MIRA
INFORM REPORT
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Report Date : |
07.07.2007 |
IDENTIFICATION DETAILS
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Name : |
ESSAR CONSTRUCTIONS LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.1989 |
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Com. Reg. No.: |
11-53280 |
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CIN No.: [Company
Identification No.] |
U99999MH1989PLC053280 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUME03801A |
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PAN No.: [Permanent
Account No.] |
AAACE2358J |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Leading Engineering, Procurement and Construction (EPC) Contractors. |
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 5500000 |
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Status : |
Good |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a closely held company of Ruias /Essar Group. It undertake large construction contracts in the country. Trade relations are fair. Financial position is comfortable. Payments of Essar Group in general and subject in particular are reported as very slow but correct. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-22-22044006 |
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Fax No.: |
91-22-22046763 |
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E-Mail : |
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Website : |
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Corporate Office : |
Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai -
400034, |
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Tel. No.: |
91-22-24950606 / 56601505 |
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Fax No.: |
91-22-24954324 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Shashikant N. Ruia |
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Designation : |
Director |
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Address : |
40-B, |
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Date of Birth/Age : |
25/12/1943 |
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Date of Appointment : |
01/03/2001 |
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Name : |
Mr. S. V. Venkatesan |
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Designation : |
Director |
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Address : |
F 401, The
Atrium, 49, New No. 22, |
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Date of Birth/Age : |
01/10/1939 |
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Date of Appointment : |
01/03/2001 |
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Name : |
Mr. T. K. Nagaraj |
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Designation : |
Director |
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Address : |
403, |
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Date of Birth/Age : |
21/07/1944 |
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Date of Appointment : |
01/03/2001 |
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Name : |
Mr. Vishnoo N. Paradkar |
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Designation : |
Whole Time
Director |
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Address : |
N-13, Sector 7,
Vashi - 400703, Navi Mumbai, |
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Date of Birth/Age : |
18/10/1948 |
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Date of Appointment : |
02/04/2001 |
KEY EXECUTIVES
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Name : |
Mr. R. B. Deb Purakayastha |
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Designation : |
Company Secretary
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Address : |
902-B, |
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Date of Birth/Age : |
26/11/1957 |
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Date of Appointment : |
18/04/2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Bansari Investment and Finance Private Limited |
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1 |
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Arkay Holdings Limited |
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1 |
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Essar Projects Limited and Mr. B. V. Suryakumar |
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1 |
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Essar Projects Limited and B. R. Deb Purakayasths |
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1 |
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Essar Projects Limited and Mr. M. N. Hari Haran |
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1 |
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Essar Projects Limited and Ms. Swati Gurav |
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1 |
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Mr. N. B. Vyas |
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1 |
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Essar Investments Limited |
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8000000 |
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BUSINESS DETAILS
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Line of Business : |
Leading Engineering, Procurement and Construction (EPC)
Contractors. |
GENERAL INFORMATION
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Customers : |
Ø Gas Authority of India Limited Ø Government of Orissa Ø
Government of Ø Gujarat Heavy Chemicals Limited Ø Hindustan Petroleum Corporation Limited Ø
Ø Mazgaon Docks Limited Ø
National Highway Authority of Ø
New Ø
Ø Oil and Natural Gas Commission Ø Polyolefins Industries Limited Ø Royal Dutch Shel Ø Tamilnadu Cement Corporation Ø
Ø
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No. of Employees : |
500 |
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Bankers : |
Not Available |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
B. P. Jain and Company Chartered Accountants |
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Address : |
A-16, Everest, 156, |
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Associates : |
v Essar Steel Limited v Ajitesh Estates Private Limited v Arkay Holdigs Limited v Bhargava Estates Private Limited v Essar Agrotech Limited v
Essar Global Limited, v Essar Gulf FZE, U.A.E v Essar House Limited v Essar Information Technology Limited v Essar Investments Limited v Essar Oil Limited v Essar Power Limited v Essar Projects Limited v Essar Properties Limited v Essar Shipping Limited v Essar Telecom Limited v Essar Teleholdings Limited v Futura Travels Limited v Hy-Grade Pellets Limited v India Securities Limited v Kartik Estates Private Limited v Marmagoa Steel Limited v
P T |
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Parents Company : |
Essar Investment Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs. 150.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10250000 |
Equity Shares |
Rs.10/- each |
Rs. 102.500
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
102.500 |
92.500 |
80.000 |
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2] Reserves & Surplus |
1288.700 |
868.308 |
649.737 |
NETWORTH
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1391.200 |
960.808 |
729.737 |
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LOAN FUNDS |
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1] Secured Loans |
1940.600 |
692.048 |
478.424 |
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2] Unsecured Loans |
329.900 |
279.828 |
0.000 |
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TOTAL
BORROWING |
2270.500 |
971.876 |
478.424 |
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Deferred Tax Liability |
0.000 |
209.241 |
57.425 |
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GRAND TOTAL
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3661.700 |
2141.925 |
1265.586 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2084.500 |
1362.521 |
418.611 |
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Capital work-in-progress |
118.000 |
0.000 |
0.000 |
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INVESTMENTS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2820.700 |
1802.212 |
1341.438 |
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Sundry Debtors |
829.400 |
673.283 |
460.472 |
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Cash & Bank Balances |
717.400 |
359.309 |
457.982 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
3770.400 |
945.055 |
932.061 |
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Total Current Assets |
8137.900 |
3779.859 |
3191.953 |
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Less : |
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Current Liabilities |
6650.200 |
2916.071 |
2287.900 |
Provisions
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28.500 |
84.384 |
57.078 |
Total Current Liabilities
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6678.700 |
3000.455 |
2344.978 |
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Net Current Assets |
1459.200 |
779.404 |
846.975 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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GRAND TOTAL
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3661.700 |
2141.925 |
1265.586 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
11516.500
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6941.800
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3237.400
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Other Income |
145.900
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33.000
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33.200
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Stock Adjustments |
772.900
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443.700
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890.000
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Total Income |
12435.300 |
7418.500 |
4160.600 |
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Profit/(Loss) Before Tax |
402.000 |
296.100 |
218.000 |
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Provision for Taxation |
71.600 |
165.000 |
63.800 |
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Profit/(Loss) After Tax |
330.400 |
131.100 |
154.200 |
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Imports : |
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Total Imports |
NA
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540.475 |
47.568 |
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Expenditures : |
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Raw Materials |
270.700
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260.700
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0.000
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Power & Fuel Cost |
188.000
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148.700
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3.700
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Other Manufacturing Expenses |
9683.200
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5413.000
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3100.900
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Employee Cost |
472.100
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351.300
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233.400
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Selling and Administration
Expenses |
796.900
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736.600
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297.800
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Miscellaneous Expenses |
30.100
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3.300
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169.900
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Interest & Financial Charges
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388.300
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123.400
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74.000
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Depreciation |
204.000
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85.400
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62.900
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Total Expenditure |
12033.300 |
7122.400 |
3942.600 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
1.41 |
0.90 |
0.37 |
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Long Term Debt
Equity Ratio |
0.58 |
0.54 |
0.37 |
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Current Ratio |
1.01 |
1.13 |
1.29 |
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TURNOVER RATIOS |
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Fixed Assets |
5.62 |
6.45 |
5.34 |
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Inventory |
4.98 |
4.42 |
3.83 |
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Debtors |
15.33 |
15.23 |
12.27 |
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Interest Cover
Ratio |
2.04 |
3.40 |
3.95 |
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Operating Profit
Margin (%) |
8.63 |
7.27 |
10.96 |
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Profit Before
Interest and Tax Margin (%) |
6.86 |
6.04 |
9.02 |
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Cash Profit
Margin (%) |
4.64 |
3.12 |
6.71 |
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Adjusted Net
Profit Margin (%) |
2.87 |
1.89 |
4.76 |
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Return on Capital
Employed (%) |
27.93 |
26.18 |
32.69 |
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Return on Net
Worth (%) |
28.10 |
15.51 |
23.63 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW
OF OPERATIONS
During the year under review, the turnover of the Company has shown a
phenomenal increase as compared to that of the previous year figure by
67%.
The increase was mainly on account of substantial EPC Contracts, in terms of
value, undertaken and completed during the year by the Company covering
industrial plants, Steel Plants, Power Plants, Supplying and laying of Gas
Pipeline and Water Pipelines. The Company has managed to sustain its growth
pattern in highly competitive market, by continuously focusing on enhancing its
operational competence and cost reduction.
