the year 2004-05, the Company recorded ever best
business turnover of Rs.151380.000 Millions which exceeded the last year
performance by 66%. This highest ever turnover includes ever best exports of
Rs. 30310.000 Millions registering a growth of 60% over the previous year as
against the country's export of nearly 24%- The Company's ever best Import
performance at Rs. 110330.000 Millions grew by 65% over the last year which was
significantly higher than Indian Import growth of 34%. The domestic trade at
Rs.10600.000 Millions during 2004-05 was double the corresponding performance
of last fiscal. The net profits after tax, earned by the company during 2004-05
also reached the highest ever level of Rs. 1070.000 Millions — up by 112% over
the previous fiscal.
Awards & Rankings
The year 2004-05 also witnessed
conferment of following awards and rankings to the company:
(a) 27th rank in Indian Top 500
companies ranked by Dun & Bradstreet. Based on the net worth & net
profits, MMTC was ranked 127th & 383rd respectively.
(b) 18th rank in the top 150
companies ranked by the "Economic Times" based on the sales revenue
for 2003-04.
(c) Top ranking in "Trading
Sector" by Business Standard in their ranking of 1000 Indian Corporate
giants based on MMTC 's performance during Fiscal 2004. MMTC was also conferred
13th rank amongst the top 1000 Corporates based on net sales, net profit and
total assets during fiscal 2004-
(d) CAPEXIL's top export award for
the 14th time in a row for continued &. sustained exports of Minerals &
Ores from India.
(e) Triple Niryat Shree Award by
Federation of Indian Exporters Organisation for MMTC's excellent performance
which include:-
(i) Gold Trophy for highest exports
in Agriculture and plantation products in Non-SSI sector.
(ii) Gold Trophy for exports of
Engineering & Metallurgical products in Non-SSI sector.
(iii) Silver Trophy for highest
Foreign Exchange earner for the country.
(f) Department of Commerce &
Industries, Govt. of
Karnataka conferred awards to MMTC
for excellent exports from Karnataka State for 4 consecutive years.
(g) Rashtriya Hindi Akademi Rupambara
awarded MMTC with National Millennium Rajbhasha Hindi Award.
(h) MMTC Transnational Pte Ltd.
Singapore, the wholly owned subsidiary was ranked 18th in the category of
"General wholesale Trade" by Ernst & Young in their Survey
"Singapore 1000,Companies" for the year 2005.
Dividend
An interim dividend @ 20% on the paid
up equity capital was declared by the Board of Directors and paid to the shareholders
on 28th December 2004. The Board of Directors recommend declaration of final
dividend of 45% including interim dividend @ 20% already paid on the equity
capital of the Company for the year 2004-05.
Financial Review
During the year under review, the
company strengthened itself further, as a dynamic organization with stronger
earning base 6k financial capabilities that can respond quickly to changes in
its operating environment. Recognizing that MMTC operates in an environment
where price competition is intense and in which no inherent cost accrues to
traders unlike manufacturers and that the selling transaction were reaching a
stage of maturation, the company's growth in bottom line and top line were
sustained by pursuing the policy of differentiation through deepening of
customer relationship, bundling of product & services and relentless
innovation. With these the trading profit of the company grew up by 58% at Rs.
2559.33 million. The profit before tax at Rs. 1763.23 million & profit
after tax at Rs. 1071.74 million grew by 120% and 112%
Finance, Liquidity & Risk Management
The company has been pursuing prudent fund management policies. To
circumvent liquidity risk due to non-budgetary outflows on probable delays in
realization, ample credit lines have been maintained to shore up short term
financing for trade transactions, which did not bear any commitment charges
towards unutilized limits. MMTC continues to be a zero long-term liability
company.
The currency translation/ swap rates are being continuously monitored and
exposures hedged, on need basis, against the predictable adverse movements. The
International markets/suppliers were tapped from time to time to avail cheaper
sources of funds as also interest rate arbitrage. MMTC also takes requisite
insurance covers at competitive terms/rates to hedge the risks associated with
international trading operations.
