MIRA INFORM REPORT

 

 

Report Date :

25.06.2007

 

IDENTIFICATION DETAILS

 

Name :

FERROMATIK MILACRON INDIA LIMITED

 

 

Formerly Known As :

Cinnati Milacron Private Limited

 

 

Registered Office :

53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

08.05.1995

 

 

Com. Reg. No.:

25783

 

 

CIN No.:

[Company Identification No.]

U74999GJ1995PLC025783

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMF00035A

 

 

PAN No.:

[Permanent Account No.]

AABCC0881D

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers and Sellers of Injection Moulding Machines.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 193804

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office :

53, Madhuban, Near Madalpur Underbridge, Ellisbridge P.O., Ahmedabad – 380006, Gujarat, India.

Tel. No.:

91-079-26440331

Fax No.:

91-079-26421324

E-Mail :

mamatagroup@mamata.com

Website :

http://www.mamata.com

http://www.milacronindia.com

 

 

Head Office :

Ferromatik Milacron India limited, 92, Phase – I, G. I. D. C., Vatva, Ahmedabad – 382 445,  Gujarat, India.

Tel. No.:

91-79-25830063 / 25890133 / 25890081

Fax No.:

91-79-25830125

E-Mail :

salesfmi@milacron.com

Website :

http://www.milacronindia.com

 

 

Factory 1 :

92, Phase – I, GIDC, Vatva, Ahmedabad – 382445, Gujarat, India

Tel. No.:

91-79-5832023/24/25

Fax No.:

91-79-5832026

 

 

DIRECTORS

 

Name :

Mr. N. Mahendra Patel

Designation :

Director

Address :

15, Kairavi Bungalow, Near Sarthi Hotel, Vastrapur Road, Bodakdev, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

17.01.1949

Date of Appointment :

31.05.1995

 

 

Name :

Mr. J Thomas Zacharias

Designation :

Director

Address :

6535, Oriskamy Drive, Love Land, Cincinnati – 45140, Ohio, USA

Date of Birth/Age :

29.09.1957

Date of Appointment :

31.05.1995

 

 

Name :

Mr. F. Bruce Kozak

Designation :

Director

Address :

5999, Wood View, Mil Ford, 45140, Ohio, USA

Date of Birth/Age :

03.08.1948

Date of Appointment :

31.05.1995

 

 

Name :

Mr. J. Hariold Falg

Designation :

Director

Address :

2244, Spinning Wheel Lane, Cincinnati – 45244, Ohio, USA

Date of Birth/Age :

17.07.1948

Date of Appointment :

31.05.1995

 

 

Name :

Mr. J. William Gruber

Designation :

Director

Address :

4165, Halfacre Road, Batavia 45103, Ohio, USA

Date of Birth/Age :

19.07.1953

Date of Appointment :

29.03.1996

 

 

Name :

Mr. Narsinhbhai K.  Patel

Designation :

Director

Address :

15, Kairavi Bungalow, Near Sarthi Hotel, Vastrapur Road, Bodakdev, Ahmedabad – 380 054, Gujarat, India

Date of Birth/Age :

05.03.1926

Date of Appointment :

31.05.1995

 

 

Name :

Mr. L. Jerome Fedders

Designation :

Director

Address :

8439, Oak,  Canyon Drive, Love Land, Ohio 45140, USA

Date of Birth/Age :

22.11.1943

Date of Appointment :

31.05.1995

 

 

Name :

Mr. S. Walter Wood

Designation :

Director

Address :

4701, Marburg Avenue, Milacron – 45244, Ohio, USA

Date of Birth/Age :

16.01.1959

Date of Appointment :

19.06.1996

 

 

Name :

Mr. C. William Murray

Designation :

Director

Address :

2453, Coveyrun, South Cincinnati, Ohio – 45230, USA

Date of Birth/Age :

30.12.1933

Date of Appointment :

13.11.1997

 

 

Name :

Mr. A. Ross Anderson

Designation :

Director

Address :

4196, Wood Knoll Drive, Batavia – 45103, Ohio, USA

Date of Birth/Age :

16.12.1956

Date of Appointment :

18.02.1998

 

 

Name :

Mr. D. Ronald Brown

Designation :

Director

Address :

8819, Foxbro Court, Cincinnati, Ohio, USA

Date of Birth/Age :

18.15.1953

Date of Appointment :

24.09.1998

 

 

Name :

Mr. P. David Hahn

Designation :

Director

Address :

P P Box 790, 200 Dekko Drive, Avilla, Indiana – 46710, USA

Date of Birth/Age :

05.07.1941

Date of Appointment :

10.12.1998

 

 

Name :

Mr.I. James O’neal

Designation :

Director /

Address :

2085, Grand View Lane, Batavia, Ohio – 45103, USA

Date of Birth/Age :

24.10.1952

Date of Appointment :

08.11.2000

 

 

Name :

Mr. R. Werle Dale

Designation :

Director

Address :

4165, Halfacre Road, Batavia – 45103, Ohio, USA

Date of Birth/Age :

19.08.1959

Date of Appointment :

25.04.2001

 

 

Name :

Mr. C. Hohn Francy

Designation :

Director

Address :

2090, Florence Avenue, Cincinnati – 45206, Ohio, USA

Date of Birth/Age :

24.10.1964

Date of Appointment :

25.04.2001

 

 

Name :

Ms. L. Linda Chavez

Designation :

Director

Address :

3809, Arobor Lane, Cincinnati – 45255, Ohio, USA

Date of Birth/Age :

09.06.1961

Date of Appointment :

25.04.2001

 

 

Name :

Mr. I James O’neal

Designation :

Chairman Cum Managing Director

Address :

2085, Grand View Lane, Batavia, Ohio – 45103, USA

Date of Birth/Age :

14.10.1952

Date of Appointment :

25.04.2001

 

 

Name :

Mr. C. Satyen Sarkar

Designation :

Manager

Address :

22, Shyamal Row Houses, Satellite Road, Ahmedabad – 380015, Gujarat, India.

Date of Birth/Age :

10.06.1948

Date of Appointment :

01.04.1999

 

 

Name :

Mr. K. Narasinh Balgi

Designation :

Manager

Address :

B – 401, Sumadhur –II, Near Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

01.06.1943

Date of Appointment :

01.04.1999

 

 

Name :

Mr. Woerner Jay

Designation :

Chairman Cum Managing Director

Address :

10596, Mountain, Laurelway Union, K Y 1091, USA

Date of Birth/Age :

11.11.1949

Date of Appointment :

25.09.2003

 

 

Name :

Mr. Heinz Karl Bourdon

Designation :

Director

Address :

Waldstrasse 19, 79312, Emmendingen, Germany

Date of Birth/Age :

12.06.1957

Date of Appointment :

25.09.2003

 

 

Name :

Mr. K. Narasinh Balgi

Designation :

Director

Address :

B – 401, Sumadhur – II, Near Azad Society, Ambawadi, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

01.06.1943

Date of Appointment :

05.06.1904

 

 

Name :

Mr. I James O’neal

Designation :

Director

Address :

2085, Grand View Lane, Batavia, Ohio – 45103, USA

Date of Birth/Age :

24.10.1952

Date of Appointment :

16.02.2005

 

 

Name :

Mr. M. Manish Patel

Designation :

Director

Address :

15, Kairavi Bungalow, Near Sarthi Hotel, Vastrapuram Road, Bodakdev, Ahmedabad – 380054, Gujarat, India

Date of Birth/Age :

19.06.1980

Date of Appointment :

22.06.2006

 

 

Name :

Mr. Brijesh Thakker

Designation :

Director

 

 

Name :

Mr. J. V. Thakker

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. G. Pradip Mistry

Designation :

Secretary

Address :

1, Jagdeep, H I, Ghland Park Society, Gulabai Tekra, Ahmedabad – 380015, Gujarat, India

Date of Birth/Age :

15.12.1957

Date of Appointment :

01.06.1998

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names Of Shareholders

 

No. of Shares

Machinery Mamata

 

2,21,085

Marketing Milacron

 

26,89,830

Mr. B. Kaushik Patel

 

2,000

Shantaben B.  Patel

 

2,000

Mr. M Kintendra Shah

 

5,000

Mr. Popatlal Ashok Patel

 

5,000

Nayanaben M. Patel

 

35,835

Tarana M. Patel

 

15,000

Mr. Mrskirti K. Patel

 

2,000

Mr. C. Bholabhai Patel

 

2,000

Mr. N. Mahendra Patel

 

20,250

Mr. Brijesh Thakker

 

10

Mr. J. V. Thakker

 

10

 

Equity share breakup (percentage of total equity)

S. No.

category

Percentage

1

Foreign holdings(foreign institutional investor(s), foreign companie(s), foreign financial institution(s), non-resident Indian(s) or overseas corporate bodies

89.66

2

Bodies corporate (not mentioned above)

7.37

3

Director or relatives of directors

2.37

4

Other top fifty (50) shareholders (other than listed above)

0.60

 

Total

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Sellers of Injection Moulding Machines.

 

 

Products :
  • Plastic processing machinery
  • Spares
  • Service charges

 

PRODUCTION STATUS

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Plastic Processing Machinery  (as at 31.03.2005)

Nos

NA

Not determined

373

Plastic Processing Machinery  (as at 31.03.2004)

Nos

NA

Not determined

306

 

 

GENERAL INFORMATION

 

Suppliers :
  • Akar Paints
  • Aarike Engineering Enterprises
  • Ahmedabad Moulds
  • Akar Industries
  • Alpha Electric And Engineering Private Limited
  • Anupam Leaters And Controls Private Llimited
  • Ark Atlas Cabie Industries
  • Aswel India Private Limited
  • Bhagwati Engineering Works
  • Bipin Industries Corrosion Control
  • Diamond Tin Industries
  • Drill Rod Machinery Private Limited
  • Energy Machines Private Limited
  • Esjay Industries
  • Excel Engineers
  • Harsiddh Industries
  • Hasolon Polvmers Corporation
  • Hercales Industries Hydorlines
  • Hydrolines India Hydor Engineers Private Limited

 

 

 

No. of Employees :

100

 

 

Bankers :
  • J. P. Morgan Chase Bank, New York
  • Credit Lyonnais

1st Floor, ‘Abhijeet’, Mithakhali Cross Road, Ahmedabad – 380006, Gujarat, India

 

 

Facilities :

 

SECURED LOANS

 

31.03.2005

(In Millions)

31.03.2004

(In Millions)

Loan For Car Finance

0.906

1.665

Less Loan Unmatured Finance Charges

0.013

0.103

 

0.894

1.562

Loan For Car Finance Is Secure By Vehicles Acquired Under Agreement

 

 

Total

0.894

149.580

 

UNSECURED LOAN

 

31.03.2005

(In Millions)

31.03.2004

(In Millions)

Cash Credit From Bank

32.940

--

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S. R. Batliboi and Company

Chartered Accountants

Address :

6th Floor, Express Tower, Nariman Point, Mumbai – 400 021, Maharashtra, India.

 

 

Collaborators :
  • Schelenkas Enterprises Inc., USA
  • Polydynamics Inc., Cananda
  • Klockner Hansel GmbH, Germany
  • Pure Pack Inc., USA
  • Hibar Systems, Canada
  • Alsan Technologies, Canada
  • Klockner Bartelt, Germany
  • KHB Investment Holdigns S.A., Luxumberg

 

 

 

Associates/Subsidiaries :
  • Mamata Brampton Engineering Private Limited
  • Mamata Solar Private Limited
  • Mamata Ariwings Private Limited
  • KHS Machinery Private Limited
  • Klockner Desma Machinery Private Limited
  • Mamata Machinery Private Limited
  • Sourcepro Infotech Private Limited
  • Mamata Marketing Services
  • Win Engineering Private Limited
  • Darling Muesco India Private Limited
  • Saturn Travels
  • Mukti Trust
  • Milacron plastic techonologies group inc
  • Milacron international marketing company Singapore
  • Ferromatik Milacron maschinenbau combl
  • Milacron tracing ( Shanghai) company limited
  • Undov Milacron S R L
  • Milacron plastic machinery (jiangyn) company limited

Holding Company:
  • Milacron marketing company

Parent of Holding Company:
  • Milacron inc.

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

3000000

Equity shares

Rs. 100/- each

Rs. 300.000 millions

1000000

Preference shares

Rs. 100/- each

Rs. 100.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

3000000

Equity shares

Rs. 100/- each

Rs. 300.000 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

300.000

300.000

300.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

48.151

0.006

0.000

4] (Accumulated Losses)

0.000

0.000

(68.075)

NETWORTH

348.151

300.006

231.925

LOAN FUNDS

 

 

 

1] Secured Loans

16.411

0.894

149.579

2] Unsecured Loans

0.000

32.940

0.000

TOTAL BORROWING

16.411

33.834

149.579

DEFERRED TAX LIABILITIES

23.026

10.845

0.000

 

 

 

 

TOTAL

387.588

351.009

381.504

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

236.977

223.761

230.309

Capital work-in-progress

6.617

15.269

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
266.029

221.610

172.447

 

Sundry Debtors
140.524

126.199

100.866

 

Cash & Bank Balances
37.383

2.417

122.615

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
51.913

21.676

25.042

Total Current Assets
495.849

371.902

420.970

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
302.410

233.353

248.724

 

Provisions
49.445

26.570

21.051

Total Current Liabilities
351.855

259.923

269.775

Net Current Assets
143.994

111.979

151.195

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

387588

351.008

381.504

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

1039.142

1013.989

825.346

Other Income

19.932

10.091

1747

Total Income

1059.074

1024.080

830.094

 

 

 

 

Profit/(Loss) Before Tax

98.584

90.690

45.800

Provision for Taxation

0.000

16.285

31.921

Profit/(Loss) After Tax

98.584

74.405

13.879

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export Earnings

0.000

298.431

187.867

 

Service charges

0.000

6.455

3.684

 

Freight recovered

0.000

11.840

3.918

Total Earnings

0.000

316.726

195.469

 

 

 

 

Imports :

 

 

 

Total Imports

0.000

128.541

81.466

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

0.000

131.961

115.772

 

Employee remuneration and benefits

0.000

34.659

17.237

 

Raw Material Consumed

768.481

705.570

605.527

 

Purchases made for re-sale

0.000

0.000

0.000

 

Consumption of stores and spares parts

10.326

0.000

0.000

 

Increase/(Decrease) in Finished Goods

(43.359)

7.645

(21.680)

 

Salaries, Wages, Bonus, etc.

59.395

0.000

0.000

 

Managerial Remuneration

2.191

0.000

0.000

 

Payment to Auditors

0.500

0.000

0.000

 

Interest

0.643

17.887

19.791

 

Insurance Expenses

1.648

0.000

0.000

 

Power & Fuel

9.864

0.000

0.000

 

Depreciation & Amortization

18.238

15.668

17.647

 

Other Expenditure

132.563

0.000

0.000

Total Expenditure

960.490

933.390

784.293

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

PAT / Total Income

(%)
9.30

7.26

1.67

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
9.48

8.94

5.54

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
13.45

15.22

7.03

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.28

0.30

0.19

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.05

0.97

1.80

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.40

1.43

1.56

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was incorporated on 8th May, 1995 at Ahmedabad in Gujarat having Company Registration Number 25783 under the name and style of ‘Cincinnati Milacron Private Limited’.  The name was changed to the present w.e.f. 01.07.1998.

