MIRA
INFORM REPORT
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Report Date : |
28.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
UNIPHOS ENTERPRISES LIMITED |
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Registered Office : |
11, G.I.D.C., Vapi, District Bulsar, Gujarat - 396 195 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
29.05.1969 |
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Com. Reg. No.: |
04-1588 |
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CIN No.: [Company Identification No.] |
L24219GJ1969PLC001588 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMU03711B |
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Legal Form : |
The company is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Trader of Phosphorus and its Compounds, Pesticides, Mercury Salts and Pesticides Intermediates. |
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 1500000 |
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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 part of United Phosphorous Group, a well established industrial house. Trade relations are fair. Payments are reported as correct and as per commitments. Profit margin is under severe pressure. However, the company is expected to do well as management is strong and having good track. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
11, G.I.D.C., Vapi, District Bulsar, Gujarat - 396 195, India |
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Tel. No.: |
91-2638-232716 – 232720/232992 |
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Fax No.: |
91-2638-231823 |
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E-Mail : |
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Website : |
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Head Office : |
Ready Money Terrace, 167 A. B. Road, Worli, Mumbai – 400 018, Maharashtra, India |
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Tel. No.: |
91-22-24930681 / 24935666 / 24930560 |
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Fax No.: |
91-22-24937331 / 2493 8826 |
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Administrative Office : |
Uniphos House, C.D. Marg, Khar (West), Mumbai - 400 052, Maharashtra, India |
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Tel. No.: |
91-22-26461368 / 26461506 / 26461507 / 26461540 |
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Fax No.: |
91-22-26041010 |
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E-Mail : |
SOLE
PROPRIETOR/PARTNERS/DIRECTORS
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Name |
Mr. R.D. Shroff |
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Designation |
Chairman & Managing Director |
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Age |
66 years |
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Qualification |
B.Sc. |
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Date of Joining |
29.05.1969 |
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Name |
Mrs. S.R. Shroff |
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Designation |
Vice Chairman |
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Age |
59 years |
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Date of Joining |
29.05.1969 |
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Name |
Mr. K.M. Banerjee |
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Designation |
Wholetime Director |
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Age |
57 years |
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Qualification |
B.Tech. |
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Date of Joining |
01.07.1977 |
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Name |
Mr. J. R. Shroff |
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Designation |
Director |
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Age |
35 years |
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Qualification |
B.Sc. |
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Date of Joining |
01.01.1990 |
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Name |
Mr. A C Ashar |
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Designation |
Director |
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Name |
Mr. Pradeep Goyal |
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Designation |
Director |
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Name |
Mr. Prakash Shah |
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Designation |
Director |
KEY EXECUTIVES
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Name : |
Mr. K m Thacker |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
holding |
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Indian Public |
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26.82 |
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NRIs /OCBs |
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5.91 |
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Promoter |
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40.62 |
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FIIs |
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14.51 |
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Corporate Bodies |
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3.60 |
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Mutual Funds/LIC/ Banks |
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8.54 |
BUSINESS DETAILS
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Line of Business : |
Trader of Phosphorus and its Compounds, Pesticides, Mercury Salts and Pesticides Intermediates. |
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Products : |
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Brand Names : |
“Quick-Phos” |
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Exports to : |
USA, Germany and Australia, Australia, Indonesia, Sri Lanka, Bangladesh, Vietnam, Russia, Zambia, UK, USA and Europe. |
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Imports from : |
Australia, China, France, Germany, Japan, UK and USA. |
GENERAL
INFORMATION
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No. of Employees : |
Around 50 |
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Bankers : |
v Canara Bank, Mumbai v IDBI Bank Limited, Mumbai v State Bank of India v HDFC Bank Limited v Yes Bank Limited |
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Facilities : |
Secured Loan (figures are in Rs. millions)
Notes: 1] Term Loan from Yes Bank Limited, is to be secured by a first exclusive charge in the immovable fixed assets of the company situated at Mumbai. 2] Vehicle finance loan from ICICI Bank Limited is secured by way of hypothecation of vehicle purchased under the said scheme. Unsecured Loan (figures are in Rs. millions)
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Banking Relations
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Satisfactory |
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Auditors : |
S. V. Ghatalia & Associates Chartered Accountants |
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Associates : |
v Agri Net Solution Limited v Bharuch Enviro Infrastructure Limited v Midland Fumigant, Inc. v Kaw Valley, Inc. v Bloom Packaging Private Limited v Bloom Industrial Plastics Private Limited v Demuric Holdings Private Limited v Esthetic Finvest Private Limited v Jai Research Foundation v Kline Chemicals Private Limited v Nerka Chemicals Private Limited v Nivi Trading Limited v R Shroff Consultants Private Limited v Rakshak Chemicals Private Limited v Shroff United Chemical Limited v Ultima Search v Uniphos Agro Industries Limited v Vikram Farm v Shroff Envirotral Private Limited v Sovereign Holdings Private Limited v Teknomic Consultants Private Limited v SWAl Corporation Limited v Uniphos Seeds and Biogenetics Private Limited |
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Subsidiaries : |
v Agrodan A/S, Denmark v Biowin Corporation Limited v Enviro Technology Limited v Inventa Corporation v Bio-Win Corporation Limited v United Phosphorus Limited (Zambia) v United Phosphorus Limited (Australia) v United Phosphorus De Mexico S.A. De. C.V. v Agrodan A/S, U.K. v United Phosphorus Inc. (USA) v United Phosphorus Limited (Hong Kong) v United Phosphorus Limited, Shanghai v United Phosphorus Limited, Japan v United Phosphorus Limited, UK v United Phosphorus Limited (Russia) v United Phosphorus De Argentina, S.A. v United Phosphorus Belgium S P R L v United Phosphorus Zimbabwe Limited v United Phosphorus South Africa Limited |
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Memberships : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 2/- each |
Rs. 300.000 millions |
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7000000 |
Preference Shares |
Rs. 100/- each |
Rs. 700.000 millions |
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Total |
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Rs. 1000.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25474670 |
Equity Shares |
Rs. 2/- |
Rs. 50.949 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 |
50.949 |
50.949 |
50.949 |
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2] Reserves & Surplus |
313.624 |
317.478 |
336.645 |
NETWORTH
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364.573 |
368.427 |
387.594 |
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LOAN FUNDS |
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1] Secured Loans |
100.367 |
100.443 |
0.000 |
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2] Unsecured Loans |
182.000 |
144.170 |
212.959 |
TOTAL BORROWING
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282.367 |
244.613 |
212.959 |
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DEFERRED TAX LIABILITIES |
2.390 |
3.086 |
3.028 |
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TOTAL
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649.330 |
616.126 |
603.581 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
50.680 |
53.578 |
55.720 |
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Capital work-in-progress |
93.478 |
9.884 |
6.557 |
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INVESTMENTS |
532.062 |
532.062 |
532.062 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000 |
0.062 |
0.000 |
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Sundry Debtors |
0.000 |
0.000 |
1.370 |
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Cash & Bank Balances |
3.184 |
3.753 |
3.680 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
150.731 |
163.365 |
139.320 |
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Total Current Assets |
153.915 |
167.180 |
144.370 |
Less: CURRENT LIABILITIES & PROVISIONS
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Current Liabilities |
180.805 |
146.578 |
132.254 |
Provisions
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0.000 |
0.000 |
2.874 |
Total
Current Liabilities
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180.805 |
146.578 |
135.128 |
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Net Current Assets |
(26.890) |
20.602 |
9.242 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL
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649.330 |
616.126 |
603.581 |
PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
9.297 |
4.035 |
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Other Income |
38.366 |
17.533 |
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Total Income |
47.663 |
21.568 |
161.617 |
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Profit/(Loss) Before Tax |
(3.850) |
(11.405) |
(21.630) |
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Provision for Taxation |
0.004 |
0.058 |
0.038 |
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Profit/(Loss) After Tax |
(3.854) |
(11.463) |
(21.592) |
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Total Earnings |
NA |
NA |
126.187 |
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Total Imports |
NA |
NA |
1301.729 |
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Expenditures : |
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Administrative Expenses |
27.073 |
14.675 |
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Purchases made for re-sale |
3.066 |
1.359 |
183.247 |
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Interest |
17.723 |
14.128 |
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Depreciation & Amortization |
3.651 |
14.128 |
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Total Expenditure |
51.513 |
32.973 |
183.247 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales
Turnover |
0.000 |
0.000 |
0.000 |
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Other Income |
3.000 |
14.000 |
4.100 |
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Total Income |
3.000 |
14.000 |
4.100 |
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Total
Expenditure |
0.300 |
0.800 |
0.700 |
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Operating
Profit |
2.700 |
13.200 |
3.400 |
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Interest |
7.200 |
6.900 |
6.800 |
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Gross Profit |
(4.500) |
6.300 |
(3.400) |
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Depreciation |
0.600 |
0.700 |
0.700 |
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Tax |
0.000 |
0.000 |
0.000 |
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Reported PAT |
(5.200) |
5.500 |
(4.100) |
200606 Quarter 1
Notes
Expenditure Includes Staff Cost Rs 0.279 million Other Expenditure Rs 0.043 million Tax Indicates Provision for Deferred Tax Rs 0.061 million Fringe Benefit Tax Rs 0.002 million Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 06 Complaints disposed off during the quarter 06 Complaints unresolved at the end of the quarter Nil 1. The above unaudited financial results were reviewed by the Audit Committee and thereafter approved at the Meeting of the Board of Directors held on July 28, 2006. 2. Statutory Auditors have carried out a Limited Review of the results for the quarter ended June 30, 2006. 3. There were no trading activities during the quarter. 4. The segment information is not given since the Company is of the view that they have operated in a single segment, viz. Trading activity. 5. Previous period's/ year's figures have been regrouped/rearranged wherever necessary.