The Directors are happy to inform you that the Company's EBIDTA for the year
under review has increased to 8.00% as compared to that of the previous year of
6.79% thereby substantiating the claims of the Management for working towards
improvement of operational efficiency and reduction of operating costs.
CONTRACTS
The Company continued its strong presence in Pipeline Sectors and has bagged
number of prestigious pipeline contract during the year under review from the
Public Sector Undertakings like Hindustan Petroleum Corporation Limited, GAIL
(India) Limited and Gujarat State Petronets Limited.
The following contracts have been completed during the year under review;
* Construction and Indigenous procurement for Iron Ore Beneficiation Plant and
laying of Iron Ore Fines Slurry Pipeline from Bailadia to Vizag.
* Contracts for laying of cross country pipeline of approximately 680 KMs
connecting Madras Refinery at Chennai with Trichy via
* Construction of Cold Rolled Mill Steel Complex at Hazira.
* Construction, Supply of Equipment & Commissioning of plant for expansion
of Pelletisation Plant at Vizag.
* Contracts for expansion of Pellet Plant of 3.3 MTPA to 4 MTPA at Vizag.
* Contracts for supply of indigenous machinery and equipment as well as
construction, erection of 150 MW combined cycle power plant at Hazira,
The total value of the revenue generated, during the year, for the aforesaid
completed contracts is Rs. 2570.900 Millions.
CONTRACTS IN HAND UNDER EXECUTION
The turnover of the Company during the year, as reported also includes
construction work undertaken for the following ongoing projects.
* Contract for indigenous supply, construction and erection of 30 MW Coal Fired
Captive Power Plant at Vizag.
* Contract for Engineering, Civil Works, Erection and commissioning of various
structures for expansion of HRC Steel Plant capacity from 2.4 MTPA to 4.5
MTPA.
* Widening and up-gradation of a portion of National Highway 4 in the State of
* Supply & laying of 10 KM Offshore Effluent Treatment Steel Pipeline from
Kantiajal Landfall Point in
* Construction and laying of MS Pipes and PSCC Pipes at Rajasthan.
* Contracts for operation and maintenance of Heavy Duty Equipments at Hazira,
* Contract for local procurement, fabrication, erection and commissioning of
1.50 MTPA capacity Plate Manufacturing Plant at Hazira,
* Contract for supply, erection and commissioning of 200MW Power Plant at
Hazira,
CONTRACTS
SECURED DURING THE YEAR
The Company has also secured the following major contracts during the year
under review.
* EPC Contract awarded by Gujarat State Petronet Limited for laying of pipeline
between Anklav - Dhuvaran in the state of Gujarat for a total contract value of
Rs. 373.300 Millions which has already been completed before 31st March
2006.
* EPC Contracts awarded by Gujarat Water Resources Development Corporation
Limited for providing and laying 2350 mm dia M. S. Pipe line from Narmada Main
Canal Channel 218.10 (Adundra) to Sujlam Sufalam Spreading Canal including
civil, mechanical, electrical and instrumentation of pumping station at Adundra
for a total contract value of Rs. 1205.000 Millions.
* EPC Contract awarded to the Consortium formed between JSC Stroytransgaz,
Russia and the Company for Anand - Rajkot Section - B Pipeline Project i.e.
from IPS-1 at Chuda to Rajkot, Gujarat ( 24' X 100 KM approx.) including Morbi
Spur line (18' X 68 KM approx.) awarded by Gujarat State Petronet Limited for a
total contract value of Rs. 2105.700 Millions
* Drilling Contract worth of Rs. 95.000 Millions from Larsen & Toubro
Limited - ECC Construction Division (L&TECCD) for Horizontal Directional
Drilling Works associated with mainline of 30' & OFC 6' for three rivers
namely Daman Ganga River, Kolak River and Par River of Mora-Vapi Pipeline
Project awarded to L&TECCD by Gujarat State Petronet Limited.
* Work Order from Essar Steel Limited for Engineering, Civil Work, Fabrication,
Erection and Commissioning of various Structures including technological
structures, Plant and Machinery for Steel Plant upgradation for a total
contract value Rs. 320 Millions.