The legal cell of the company ensures observance to multifarious statues
and takes lawful remedies to recover dues from defaulting associates besides
shielding various claims against the company. The 'Disputes Settlement
Committee' which has been in operation for amicable resolution of disputes with
business associates, in its 13 meetings held during 2004-05 settled 14 cases
involving an amount of Rs. 59.69 million.
Assets & Liabilities
The company possessed net assets of Rs 10528.04 million as on 31st March
2005, which include net fixed assets of Rs. 317.90 million, investments of Rs.
2268.62 million and net current assets of Rs. 7458.28 million.
Sources and Utilization of Funds
During the year 2004-05 funds amounting to Rs.1509.20 million were
generated from internal & external sources which were utilized for
financing the working capital needs, capitalization of investments &
payment of interim dividend and tax thereupon.
Subsidiary Company
MMTC Transnational Pte. Ltd. Singapore (MTPL), the wholly owned
subsidiary of MMTC -incorporated in October 1994 in Singapore achieved its best
ever business turnover of USD 387.70 million posting a growth of about 107%
over the previous fiscal 2004. The subsidiary also earned its highest ever
profits after tax of USD 1.25 million which is up by 33% over the previous
year. The net worth of MTPL stood at USD 5.13 million as on 31.3.2005 vis-a-vis
USD 4.05 million as at 31st March 2004. MTPL declared and paid dividend @ 25%
(net of tax) for the year ended 31st March 2005. It has so far paid dividends
exceeding the capital contributed by MMTC besides multiplying its net worth by
over 5 times since inception. MTPL continued to enjoy 'Approved International
Trader' (AIT) now `Global Trader' (GT) status awarded to it by Singapore Trade
Development Board in Financial Year 2000.
Infrastructure Development
The company believes that for any differentiation in service to succeed,
execution is critical. Efficient infrastructure framework is critical to global
competitiveness. Given that the trading company has limitation in product
innovation, the company, as a strategy, puts sharper focus on providing total
solutions to market product & service, which include logistics as well.
Towards this end the company has supported development of jetty at Ennore port
for loading iron ore vessels to decongest Chennai port. It has also
commissioned a detailed study for construction of duty free warehouses at six
locations in India to facilitate two-way trade. Establishment of duty free
shops at international airports is yet another example to create trade related
infrastructure to facilitate export of Indian jewellery. The company has
already taken action to procure five-six railway rakes under the 'Own the
wagons' scheme of railways to improve upon the logistics. More such
developmental efforts would be made to create ways to help both existing and
potential customers and be more competitive.
Website Details Attached:
Company Overview:
Mission:
As the largest trading
company of India and a major trading company of Asia, MMTC aims at improving its
position further by achieving sustainable and viable growth rate through
excellence in all its activities, generating optimum profits through total
satisfaction of shareholders, customers, suppliers, employees and society.
Corporate
Objectives:
- To be a leading
International Trading House in India operating in the competitive global
trading environment, with focus on "bulk" as core competency and
to improve returns on capital employed.
- To retain the position
of single largest trader in the country for product lines like minerals,
metals and precious metals.
- To promote development
of trade-related infrastructure.
- To provide support to
the medium and small scale sectors.
- To render high quality
of service to all categories of customers with professionalism and
efficiency.
- To streamline system
within the company for settlement of commercial disputes.
- To upgrade employees
skills for achieving higher productivity.
Corporate Citizenship
Our Responsibilities Extend Beyond Trading
Contributing
to the welfare of communities in which it operates is a natural element of
MMTC's activities. MMTC continues its unstinted efforts to promote clean
environment and scientific development of mines as also support the government
relief measures in natural calamities.
The
Company and its employees have lived up to the responsibilities as Corporate
Citizens and have been playing their role in the times of crisis in the
country. As a responsible corporate citizen, MMTC contributed Rs. 25 lacs along
with Rs. 8.25 lacs (One day salary of each employee) to the Prime Minister
National Relief Fund for the victim of Tsunami wave of 26th December 2004 which
severely affected the people of Tamil Nadu, Andhra Pradesh and other close by
coastal areas.