200609 Quarter 2
Notes
Status of Investor Complaints for the quarter ended 31.10.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 7 Complaints disposed off during the quarter 7 Complaints unresolved at the end of the quarter Nil 1. The above audited financial results were reviewed by the Audit Committee and thereafter approved at the Meeting of the Board of Directors held on 31.10.2006 2. The segment Information is not given since the Company is of the view that they have operated in a single segment, viz. Trading activity. 3. Previous period's/ year's figures have been regrouped/rearranged wherever necessary.
200612 Quarter 3
Notes:
Expenditure Includes Staff Cost Rs 0.279 million Other Expenditure Rs 0.407 million Tax Indicates Provision for Deferred Tax Rs 0.061 million Fringe Benefit Tax Rs 0.002 million Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 05 Complaints disposed off during the quarter 05 Complaints unresolved at the end of the quarter Nil 1. The above unaudited financial results were reviewed by the Audit Committee and thereafter approved at the Meeting of the Board of Directors held on January 30, 2007. 2. Statutory Auditors have carried out a 'Limited Review' of the said results. 3. The segment information is not given since the Company is of the view that they have operated in a single segment, viz. Trading activity. 4. Previous period's/ year's figures have been regrouped/rearranged wherever necessary.
KEY RATIOS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Debt-Equity Ratio |
0.72 |
0.61 |
0.72 |
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Long Term Debt-Equity Ratio |
0.27 |
0.13 |
0.47 |
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Current Ratio |
0.49 |
0.48 |
1.62 |
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TURNOVER RATIOS |
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Fixed Assets |
0.13 |
0.05 |
0.08 |
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Inventory |
236.00 |
92.00 |
0.27 |
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Debtors |
0.00 |
6.57 |
0.13 |
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Interest Cover Ratio |
0.78 |
0.20 |
(0.73) |
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Operating Profit Margin(%) |
147.46 |
121.74 |
(4.25) |
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Profit Before Interest And Tax Margin(%) |
116.95 |
60.87 |
(6.24) |
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Cash Profit Margin(%) |
(2.54) |
(354.35) |
(12.82) |
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Adjusted Net Profit Margin(%) |
(33.05) |
(415.22) |
(14.80) |
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Return On Capital Employed(%) |
0.00 |
0.46 |
(0.21) |
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Return On Net Worth(%) |
0.00 |
(5.05) |
(0.88) |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.34.00/- |
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Low |
Rs.32.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 29.05.1969 under the name and style of United Phosphorus Private Limited having Company Registration Number 1588. Subsequently it was converted into a public limited liability company w.e.f. 03.02.1986.
Recently, the name of the company was changed to Uniphos Enterprises Limited.
Established in 1969 to manufacture red phosphorus, an import substitute, Erstwhile United Phosphorus Limited, later started manufacturing several speciality chemicals like compounds of phosphorus, pesticides, dyes and dye-intermediates, plasticisers and mercury salts. It has grown to become one of the biggest producers and exporters of organic and inorganic mercury compounds in India. Further it also became a leader in the pesticide and fumigant segment.
The company as part of restructuring exercise has demerged all its manufacturing facilities to Search Chem Industries, a subsidiary with effective from March 1, 2003. All necessary statutory formalities has been completed. After this demerger the company consist of mainly trading business.
In 1994-95, as a part of backward integration and import substitution, the company
has commissioned a plant to manufacture D V E Ster which is an important raw
material for the manufacture of cypermethrin and enjoys tremendous export
potential.
To integrate the business operations nationally and internationally and also to support and give boost to the export activities the company has implemented Enterprise-wide Resource Planning (ERP) package developed by Avalon Software Inc., USA. The company is now on line in respect of most of its activities in the country.
The company is planning to make a preferential issue to the extent of Rs. 850 millions. The investment will be made in its specialty chemical subsidiary Search Chem Industries (SCIL). There will not be any extra cash outflow from the company as the Rs. 850 millions loan given by the company will be converted into preference shares. This is part of the financial restructuring plan suggested by IDBI to SCIL. Subject holding 53% stake in SCIL, has already given loans to the tune of Rs 1689.700 millions to its subsidiary, and out of these, Rs. 850 millions will be converted into preference shares.
During 1999-2000, the company had been able to maintain growth due to major brand-building and promotional exercise. The profitability is likely to be getting effected in future, due to proposal to phase out the tax exemption on export turnover, since the company's strategy in the agrochemicals business has always centred on the export of generic products.
