MIRA INFORM REPORT
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Report Date : |
12.04.2007 |
IDENTIFICATION DETAILS
|
Name : |
TAYO ROLLS LIMITED |
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Formerly Known
As : |
TATA – YODOGAVA LTD |
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Registered
Office : |
XLRI, New Administrative Building, XLRI Campus, Circuit House Area
(East), Post Box No. 103, Jamshedpur - 831001, Bihar, India. |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
02.02.1968 |
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Com. Reg. No.: |
03-818 |
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CIN No.: [Company
Identification No.] |
U27105JH1968PTC000818 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
RCHT00124F |
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PAN No.: [Permanent
Account No.] |
AABCT0210H |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed at
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Iron Rolls and Pig Iron to the steel sector. |
RATING &
COMMENTS
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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 |
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Maximum Credit
Limit : |
USD1500000 |
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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 company having fine track
record. Trade relations are fair. Financial position is good. Payments are
correct and as per commitments. The company can be considered good for any normal business dealings as
usual trade terms and conditions. It can be regarded as a promising business partner in medium to long
term. |
LOCATIONS
|
Registered
Office : |
XLRI, New Administrative Building, XLRI Campus, Circuit House Area
(East), Post Box No. 103, Jamshedpur - 831001, Bihar, India. |
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Tel. No.: |
91-657-2231276 |
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Fax No.: |
91-657-2226435 |
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E-Mail: |
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Sales Office: |
Tata Center, 10th Floor, 43 Chowringhee road, Calcutta,
India 700071 |
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Tel. No.: |
91-33-22885291,22248024,22248569,22248015 |
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Fax No.: |
91-33-22880854 |
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E-Mail: |
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Marketing
Office/ Works : |
Gamharia, Jamshedpur-832108, India |
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Tel. No.: |
91-657-387790,2387791,2386058,2386061,5518024,5518025,3091142. |
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Fax No.: |
91-657-2386059 |
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Factory : |
TAYO Works,
Gamharia, District Singhbhum (West), Jharkhand |
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Tel No : |
91-657-2407248/258/2200506
/780 / 781 |
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Fax No : |
91-657-2200505 |
DIRECTORS
|
Name : |
Mr. A.N.Singh |
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Designation : |
Chairman |
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Name : |
Mr. Shashi.S.Prasad |
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Designation : |
Director |
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Name : |
Mr. Vijay K. Mehta |
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Designation : |
Director |
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Name : |
Mr. N. K. Mishra |
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Designation : |
Director |
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Name : |
Mr. U.K.Chaturvedi |
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Designation : |
Director |
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Name : |
Mr. Varun Kumar Jha |
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Designation : |
Director |
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Name : |
Dr. S. K. Bhattacharyya |
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Designation : |
Director |
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Name : |
Mr. Vijay Mathur |
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Designation : |
Director |
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Name : |
Mr. P.C. Srivastava |
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Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. P.Hariharan |