Corporate Profile:
INDIA'S LARGEST TRADING GIANT
Established in 1963, MMTC, one of the two highest foreign exchange earner for
india, is a leading international trading company with a turnover of over US$ 3
billion.
It is the largest international trading company of India and
the first Public Sector Enterprise to be accorded the status of "FIVE STAR
EXPORT HOUSE" by Govt Of India for long standing contribution to exports.
MMTC is the largest non-oil importer in India.
MMTC's diverse trade activities encompass Third Country
Trade, Joint Ventures, Link Deals - all modern day tools of international
trading.
Its vast international trade network,
which includes a wholly owned international subsidiary in Singapore, spans
almost in all countries in Asia, Europe, Africa, Oceania and Americas, giving
MMTC a global market coverage.
INDIA'S LEADING EXPORTER OF MINERALS
MMTC is major global player in the minerals trade and is the single largest exporter
of minerals from India. With its comprehensive infrastructural expertise to
handle minerals, the company provides full logistic support from procurement,
quality control to guaranteed timely deliveries of minerals from different
ports, through a wide network of regional and port offices in India, as well as
international subsidiary.
MMTC has won the top export award
from Chemicals and Allied Products Export Promotion Council (CAPEXIL) as the
largest exporter of minerals from India for the thirteenth year in a row.
ONE OF THE WORLD'S LARGEST BUYER OF FERTILIZERS
As a leading player in fertilizers and fertilizer raw material, MMTC has become
a major fertilizer marketing company in India, through planned forward
integration of its import activities with the direct marketing of Urea, DAP,
MOP, Sulphur, Rock Phosphate, SSP and other farming and agricultural inputs.
THE SINGLE LARGEST BULLION TRADER IN THE INDIAN SUBCONTINENT
MMTC is the largest importer of gold and silver in the Indian sub continent,
handling about 100 MT of gold and 500 MT of silver annually. MMTC has opened a
retail jewellery showroom at Maker Bhawan in Mumbai. MMTC supplies branded
hallmarked gold and studded jewellery. MMTC has also opened a DUTY FREE
jewellery store in the Departure Lounge at Sahar International Airport, Mumbai,
India. An assay and hallmarking unit has been set up at New Delhi for testing
the purity of gold and gold articles in accordance with the internationally
accepted fire assay method.
Besides organizing major jewellery exhibitions abroad,
exclusively, MMTC is keen to set up manufacturing & joint ventures for
modern jewellery in association with leading names in the international jewellery
trade as well as marketing.
MMTC supplies gold on loan basis to
the bullion traders and jewellers in India at international rate of interest to
help jewellers and artisans to overcome their working capital requirement.
MMTC's retailing network extends from a jewellery showroom at Maker Bhawan, 4
duty free shops at Mumbai (2), Chennai (1), Thiruvananthapuram (1),
International airports and sales counter at its Jhandewalan office in New
Delhi.
THE BIGGEST IMPORTER OF NON FERROUS METALS & INDUSTRIAL
RAW MATERIAL TO INDIA
MMTC is India's largest seller of imported non-ferrous metals viz. copper,
aluminium, zinc, lead, tin and nickel. It also sells imported minor metals like
magnesium, antimony, silicon and mercury, as also industrial raw materials like
asbestos and also steel and its products. MMTC imports quality products
conforming to international specifications like ASTM or BSS or LME approved
brands.
Major institutional customers of MMTC in India are accredited
with ISO-9002 status. MMTC sources its metals from empanelled suppliers
including producers and traders throughout the world.
MMTC is a proud winner of gold trophy
for exports of Engineering and Metallurgial product in non-SSI Sector and also awarded
the All India Trophy for highest export in the category of crime matel by EEPC.
GROWING INTEREST IN AGRO PRODUCTS WORLDWIDE
MMTC is amongst the leading Indian exporters and importers of agro products.
The company's bulk exports include commodities such as rice, wheat, wheat
flour, soyameal, pulses, sugar, processed foods and plantation products like
tea, coffee, jute etc.