The company has evinced interest in acquiring a majority stake in Hindustan Insecticides (HIL), in which the government is disinvesting 51%. Though the company has not yet put in its bid, it has been reportedly approached by AF Ferguson & Company, which is the advisor for the proposed disinvestments.
OPERATIONAL
PERFORMANCE
During the year under review, the net sales have gone up to Rs. 9.297 millions as against Rs. 4.035 millions in the previous year.
The Company has suffered loss of Rs. 3.854 millions after tax and prior period adjustment for taxation as compared to Rs. 19.160 millions in the previous year.
FUTURE OUTLOOK
The Company is ready to take advantage of the opportunity of trading in chemicals with the reduction in tariffs for imports.
The Company’s Fixed Assets of important value includes:
v Buildings
v Furniture
v Fixtures
v Equipments
v Vehicles
Subject has been accredited with ISO 9001 and ISO 14001 Certification.
Website Details :
UPL Globally
United Phosphorus Limited (UPL) is the largest producer in India of crop protection
products with a wide range of products that include fumigants, fungicides,
insecticides, rodenticides and herbicides. The company ranks fourth amongst the
generic agrochemical companies in the world. It is the world's largest producer
of Aluminium Phosphide, which is manufactured at one of their manufacturing
sites in India and Napropamide, which is produced by one of the company's
subsidiaries in the UK.
Through acquisitions, strategic alliances and subsidiaries, UPL has built a
network across the globe -- in Europe, America, Asia Pacific, CIS, Africa and
Australia with fully owned subsidiaries in Argentina, Australia, Bangladesh,
China, Cuba, Denmark, Honduras, Hong Kong, Japan, Mauritius, Mexico, Poland,
Russia, South Africa, USA, UK, Zambia, Zimbabwe and representative offices in
Sri Lanka & Vietnam.
Growth Strategy
UPL has pursued a strategy of continuous expansion, backward and forward
integration, branded product development, thrust on registration and aggressive
marketing. Through acquisitions, strategic alliances and subsidiaries, UPL has
built a network across the globe and operates across seven manufacturing sites,
six in India and one in Europe, each with close support from on-site technical
services and quality control.
Integration is the core strength of UPL. This approach secures reliable raw
materials for multi-site manufacturing through an extensive downstream range of
products and services. UPL pioneered 'backward integration' in agrochemicals
and is one of the world's few companies to manufacture complex
organo-phosphorus compounds starting from the basic raw material, rock
phosphate ore. This strategy has now been extended to other products, the most
recent being an integrated caustic chlorine plant using the latest membrane technology,
creating basic building blocks for agrochemicals and speciality chemicals.
Research and Development
Working closely with customers in the marketplace, UPL recognises the
requirement for the highest level of support in product research, development
and registration. Capability in applied R&D is one of UPL's major corporate
strengths. R&D strategy is to continue to invest in innovative formulations
that are environment and user friendly, which are essential to the growth of
agro chemical companies. Most importantly, UPL is wholly committed to
maintaining and expanding its portfolio of registrations globally. Considerable
investment has been focused on the regulatory requirements for registration
support. UPL has a dedicated registrations team, which works closely with
customers and registration authorities. Registrations activity is greatly
assisted by UPL's access to the internationally recognised Jai Research
Foundation an independent centre of excellence for research and toxicology with
Good Laboratory Practice (GLP) status.
A further step forward in product support is UPL's increasing capability in
formulation and distribution services. Formulation facilities in the UK have
now been augmented by the acquisition of a majority shareholding in AgroDan - a
Danish company with established expertise in formulation technology as well as
marketing and distribution.
UPL has the commitment and capability to offer total support from start to
finish in the agricultural sector.
Products :
UPL is the largest producer in India of crop protection products with a wide range of products that include fumigants, fungicides, insecticides, rodenticides and herbicides and has established a broad product line that caters to the crop protection needs of a plant during all stages of growth. This broad product range has given their company a competitive edge in terms of market penetration.
UPL's quality control (QC) approach is based on the clear target of "Zero
Defect". Each stage of production from raw material sourcing through
manufacturing to post-production are closely monitored. UPL has also committed
substantial investment to maintain and improve high standard of environmental
care.
New products have been introduced virtually in every year of the company's history
in response to the specific needs of a changing market.
UPL offers 'total crop protection' with a comprehensive product range and a
sales support operation in every continent.
UPL has developed more than 100 insecticides, fungicides, herbicides, fumigants
and rodenticides for every stage of the growing cycle:
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.44.31 |
|
UK Pound |
1 |
Rs.86.96 |
|
Euro |
1 |
Rs.58.58 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
42 |
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 |
|
PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions