MIRA INFORM REPORT

 

 

Report Date :

09.10.2007

 

IDENTIFICATION DETAILS

 

Name :

INDIAN POTASH LIMITED

 

 

Registered Office :

Ambal Building, 3rd Floor, 727, Mount Road, Chennai – 600 006, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

17.06.1955

 

 

Com. Reg. No.:

18-961

 

 

CIN No.:

[Company Identification No.]

U14219TN1955PLC000961

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHEI00029B

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturers of Cattle Feed and producing fertilisers by using imported potash as an intermediary.

 

 

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 4700000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and professionally managed company.  Board of directors consists of eminent personalities from fertiliser industry. 

 

Available information indicates high financial responsibility of the company.  Payments are usually correct and as per commitments.

 

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

 

 

LOCATIONS

 

Registered/ Corporate Office:

Ambal Building, 3rd Floor, 727, Mount Road, Chennai – 600 006, Tamilnadu, India

Tel. No.:

91-44-28520855 (5 lines)

Fax No.:

91-44-28522407

E-Mail :

1. potash@iplmds.xeemaa.xeemail.ems.vsnl.net.in

2. admn@iplho.xeemaa.xeemail.com

3. iplho@potindia.com

Area :

8000 sq. ft.

Location :

Rented

 

 

Factory:

Cattle Feed Division

 

A-3, U.P.S.I.D.C Industrial Area, Secunderabad District, Bulandshahr – 203 205, Uttar Pradesh, India

Tel. No.:

91-5735-221632

Fax No.:

91-5735-221287

 

 

Branches :

 

v      “Pragati Tower”, 3rd Floor, 26 Rajendra Place, New Delhi – 110 008, India

Tel. No. 91-11-25761540

Fax. No. 91-11-25755313

Area : 3951 sq. ft. owned

 

v      P. B. No. 3051, “Kadavill Court”, Pulleppady Cross Road, Ernakulam, Kochi – 682 018, Kerala, India

Tel. No. 91-484-2354435

Fax. No. 91-484-2372191

Area: 2500 sq. fts. owned

 

v      No. 312, B Wing, 3rd Floor, “Mittal Towers”, 6 M. G. Road, Bangalore – 560 001, Karnataka, India

Tel. No. 91-80-5588057

Fax. No. 91-80-5065276

Area: 2070 sq. fts. owned

 

v      P. B. No. 1515, “Deepti Apartments”, 3rd Floor, Flat No. 18, 9-1-7/83-84, Sardar Patel Road, Secunderabad – 500 026, Andhra Pradesh, India

Tel. No. 91-40-27805669

Fax. No. 91-40-27806029

Area: 2033 sq. fts. owned

 

v      “Chittod Complex”, Zone – I, Maharana Pratap Nagar, Bhopal – 462 011, Madhya Pradesh, India

Tel. No. 91-755-22553022

Fax. No. 91-755-22029579

Area: 2529 sq. fts. owned

 

v      No. 45, Drive-in-Road, Opp. Nirav Park, Navrangpura, Ahmedabad – 380 009, Gujarat, India

Tel. No. 91-79-26563605

Fax. No. 91-79-26427506

Area: 6420 sq. fts. owned

 

v      63-64, “Mittal Chambers”, 6th Floor P. B. No. 9960, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No. 91-22-22025269

Fax. No. 91-22-22029579

Area: 2218 sq. fts. owned

 

v      259, Khervela Nagar, Unit III, Bhubaneshwar – 751 001, Orissa, India

Tel. No. 91-674-2402954

Fax. No. 91-674-2416654

Area: 2395 sq. fts. leased

 

v      “Everest House”, 11th Floor, No. 46-C, Jawaharlal Nehru Road, Kolkata – 700 071, West Bengal, India