* Work order from Essar Steel Limited for OBL Project, Civil Work, Erection and
Commissioning of various outside Battery Limit Project covering the following
consisting of Civil Construction Work and other worksof New Administrative
Building at Hazira, Flats at Nand-Niketan Colony and renovation of coil club at
Hazira, Gujarat for a total contract value of Rs. 340 Millions.
* Work order from Steel Corporation of Gujarat Limited for Civil Works,
Construction and Erection of the project facilities and certain expansion
activities namely Packaging Line, Electrolytic Cleaning Line, EDT Line, 5th
Stand for Continuous Mill, FIMI Cut to length line, Roll Grinder, Recoiling and
Trimming Line and other miscellaneous work for a total contract value of Rs.
550 Millions.
* Sub-Contract Agreement with JSC Stroytransgas,
* EPC Contract awarded to the Consortium formed between DQE International,
Peoples Republic of China and the Company for laying of pipeline and associated
facilities of Spread II between Jalalpur (SV7) to Bhoirpada (IP Station 3)
covering distance of 147 KM and overall commissioning of the total pipeline
system for Dehaj - Uran Pipeline Project of GAIL (India) Limited for a total
contract value of Rs. 1298.800 Millions.
* EPC Contract for Bhander Power Limited for 140 MW Gas Fired Combined Cycle
Power Plant in Hazira,
During the year under the review, the total value of the work executed for the
ongoing projects and also the new contracts secured during the year is Rs.
9398.600 Millions
CONSTRUCTION EQUIPMENTS &
MACHINERY
During the year under review, the Company continued to acquire
large fleet of Construction Equipments and Machinery consisting of most modern
construction equipments namely Pipe layers, Excavators, Pile Drilling Rigs,
Bending Machines, High Capacity Crawler Cranes, Heavy Capacity Vehicles etc.
The latest project execution techniques are deployed towards improving
efficiency and quality resulting in decrease in operational cost and equipment
hire charges. The net assets base of the construction equipments and machinery
has substantially been increased to Rs. 2090 Millions as compared to the previous
year figure of Rs. 1210 Millions.
BUSINESS PROSPECTS
The growth of Indian Economy has thrown challenges for creating proper
Infrastructure to sustain the growth envisaged. Government of
The consistent increase in crude oil price in International Market has created
a boom in the Middle East Market, as numbers of new green field projects in the
Refinery and Petro-Chemical Sectors are coming up with the latest technological
inputs.
The firming up of steel prices in the international markets and the growing
demands of Hot Rolled Coils, world over, has resulted in a number of existing
steel making companies, setting up of green field projects, mainly in the
eastern part of India, as well as overseas having close proximity of
mines.
The Company has got its unique experience which can cater to most of the
business opportunities stated above, as it has demonstrated the ability to lay
cross country Oil & Gas Pipelines, setting up of Power Plants, setting up
of Steel Manufacturing facilities on EPC basis. It has already submitted a
number of Expression of Interest (EOI) to get qualified with the prospective
clients by providing expression of interest for the projects in the above
fields. In certain cases, it is joining hands with the International Leading
Construction Companies on Project to Project basis, for getting qualified for
doing the projects in Pipe Laying Sectors, Petro-chemical Sectors, Power Plants
and Steel Plants.
Currently, the Company is having consortium arrangements with JSC
Stroystransgaz [STG] of Russia, DQE International of China, Harbin Power
Engineering Company Limited, China and SEPCO Electric Power Construction
Corporation, China for doing the Pipeline jobs and Power Plant Projects.
For MRTS Project, it has been short listed as one of the qualified bidders for
the Hyderabad Mass Rapid Transit System by bringing the Consortium of
Singaporean Companies comprising of Sembcorp Engineers & Constructions PTE
Limited, Singapore Technologies Engineering Limited, SMRT Engineering PTE
Limited, who have experience in the MRTS fields.
During the year, the Company has done an exploratory business trip to
ACQUISITION OF CONSTRUCTION BUSINESS OF
ESSAR PROJECTS LIMITED
Essar Projects Limited [EPL] has been in existence from 1990, which is a part
of Essar Group. It has the distinction of completing a number of mega projects
namely Pelletization Plant at Vizag, 515 MW Power Plant for Essar Power Limited
at Hazira, 2.3 MT capacity HRC Plant for Essar Steel Limited at Hazira, Sponge
Iron Plant for Essar Steel Limited, on Engineering, Procurement and
Construction basis. Currently, EPL is also engaged in undertaking the total
Erectioning, Commissioning and Domestic Procurement of 12 MMTPA Grass Route
Refinery for Essar Oil Limited at
The Board of Directors of Essar Constructions Limited (ECL) were of the opinion
that there is a lot of synergy available between EPL and the Company as both
are associated with undertaking projects on EPC basis. It was felt that, to
capture the value of EPL's capabilities, the existing construction business of
EPL, if transferred to ECL, would be of great advantage for the company as, the
company can continue to get qualified and execute the Contracts for Refinery
and Petro-chemical Sectors which has tremendous growth potential in the current
scenario. With this aim in view, the Company has decided to acquire the
Construction Division of EPL, on a going concern basis, with effect from the
closing hour of 30th June, 2006 for a net consideration of Rs. 10 Millions. As
a result of this transfer of business, as a going concern, the ongoing business
of EPL i.e. Oil Refinery of Essar Oil Limited, Terminal Project of Vadinar Oil
Terminal Limited, Road Construction Project of National Highways Authority of
India (NHAI), Davangere, Karnataka and Water Pipeline Project in Rajasthan has
been transferred to the Company with all its rights and obligations including
the experience, equipments, manpower and assets associated with the EPL's Construction
Division.
Acquisition of Construction Division of EPL, by way of a going concern basis,
will substantially enhance the Company's business potentials and the execution
capabilities in the years to come and it can be on a competitive platform for
bidding for any projects of Oil Refinery, Petro-chemical Sectors, Power
Sectors,Road and Expressway Sectors, globally.
FINANCIAL RESOURCES
During the year under review, the Company has been successful in enhancing the
working capital facilities of Rs.6130 Millions from the Consortium of Working
Capital Bankers by inducting ICICI Bank Limited into the existing consortium of
working capital bankers comprising Dena Bank, UCO Bank, United Bank of India,
Central Bank of India to meet with the working capital requirements for the
execution of the various ongoing EPC Contracts.
Besides, working capital facilities, the Company has also been successful in
securing following line of credit facilities from the Banks.
1. Rupee Term Loan / Foreign Currency Term Loan to the extent of Rs. 630
Millions from Union Bank of
2. Capex Line of Credit facilities to the extent of Rs. 50 Millionss from ICICI
Bank Limited for procurement of Capital Goods, Machinery and Construction
Equipments.
Generic Name of Principal Product/Service of the company
are:
Construction and Project Related Activity
Fixed
Assets
Plant & Machinery
Furniture & Fixture
Office Equipment
Commercial Vehicles
Motor Cars
AS PER WEBSITE
Trade
References
v
Agarwal Metal Sales Corporation
v
Goa Mining & Spare Parts Private
Limited
v
MPL Parts And Services Limited
v
Parvalhi Conveyros & Constructions
v
Sri Sowmya Enterprises (
v
Yavagal Electronics &
Communications
Press Releases
Essar Constructions along with DQE bags Rs. 1290.000
Millions gas pipeline project from GAIL
25.05. 2006
The consortium of Essar Constructions Limited (ECL)
and DQE International,
The project is scheduled to be completed in 11 months at a cost of Rs. 1290.000
Millions.
The scope of the project includes residual engineering, geotechnical survey,
pipe laying work, laying of Optical Fibre Cables, construction and installation
of related facilities like scrapper launching / receiving stations, terminals,
pre-commissioning, commissioning and "gas-in" of the pipelines. The
contract also covers the supply of bulk materials, casing pipes , HDPE ducts
and other consumables. The major feature of the project is Automatic welding
and Automatic UT.
Essar Constructions has a track record of laying over 2000 kms. of pipelines
for petroleum products for various clients including Indian Oil Corporation,
Hindustan Petroleum and Gujarat State Petronet Corporation. In addition, it has
laid cross country pipelines for drinking water and has extensive experience in
the construction of land and marine pipelines. It is the only Indian company to
have built and commissioned the world's second longest iron ore slurry pipeline
(267 kms.) in some of the most difficult terrain.
About Essar Constructions
Essar Constructions is one of
About Essar Group
The Essar Group is one of
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.40.46 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.54.96 |
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 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|