MIRA
INFORM REPORT
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Report Date : |
12.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
AMAR REMEDIES LIMITED |
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Registered Office : |
Block No. 3, 2nd Floor, Sane Guruji Premises, 386, S.V. Savarkar
Marg, Opposite, Siddhivinayak Temple, Prabhadevi, Mumbai-400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
30.06.2007 |
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Date of Incorporation : |
18.04.1984 |
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Com. Reg. No.: |
11-32687 |
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CIN No.: [Company
Identification No.] |
U99999MH1984PTC032687 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA21298E |
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PAN No.: [Permanent
Account No.] |
AAACA3774G |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturer and
Exporter of Amar Tooth Paste, Amar Balm, Amar Get – Up and Ayurvedic Products. |
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 5300000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
– established company having satisfactory track. Trade relations are fair. General
financial position is satisfactory. Payments are reported as slow but
correct. However, the
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office : |
Block No. 3, 2nd Floor, Sane Guruji Premises, 386, S.V.
Savarkar Marg, Opposite, Siddhivinayak Temple, Prabhadevi, Mumbai-400025,
Maharashtra, India |
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Tel. No.: |
91 -22- 3040 9100 |
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Fax No.: |
91- 22 -3040 9120
/ 21 |
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E-Mail : |
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Website : |
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Corporate Office/ Factory : |
207, Roop Raj
Building, 2ND Floor, SVP Road, Opera House, Mumbai – 400004 |
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Tel. No.: |
91-22-56340591 |
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Fax No.: |
91-22-23866625 |
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E-Mail : |
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Factory 1 : |
375/14, Kachigam,
Hill Industrial Estate, Zari Road, Daman - 396 210 (U.T.). |
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Tel. No.: |
91- 260- 3096897,
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Mobile No.: |
91- 93770 06618 /
75 |
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Fax No.: |
91 260 2241125 |
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Factory 2 : |
463, New G.I.D.C, Katargram, Surat - 395008, Gujarat, India |
DIRECTORS
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Name : |
Mr. Pravin Shah |
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Designation : |
Chairman, Non-executive Director |
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Name : |
Mr. Pratima P Shah |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Sagar P Shah |
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Designation : |
Managing Director |
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Name : |
Mrs. Natasha Shah |
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Designation : |
Non-Executive Director |
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Name : |
Mr. Rajiv Chitnis |
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Designation : |
Non-Executive, Independent Director |
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Name : |
Mr. Lalitchandra Mulchandji Vaidya |
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Designation : |
Director |
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Name : |
Mr. Hemal Shah |
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Designation : |
Whole-time Director |
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Name : |
Mr. Gaurav Doshi |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Bhagwansingh Chowdhary |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Dilip Mehta |
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Designation : |
Non-Executive Independent Director |
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Name : |
Mr. Yusuf Iqbal Yusuf |
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Designation : |
Non-Executive Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Ashwin Panditpautra |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
11164150 |
42.67 |
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Foreign Institutional Investors |
614266 |
2.35 |
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Financial Institutional / Banks |
70990 |
0.27 |
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Bodies Corporate |
4333497 |
16.56 |
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NRIs and OCBS |
151955 |
0.58 |
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Others |
9829292 |
37.57 |
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Total |
26164150 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and
Exporter of Amar Tooth Paste, Amar Balm, Amar Get – Up and Ayurvedic Products. |
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Products : |
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Brand Names : |
Amar |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Oral Care |
M Tones |
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13400 |
12730.00 |
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Health Care |
M Tones |
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645 |
415.25 |
GENERAL
INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Shyam C Agarwal and Company Chartered Accountants |
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Address : |
3/910-L,
Nayjivan Society,Lamington Road, Mumbai - 400 008. |
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Tel. No.: |
91-22-
307 35 38 (R) 26844931 |
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Mobile No.: |
91-22-26835699. |
CAPITAL STRUCTURE
As on 30.06.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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28000000 |
Equity Shares |
Rs. 10/- each |
Rs. 280.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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26164150 |
Equity Shares |
Rs. 10/-
each |
Rs. 261.641
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2007 |
30.06.2006 |
30.06.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
261.641 |
261.642 |
111.641 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
805.017 |
635.526 |
157.098 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1066.658 |
897.168 |
268.739 |
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LOAN FUNDS |