Tel. No. 91-33-22881306

Fax. No. 91-33-22882150

Area: 2000 sq. fts. owned

 

v      “G. S. Road, Bhangagarh, Guwahati – 781 005, Assam, India

Tel. No. 91-361-2529138

Fax. No. 91-361-2451375

Area: 1400 sq. fts. leased

 

v      No. 3, Ghokhle Marg, Lucknow – 226 001, Uttar Pradesh, India

Tel. No. 91-522-2208863

Fax. No. 91-522-2208864

Area: 5000 sq. fts. owned

 

v      No. B-393, Rajendra Nagar, Bareilly – 243 122, Uttar Pradesh, India

Tel. No. 91-581-2310450

Fax. No. 91-581-2586265

Area: 600 sq. fts. leased

 

v      410, Gaurav Towers – I, Malviya Nagar, Jaipur – 302 017, Rajasthan, India

Tel. No. 91-6728-2552509

Fax. No. 91-6728-2721348

Area: 1926 sq. fts. owned

 

v      SCO 443-444, Sector 35-C, Chandigarh – 160 022, India

Tel. No. 91-172-2603721

Fax. No. 91-172-2601907

Area: 2346 sq. fts. leased

 

v      Office No. 15, 3rd Floor, Millennium Plaza, Banstal Road, Raipur – 492 001, Madhya Pradesh, India

Tel. No. 91-771-2603721

Fax. No. 91-771-2601907

Area: 415 sq. fts. leased

 

v      Cattle Feed Division, A-3, U.P.S.I.D.C Industrial Area, Secunderabad District, Bulandshahr – 203 205, Uttar Pradesh, India

Tel. No. 91-5735-221632

Fax. No. 91-5735-221287

Total Plot Area 134948.40 sq. fts. Built up leased Area 31084.89 sq. ft.

 

v      Ambal Building, II Floor, 727, Anna Salai, Chennai – 600 006, Tamilnadu, India

Tel. No. 91-44-28522911

Fax. No. 91-44-28550161

Area: 3974 sq. fts. leased

 

 

DIRECTORS

 

Name :

Mr. A N Poreddiwar

Designation :

Director

 

 

Name :

Mr. A. Vellayan

Designation :

Director

 

 

Name :

Mr. Balvinder Singh Nakai

Designation :

Director

 

 

Name :

Mr. Devinder Kumar

Designation :

Director

 

 

Name :

Mr. H S Bawa

Designation :

Director

 

 

Name :

Mr. M A Khan

Designation :

Director

 

 

Name :

Mr. M P Muthukumaraswamy

Designation :

Director

 

 

Name :

Mr. Mostafa Sardar

Designation :

Director

 

 

Name :

Mr. P S Gahlaut

Designation :

Director

 

 

Name :

Mr. Uma Shankar

Designation :

Director

 

 

Name :

Mr. Sukumar N Oommen

Designation :

Director

 

 

Name :

Mr. U S Jha

Designation :

Director

 

 

Name :

Mr. U S Awasthi

Designation :

Diector

 

 

Name :

Mr. V Sathyaseelan

Designation :

Director

 

 

Name :

Mr. Vijay Chhibber

Designation :

Director

 

 

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Indian Farmers Fertiliser Co-operative Limited

32,40,000

Gujarat State Co-operative Marketing. Federation Limited

9,96,000

Gujarat State Fertilisers and Chemicals Limited

7,50,000

Andhra Pradesh State Co-operative Marketing. Federation

5,94,000

Madras Fertilisers Limited

5,28,000

Parry & Company Limited

4,24,800

Tamilnadu Co-operative Marketing Federation Limited

3,20,000

West Bengal State Co-operative Marketing Federation Limited

3,12,000

Karnataka State Co-operative Marketing Federation Limited

2,88,000

Steel Authority of India Limited

2,40,000

Rashtriya Chemicals Travancore Limited

2,24,400

Fertilisers & Chemicals Travancore Limited

2,16,000

National Co-operative Development Corporation

2,04,000

Punjab State Co-operative Supply and Marketing Federation

1,76,000

Orissa State Co-operative Marketing Federation Limited

1,44,000

Shaw Wallace Financial Services Limited

1,41,600

Madhya Pradesh State Co-operative Marketing Federation

1,28,000

Maharashtra State Co-operative Marketing Federation Limited

1,20,000

Coromandel Fertilisers Limited

60,000

Bihar State Co-operative Coal Marketing Society

50,000

Zuari Agro Chemicals Limited

48,000

Bihar State Co-operative Marketing Union Limited

40,000

Haryana State Co-operative Marketing Union Limited

40,000

Rallis India Limited

36,000

Bharat Fertilisers Industries Limited

22,800

Dharamsi Morarji Chemical Company Limited

22,000

Mrs. Vasanadu Nirmala

21,600

Mr. V. Venugopal

20,800

Kerala State Co-operative Marketing Federation Limited

20,000

Mrs. V. Anusuya Devi

15,200

Mr. Vasanadu Mohanrao

15,000

Mr. Vasanadu Govind

15,000

Shetkari ahakari Sangh Limited

13,000

Ms. Vasanadu Shalini

10,400

Vidarbha Co-operative Marketing Society Limited

8,000

Mr. Vasanadu Mohanrao

5,000

Mr. Vasanadu Mohanrao

5,000

Mrs. R. Revathi

4,600

Mrs. Manjula

3,600

Mrs. V. Prema

2,800

Ms. G. Mythri

2,400

Mrs. V. Anusuya Devi

1,200

MFC Industries Private Limited

1,200

Mr. V. Srikanth

1,200

Deccan Sales Corporation Limited

600

Fertiliser and Inputs Private Limited

200

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers of Cattle Feed and producing fertilisers by using imported potash as an intermediary.

 

 

Products :

Product Description

Item Code No.

 

Muriate of Potash

31042000

Urea (Imported & Indigenous)

31021000

Di-Ammonium Phosphate

31053000

Cattle Feed

--

 

 

Exports :

 

Countries :

Bangladesh and Sri Lanka

 

 

Imports :

 

Countries :

Jordan Israel, England, United Kingdom, Singapore, Canada, USA, Germany and Switzerland

 

 

 

PRODUCTION STATUS

 

Particulars

 

Unit

Licensed Capacity

Installed Capacity

Cattle Feed

 

Mts.

30000

30000

 

 

GENERAL INFORMATION

 

No. of Employees :

450

 

 

Bankers :

q                 State Bank of India, Commercial Branch, 232, NSC Bose Road, Chennai – 600 001, Tamilnadu, India

Facility –

Fund Based – Rs. 218.000 millions        

Non Fund Based (Letter of Credit) – Rs. 1079.100 millions

Non Fund Based (Guarantee) – Rs. 21.800 millions         

 

q                 Canara Bank, Corporate Service Branch, 770-A, Spencer Towers, Chennai – 600 002, Tamilnadu, India

Fund Based – Rs. 135.000 millions        

Non Fund Based (Letter of Credit) – Rs. 668.250 millions

Non Fund Based (Guarantee) – Rs. 13.500 millions         

 

q                 Central Bank of India, 48/49, Montieth Road, Egmore, Chennai – 600 002, Tamilnadu, India

Fund Based – Rs. 157.000 millions        

Non Fund Based (Letter of Credit) – Rs. 771.150 millions

Non Fund Based (Guarantee) – Rs. 15.700 millions         

 

q                 Oriental Bank of Commerce, Spencer Plaza, Anna Salai, Chennai – 600002, Tamilnadu, India

Fund Based – Rs. 50.000 millions          

Non Fund Based (Letter of Credit) – Rs. 247.500 millions

Non Fund Based (Guarantee) – Rs. 5.000 millions           

 

q                 Andhra Bank, 95, Anna Salai, Chennai – 600 002, Tamilnadu, India

Fund Based – Rs. 140.000 millions        

Non Fund Based (Letter of Credit) – Rs. 693.000 millions

Non Fund Based (Guarantee) – Rs. 14.000 millions         

 

q                 Bank of Baroda

 

q                 State Bank of Patiala , 27, Whites Road, Chennai – 600 014, Tamilnadu, India

Fund Based – Rs. 50.000 millions          

Non Fund Based (Letter of Credit) – Rs. 247.500 millions

Non Fund Based (Guarantee) – Rs. 5.000 millions           

 

q                 Indian Overseas Bank

 

q                 Punjab National Bank, 156, Linghi Chetty Street, Chennai – 600 014, Tamilnadu, India

Fund Based – Rs. 100.000 millions        

Non Fund Based (Letter of Credit) – Rs. 495.000 millions

Non Fund Based (Guarantee) – Rs. 10.000 millions         

 

q                 Corporation Bank, 49, Armenian Street, Chennai – 600 001, Tamilnadu, India

Fund Based – Rs. 50.000 millions          

Non Fund Based (Letter of Credit) – Rs. 247.500 millions

Non Fund Based (Guarantee) – Rs. 5.000 millions           

 

q                 Allahabad Bank

 

q                 Punjab and Sind Bank

 

q                 State Bank of Bikaner and Jaipur

 

q                 State Bank of Hyderabad, 37-B, First Floor, Whites Road, Chennai – 600 014, Tamilnadu, India    

Fund Based – Rs. 100.000 millions        

Non Fund Based (Letter of Credit) – Rs. 495.000 millions

Non Fund Based (Guarantee) – Rs. 100.000 millions

 

 

 

Banking Relations :

Good

 

 

Auditors :

Fraser and Ross

Chartered Accountants,

Address:

169, North Usman Road, Chennai  – 600 017, Tamilnadu, India

Tel. No.:

91-44-28251152 / 2631

 

 

Associates:

Indian Farmers Fertilisers Co-operative Limited

 

 

Subsidiaries:

Goldline Milkfood Limited

Address:

11,12/56, Industrial Area, Near HSIDC Office, Kundli, Sonepat, Haryana, India

Line of Business:

This company is engaged in processing of milk into milk products like butter/ghee and milk food.

 

CAPITAL STRUCTURE

 

Authorized Capital:

No. of Shares

Type

Value

Amount

20,000,000

Equity Shares

Rs. 10/- each

Rs. 200.000 Millions

 

Issued Capital:

No. of Shares

Type

Value

Amount

11,802,000

Equity Shares

Rs. 10/- each

Rs. 118.020 Millions

 

Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

9,530,000

Equity Shares

Rs. 10/- each

Rs. 95.300 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

143.000

95.300

95.300

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1044.000

871.700

646.300

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1187.000

967.00

741.600

LOAN FUNDS

 

 

 

1] Secured Loans

508.300

109.600

282.100

2] Unsecured Loans

1779.400

913.900

150.000

TOTAL BORROWING

2287.700

1023.500

432.100

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

3474.700

1990.500

1173.700

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

216.500

192.700

158.400

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

67.700

56.200

322.700

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
7190.700
6238.400

2648.300

 

Sundry Debtors
11646.000
7891.900

3681.500

 

Cash & Bank Balances
2256.500
2795.800

453.800

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
274.800
120.900

171.900

Total Current Assets
21368.000
17047.000

6955.500

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Current Liabilities
18093.500
15280.800

6246.800

 

Provisions
84.000
24.600

16.100

Total Current Liabilities
18177.500
15305.400

6262.900

Net Current Assets
3190.500
1741.600

692.600

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

3474.700

1990.500

1173.700

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [Including other income]

45414.000

36510.200

16334.000

 

 

 

 

Profit/(Loss) Before Tax

414.900

398.100

216.600

Provision for Taxation

167.500

149.900

76.400

Profit/(Loss) After Tax

247.400

248.200

140.200

 

 

 

 

Expenditures :

 

 

 

 

Manufacturing Expenses

1163.800

840.600

667.000

 

Administrative Expenses

54.300

39.100

25.600

 

Raw Material Consumed

40977.400

33352.500

14032.500

 

Interest

338.300

171.90

47.700

 

Power & Fuel

07.000

06.700

06.100

 

Depreciation & Amortization

14.700

12.900

11.500

 

Other Expenditure

105.900

101.00

92.300

Total Expenditure

42661.400

34524.700

14882.700

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio

 

1.62

0.91

0.56

Long Term Debt-Equity Ratio

 

1.62

0.91

0.56

Current Ratio

 

1.15

1.11

1.11

TURNOVER RATIOS

 

 

 

 

Fixed Assets

 

166.63

149.28

86.54

Inventory

 

6.58

7.38

6.26

Debtors

 

4.52

5.66

4.27

Interest Cover Ratio

 

1.95

3.32

5.54

Operating Profit Margin

(%)

1.53

1.78

1.71

Profit Before Interest And Tax Margin

(%)

150

1.74

1.64

Cash Profit Margin

(%)

0.47

0.80

0.94

Adjusted Net Profit Margin

(%)

0.44

0.76

0.87

Return On Capital Employed

(%)

24.68

37.39

27.31

Return On Net Worth

(%)

18.81

31.16

22.61

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

It is in trade terms with:-

 

v      The Arab Potash Company Limited, P. O. Box 1470, Amman 11118, Jordan

 

v      Dead Sea Works Limited, Potash House, P. O. Box No. 75, Beersheva – 84100, Israel

 

v      ICEC Limited, C/o ICEC Europe Limited, Cavendish House, 36-40 Goldsworth Road, Woking, Surrey GU 21 6JT, England

 

v      International Potash Company (UK) Limited, Elscot House, Arcadia Avenue, Finchley, London, N3, 2JE, United Kingdom

 

v      Canpotex International Pte Limited, 30 Hill Street, HEX 04-01, Singapore 179360

 

v      Canpotex Limited, P. O. Box 1600, Suite 400, 111-2nd Avenue South, Saskatoon, Saskatchewan Canada 87K 3R7

 

v      ICEC Limited, C/o, International Commodities Export Corporation, 2975 Westchester Avenue, Purchase, New York 10577, USA

 

v      K+S Kali GmbH, Bertha-Von-Suttner-STR. 7, 34131 Kassel, Germany

 

v      Transammonia AG, Bahnhofstrasse 1, CH-8852, Altendorf, Switzerland

 

v      Jorden Phosphate Mines Company Limited, P. O. Box No. 30, Amman, Jordan

 

v      Multicommerce LLC, 124, W-Putnam Avenue, Greenwinch CT – 06830, USA

 

v      Petrochemical Industries Company (KSC), P. O. Box 1084, 13011, Safat, Kuwait

 

v      Intermare Transport Pte. Limited, 100 Beach Road # 31-01, Shaw Tower, Singapore 189702

 

v      Noble Resources Limited, 18/F, Massmutual Tower, 38, Gloucester Road, Wanchai, Hong Kong

 

v      Transmmonia Agency, Bahnhofstrase 1, CH 8852, Altendorf, Switzerland

 

The company has been awarded Handling of Urea Shipments at the ports of Kochi and Okha.

 

The company has marketing arrangements with:-

 

§         National Fertiliser Corporation Limited

§         Hindustan Fertiliser Corporation Limited

§         Southern Petrochemical Industries Corporation Limited

97-98, Mount Road, Chennai – 600 032, Tamilnadu, India

Tel. No.       91-44-22350245

 

Fixed Assets:

 

*       Land and Building (Freehold And Leasehold)

*       Machinery

*       Office Equipments and Fixtures

*       Air Conditioners

*        Refrigerators and Water Coolers

*       Audio Visual / Soil Testing Vans and Equipments

*       Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.39.55

UK Pound

1

Rs.80.44

Euro

1

Rs.55.49

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

5

--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

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

 

52

 

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