MIRA
INFORM REPORT
|
Report Date : |
07.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
RAJ
RAYON LIMITED |
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Registered Office : |
3A/205, Mittal Industrial Estate, Saki Naka, Andheri (East), Mumbai -
400 059, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.08.1993 |
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Com. Reg. No.: |
11-73489 |
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CIN No.: [Company
Identification No.] |
L17120MH1993PLC073489 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR14047F |
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PAN No.: [Permanent
Account No.] |
AAACR7820E |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturers
of Polyester Texturised Yarn and Partially Oriented Yarn. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
3500000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are fair. Payments are usually correct and as per
commitments. Financial position is
satisfactory. The
company is doing well. It can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
3A/205, Mittal Industrial Estate, Saki Naka, Andheri (East), Mumbai -
400 059, Maharashtra |
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Tel. No.: |
91-22-2850 8905 / 06/3150 |
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Fax No.: |
91-22-2852 3574 |
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E-Mail : |
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Website : |
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Corporate
Office : |
5-C/196 & 197, Akshay Mittal, Mittal
Industrial Estate, Sakinaka, |
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Tel.
No.: |
91-22-4034 3434 |
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Fax
No.: |
91-22-4034 3400 |
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Factory
: |
Polyester Texturised Yarn [PTY] Divison : Survey
No. 272/1/1, Plot No. 1, Village Dadra, Dadra Demani Road, District Silvassa,
Dadra & Nagar Haveli Union Territory – 396230 Tel.
No. : 91-260-2668238 Telefax
: 91-260-2668632 E-mail
: dadra1@rajrayon.com Survey
No. 185/1/1, Plot No. 17, Dokmandi, Village Amli, District Silvassa, Dadra
& Nagar Haveli Union Territory – 396230 Tel.
No. : 91-260-2643332 Telefax
: 91-260-3293013 E-mail
: amli@rajrayon.com Survey
No. 259/12, Parsinath Industrial Estate, Village Dadra, District Silvassa, Dadra
& Nagar Haveli Union Territory – 396230 Tel.
No. : 91-260-2669076 Telefax
: 91-260-2669077 / 3293014 E-mail
: dadra3@rajrayon.com Partially Oriented Yarn [POY] Division : Survey No. 177/1/3 & 4, Village – Surangi, District Silvassa,
Dadra & Nagar Haveli Union Territory – 396230 Tel.
No. : 91-260-3093038 / 3955475 / 3955476 Fax
No. : 91-260-2699222 E-mail
: surangi@rajrayon.com |
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Branches
: |
302, Rajhans, J K Tower, Khatodara, Ring Road, Surat – 395002 Tel. No. : 91-261-2351422 Telefax : 91-261- 2707148 / 3014466 Office No. 43, 1st Floor, City Palace, Chauri Sarak, Ludhiana E-120, P N B Road, Shastri Nagar, New
Delhi 110052, India |
DIRECTORS
|
Name : |
Mr.
Gourishankar Poddar |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr.
Rajkumari Kanodia |
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Designation : |
Director |
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Name : |
Mr.
Ashok Trehan |
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Designation : |
Director |
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Name : |
Mr.
Jagdish Chandra Somani |
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Designation : |
Director |
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Name : |
Mr.
Vinod Kumar Jain |
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Designation : |
Director |
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Name
: |
Mr. Neraj
Agarwal |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name
: |
Mr.
Pradeep Kumar Agrawal |
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Designation
: |
President Finance & Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter
& Promoter Group |
3900500 |
22.92 |
|
Banks
/ MFs/ FIIs |
1765918 |
10.38 |
|
Private
Bodies Corporate |
4188510 |
24.61 |
|
Indian
Public |
6702296 |
39.39 |
|
NRIs /
OCBs |
109372 |
0.64 |
|
Clearing
Member |
351104 |
2.06 |
|
TOTAL |
17017700 |
100.00 |
As on
31.12.2006
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Individuals/HUF |
821000 |
4.82 |
|
Bodies
Corporates |
3166797 |
18.61 |
|
Mutual
Funds/UTI |
53000 |
0.31 |
|
Financial
Institutions/Banks |
369000 |
2.17 |
|
Foreign
Institutional Investors |
484789 |
2.85 |
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Non - Institutions |
|
|
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Bodies
Corporates |
4509733 |
26.50 |
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Individual
shareholders holding nominal share capital up to Rs. 0.100 million |
3999415 |
23.50 |
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Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million |
2301467 |
13.52 |
|
Clearing
Member |
675811 |
3.97 |
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Market
Maker |
89949 |
0.53 |
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NRI
(Repatriate) |
71739 |
0.42 |
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NRI
(Non-Repatriate) |
22734 |
0.13 |
|
OCBs |
452266 |
2.66 |
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TOTAL |
12123114 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Polyester Texturised Yarn and Partially Oriented Yarn. |
GENERAL INFORMATION
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No. of Employees : |
1500 |
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Bankers : |
State
Bank of India State
Bank of Indore State
Bank of Mysore ICICI
Bank HDFC
Bank ABN
Amro Bank |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
R. S. Agrawal & Associates Chartered Accountants, |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
17017700 |
Equity
Shares |
Rs. 10/- each |
Rs. 170.177 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
170.177 |
85.177 |
85.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
714.488 |
169.370 |
127.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
884.665 |
254.547 |
212.800 |
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LOAN FUNDS |
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1] Secured Loans |
618.413 |
362.977 |
294.200 |
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2] Unsecured Loans |
1.000 |
91.757 |
7.700 |
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TOTAL BORROWING |
619.413 |
454.734 |
301.900 |
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DEFERRED TAX LIABILITIES |
45.612 |
42.094 |
0.000 |
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TOTAL |
1549.690 |
751.375 |
514.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
897.767 |
467.920 |
348.600 |
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Capital work-in-progress |
92.786 |
51.757 |
2.900 |
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Pre-Operative Expenses |
0.000 |
17.832 |
0.000 |
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INVESTMENT |
65.474 |
5.101 |
5.100 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
120.785
|
84.097 |
54.400 |
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Sundry Debtors |
241.996
|
238.567 |
162.200 |
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Cash & Bank Balances |
11.033
|
26.781 |
7.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
253.198
|
99.871 |
49.000 |
|
Total Current Assets |
627.012
|
449.316 |
272.700 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
129.634
|
217.771 |
99.200 |
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Provisions |
39.815
|
23.742 |
15.600 |
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Total Current Liabilities |
169.449
|
241.513 |
114.800 |
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Net Current Assets |
457.563
|
207.803 |
157.900 |
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MISCELLANEOUS EXPENSES |
36.100 |
0.962 |
0.200 |
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TOTAL |
1549.690 |
751.375 |
514.700 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1680.112 |
1559.514 |
1434.400 |
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|
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Profit/(Loss)
Before Tax |
110.423 |
62.599 |
50.500 |
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Provision
for Taxation |
13.321 |
10.917 |
17.500 |
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Profit/(Loss)
After Tax |
97.102 |
51.682 |
33.000 |
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Import
Value |
63.774 |
71.356 |
N.A. |
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Total
Expenditure |
1569.689 |
1496.915 |
1383.900 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales Turnover |
536.400 |
530.400 |
832.000 |
|
Other Income |
0.700 |
3.300 |
1.800 |
|
Total Income |
537.100 |
533.700 |
833.800 |
|
Total Expenditure |
467.800 |
462.200 |
760.300 |
|
Operating Profit |
69.300 |
71.500 |
73.500 |
|
Interest |
12.900 |
18.500 |
19.300 |
|
Gross Profit |
56.400 |
53.000 |
54.200 |
|
Depreciation |
25.800 |
23.800 |
24.200 |
|
Tax |
3.500 |
3.400 |
3.400 |
|
Reported PAT |
25.300 |
25.400 |
26.600 |
Notes:
200606 Quarter 1
1. The above unaudited financial results were reviewed
by the Audit Committee and taken on record by the Board of Directors at their
meeting held on 31st July. 2006. 2. During the quarter ended 30th June, 2006,
the Company has received and disposed of 4 investor complaints. No complaints
were pending at the beginning and at the end of the quarter. 3. The above
results are subject to Limited Review by Statutory Auditors as required under
clause 41 of the Listing Agreement. 4. Due to non provision of deferred tax in
corresponding quarter of last year, net profit for current quarter is not
comparable with corresponding quarter of last year. 5. Figures have been
regrouped wherever necessary. 6. The Company has spent the entire sum of Rs.
552.500 millions raised from public issue towards the POY Project having
capacity of 60000 TPA, meeting public issue expenditure and for the objects
stated in the prospectus issued by the company for its Public Issue. 7. Company
has decided to convert/extend 5 Lines of POY in to (Fully Drawn Yarn) FDY Lines
for better commercial realization and also to increase PTY capacity from 21700
TPA to 36100 TPA by installing additional 12 texturising machines.
Implementation of both above projects are in progress and expected to be
completed before the end of current financial year.
200609 Quarter 2
Expenditure Includes (Increase) / Decrease in Stock in
Trade Rs (107.239) million Cost of Inventories consumed & sold Rs 492.279
million Payments to and Provision for Employees Rs 4.619 million Manufacturing,
Administrative, Selling & Other Expenses Rs 72.617 million Tax Includes
Provision for Current Tax Rs 3.264 million Fringe Benefit Tax Rs 0.126 million
Deferred Tax Rs 0.356 million Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 2 Complaints disposed off during the
quarter 2 Complaints unresolved at the end of the quarter Nil 1. The above
unaudited financial results were reviewed by the Audit Committee and taken on
record by the Board of Directors at their meeting held on November 02, 2006. 2.
The above results are subject to Limited Review by Statutory Auditors as
required under clause 41 of the Listing Agreement. 3. Due to non provision of
deferred tax in corresponding quarter of last year, net profit for current
quarter is not comparable with corresponding quarter of last year. 4. Figures
have been regrouped wherever necessary. 5. The Company has spent the entire sum
of Rs 552.50 million raised from public issue towards the POY Project having
capacity of 60,000 TPA, meeting public issue expenditure and for the objects
stated in the prospectus issue by the company for its public issue. 6.
Expansion programms of the Company are progressing satisfactorily. 7. Partially
Oriented Yarn (Poy) & Polyest Texlurised Yarn (PTY), reported different
segments earlier, having same risk & return as such treated as single
Polyester Yarn (Textile).
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.94 |
1.62 |
1.27 |
|
Long Term Debt-Equity Ratio |
0.66 |
0.92 |
0.76 |
|
Current Ratio |
1.31 |
1.00 |
1.26 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.97 |
3.28 |
3.50 |
|
Inventory |
17.35 |
27.30 |
27.40 |
|
Debtors |
7.39 |
9.43 |
11.14 |
|
Interest Cover Ratio |
3.93 |
3.58 |
3.67 |
|
Operating Profit Margin(%) |
11.78 |
6.93 |
7.22 |
|
Profit Before Interest And Tax
Margin(%) |
8.33 |
4.60 |
4.87 |
|
Cash Profit Margin(%) |
8.91 |
5.07 |
4.67 |
|
Adjusted Net Profit Margin(%) |
5.46 |
2.74 |
2.31 |
|
Return On Capital Employed(%) |
13.61 |
14.21 |
16.17 |
|
Return On Net Worth(%) |
17.05 |
22.12 |
17.40 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.43.75/- |
|
Low |
Rs.42.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Results of Operations
Turnover for the year increased by 7.76 percent from Rs. 1535.900 millions to
Rs 1655.200 millions RRL's net profit for the year was Rs. 97.100 millions,
thereby registering an increase of 87.88%. Cash profit increased to Rs 158.300
millions from Rs 95.700 millions in the previous year, an increase of 65.41%.
Financial Performance
The margins for the
polyester business improved significantly during the year. Key contributors
towards these were lower intermediate price and rising cotton prices. Another significant development was the
changes in the duty structure announced in the Union Budget this year, which makes
polyester more competitive as compared to cotton. The excise duty on polyester
was reduced to 8 per cent from earlier level of 16 percent and this is expected
to lead to substantial growth of the polyester industry. RRL is very close to
completing another expansion in Polyester Texturised Yarn capacity by adding
14,400 TPA of new capacity.
Financial Review
Amidst a challenging
business environment, RRL has reported improved volumes, higher revenues and a
substantial growth
in pre & post tax profits. Notwithstanding, RRL achieved a 7.76%
year-on-year growth in sales. Cash profit has increased substantially from Rs.
95.473 millions in year 2004-05 to Rs. 158.329 millions in year 2005-06. Profit
after taxation increased 87.88 percent to Rs. 97.103 millions from Rs. 51.683
millions.
Business Review
For Financial
reporting company has defined five segments such as PTY, POY, Trading
activities, Services & others.
However the key business segments of the Company are Polyester &
Trading in Fabric & Other Household imported items.
-Polyester (PTY
& POY)
RRL is one of the
largest producers of PTY & POY in the India.
In 2005, the
increase in global polyester production was about 3 MMT, which has taken the
world polyester production to 41 MMT, a growth of 8 per cent. The major growth
impetus came from China and India. China's polyester production (including
Fibers and Yarns, PET and Films) grew by 17 percent from 12 MMT to 14 MMT.
India and China are now the global hubs for the production of Polyester Fibre and
Yarn contributing over 65 per cent of global capacity. Low per capita
consumption in India offers strong growth potential for existing players like
RRL. The per capita consumption of polyester in India is very low at 2.2 Kg
compared to 7.2 Kg in USA, 5.0 Kg in Europe, 10.6 Kg in China, 7.9 Kg in Asia
and a global average of 6.0 Kg. The
compounded annual growth rate of the Indian polyester fibre and yarn industry
during last five years has been 7.1 percent whereas the CAGR has been 6.1 per
cent for the global polyester fibre and yarn industry.
The domestic demand
for polyester increased from 1.68 million tones to 1.85 million registering a
growth of 10 per cent.
RRL's production
capacity is 21700 TPA for PTY and 60000 TPA for POY. During the year, RRL's production
volume of PTY was 18802 Ton and POY was 6323 Ton. POY & PTY contributed
88.62% of total turnover.
RRL is now expanding
in PTY capacity by adding 14,400 TPA of new PTY capacity. With this expansion,
total PTY capacity of the Company touches 36,000 tones. The machinery is well
equipped to manufacture the entire denier range. RRL is confident of placing
the expanded capacity in domestic and global markets.
RRL is also
converting/extending 5 Lines of POY in to (Fully Drawn Yarn) FDY Lines for better
commercial realization.
Fixed Assets
Land, Air Condition System, Electrical Installation, Factory Building,
D. G. Sets, Plant & Machinery, Furniture & Fixtures, Vehicle and Office
Equipments
WEBSITE
DETAILS
Their company is a
professionally managed organization, which functions under the control of a
Board consisting of six directors. The day-to-day management of their Company
is entrusted to Mr. Gourishankar Poddar, Chairman & Managing Director, who
is assisted by a team of qualified and experienced professionals in technical,
financial and other areas of management.
The promoters are well-experienced, dynamic and matured industrialist
and are running the company on profitable lines right from beginning.
Today RAJ RAYON LIMITED is a leading manufacturer
of Polyester Texturised Yarn & Partially Oriented Yarn. It enjoys excellent
market reputation in India.
MILESTONES
The milestones in their history are given below:
Financial Year Event
1993-94
Incorporated on 17th August, 1993 in Mumbai, Maharashtra
Commencement of Business on 1st September 1993
Setting-up of Unit I at Village Dadra, Silvassa - Installed one
texturising machine with a manufacturing capacity of 600 T.P.A. (capacity based
on manufacturing Polyester Texturised Yarn of 80 Denier)
1994-95
Commercial Production started at Unit I
Commencement of expansion project to double the manufacturing capacity
by installing one more Texturising Machine
1995-96
IPO of 14,40,000 equity shares at par
Commercial Production of expansion project commenced, which doubled the
capacity from 600 T.P.A. to 1,200 T.P.A. (capacity based on manufacturing
Polyester Texturised Yarn of 80 Denier)
1996-97
Commencement of setting-up of Unit II at village Amli, Silvassa, for
manufacturing Polyester Texturised Yarn with a capacity of 2,600 T.P.A.
(capacity based on manufacturing Polyester Texturised Yarn of 80 Denier)
1997-98
Commercial production started at Unit II
1998-99
Further expansion at Unit II - manufacturing Polyester Texturised Yarn
with a capacity of 2,600 T.P.A. (capacity based on manufacturing Polyester
Texturised Yarn of 80 Denier) by installing four Draw Texturising machines
1999-00
Commercial production started of further expansion at Unit II
2001-02
Commencement of first phase of expansion project at Unit III -
Installation of six texturising machines with a manufacturing capacity of 7,590
T.P.A. (capacity based on manufacturing Polyester Texturised Yarn of 80 Denier)
2002-03
Part completion of first phase of expansion project at Unit III -
Installation of four Texturising machines
2003-04
Completion of first phase of expansion project at Unit III -
Installation of balance two Texturising machines
Commencement and completion of second phase of expansion project at Unit
III - Installation of six more texturising machines with a manufacturing
capacity of 7,650 T.P.A. (capacity based on manufacturing Polyester Texturised
Yarn of 80 Denier)
Commencement of backward integration project at Unit IV - For production
of POY with a manufacturing capacity of 30,000 T.P.A. (capacity based on
manufacturing average 150 Denier of POY)
2004-05
Commencement of increase in the backward integration project for
manufacturing capacity of POY Project - from earlier 30,000 T.P.A. to 60,000
T.P.A. (capacity based on manufacturing average 150 Denier of POY)
2005-06
Commercial production of Partially Oriented Yarn started at their
surangi plant
Public Issue of 85,00,000 equity shares of Rs 10/- each for cash at a
price of Rs 65 per equity share aggregating Rs 552.500 millions
2006-07
Further Expansion plan in production capacity of Polyester Texturised
Yarn by 14400 Tons
Out of 18 POY lines, plan to convert 5 POY lines into FDY lines
INFRASTRUCTURE
The Company was set up in 1993 with an annual production capacity
of producing 600 Tons of Polyester Textured Yarn. Gradually by year 2004,
capacity increased to 25500 Tons /
Annum (product mix of 80 & 150 Denier, 70% of 80 Denier and
30% of 150 Denier).
Their company has installed a POY plant of 60,000 Tons per Annum capacity at Silvassa.
The plant is designed to produce various types of yarn and specialty yarns. The
project has made company's finished product more cost competitive and
profitable.
Company has an objective to grow globally through its cost competitive
and aggressive marketing strategies.
Company is supplying various types of Polyester filament yarns
through out India and endeavors to achieve total customer satisfaction and
brand image.
NEWS
Date : 04/01/2007
In pursuance of
Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading
Regulations Part A, it is hereby notified that the list of securities further
admitted to dealings on the National Stock Exchange (Capital Market segment)
with effect from January 4, 2007.
The equity shares of
Raj Rayon Limited (Symbol: RAJRAYON) shall be traded in the Normal Market
segment (Rolling Settlement) in compulsory demat for all investors.
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 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
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.12 |
|
UK
Pound |
1 |
Rs.87.01 |
|
Euro |
1 |
Rs.57.45 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
53 |
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 |
|