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1] Secured Loans |
533.541 |
291.538 |
150.974 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
533.541 |
291.538 |
150.974 |
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DEFERRED TAX LIABILITIES |
1.678 |
1.498 |
0.998 |
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TOTAL |
1601.877 |
1190.204 |
420.711 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
813.560 |
419.584 |
60.424 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
41.146 |
54.771 |
0.000 |
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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 |
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187.701
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Sundry Debtors |
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182.433
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Cash & Bank Balances |
938.409
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771.856 |
0.945
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Other Current Assets |
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0.000
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Loans & Advances |
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3.033
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Total
Current Assets |
938.409
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771.856 |
374.112 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
234.327
|
104.082 |
12.856
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Provisions |
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2.852
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Total
Current Liabilities |
234.327
|
104.082 |
15.708 |
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Net Current Assets |
704.082
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667.774 |
358.404 |
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MISCELLANEOUS EXPENSES |
43.089 |
48.075 |
1.883 |
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TOTAL |
1601.877 |
1190.204 |
420.711 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.06.2007 |
31.06.2006 |
31.06.2005 |
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Sales Turnover |
2020.748 |
1671.387 |
1068.244 |
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Other Income |
1.277 |
0.516 |
0.000 |
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Total Income |
2022.025 |
1671.903 |
1068.244 |
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Profit/(Loss) Before Tax |
205.634 |
244.497 |
73.362 |
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Provision for Taxation |
35.180 |
34.500 |
4.598 |
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Profit/(Loss) After Tax |
170.454 |
209.997 |
68.764 |
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Earnings in Foreign Currency : |
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Export Earnings |
66.820 |
NA |
57.338 |
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Imports : |
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Raw Materials |
15.272 |
NA |
NA |
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Expenditures : |
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Cost of Goods Sold |
1555.505 |
1242.707 |
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Manufacturing Expenses |
55.611 |
50.462 |
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Administrative Expenses |
125.790 |
69.474 |
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Selling Expenses |
64.425 |
57.366 |
994.881 |
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Revaluation Account |
0.963 |
1.070 |
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Depreciation & Amortization |
16.023 |
8.467 |
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Other Expenditure |
0.000 |
2.140 |
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Total Expenditure |
1816.391 |
1427.406 |
994.881 |
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QUARTERLY RESULTS
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PARTICULARS |
30.09.2007 1st
Quarter |
31.12.2007 2nd
Quarter |
31.03.2008 3rd
Quarter |
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Sales Turnover |
707.700 |
717.000 |
728.900 |
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Other Income |
0.700 |
0.100 |
0.100 |
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Total Income |
708.400 |
717.100 |
729.000 |
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Total Expenditure |
632.600 |
627.600 |
637.300 |
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Operating Profit |
75.800 |
89.500 |
91.700 |
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Interest |
16.400 |
20.700 |
21.900 |
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Gross Profit |
59.400 |
68.800 |
69.800 |
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Depreciation |
4.200 |
5.900 |
6.000 |
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Tax |
10.000 |
10.000 |
7.800 |
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Reported PAT |
45.200 |
52.900 |
56.000 |
KEY RATIOS
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PARTICULARS |
31.06.2007 |
31.06.2006 |
31.06.2005 |
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Debt-Equity Ratio |
0.43 |
0.39 |
0.64 |
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Long Term Debt-Equity Ratio |
0.06 |
0.06 |
0.07 |
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Current Ratio |
1.73 |
2.42 |
2.22 |
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TURNOVER RATIOS |
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Fixed Assets |
6.42 |
8.94 |
13.77 |
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Inventory |
5.47 |
6.33 |
7.16 |
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Debtors |
4.63 |
5.81 |
5.69 |
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Interest Cover Ratio |
5.63 |
10.48 |
4.71 |
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Operating Profit Margin(%) |
13.11 |
16.61 |
9.37 |
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Profit Before Interest And Tax Margin(%) |
12.37 |
16.17 |
8.87 |
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Cash Profit Margin(%) |
9.18 |
12.98 |
6.94 |
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Adjusted Net Profit Margin(%) |
8.43 |
12.53 |
6.44 |
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Return On Capital Employed(%) |
18.74 |
35.41 |
26.59 |
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Return On Net Worth(%) |
17.62 |
36.95 |
31.59 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONAL
REVIEW:
During the year, the Company has achieved turnover of Rs.2020.748 Millions
while the PAT is Rs. 170.454 Millions, as compared to the turnover of Rs.
