MIRA
INFORM REPORT
|
Report Date : |
18.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
FIAT INDIA AUTOMOBILES PRIVATE LIMITED |
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Registered Office : |
Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka Shirur,
Pune 412210, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.01.1997 |
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Com. Reg. No.: |
130940 |
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CIN No.: [Company
Identification No.] |
U28900PN1997PTC130940 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMF02175F |
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|
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|
PAN No.: [Permanent
Account No.] |
AAACF1716D |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of Automobiles |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 13250000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a 50-50 Joint Venture between Tata Motors, India and Fiat
Automobiles, Italy. Indian operations are passing through difficult times as
it faces fierce competition from fellow players such as Maruti, Honda,
Hyundai, etc. Company’s profitability is under severe pressure. It has huge accumulated losses. Payments are however reported as slow but
correct. In view of strong promoters, the company can be considered normal for
small to mediocre business dealings at usual trader terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot No. B – 19, MIDC, Rajangaon Industrial Area, Ranjangaon, Taluka
Shirur, Pune 412210, Maharashtra, India |
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Tel No. : |
91-2138-672700/ 232144/ 5/ 6/ 7 |
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Fax No. : |
91-2138-232143 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. Giovanni De Filippis |
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Designation : |
Director |
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Address : |
Lal Bahadur Shastri Marg, Kurla [West], Mumbai 400070, Maharashtra,
India |
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Date of Birth/Age : |
25.07.1966 |
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Date of Appointment : |
13.12.2007 |
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Name : |
Mr. Maurizio Paolo Binachi |
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Designation : |
Director |
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Name : |
Mr. Enrico Ferrero |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Equity Share
Break-up |
|
Percentage of
Holding |
|
Bodies Corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Automobiles |
GENERAL
INFORMATION
|
No. of Employees : |
600 |
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Bankers : |
Not Available |
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Banking
Relations : |
--- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
12, Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai
400018, Maharashtra, India |
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|
|
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Associates/Subsidiaries : |
Fiat India Private Limited CIN No. : U29220MH1992PTC069675 |
CAPITAL STRUCTURE
As on 31.12.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity Shares |
Rs. 100/- each |
Rs. 20000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
196201270 |
Equity Shares |
Rs. 100/-
each |
Rs.
19620.127 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
19620.127 |
19424.162 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
|
[16305.479] |
[16449.770] |
|
|
NETWORTH |
|
3314.648 |
2974.392 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
808.000 |
0.000 |
|
|
TOTAL BORROWING |
|
808.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
|
4122.648 |
2974.392 |
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|
|
|
|
|
|
|
APPLICATION OF FUNDS |
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|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
|
1948.781 |
205.588 |
|
|
Capital work-in-progress |
|
1039.160 |
1336.482 |
|
|
|
|
|
|
|
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INVESTMENT |
|
1163.908 |
993.908 |
|
|
DEFERREX TAX ASSETS |
|
8.135 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
|
381.935 |
0.000 |
|
|
Sundry Debtors |
|
92.556 |
0.000 |
|
|
Cash & Bank Balances |
|
5.960 |
1.900 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
259.741 |
644.231 |
|
Total
Current Assets |
|
740.192 |
646.131 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
755.198 |
187.322 |
|
|
Provisions |
|
22.330 |
20.395 |
|
Total
Current Liabilities |
|
777.528 |
207.717 |
|
|
Net Current Assets |
|
[37.336] |
438.414 |
|
|
|
|
|
|
|
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
|
4122.648 |
2974.392 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2007 |
|
Sales Turnover |
|
|
60.412 |
|
Total Income |
|
|
60.412 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
|
[137.091] |
|
Provision for Taxation |
|
|
-- |
|
Profit/(Loss) After Tax |
|
|
[137.091] |
|
|
|
|
|
|
Total Expenditure |
|
|
197.503 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
226.93 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
226.93 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
5.10
|
NA |
|
|
|
|
|
|
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.04 |
NA |
|
|
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|
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Debt Equity Ratio (Total Liability/Networth) |
|
|
0.47 |
0.06 |
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|
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|
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Current Ratio (Current Asset/Current Liability) |
|
|
0.95 |
3.11 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
The Registered office of the company has been shifted from Lalbahadur Shastri
Marg, Kurla [West], Mumbai 400070, Maharashtra, India to Plot No. B – 19, MIDC,
Rajangaon Industrial Area, Ranjangaon, Taluka Shirur, Pune 412210, Maharashtra
w. e. f. 07.12.2006.
AS PER WEBSITE
DETAILS:
Subject is a 50-50
Industrial Joint Venture between Fiat Group Automobiles S. p. A., (Fiat) and
Tata Motors Limited (Tata) originally incorporated on January 02, 1997. The
company presently employs about 600 employees and is located at Ranjangaon in
the Pune District of Maharashtra. The definitive agreement of the Joint Venture
was signed on October 19th 2007. The board of directors for this company
comprises of five nominees each from Fiat and Tata.
The state-of -the-art
facility at Ranjangaon, will have an installed capacity to produce 100,000 cars
and 200,000 engines, besides aggregates and components. The company plans to
double the production capacity for both car units and engines in the next few
years. Currently manufacturing the Palio Stile 1.1 and 1.6 models, premium Fiat
cars such as the Grande Punto and Linea are expected to roll out soon in the B
and C segment from the facility within 2008. The facility will also manufacture
Fiat’s successful 1.3 litre Multijet diesel engines and 1.2 & 1.4 litre
Fire gasoline engine. Apart from Fiat cars, the facility will also produce Tata
passenger and next generation cars with investment exceeding € 650 Million. The
plant is expected to provide direct and indirect employment to more than 4,000
people.
Fiat, which holds a 50%
stake in the Company, also owns and controls five internationally renowned
brands:- Fiat Automobiles, Alfa Romeo Automobiles, Lancia Automobiles, Abarth
and Fiat Light Commercial Vehicles, the makers of renowned cars such as the
Ferrari, Maserati, Alfa Romeo and Lancia besides the Fiat branded cars.
Tata Motors Limited, the
other partner to the Joint Venture, is the largest automobile company in India,
with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the
leader in commercial vehicles in every segment and the second largest in the
passenger vehicles market with winning products in the compact, mid-size car
and utility vehicle segments. The company is the world’s fifth largest medium
and heavy commercial vehicle manufacturer and the world’s second largest medium
and heavy bus manufacturer.
News
Press Release
Fiat launches the
new Palio Stile Multijet in Mumbai
~The new Palio will carry the world-class multijet engine and will be
supported by a robust
network of Tata-Fiat dealers~
Mumbai, March 11,
2008: Fiat India Automobiles Pvt Ltd, today launched the latest Palio Stile
with the much awaited multijet diesel engine at an event held here today. The
Palio Stile is the current car from Fiat's stable in India which is currently
available in 2 petrol versions - 1.1L and 1.6L Sport. The company, a joint
venture between Fiat and Tata Motors, is simultaneously strengthening the
Tata-Fiat network of dealers to ensure good after-sales support for the car
owners.
Speaking on the occasion Mr.
Rajeev Kapoor, CEO, Fiat India Automobiles Pvt Ltd said, “Fiat has kept its
promise of making this an exciting year for its customers. Launch of the Palio
Stile multijet version is first in the line of many exciting launches lined up
by Fiat through this year. With this car which is equipped with Fiat's
world-renowned multijet technology we hope to make further inroads in the B
segment. Fiat's multijet engine is being produced under licence by other
manufacturers and it has proved its mettle in the cars launched internationally
and in India. The success of this engine can be attributed to the fact that it
is a powerful yet fuel efficient engine
which is perfect for Indian conditions.”
The fuel efficient yet powerful Palio Stile multijet will come with a 4 cylinder
multijet diesel engine- from FPT- Fiat Powertrain Technologies providing a
maximum power of 75 PS @ 4000 rpm and excellent Torque of 184 Nm at a low rpm
of 2000. This enables a fine balance of performance, refinement & fuel
economy. The car will come with a manual Gear Box 5 + R, all speed synchromesh
and a front wheel drive.
The Palio Stile Multijet will be available in 5 exciting colors - Furnace red, Magnesium grey,Ozone blue, Mint
White and Carbon black, across 3 versions – SD, SDE & SDX.
The car will be manufactured at the Ranjangaon plant near Pune and is
the first major launch after the company introduced the Palio Stile last year.
The car is being launched across India through an aggressive communication
campaign through Print & Television.
The car will be priced as follows:
- SD-Rs. 4,
37,960(Ex-showroom Delhi)
- SDE-Rs. 4,
57,962(Ex-showroom Delhi)
- SDX Rs. 4,
77, 968(Ex-showroom Delhi)
The Tata-Fiat dealer network will ensure easy availability of the car
and satisfactory after-sales service for the owners. The car will be available
across the country at all Tata-Fiat dealers by mid-March 2008 and will be
supported by 64 dealers and 18 service centres. Eventually, the number of
Tata-Fiat dealers is expected to reach 100 by year-end, which will provide a
strong geographical reach to the network.
About Palio Stile:
Apart from the multijet version, Fiat’s Palio Stile is available in two
petrol engine options. The fuel efficient Palio Stile (in three versions –
SL,SLE,SLX) comes with a 4 cylinder 1.1L petrol FIRE engine , providing a
maximum power of 57 PS @ 5250 rpm and excellent Torque of 92 Nm at low rpm of
2750. This enables a high fuel average of 15.5 Km/l under testing conditions.
The Palio Stile 1.6 Sport comes with a 1.6 litre engine with an
increased power of 100 PS @ 5500 rpm with a torque of 137 Nm @ 4250 rpm is
configured for the auto enthusiasts. It is the only sporty B segment hatchback
available in the country. Both models come with an Electronic multipoint fuel
injection, 32 bit microprocessor Fuel system. The Palio Stile comes with a
manual Gear Box 5 + R, all speed synchromesh and a front wheel drive.
The car is equipped with all desired features such as power steering,
central locking, fire prevention system (FPS), engine immobilizer, fog lamps
etc. The interiors of the Palio Stile are beige in colour, sporting a trendy
two toned dash board, comfortable seats and a very low index of articulation
(quietness of cabin).
About 1.3 Multijet
16 v engine:
The 1.3 Multijet 16v is a 1251 cc 4 cylinder in line power unit,
chain-driven timing system with rocker control (a maintenance-free solution),
hydraulic tappets, a cast iron crankcase with an aluminium base, an aluminium
cylinder head and steel crankshaft and connecting rods.
The 1.3 Multijet 16v is provided with a turbocharger with wastegate and
intercooler. It also features an electronically-controlled EGR system and an
exhaust gas cooling device: the 1.3 Multijet 16v already meets Euro 4 emission
limits. It is also one of the very few engines in the world to achieve this
result without adding a sophisticated exhaust post-treatment device such as a
particulate trap.
The fuel and combustion systems are designed to operate at very high pressures
that range from 1400 bars of diesel in the rail to 160 bars of gas in the
cylinder. As far as customers are concerned, all the technology packed into the
pint-sized 1.3 Multijet 16v means a reduction in fuelconsumption. All this
comes with:
• lower noise levels
• improved comfort: fewer alternating masses means fewer vibrations
• a smooth, satisfying drive due to very gradual torque delivery
• all the flexibility and prompt responses of a diesel that thinks it’s
a petrol engine due to itswide rpm range
• the green features that allow this engine to improve on the main
environmental advantage of diesel engine – i.e. fuel economy – by reducing
their main drawback, i.e. particulate emissions.
The engine has been developed by FPT – Fiat Powertrain Technologies, a
new division of the Fiat Group responsible for developing, researching,
designing and producing engines and gearboxes for all applications: cars,
industrial vehicles, boats, agricultural vehicles, power generation. With
around 20,000 employees, 15 plants and 10 research centres in 7 different
countries, this company is one of the largest powertrains manufacturers in the
world. Approximately 3000 highly specialised technicians at FPT work
exclusively on developing and engineering innovative technologies. More than 40
patents filed each year are proof of the quality and dedication that make Fiat
Powertrain Technologies a centre of technological excellence and non-stop
innovation.
About Fiat India
Automobiles Pvt Ltd:
Fiat India Automobiles Private Limited (FIAPL) is a 50-50 Industrial
Joint Venture between Fiat Group Automobiles S. p. A., (Fiat) and Tata Motors
Limited (Tata) originally incorporated on January 02, 1997. The company employs
about 650 employees and is located at Ranjangaon in the Pune District of
Maharashtra. The definitive agreement of the Joint Venture was signed in
October 11, 2007. The board of directors for this company comprises of five
nominees each from Fiat and Tata.
The state-of-the-art facility at Ranjangaon, which is owned by FIAPL is
capable of producing 100,000 cars and 200,000 engines, besides aggregates and
components. The company plans to double the production capacity for both car
units and engines in the next few years. Currently manufacturing the Palio Stile
1.1 and 1.6 models, premium Fiat cars such as the Grande Punto and Linea are
expected to roll out soon in the B and C segment from the facility within 2008.
The facility will also manufacture Fiat’s successful 1.3 litre Multijet diesel
engines and 1.2 & 1.4 litre Fire gasoline engine and the C549 transmission,
evolution for the Indian market of the European C510: start of production of
all powertrains is foreseen by first quarter 2008. Apart from Fiat cars, the
facility will also produce Tata passenger and next generation cars with
investment exceeding € 650 Million. The plant is expected to provide direct and
indirect employment to more than 4,000 people.
Fiat, which holds a 50% stake in the Company, also owns and controls
five internationally renowned brands:- Fiat Automobiles, Alfa Romeo
Automobiles, Lancia Automobiles, Abarth and Fiat Professional, the makers of
renowned cars such as the Ferrari, Maserati, Alfa Romeo and Lancia besides the
Fiat branded cars.
Tata Motors Limited, the other partner to the Joint Venture,
is the largest automobile company in India, with revenues of Rs. 32,426 crores
(USD 7.2 billion) in 2006-07. It is the leader in commercial vehicles in every
segment and the second largest in the passenger vehicles market with winning products
in the compact, mid-size car and utility vehicle segments. The company is the
world’s fifth largest medium and heavy commercial vehicle manufacturer and the
world’s second largest medium and heavy bus manufacturer.
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. 42.92 |
|
UK Pound |
1 |
Rs. 84.48 |
|
Euro |
1 |
Rs. 66.66 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
28 |
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 |
|