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Designation : |
Vice President(Finance) |
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Name : |
Mr. B. K. Singh |
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Designation : |
General Manager(Corporate) |
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Name : |
Mr. Abhijit Mitra |
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Designation : |
General Manager(Operations) |
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Name : |
Lt. Col. (Retd.) B. S. Bakshi |
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Designation : |
Dy. General Manager(Human Resource & Strategic Planning) |
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Name : |
Mr. S. K. Mukherji |
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Designation : |
Chief(Marketing) |
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Name : |
Mr. G. Vaidyanathan |
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Designation : |
Company Secretary & E.O. |
MAJOR SHAREHOLDERS
|
Category |
No. of Shares |
Percentage of
Holding |
|
Indian Public |
23,08,026 |
42.17 |
|
Bodies Corporate |
2,15,206 |
3.93 |
|
Promoters |
27,75,932 |
50.72 |
|
FIIs, NRIs |
46,389 |
0.85 |
|
Mutual Funds, Banks, Fis |
1,27,247 |
2.33 |
|
TOTAL |
54,72,800 |
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacturer of cast iron rolls and forged iron roll, Pig Iron and
does Special Casting. Supplies cast iron roll to TISCO and other domestic
steel player. |
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Products : |
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Exports to : |
Australia, Austria, Bangladesh, Belgium, Canada, Egypt, Germany,
Indonesia, Kazakhstan, Nepal, Norway, New Zealand, Oman, Quatar, Saudi
Arabia, Sweden, Singapore, South Africa, Triniland, Taiwan, UAE, Chez
Republic and USA. |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual Production |
|
Rolls |
Tonnes |
13,500 |
|
Pig Iron |
Tonnes |
20,895 |
GENERAL INFORMATION
|
Customers : |
TISCO and other domestic steel market player |
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|
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No. of Employees
: |
641 |
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|
|
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Bankers : |
Bank of India, Jamshedpur,
Bihar IDBI Bank Ltd,
Jamshedpur, Bihar State Bank of India,
Jamshedpur, Bihar |
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Auditors : |
S. B. Billimoria & Company Chartered Accountants Bihar |
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|
|
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Associates/Subsidiaries |
v Tata Construction & Projects Limited v Nilachal Refractories Limited v Tata International Limited v Tate Share Registry Limited v Tata Iron & Steel Company Limited v Tata Engineering & Locomotive Company
Limited v And Several Others (Tata Group of
Companies) |
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Memebership |
Confederation of
Indian Industry |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 100.000
Millions |
|
|
Total |
|
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,472,800 |
Equity Shares |
Rs.10/- each |
Rs. 54.728
Millions |
|
|
Add : Forfeited Shares |
|
Rs. 0.004
Millions |
|
|
Total |
|
Rs. 54.732
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
54.732 |
54.732 |
54.732 |
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
3] Reserves & Surplus |
319.788 |
283.294 |
268.300 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH |
374.520 |
338.026 |
323.000 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
191.777 |
175.111 |
31.700 |
|
2] Unsecured Loans |
134.930 |
128.519 |
46.600 |
|
TOTAL BORROWING |
326.707 |
303.630 |
78.300 |
|
DEFERRED TAX LIABILITIES |
24.108 |
28.034 |
N.A. |
|
|
|
|
|
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TOTAL |
725.335 |
669.690 |
401.300 |
|
|
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APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
338.199 |
376.811 |
199.300 |
|
Capital
work-in-progress |
0.000 |
|
7.600 |
|
|
|
|
|
|
INVESTMENT |
16.492 |
4.149 |
25.700 |
|
DEFERREX TAX
ASSETS |
0.000 |
|
|
|
|
|
|
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|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
Inventories |
324.643 |
354.839 |
184.700
|
|
Sundry Debtors |
394.977 |
353.163 |
194.500
|
|
Cash & Bank
Balances |
43.165 |
41.811 |
26.800
|
|
Other Current
Assets |
0.000 |
0.000 |
0.000
|
|
Loans &
Advances |
48.665 |
64.770 |
70.300
|
|
Total Current Assets |
811.450
|
814.583
|
476.300
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Current
Liabilities |
406.858
|
499.514 |
250.000
|
|
Provisions |
61.486
|
57.133 |
98.600
|
|
Total Current Liabilities |
468.344
|
556.647 |
348.600 |
|
Net
Current Assets |
343.106
|
257.936 |
127.700 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
27.538 |
30.794 |
41.000 |
|
|
|
|
|
|
TOTAL |
725.335 |
669.690 |
401.300 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1629.902 |
1234.357 |
973.600 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
75.646 |
84.240 |
59.600 |
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
Profit/(Loss) After Tax |
61.456 |
60.865 |
42.300 |
|
|
|
|
|
|
Export Value |
296.615 |
149.027 |
N.A. |
|
|
|
|
|
|
Import Value |
336.483 |
290.531 |
N.A. |
|
- |
|
|
|
|
Total Expenditure |
1578.772 |
1155.523 |
N.A. |
QUARTERLY RESULTS
|
Year |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd Qtr |
|
Sales Turnover |
396.800 |
457.900 |
447.200 |
|
Other Income |
13.300 |
24.900 |
54.100 |
|
Total Income |
410.100 |
482.800 |
501.300 |
|
Total Expenditure |
365.200 |
432.200 |
418.800 |
|
Operating Profit |
44.900 |
50.600 |
82.500 |
|
Interest |
6.600 |
7.600 |
8.600 |
|
Gross Profit |
38.300 |
29.300 |
73.900 |
|
Depreciation |
12.600 |
12.800 |
12.200 |
|
Tax |
9.100 |
9.400 |
19.100 |
|
Reported PAT |
16.400 |
24.700 |
40.400 |
200606 Quarter 1
Notes
EPS is Basic &
Diluted Status of the Investors Complaints for the quarter ended June 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints received
during the quarter 01 Complaints disposed off during the quarter 01 Complaints
unsolved at the end of the quarter Nil 1. Figures of corresponding period
regrouped where necessary. 2. The Employees benefits, short and long term have
been actuarilly determined and provided for, in accordance with AS-15 (revised)
issued by ICAI, such adjustment has been made on the basis of preliminary
information made available by the actuary. Any adjustment arising on the final
determination of the adjustment to be considered under the said Accounting
Standard would be carried out in subsequent period. The Profit before Tax for the
quarter ended June 30, 2006, consequent to this revision is higher by Rs 7.10
million (net). 3. The above results were reviewed by the Audit Committee and
approved by the Board of Directors of the Company at their meeting held on July
12, 2006.
200609 Quarter 2
Notes
Other Income
Includes Other Income Rs 8.80 million Export Benefits (DEPB License) Rs 1.80
million Expenditure Includes Increase/Decrease in Stock in Trade Rs 0.70
million Consumption of Raw Materials Rs 205.90 million Purchase of Semi finished
products Rs 41.70 million Consumption of Stores Rs 29.80 million Staff Cost Rs
68.00 million Power & Fuel Rs 50.70 million Excise Duty (Net of recovery)
Rs 3.30 million Other Expenses Rs 34.30 million Transfer of expenditure to
capital & other account Rs (2.100)million Tax Includes Provision for
Current Tax Rs 8.70 million Deferred Tax Rs(3.60)million Fringe Benefit Tax Rs
0.70 million Extra Ordinary Items Includes Profit on sale of Long Term
Investments Rs 14.30 million Employee Separation Compensation & Retiral
Benefit of Ex Directors Rs (3.20)million EPS is Basic & Diluted Status of
the Investors Complaints for the quarter ended September 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints received during the
quarter 04 Complaints disposed off during the quarter 04 Complaints unsolved at
the end of the quarter Nil 1. Figures of corresponding period regrouped where
necessary. 2. Staff cost for the quarter ended September 30, 2006 includes Rs
5.50 million being settlement of arrear wages of past years. 3. The method of
determining the liability for certain employee benefits has been refined during
the quarter in accordance with Accounting Standards 15 (AS 15) issued by the
Institute of Chartered Accountants of India Consequently an additional amount
of Rs 3.585 million relating to the previous quarter has been charged during
the current quarter. Further, an additional amount of Rs 36.149 million (net of
deferred tax Rs 18.340 million) relating to the period upto March 31, 2006 has
been adjusted against the opening balance of General Reserve. 4. The above
results were reviewed by the Audit Committee and approved by the Board of
Directors of the Company at their meetings held on October 17, 2006.
200612 Quarter 3
Notes
Other Income
Includes Other Income Rs 2.00 million Export Benefits (DEPB License) Rs 49.20
million Expenditure Includes Increase/Decrease in Stock in Trade Rs (38.50)
million Consumption of Raw Materials Rs 247.00 million Purchase of
Semi-finished products Rs 29.40 million Consumption of Stores Rs 38.90 million
Staff Cost Rs 53.30 million Power & Fuel Rs 48.00 million Excise Duty (Net
of recovery) Rs 5.30 million Other Expenses Rs 37.50 million Transfer of
expenditure to capital & other account Rs (2.90) million Tax Includes
Provision for Current Tax Rs 18.40 million Deferred Tax Rs 2.20 million Fringe
Benefit Tax Rs 0.70 million Extra Ordinary Items Indicates Employee Separation
Compensation & Retiral Benefit to Ex- Directors EPS is Basic & Diluted
Status of the Investors Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints received
during the quarter 03 Complaints disposed off during the quarter 03 Complaints
unsolved at the end of the quarter Nil 1. Figures of corresponding period
regrouped where necessary. 2. Other Income for the December quarter, 2006
includes Rs 39.60 million towards one time Commission on sales. 3. The above
results were reviewed, by the Audit Committee on January 13, 2007 and approved
by the Board Directors of the Company at their meetings held on January 14,
2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.88 |
0.58 |
0.24 |
|
Long Term Debt Equity Ratio |
0.43 |
0.34 |
0.18 |
Current
Ratio
|
1.14 |
1.18 |
1.22 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
1.78 |
1.49 |
1.22 |
|
Inventory |
5.28 |
4.96 |
5.89 |
|
Debtors |
4.80 |
4.89 |
4.98 |
|
Interest Cover Ratio |
2.65 |
8.73 |
8.26 |
|
Operating Profit Margin (%) |
7.47 |
10.24 |
12.08 |
|
Profit Before Interest and Tax Margin (%) |
4.59 |
7.11 |
7.72 |
|
Cash Profit Margin (%) |
5.21 |
7.68 |
9.11 |
|
Adjusted Net Profit Margin (%) |
2.33 |
4.55 |
4.76 |
|
Return on Capital Employed (%) |
12.81 |
19.61 |
22.06 |
|
Return on Net Worth (%) |
11.73 |
18.43 |
14.93 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 146.00 |
|
Low |
Rs. 145.00 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject is a joint
venture company promoted by Tata Steel Limited in collaboration with Yodogawa
Steel Works Limited and Nissho Iwai Corporation, Japan. It installed and commissioned a centrifugal
casting machine in 1992 in collaboration with Eisenwerk Sulzau Werfen,
Austria.
In June 1999,
subject had entered into a Sales Representative Agreement and License and
Know-how Agreement with world-renowned forged roll maker - Union Electric Steel
Corporation, USA for transfer of technology for finishing forged rough turned
and hardened steel rolls.
The company was
promoted by Tata Steel in collaboration with Yodogawa Steel Works and Nissho
Iwai Corporation, Japan, to produce steel, steel base and cast iron rolls to
meet the cast roll requirement of TISCO and the domestic market. The company is
India's largest roll producer and has been supplying rolls to all the major
integrated steel plants, steel rolling mills, the paper, rubber, textile and
food processing industries, the mint and other non-ferrous rolling units in the
country. It has a 50% share in the domestic market.
The company has also developed a number of import-substitute rolls. It exports
its products to countries like Srilanka, Singapore, Vietnam, Qatar, Saudi
Arabia, Philippines, the UAE, Iran, South Africa and the USA.
To keep pace with the changing market and rolling practices, TAYO launched a
comprehensive modernisation programme in 1990-91 (cost: Rs 250.000 millions)
under which it introduced state-of-the-art technology to manufacture
double-poured rolls through the centrifugal casting process. The technical
know-how for the process was obtained from Eisenwerk Sulzau-Werfen (ESW),
Austria, Europe's leading roll manufacturer with a fine export record. The
centrifugal casting machine imported from the USA was commissioned during
1992-93.
After modernisation, the capacity has increased to 9750 tpa of rolls. It is now
being augmented to meet the growing demand for rolls as a result of the growth
in the steel industry. It has also taken up the manufacture of special
value-added castings, mainly for the power, steel and cement sectors.
The company's first phase involving a capacity expansion of rolls to 12,500
tonnes at an outlay of Rs 240.000 millions, was completed during 1998-99, and
second phase involving an expenditure of approximately Rs 150.000 millions for
increasing the capacity to 14,000 tonnes has been held back. During the year
2003, the name of the company was changed to Tayo Rolls Limited.