 

BUSINESS

 

Subject is engaged in as Manufacturers and Sellers of Injection Moulding Machines.

 

Generic Name of Principal Product/Service of the company is as under :

 

Item Code No. : 84771000

Product Description : Injection Moulding Machines

 

Fixed assets:

  • Land leasehold
  • Building
  • Plant and machinery
  • Patterns and jigs
  • Computers
  • Furniture and fixtures
  • Office equipments and air conditioner
  • Vehicles

 

As per website details:

Subject., is one of the strategic & important manufacturing base of Milacron Inc. USA, the global leader in plastics processing machinery and manufacturing technologies. With over 120 years of manufacturing experience of Milacron Inc., they bring world-class technology and innovation at the doorstep, helping plastic industry to stay competitive in the ever-demanding global market.

Subject strives to find better solutions to customer needs. They are committed towards offering the best in terms of innovation, quality, delivery and value, to build productivity. They are driven to provide growth opportunities to their Employees, Suppliers and Shareholders while adhering to the business philosophy of Total Quality Leadership and their Core Values viz. Customer Satisfaction, Employee Opportunity, Company Growth and Integrity, in all they do.

Purpose

"They are in the business of providing products and  services to increase productivity of processors by offering appropriate technology, so as to generate Economic Value for Customers and Shareholder"

MILACRON INC., USA

First incorporated in 1884, Milacron is a leading supplier of technologically advanced products and services to the plastic processing and metal working industries, throughout the world. Over the years, it has grown to be the global leader in Plastics Processing Machinery Business with 12 different brands of machinery  and supporting equipment operating under the "Milacron" umbrella, world wide.

They’re proud to say, that, Milacron is:

  • World's broadest-line producer of machines, systems, tooling and supplies for plastic processing.
  • The largest maker of plastics machinery in North America and second largest worldwide.
  • World's broadest line producer of machines, systems, tooling and supplies for the plastics processing industry.
  • The second largest cutting tool maker in North America and the third largest worldwide.

The geographical spread of the business and employment of people speaks for Milacron's global presence.

Corporate Milestones:

  • Established in 1884
  • Sales Turnover US $ 1.3 billion - 2001
  • Over a century of the finest quality manufacturing traditions
  • Over 11,700 employees worldwide
  • 30 major plants around the world
  • A "global" leader in advanced manufacturing capability and state-of-the art technology.

Product Range

 

Our state-of-the-art manufacturing plant builds microprocessor controlled plastic Injection and Blow Moulding Machines. More than 32 different models comprisetheir range of Sigma, Omega, Delta, Maxima, Elektron and UMS Extrusion Blow Moulding Machines. UMS is an addition totheir diversification in Blow Moulding business with technology fromtheir affiliate - Uniloy Milacron, Italy.

SIGMA - TOGGLE INJECTION MOULDING MACHINE

DELTA- CLOSED LOOP TOGGLE INJECTION MOULDING MACHINES

OMEGA - HYDRAULIC INJECTION MOULDING MACHINES

MAXIMA - TWO PLATEN INJECTION MOULDING MACHINES

MAGNA - CLOSED LOOP HYDRAULIC  INJECTION MOULDING MACHINES


 ELEKTRON - THE NEW ALL ELECTRIC INJECTION MOULDING MACHINE

 

Shuttle Series

Extrusion  Blow Moulding Machines

Stretch Blow Moulding Machines

 

 

 

 

 

 

 

 

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.40.81

UK Pound

1

Rs.81.57

Euro

1

Rs.54.91

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

 

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

51

 

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

 

 

 

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