1671.387 Millions and the PAT of Rs209.497 Millions in the previous year.
Though the company has registered an impressive growth of 20.9% in sales, PBDIT
has declined marginally due to higher input costs and production loss by flood
at Surat Plant. To make it worse, higher provision for tax and Interest rates
left the company with lower PAT of Rs.170.454 Millions as against Rs209.497
Millions in the previous year. Moreover, the management has made all efforts to
keep its promise of increasing revenues and market share and the impact of the
same would come in the next financial year.
The company has appointed C and F Agents all over India with a view to
build up and strengthen its Distribution Network and Brand image. To suit the
purchasing preference, needs and habits of Indian varied consumer segments, the
company with the help of R and D Department, has launched wide range of package
sizes with various flavours. To promote the sales, it also curtailed the price
of toothpaste and started offering Toothbrush free with almost every pack. With
an enhanced market share, especially in the Oral care segment and strengthened
internal processes, the company proved its commitment to quality with the ISO
9001:2000 Certification.
ACHIEVEMENTS:
During the Year, the Company has been rewarded the prestigious ISO
9001:2000 certification for Quality Management System for development,
manufacturing and supply of Toothpastes, toothpowders and Ayurvedic Medicines.
In addition to that, it also received International Gold Star for Quality
Award-Paris in recognition of outstanding commitment to Quality and Excellence.
The recognition will go along way to establish AMAR as a Quality-Oriented
organisation. The company will maintain its customer centric approach with
emphasis on continuous improvement and commitment in the quality and value of
the products.
NEW PROJECTS/EXPANSION:
DAMAN PLANT:
During the year, the company has expanded its installed capacity of Oral
Care and Health Care from 12400 MT and 595 MT to 13400 MT and 645 MT
respectively.
SURAT PLANT:
Surat Plant has commenced production in the month of October 2006 and
started manufacturing Ayurvedic Medicines and Beauty care products. The company
has launched Amar GETUP (an ointment for backache and joints problems), Amar
Pain Balm and few Ayurvedic health and beauty care products- Unfortunately,
there were heavy floods in Surat that resulted in production loss along with
damages to the Stocks as well as Machinery. However, insurance of stock and
machinery compensated financial loss but production loss of 4 months could not
be avoided.
DEHRADUN PROJECT:
The Company has established a state of the art manufacturing plant spread
over 1 Lac Sq. feet of constructed area at Dehradun (Uttaranchal). It has also
installed ultra modern machinery, to manufacture FMCG and Ayurvedic Products.
The company has also set up a complete integrated R and D and quality control
department to ensure enhancement of quality of existing products and
development of new products. The production at Dehradun Plant would have
started in the month of February, 2007 but it was delayed due to public
litigation filed with Supreme Court against issuance of Pollution clearance
certificate to any manufacturing facility in the Dun Valley. However, Supreme
court has given favourable verdict in month of August 2007 to issue Pollution
clearance certificate to all manufacturing facilities in Dehradun subject to
Government guidelines of Pollution Control Board.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
INDUSTRY STRUCTURE AND
DEVELOPMENTS:
Indian FMCG-Market:
The FMCG sector is the fourth largest sector in the Indian economy with a
total market size of Rs.80,000 crores (approx.). It has a strong. MNC presence
and is characterised by a well established distribution network, intense
competition between organised and unorganised segments, and low operational
costs. Availability of key raw materials, cheaper labour cost and presence
across the entire value chain gives India a competitive advantage.
Key developments:
The
Indian FMCG Sector is no doubt registering. an up trend in growth and this:
growth story will continue because of positive Fiscal Budget and Government's
focus on development of Rural infrastructure, which is beneficial for FMCG
Companies. Penetration level as well as per capita consumption especially in
oral care and health care products like toothpastes, skin care, ointments, etc.
is low indicating untapped market potential. Burgeoning Indian population,
particularly the middle class and the rural segments, presents an opportunity
to the makers of branded products to convert consumers to branded
products.
In addition to these, the Indian government has taken various positive
measures with a view to enable the FMCG Industry at attaining international
competitiveness through lifting of quantitative restrictions, reduction in
Indirect taxes e.g. CST, few relaxation in FBT, automatic foreign investments.
All these factors resulted in an environment that fosters growth.
The organized retail sector has. also grown to a great extent in last 1
year. Many new national and local players have emerged. This posses great
opportunities far small and mid size FMCG manufacturing companies as it makes
distribution much easier.
OUTLOOK ON
OPPORTUNITIES:
The outlook for the bullish FMCG market is very positive and expected to continue
with its stellar performance in the future. Lower penetration and consumption
in the rural sector and middle income group provide tremendous potential for
future volume growth. The FMCG Sector is expected to witness handsome growth in
demand for FMCG products which is set to boom by almost 15% by 2005 and more.
than 70% by 2015.
Various state governments like Himachal Pradesh, Uttarakhand and J and K have
encouraged companies to set up manufacturing facilities in their regions
through, a package of Fiscal Incentives. Uttarakhand government offers Excise
Duty Exemptions, power concessions, capital subsidies and other incentives for
setting up plant in its area. With a view to encash this opportunity, the
company has set up a very big plant in Selaqui (Dehradun), Uttarakhand. This
will give competitive edge to the company over its competitors in Domestic as
well as international markets.
The company has followed the strategy of wide range of package sizes
including small sachets, pouches and prices to suit the purchasing preferences
of India's varied consumer segments. It has appointed C and F Agents in almost
every consumer of India and also been putting more focus on rural market.
With the introduction of attractive marketing schemes, heavy advertisement and
publicity and addition of few more products, Amar, one of the developing brand
in FMCG market, is well set to enhance its growth in Indian as well as global
Market.
Further the company has started an initiative to enter US as well as
European markets. China had been the leading exporter of toothpaste to these
countries but due to the quality fiasco in the middle of 2007, most of Chinese
brands of toothpaste have been banned in U8 and Europe. This proves to be a
great opportunity for Indian manufacturers to capitalize and Amar Remedies has
already aggressively started marketing its toothpaste to US buyers. The company
has already applied to the USFDA for its toothpaste. The company has already
spoken to a lot of buyers for manufacturing their brands and is also looking at
selling its own brands in the US markets.
OUTLOOK ON THREATS, RISKS AND
CONCERNS:
The Oral care market, especially Toothpastes, remains underpenetrated in
India with penetration level below 45%. The industry is very competitive for
both organised and smaller regional players. In a bid to increase its sales,
the company has introduced heavy discounts on MRP for a combo pack of
toothpaste. Despite being priced at the lower end of price spectrum, the
company could not succeed to gain substantial market share.
In the short term, changes in the tax structure such as introduction of
FBT and HS Ed. Cess, increase in Service Tax, implementation of VAT and Excise
based on MRP are likely to have an impact on the cost of sales and profit
margin accordingly.
The input costs have been steadily on the increase which poses a constant
pressure on the company's margin. Being in a highly competitive market the
company is not very flexible in increasing its selling price which builds further
pressure on the margins.
The biggest threat to the FMCG companies is the presence of MNCs which ensure
new product launches in the Indian market, leaving the small players with
stagnant or falling market shares.
Moreover, the company has undertaken appropriate processes to regularly review
risks and to mitigate to their impact I incidence into the best of its
ability.
SEGMENT WISE PERFORMANCE:
The company recorded Oral care sales of Rs.1138.762 Millions as compared to the
last year's sales of Rs.1138.875 Millions. The Company has changed its
marketing strategies, increased its sales promotional activities and even gone
for heavy advertisements and publicity to boost up the sales. It has also
expanded the installed capacities to meet the growing demand. As expected the
consumers have shown tremendous confidence in the product quality and services,
which the company would continue to consider its top priority.
The sales in Health care segment also went up to Rs.332.949 Millions
during the year constituting 16.48% of the total sales of Rs. 2020.748
Millions. The management has decided to put more emphasis on this segment, as
the inclination of the global consumers towards Ayurvedic Health and Beauty
care products have been increasing rapidly for the last few years.
FINANCIAL
PERFORMANCE:
As such FMCG market is highly competitive and low penetrative, it becomes
very difficult to maintain profit margin as there are constant pressures of
increase in input costs and non flexibility of increasing selling price due to
heavy competition, Despite this fact, the company has achieved turnover of Rs.
2020.748 Millions during the Year, registering a growth of 20.9% over the last
year's turnover of Rs. 1671.387 Millions. PBDIT during the year is Rs.265.044
Millions which is lower by 4.55% over the last year of Rs.277.686 Millions.
Consequently, PBT and PAT during the year has gone down to is Rs.2056.34 and
Rs.170.454 Millions as against previous year's PBT and PAT of Rs.244.497
Millions and Rs. 209.497 Millions. The capacity utilisation during the year was
at about 93.59% of Installed Capacity.
Fixed
Assets
v Land
v Plant and Machinery
v Factory Premises
v Computer and Printer
v Telephone System
v Fax Machine
v Cars
v Air Conditioners
v Electrical Installation
v Office Premises
v Refrigerator
v Laboratory Instrument
AS PER WEBSITE
Profile:
Along the path of civilization, and the changing needs of
the emerging life styles, Ayurveda has a momentous role to play.
And its tryst with the modern world has just been set in
motion by a resurgent India.
Even before the turn of the
century, in the year 1984, an Indian enterprise, Swami Aushadalaya Private
Limited was born to embark on a journey in Ayurvedic medicinal research and
development. A name change resulted in AMAR Remedies Private Limited, and
subsequently in 1995, AMAR Remedies Limited, came into being.
The first manufacturing facility of ARL was created in Surat, Gujarat. In
response to a genuine consumer need, AMAR’s first product was a unique
toothpaste. At a time when every major brand available in the market used
gelatine as an ingredient, thereby making their toothpaste non-vegetarian, AMAR
Toothpaste made an important breakthrough by developing a gelatine-free
formula. Thus, AMAR, the first ever ‘Vegetarian’ toothpaste was launched in the
markets of Gujarat in 1991. Within a few years the brand was all over the
Western markets of India, and by 1998, ARL extended the brand by launching AMAR
Strong and AMAR Regular and AMAR White Toothpaste.
With its major thrust in
toothpaste, a new plant was inaugurated by the company at Daman in 2001. Its
progressive outlook and state-of-the-art manufacturing facility resulted in an
immediate increase in capacity, and gave ARL the opportunity to manufacture
more varieties of toothpastes for different segments.
Very soon, ARL started manufacturing more than 25 different
brands and variants of toothpaste for local and export markets. ARL also began
to produce regular cosmetic toothpastes, besides genuine herbal products. It
found immediate success in selling to traders in African countries like
Nigeria, Ghana, Sudan, and Tanzania, and also in countries like Dubai and
Panama.
INFRASTRUCTURE
The cornerstone of expansion
Currently, ARL has two manufacturing plants at Surat and
Daman and the 3rd plant is under construction at Dehradun.
The Surat Plant is a two-storied building. It manufactures
Ayurvedic medicines for which the company has earned an FDA approval on 25
Ayurvedic and herbal products.
The Daman Factory is a sophisticated plant with modern machinery used to
manufacture FMHG products and Ayurvedic medicines. It runs round the clock in
multiple shifts, mainly manufacturing various types of Dental Products.
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.42.00 |
|
UK Pound |
1 |
Rs.80.47 |
|
Euro |
1 |
Rs.62.82 |
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|