The company has entered
into a licence and know-how agreement with the Union Electric Steel Corporation
(UES), USA, a leading forged roll manufacturer of international repute for
transfer of the technology for finishing forged rough turned and hardened steel
rolls and has already procured the order for the same. Also, an agreement with
UES to represent them in India for solicitation of order for forged hardened
steel rolls manufactured by UES and orders for rehardening, reconditioning or
repair of such rolls.
During 2000-2001 the company commissioned the new cold-rolling mills and there
was an increase in the demand for forged rolls. In the near future the company
is planning to manufacture Tool Steel Rolls on its own.
The company is planning to undertake a backward integration project of putting
a miniblast furnace for manufacture of Pig iron at a cost of Rs.103.000
millions.
OPERATION AND SALES
During the year
under review, the gross turnover has been the highest ever achieved at Rs. 1840
millions recording an increase of 31 % over the previous year. The profit
before tax was at Rs. 75.6 millions compared to Rs. 84.2 millions in the
previous year. The profit after tax was Rs. 61.5 millions compared to Rs 60.9
millions in the previous year. Profit for the year was affected by significant
increase in the prices of Fe- alloys and hike in the fuel prices, which are
essential inputs for roll making. The Mini Blast Furnace (MBF), which was
commissioned in February 2005, has initial technical problems. The MBF operated
at nearly 50% of its capacity. This coupled with high cost of imported coke
produced in the beginning of the financial year affected the profitability.
However, there has been a marked improvement in overall performance of MBF in
the last quarter.
The
company has technical collaboration with Eisenwerk Sulzau Werfen, Austria.
It
also has Sales Representative Agreement and License and Know-how Agreement with
Union Electric Steel Corporation, USA.
The
company is gearing itself to manufacture tool steel rolls in the near
future.
The
company has been accredited with ISO 9002 Certification.
Fixed Assets
The
company’s fixed assets of important value include leasehold land, buildings,
plant & machinery, technical know-how fees, furniture, fixtures &
office equipments and vehicles.
As per Website
Subject
is a subsidiary of TATA Steel and was promoted in 1968 in collaboration with
Yodogava Steel Works of Japan. To update with the developing technology, in
1992, Tayo forged an alliance with ESW of Australia for technical up-gradation.
Since
inception, Subject has been a market leader and has met the Country’s roll
requirement for a vide variety of industries. Through continuous improvements
both in process as well as products, Subject has kept pace with the changing
needs of the industry thus providing more value to its customers in terms of
more rolling per roll.
Subject’s
services to its customers are met through dedicated employees who have rich
experience and are as well as cold rolling applications.
The
company has successfully diversified into production of special Castings for
use in Power Plants and has made significant presence in the industry.
Subject
enjoys a wide customer base in India. It has also been exporting rolls to
Australia, Austria, Bangladesh, Belgium, Canada, Egypt, Germany, Indonesia,
Kazakhstan, Nepal, Norway, New Zealand, Oman, Quatar, Saudi Arabia, Sweden,
Singapore, South Africa, Triniland, Taiwan, UAE, Chez Republic and USA.
Subject
ensures that its products not only meet customer expectation but also with
after sales services which are comparable to the best in the world.
Products
Hot Rolling
Application
Subject has the capability and the capacity to meet the most demanding
mill requirements. Subject have been custom designed to roll flat as well as
long products.
Subject’s Technical advice on sound mill practices are backed by the experience
of Tata Steel, a frontrunner in the steel industry in India.
Subject is also catering to the Domestic Cold Rolling sector by importing
Forged Heat treated rough turned blanks from Union Electric Steel, USA. These
blanks are finished and ultrasonic tested at Subject before final delivery to
the customer.
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 |
Rs.42.74 |
|
UK Pound |
1 |
Rs.84.90 |
|
Euro |
1 |
Rs.57.79 |
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
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|