MMTC also undertakes extensive
operations in oilseed extraction, from the procurement of seeds to the
production of de-oiled cakes for export, as well as the production of edible
oil for domestic consumption. It also imports edible oils. MMTC has one the
gold trophy from FIEO for highest exports in agritulcture & plantation
product in non-SSI Sector.
GENERAL TRADING
MMTC also handles items like textiles, Mulberry raw silk, building materials,
marine products, chemicals, drugs and pharmaceuticals, processed foods, hydro
carbons, coal and coke.
Information on above can be supplied
on request. MMTC also exports engineering products.
AN INTEGRATED GLOBAL TRADER WITH BULK HANDLING CAPABILITIES
Its comprehensive infrastructure for bulk cargo handling, with well developed
arrangements for rail and road transportation, warehousing, port and shipping,
operations, gives MMTC complete control over trade logistics, both for exports
and imports.
The company's countrywide domestic
network is spread over 75 regional, sub-regional, port and field offices,
warehouses and procurement centres.
BROADBASED ACTIVITIES BEYOND TRADING
MMTC's progress in the recent past has taken it from monopoly status to a
competitive open market player making a strong thrust towards broad basing its
sphere of activities, while consolidating its core areas of business.
To create synergy between its
manufacturing, trading and technology partners and to bring optimum efficiency
and expertise to its operations worldwide, MMTC has promoted along with
government of Orissa, a million tonnes capacity Iron & Steel plant and a
0.8 million tonne capacity Coke Oven battery with by product recovery plant and
a captive power plant of 55 MW capacity.
SUPPORT SERVICES
MMTC lays emphasis on human resources development and related activities.
Several training programmes are conducted to upgrade managerial skills in the
latest developments in trade management, export marketing, general management.
COMPUTERIZATION
MMTC has a Systems & ERP Division comprising a highly professional team to
cope with the highly competitive environment. MMTC's operational offices are
all equipped with modern computing tools. ERP has been implemented. A user
friendly intranet based Knowledge Management Solution has been made available
to officials.
SOCIAL AND WELFARE ACTIVITIES
MMTC's social and welfare activities promote welfare of the employees through various
schemes like sports activities, liberal loan facilities like house building
advance, conveyance loan, house hold loan, marriage advance, etc. MMTC also
provides subsidized canteen facilities, medical treatment, residential
accommodation in some of the major cities for its employees. MMTC also takes
care of employees' families through merit scholarship, tuition fee
reimbursement, etc.
MMTC is committed towards
environmental upkeepment through aforestation in the mining areas, development
of tribal areas and infrastructure development through rail links, port
facilities, etc.
NETWORK OF OFFICES
Its vast international trade network, includes.
One wholly owned international
subsidiary in Singapore- MMTC Transnational Pte. Ltd. (MTPL)
13 Regional offices
East Zone :
Kolkata, Bhubaneshwar
West Zone :
Mumbai, Goa, Ahmedabad
North Zone :
Delhi, Jhandewalan (Delhi), Jaipur
South Zone :
Bangalore, Bellary, Chennai, Hyderabad, Vizag
Press Release:
2005-04-28
Exemplary performance by MMTC during 2004-05
MMTC Limited, India’s largest International trading company, has
attained unprecedented growth in its performance by recording business turnover
of Rs.15,1420.000 Millions during 2004-05 registering a growth of 66% over
preceding year. This landmark performance is the highest ever annual business
transacted by MMTC since its inception in 1963.
Exports at Rs.30630.000 millions, during FY05
were highest ever in the history of MMTC, registering a growth of 62% over the
previous year, higher than the national export growth of about 24% during
2004-05. The company recorded its best ever Import revenues of Rs.11,0090.000
millions with a growth of 65% over FY04 which also surpassed the national
import growth of about 34% during 2004-05. MMTC also recorded its ever-best
Domestic business exceeding Rs.1070 0.000Millions, which is up by 102 % over
2003-04.
MMTC’s strategic initiatives to enhance
operating efficiencies, controlling operating costs and prudent fund management
enabled the company to achieve its highest ever net profit after tax at
Rs.1020.000 millions-- double the net profit earned by MMTC during preceding
year.
MMTC - a company with net worth of over
Rs.7300.000 millions and zero long-term debts has secured earning of Rs 20.55
per share of face value Rs.10.00 each during 2004-05.
While announcing the results of 2004-05 in the
board meeting held on 26.4.2005, Shri S.D.Kapoor, CMD, MMTC attributed the
phenomenal growth to MMTC’s aggressive marketing strategies focused on
expanding the market and product profile besides consolidating core areas of
competencies. Shri Kapoor further
reiterated MMTC’s dedication to aggressively pursue its efforts for achieving
consistent growth in future to provide, sustainable returns to stake holders.
MMTC has set a target of achieving a turnover level of over Rs.30,0000.000
millions by the year 2009-10.
2005-03-18
MMTC’s Singapore Subsidiary Excels
MMTC
Transnational Pte. Ltd. (MTPL), the wholly owned subsidiary of MMTC Ltd has
been ranked 18th amongst the top 51 Singapore companies under the
business classification of General Wholesale Trade category by DP Information
Group Singapore in their recent publication “Singapore 1000 Companies”. In the same publication MTPL has also been
ranked 389th amongst the top 1000 Companies of Singapore based on
the sales/turnover for the year 2003-04. The survey was supported by Ernest
& Young, Singapore and International Enterprise, Ministry of Trade, Govt.
of Singapore in their above survey for the year 2005.
MMTC,
India’s largest international trading company had promoted MTPL in October 1994
under the laws of Singapore with a share capital of S$ 1.46 million (USD 1
million). The primary activities of MTPL embrace trading in Minerals, Metals,
Fertilizer, Agricultural products, Jewellery and other merchandise. The net worth of MTPL stood at US.052
million as on 31st March 2004. MTPL has till now paid dividends exceeding the
capital contributed by MMTC in the wholly owned subsidiary besides multiplying
its net worth by over 4 times since inception.
During the
year 2003-04 MTPL had generated business revenues of S$ 323 millions as against Singapore’s peer industry average of S$ 519 millions. During the year 2004-05 MTPL is expected to achieve
business volume exceeding S0 millions, which should elevate MTPL’s ratings in
the years to follow.
MTPL
continues to enjoy “Approved International Trader” (AIT) now “Global Trader”
(GT) status awarded to it by Singapore Trade Development Board in FY 2000.
2005-03-18
MMTC signs MOU for 2005-06
Shri S. D. Kapoor, CMD
MMTC, signed MOU for 2005-06 with Secretary, Department of Commerce, Government
of India on 16.3.2005.
MMTC, India’s largest
International Trading Company has set a challenging business target of Rs.
122000.000 millions for 2005-06 for excellent MOU rating, which is 48% higher
than the corresponding MOU target for FY 2005.
MMTC is targeting growth of 54% in Exports and 52% in Imports over the
corresponding MOU targets for FY 05.
By enforcing higher financial controls, cost reduction measures
and improving margins by product/market diversification & value addition,
the net profit targeted by MMTC in MOU for 2005-06 is 122% higher than the
previous year MOU.
The MOU also highlights new activities to be undertaken by MMTC
under its strategic initiatives which include inter-alia setting up free trade
warehouses, promoting Agro Trade in the WTO compatible regime, futures trading
in bullion besides enhancing trade with thrust group of countries identified by
Government and trade under ‘lines of credit’ offered by Government of India.
MMTC PAYS 25% FINAL DIVIDEND FOR
FY 2004-05
Shri S D Kapoor, CMD, MMTC presented a cheque of Rs.
12.420.000 millions to the Hon’ble Minister of Commerce & Industry towards
Final Dividend for the year 2004-05.
Based on MMTC’s best ever business results for the year 2004-05, MMTC,
the largest international trading company of India has declared an dividend of
45% in its 42nd Annual General meeting held on 22nd
September 2005 which includes interim dividend of 20% already paid to the
shareholders in December 2004. With this payment, MMTC has, since its
inception, paid a total dividend of Rs. 328.860.000 millions to the Govt of
India besides issue of bonus shares worth Rs. 47.000.000 millions against
Govt’s investment of Rs. 30.000 millions in MMTC.
2. During the year 2004-05 MMTC achieved
business volume of Rs.151380.000 millions – the highest ever achieved by MMTC
since its inception in 1963, registering growth of 66% over the corresponding
level for the year 2003-04. The record turnover of MMTC includes ever-best
exports of Rs. 30310.000 millions registering a growth of 60% over the previous
year as against the country’s export growth rate of nearly 21%. MMTC’s best
import performance at Rs. 110330.000 millions during 2004-05 grew by 65% over
the previous year’s level which also was higher than country’s import growth of
34%. MMTC’s domestic trade at Rs.10600.000 millions during 2004-05 was double
the corresponding performance of the last fiscal.
3. The
net profits after tax earned by the company during 2004-05 recorded highest
ever level of Rs.1070.000 millions – up by 112% over the previous year. High net profits have been achieved through
better operating profits, effective cost controls and better fund management
put in by the company. MMTC took several strategic initiatives in logistics,
service quality and other aspects of functioning with a view to facilitate
creation of trade related infrastructural projects and lowering of operational
costs.
4. MMTC has drawn up ambitious plans to
expand its role as a trade organizer and facilitator by venturing into newer
areas such as Power Trading, Carbon Trading, development of a nationwide cold chain,
development of resources abroad for commodities which are imported perennially
to meet the national demand/supply gap besides entering into long term
strategic alliances for energy inputs such as coal, LNG, etc. Projects such as
beneficiation of low grade Minerals for value addition & exports,
partnership in processed food production & exports, expansion of
distribution network in rural areas, building up domestic and export outlets
for handcrafted Jewellery and other related articles made by local craftsmen
and artisans by enlarging existing franchisee network and expansion of assaying
and hall marking activities are priority areas for the short and medium term
plans for the company.
MMTC, the
largest international trading company of India has declared final dividend of
45% for the year 2004-05 at the 42nd AGM held on 22.9.2005 including
interim dividend of 20% already paid to the shareholders in December 2004.
During the year 2004-05 MMTC
achieved business volume of Rs.151380.000 millions – the highest ever achieved
by MMTC since its inception in 1963, registering growth of 66% over the
corresponding level for the year 2003-04.
The highest ever turnover of MMTC
includes ever best exports of Rs. 30310.000 millions registering a growth of
60% over the previous year as against the country’s export growth rate of
nearly 21%. MMTC’s ever best imports at Rs. 110330.000 millions during 2004-05
grew by 65% over the previous year level which was significantly higher than
Indian import growth of 34%. MMTC’s domestic trade at Rs.10600.000 millions
during 2004-05 was double the corresponding performance of the last fiscal. The
net profits after tax earned by the company during 2004-05 also reached highest
ever level of Rs.107 millions – up by 112% over the previous year. High net profits have been achieved through
better operating profits, effective cost controls and better fund management
put in by the company. MMTC took several strategic initiatives in logistics,
service quality and other aspects of functioning with a view to facilitate
creation of trade related infrastructural projects and lowering of operational
costs.
MMTC has drawn up ambitious plans to
expand its role as a trade organizer and facilitator by venturing into newer
areas such as Power Trading, Carbon Trading, development of a nationwide cold
chain, development of resources abroad for commodities which are imported
perennially to meet the national demand/supply gap besides entering into long
term strategic alliances for energy inputs such as coal, LNG, etc. Projects
such as beneficiation of low grade Minerals for value addition & exports,
partnership in processed food production & exports, expansion of
distribution network in rural areas, building up domestic and export outlets for
handcrafted Jewellery and other related articles made by local craftsmen and
artisans by enlarging existing franchisee network and expansion of assaying and
hall marking activities are priority areas for the short and medium term plans
for the company.
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 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
|
Indian Rupees |
|
US Dollar |
1 |
Rs45.91 |
|
UK Pound |
1 |
Rs.84.72 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |