MIRA
INFORM REPORT
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Report Date : |
09.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
JAI BALAJI INDUSTRIES LIMITED |
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Formerly Known as : |
'JAI BALAJI SPONGE LIMITED' |
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Registered Office : |
5, Bentinck Street, Kolkata – 700001, West Bengal, |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
01.07.1999 |
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Com. Reg. No.: |
089755 |
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CIN No.: [Company
Identification No.] |
L27102WB1999PLC089755 |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on the
stock Exchanges |
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Line of Business : |
Manufacturer of Iron and Steel |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 9835644 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Available information indicates high financial responsibility of the company.
General financial position is satisfactory. Fundamentals are strong and
healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
5, Bentinck Street, Kolkata – 700001, West Bengal, India |
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Tel. No.: |
91-33-2248-8173/9808 |
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Fax No.: |
91-33-2243-0021 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Aditya Jajodia |
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Designation : |
Director |
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Name : |
Mr. Sanjiv Jajodia |
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Designation : |
Whole-time Director |
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Name : |
Mr. Rajiv Jojodia |
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Designation : |
Director |
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Name : |
Mr. Ashok Kumar Jaiswal |
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Designation : |
Independent Director |
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Name : |
Mr. D.R. Patnaik |
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Designation : |
Independent Director |
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Name : |
Mr. Mahesh Kayal |
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Designation : |
Independent Director |
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Name : |
Mr. Ashim Kumar Mukherjee |
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Designation : |
Independent Director |
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KEY EXECUTIVES
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Name : |
Mr. Ajay Kumar Tantia |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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A) Promoters Holding |
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1. Promoters |
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a. Indian promoters |
14796600 |
58.89 |
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B) Others |
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a. Private
Corporate Bodies |
4914583 |
19.56 |
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b. Indian Public |
5385356 |
21.43 |
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c. N.R.I./O.C.B. |
30361 |
0.12 |
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Total |
10330300 |
41.11 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Iron and Steel |
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Products : |
Iron and Steel -
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GENERAL
INFORMATION
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Suppliers : |
˛ Hitech Equipments
Private Limited ˛ Industrial Metal
and Wiremesh (Engg) Co. ˛ Mitter Systems
and Chemicals Private Limited ˛ Mechanical Wire
Industries ˛ Electro Mech
India |
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Bankers : |
˛ Allahabad Bank ˛ Bank of India ˛ Canara Bank ˛ Central Bank of
India ˛ Indian Overseas
Bank ˛ Oriental Bank of
Commerce ˛ State Bank of
Bikaner and Jaipur ˛ State Bank of
India ˛ State Bank of
Indore ˛ State Bank of
Mysore ˛ State Bank of
Patiala ˛ UCO Bank ˛ UTI Bank Limited |
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Financial Institutions : |
˛ West Bengal
Financial Corporation Limited ˛ West Bengal
Industrial Development Corporation Limited |
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Facilities : |
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1. Working Capital from banks are secured on paripassu basis by
hypothecation of raw materials.finished goods, book debts and other
current assets of the units separately as under over and above collateral
security by way of personal guarantee of few
directors and second charge on the Fixed Assets of the units over which First
charge is held by various banks &
Financial Institutions for Term Loans sanctioned by them. I. Sponge Iron Unit at Mangalpur, Ranigunj and M.S.Ingot Unit at Durgapur in favour
of State Bank of India II. Captive Power Plant & Ferro Alloys Unit
at Mangalpur, Ranigunj in favour of State Bank of India & UCO Bank. III. Units of
formerly Shri Ramrupai Balaji Steels Ltd-located
at Rajbandh, Durgapur (a) Sponge Iron Unit in favour of Central Bank of India and Indian Overseas Bank. (b) Pig Iron Unit in favour of UCO Bank and
Bank of India. (c) Re-rolling Mill Unit in favour of UCO Bank, Allahabad Bank, Bank of India and
State Bank of India. (d) Steel Melting Shop in favour of Oriental Bank of Commerce 2. The Term Loan is secured in favour of various banks and
financial Institutions by first equitable mortgage of the entire block of
all Immovable assets of the units,' both present and future on pari passu basis
unit-wise separately as under over and
above Lien on some Fixed Deposit Receipts and second charge on the current assets over which first charge is held in favour of banks for working capital sanctioned by them and
are guaranteed by few directors:- I. M.S. Ingot unit at Gopinathpur, Durgapur in favour of WBFC and Canara Bank. II. Sponge Iron Unit at Mangalpur,
Ranigunj in favour of State Bank of
India III. Captive
Power Plant at Mangalpur, Ranigunj in favour of State Bank of India & UCO Bank. IV. Ferro Alloys Unit at Mangalpur,
Ranigunj in favour of UCO Bank V. Blast Furnace unit at Banskopa, Durgapur in favour of State Bank of India, State Bank of Patiala,
State Bank of Indore, State Bank of Mysore & Allahabad Bank. VI. Units of
formerly Shri Ramrupai Balaji Steels
Ltd. located at Rajbandh, Durgapur (a) Sponge Iron Unit in favour of Central Bank of India, Indian Overseas Bank
and West Bengal Financial Corporation. (b) Pig Iron Unit in favour of UTI Bank (c) Re-rolling Mill Unit-l in favour of UCO Bank and Bank of India and Re-Rolling
Mill-ll in favour of UCO Bank, Allahabad Bank and State Bank of India. (d) Steel Melting Shop in favour of West Bengal Industrial Development
Corporation Limited (e) 40 MW Captive Power Plant in favour
of State Bank of India, Indian
Overseas Bank and State Bank
of Bikaner and Jaipur (f) Coal washery Unit in favour of Central Bank of India (g) Ferro Alloys Unit in favour of Oriental Bank of Commerce and United Bank of India 3. Bridge Loan received from W B I D C is secured against lien
on Capital subsidy 4. Equipment Finance Loans are secured by
hypothecation of equipments acquired under the scheme.
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Rashmi and Company Chartered Accountants |
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Address : |
213, Todi Chambers, 2, Lal Bazar Street, Kolkata 700001 |
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Association : |
˛ Jai Salasar
Balaji Industries Private Limited ˛ Chandi Steel
Industries Limited ˛ Jai Balaji Jyoti
Steels Limited ˛ Balaji Ispat
Udyog ˛ Jajodia Estate
Private Limited ˛ K.D. Jajodia
Steel Industries Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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26000000 |
Equity Shares |
Rs.10/- each |
Rs.260.00 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25126900 |
Equity Shares |
Rs.10/-each |
Rs.251.269
millions |
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Less: Call in Arrea |
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Rs.0.151
million |
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Rs. 251.118
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
251.118 |
251.108 |
251.100 |
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2] Share Application Money |
220.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1987.793 |
395.859 |
157.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2458.911 |
646.967 |
408.500 |
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LOAN FUNDS |
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1] Secured Loans |
5794.749 |
1006.396 |
464.200 |
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2] Unsecured Loans |
877.766 |
222.000 |
127.700 |
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TOTAL BORROWING |
6672.515 |
1228.396 |
591.900 |
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DEFERRED TAX LIABILITIES |
584.814 |
189.795 |
0.000 |
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TOTAL |
9716.240 |
2065.158 |
1000.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5615.577 |
1239.368 |
561.700 |
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Capital work-in-progress |
476.803 |
53.111 |
163.500 |
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INVESTMENT |
1.954 |
0.912 |
0.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
2170.912
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693.019 |
292.300 |
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Sundry Debtors |
1892.366
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191.403 |
1117.000 |
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Cash & Bank Balances |
256.411
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23.884 |
98.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
609.591
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223.292 |
284.800 |
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Total
Current Assets |
4929.280
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1131.598 |
1792.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1104.730
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281.787 |
1477.800 |
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Provisions |
222.188
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81.275 |
45.100 |
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Total
Current Liabilities |
1326.918
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363.062 |
1522.900 |
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Net Current Assets |
3602.362
|
768.536 |
269.600 |
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MISCELLANEOUS EXPENSES |
19.544 |
3.231 |
4.700 |
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TOTAL |
9716.240 |
2065.158 |
1000.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
10733.760 |
4327.163 |
2895.000 |
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Other Income |
19.308 |
4.425 |
6.900 |
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Total Income |
10753.068 |
4331.588 |
2901.900 |
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Profit/(Loss) Before Tax |
958.207 |
409.357 |
128.200 |
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Provision for Taxation |
338.185 |
138.096 |
41.800 |
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Profit/(Loss) After Tax |
620.022 |
271.261 |
86.400 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
1342.047 |
328.222 |
91.100 |
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Administrative and Other Expenses |
115.546 |
40.091 |
28.900 |
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Raw Material Consumed |
7752.037 |
3447.021 |
2247.900 |
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Increase/(Decrease) in Finished Goods |
(74.485) |
(25.855) |
NA |
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Managerial Remuneration |
63.926 |
6.370 |
10.800 |
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Power & Fuel |
NA |
NA |
197.400 |
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Depreciation & Amortization |
234.173 |
45.430 |
22.800 |
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Other Expenditure |
361.617 |
80.952 |
174.800 |
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Total Expenditure |
9794.861 |
3922.231 |
2773.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
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Sales Turnover |
3465.300 |
2747.000 |
2507.400 |
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Other Income |
54.000 |
2.700 |
20.500 |
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Total Income |
3519.300 |
2749.700 |
2527.900 |
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Total Expenditure |
2710.300 |
2039.100 |
1868.400 |
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Operating Profit |
809.000 |
710.600 |
659.500 |
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Interest |
359.700 |
220.400 |
205.100 |
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Gross Profit |
449.300 |
490.200 |
454.400 |
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Depreciation |
92.400 |
78.000 |
96.600 |
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Tax |
47.900 |
52.500 |
40.000 |
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Reported PAT |
233.800 |
272.800 |
235.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
5.76
|
6.26 |
2.97 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.92
|
9.46 |
4.42 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
9.08
|
3.88 |
5.44 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.63 |
0.31 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.53
|
0.56 |
3.72 |
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Current Ratio (Current Asset/Current Liability) |
|
3.71
|
3.11 |
1.17 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
˛ Land and Land Development
˛ Factory Building
˛ Plant and Machinery
˛ Electrical Equipments
˛ Furniture and Fixture
˛ Vehicle
˛ Computer and office equipments
Change
of Name
The Name of the Company has been changed from 'Jai Balaji Sponge Limited'
to 'Jai Balaji Industries Limited' w.e.f. June 22, 2007 vide fresh Certificate
of Incorporation issued by the Registrar of Companies, West Bengal.
Amalgamation
Pursuant to the Scheme of Amalgamation (Scheme), Shri Ramrupai Balaji
Steels Ltd (SRBSL) has been amalgamated with the Company with effect from 1st
April, 2006 (Appointed Date). The Scheme was approved by the members of the
Company and SRBSL and sanctioned by the Hon'ble High Court at Calcutta on 14th
June, 2007 and its becoming effective from 23rd July, 2007 consequent to the
filing of the order with the Registrar of Companies, West Bengal & the
entire undertaking of SRBSL stands transferred to and vested in the Company.
Consequent upon amalgamation of SRBSL, the Board of Directors have
allotted 2,20,00,000 Nos. of Equity Shares of the Company to the shareholders
of erstwhile SRBSL as on the record date of 24th August, 2007, in the Swap
Ratio of one (1) Equity Share of Rs.10/- each, fully paid-up of the Company for
every three (3) Equity Shares of Rs. 10/- each, fully paid-up of SRBSL, as
mentioned in the Scheme.
For fractional entitlements, payment will be made to the entitled
shareholders accordingly. The Company is in the process of obtaining listing /
trading permission of the above mentioned Equity shares.
SRBSL was engaged in similar line of business as that their Company and
had a Sponge Iron Plant for the capacity 1,20,000 tons per annum, Blast Furnace
of the capacity 80,500 tons per annum, Steel Bars / Rods of the capacity 80,000
tons per annum and Billet / MS Ingots of the capacity 1,76,418 tons per annum.
During the year under review, capacity of Steel Bars / Rods were further
increased by 1,80,000 tons per annum and Billet / MS Ingots of the capacity was
increased by 58,806 tons per annum and a 40 MW Captive Power Plant was
commissioned.
As a result of this merger, the corporate boundaries have disappeared and
a fully and truly integrated Company has been created. The synergies achieved
will enhance the financial strength and flexibility of the company, have better
and more efficient and economical control and conduct of companies and enhance
its capabilities to face competition in the market place more
effectively.
Review of Operations
. During the
year, the Company successfully completed the commissioning of Blast Furnace on
27th March, 2007 of the total Capacity 4,28,750 MT per annum to produce pig
iron. The other projects consisting of Sinter plant and Steel Melting Shop are
in advanced stage and is expected to be commissioned by January, 2008. In
continuation with its growth plan, the Company undertook a number of expansion
projects including purchase of Steel Unit of HEG Ltd. and purchase of 100%
shareholding of Nilachal Iron and Power Ltd. which is engaged in the
manufacture of Sponge Iron.
The Total
Income of the merged entity stood at Rs.1,07,53.068 millions. The Profit before
Tax was Rs. 9,58.207 millions and Profit after Tax was Rs. 6,20.022 millions.
The said figures include transactions arising out of amalgamation of erstwhile
Shri Ramrupai Balaji Steels Limited, with effect from the appointed date 1st
April, 2006 and hence are not comparable with previous year figures.
Expansion and New Projects
The impressive
growth of economy has resulted in buoyant demand for Steel.
With a view of
long term prospects, the Company is planning expansions both by way of
implementation of new projects and acquisitions.
The Board of
Approval for the Special Economic Zones (SEZs) of Government of India, in their
meeting held on 5th June, 2007, had granted in-principle approval to the
Company for setting up a Steel Plant in SEZ in the state of West Bengal.
The Company has
entered into an arrangement with HEG Ltd for purchasing of their Steel Unit
(consisting of Steel Billets Plant of 1,00,000 tons per annum, Sponge Iron
Plant of 1,20,000 tons per annum and 12.8 MW Captive Power Plant) situated in
the district Durg, in the State of Chhattisgarh, The Steel Unit has been
transferred to the Company effective from 1st August, 2007 subject to the
approval of the respective High Courts, other regulatory authorities and
necessary compliances.
The Company has entered into a Memorandum of Understanding (MOU) on 21st July,
2007 for purchase of 100% shareholding of Nilachal Iron and Power Ltd, (NIPL),
NIPL is having a Sponge Iron Plant of the capacity 1,05,000 tons per annum and
its plant located in the District of Saraikela Kharsawan, in the State of
Jharkhand.
The Board has further decided to enter into a Memorandum of Understanding
(MOU) with the Govt. of West Bengal for setting up a five (5) Million ions
steel Plant, three (3) Million tons cement Plant and 1215 MW Captive Power
Plant within a period of ten (10) years involving investment worth
Rs.16,0000.000 in the district of Purulia, West Bengal.
Future Outlook
The steel sector of the
country is on roll. The buoyancy in the sector continued because of strong
demand in various user sectors such as automobiles, infrastructure and capital
goods etc. These sectors are doing well and would need additional steel in the
coming years.
In spite of continuous rise
in the input cost, the Company will continue to implement its growth
initiatives in order to secure its long term competitive position.
Conservation of Energy,
Technology Absorption, Foreign Exchange Earnings and Outgo
As per the requirements of
Section 217(1)(e) of the Companies Act, M6 read with the Companies (Disclosures
of Particulars in the Report of Board of Directors) Rules, 1988, the relevant
information pertaining to Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and outgo are given in the Annexure forming part of
this Report.
Management Discussion and Analysis Report
Industry
Structure & Developments
2006-07 was
another eventful year for Indian steel industry. The Indian steel industry
ranked seventh in the world crude steel production with an annual production of
about 45 million tons in 2006-07. The Indian Economy witnessed robust growth
with the GDP growing by 9.4% as compared to 9.0% in the previous year. The main
drivers of this growth were the manufacturing and services sector. The Indian
Iron and Steel Industry has come to occupy a dominant position in the
socio-economic development of the country.
Growth in
domestic steel demand, a vigorous growth in domestic steel production led by
the secondary steel making sector availability of mineral resources, abundant
labour as well as professional and technical expertise, all operating in the
facilitating back drop provided by a free market economy have boosted the
growth of this industry. The growth in steel consumption is characterized by
substantial investments in the sector, both towards enhancement of existing
capacities as well as setting-up of green-field projects. Domestic consumption
of non-alloy steel, at 44 million tons, was 12% higher as compared to last
year. The current growth of Indian economy is likely to sustain the surge
witnessed in domestic consumption during the year.
Driven by the continued growth in developing and emerging economies, global
growth is likely to remain robust. In India, the growth in automotive sector,
investments in housing projects, thrust on infrastructure development and rise
in personal disposable incomes of households are expected to boost the demand
for steel for the years to come.
Opportunities and Threats
The growth of
the Indian Economy and sustained increase in demand have resulted in large
scale consolidation in the industry. This has enabled companies to lower
production cost and has also allowed stringent supply-side discipline. The
growth in both global and domestic demand is creating enormous opportunities
for being explored by main-line steelmakers.
Value added
approach to steel would ensure concentration of efforts on manufacture of
high-end products with resultant positive multipler effect on margins. Better
demand forecasting and availability of suitable information on capacity
development would enable steelmakers to rapidly change and adjust their product
portfolios.
The tightening of monetary policy to contain rising inflationary
pressures, strengthening of rupee and continuing exports of iron ore are some
of the major concerns of the Industry which is having a dampening effect on
spending on infrastructure, lowering of export realization and increase in raw
material prices. Further the rise in oil prices is also increasing the
transportation cost. The rise in steel capacities in China are also area of
concerns of over capacity.
Outlook
The continued robust growth of economy which is anticipated to remain at this
level for years to come will boost the demand of steel to levels where major
expansions will be required to absorb the effect of it. The company has
embarked on a large scale expansion of the existing manufacturing facilities
whereby Rs. 16,0000.000 millions will be invested over a period of ten years
for setting up a 5 million steel plant, 3 million cement plant and 1215 MW of
captive power plant in the district of Purulia, in the state of West Bengal. The
Development Agreement with Government of West Bengal and other related
statutory bodies for this project is likely to be inked very soon. In addition,
the company has acquired Steel Unit of HEG Ltd. in the State of Chattishgarh
and Nilachal Iron and Power Ltd. in the State of Jharkhand. The other projects
are going as per schedule out of which, Blast Furnace of the capacity 4,28,750
MT per annum has been commissioned on 27th March, 2007.
Financial
Performance
The total income of the Company during the financial year ended 31st March,
2007 was Rs. 1,07,53.068 millions. During t4 year the Profit after tax stood at
Rs. 6,20.022 millions. The reserves stood at Rs. 19,87.793 millions as on 31st
March, 2007.
As per web details:
The Company was
incorporated on 1st July 1999 It has a sponge iron manufacturing unit of a
capacity of 1,05,000 MT per annum at Mangalpur Industrial Estate, Ranigunj,
Dist Burdwan, West Bengal. The company has also set up a MS Ingot manufacturing
unit having an installed capacity of 78,720 MTPA with four furnaces of a
capacity of 6 tonnes each at Durgapur and Burdwan in West Bengal. The Company
is currently in the process of setting up a captive power plant with a capacity
of 12 MW at its plant in Ranigunj. The Company is also in the process of
setting up coal washery plant of 360,000 MTPA and ferro alloy Plant of 30,118
MTPA.
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.39.96 |
|
UK Pound |
1 |
Rs.78.71 |
|
Euro |
1 |
Rs.63.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
74 |
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. |
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 |
|