MIRA INFORM REPORT

 

 

 

Report Date :

20.06.2008

 

IDENTIFICATION DETAILS

 

Name :

MANUGRAPH INDIA LIMITED

 

 

Formerly Known As :

MANUGRAPH INDUSTRIES LIMITED

 

 

Registered Office :

Sidhwa House, 1st Floor, N. A. Sawant Marg, Colaba, Mumbai - 400 005, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

25.04.1972

 

 

Com. Reg. No.:

11-15772

 

 

CIN No.:

[Company Identification No.]

L29290MH1972PLC015772

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM19181B

 

 

PAN No.:

[Permanent Account No.]

AAACM7246H

 

 

Legal Form :

Public Limited Liability Company. The company's shares are listed on Stock Exchange

 

 

Line of Business :

Manufacturer of web offset and sheet fed offset presses.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 8030000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are reported as fair. General financial position is satisfactory. Payments are reported as usually correct and as per commitments.   

 

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

 

 

LOCATIONS

 

Registered Office :

Sidhwa House, 1st Floor, N. A. Sawant Marg, Colaba, Mumbai - 400 005, Maharashtra, India

Tel. No.:

91-22-22871191 / 22874815

Fax No.:

91-22-22870702

E-Mail :

manugraf@vsnl.com

info@manugraph.com

Website :

http://www.manugraph.com

 

 

Corporate Office :

Manu Mansion, 16, Shahid Bhagatsingh Road, Fort, Mumbai – 400001, Maharashtra, India

Tel. No.:

91-22-22664353/22664409/22664736

Fax No.:

91-22-22663334

 

 

Factory :

v      Plot No. D-1, MIDC, Shiroli Industrial Area, Poona Bangalore Road, Shiroli, Kolhapur, Maharashtra, India

v      Warnanagar, Kodoli, Tal. Panhala, District Kolhapur – 416 113, Maharashtra, India

v      Gokul Shirgaon Plot No. A/8, MIDC, Kolhapur, Maharashtra, India

 

 

Overseas Office:

Located at :-

 

v      Srilanka

v      Germany

v      Iran

v      UAE

v      Kenya

v      Bangladesh

v      Russia

 

 

DIRECTORS

 

Name :

Mr. Sanat M. Shah

Designation :

Chairman

 

 

Name :

Mr. Sanjay S. Shah

Designation :

Vice Chairman & Managing Director

 

 

Name :

Mr. Pradeep S. Shah

Designation :

Managing Director

 

 

Name :

Mr. Jayant C. Vakil

Designation :

Independent, Non-Executive Director

 

 

Name :

Mr. Jitendra N. Mehrotra

Designation :

Independent, Non-Executive Director

 

 

Name :

Mr. Hiten C. Timbadia

Designation :

Independent, Non-Executive Director

 

 

Name :

Mr. H. H. Vasa

Designation :

Independent, Non-Executive Director

 

 

Name :

Mr. Amit N. Dalal

Designation :

Independent, Non-Executive Director

 

 

Name :

Mr. Mohan R. Harshe

Designation :

Whole-Time Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S. M. Mordekar

Designation :

General Manager – Operations

 

 

Name :

Mr. B. B. Nandgave

Designation :

General Manager – Operations

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoter's Holding

 

 

1. Promoters

 

 

- Indian Promoters

8592700

28.25

- Foreign Promoters

--

--

2. Persons acting in concert

8725902

28.69

Sub-Total

17318602

56.94

B Non-promoter's holding

 

 

3. Institutional Investors

 

 

a. Mutual Funds and UTI

2490719

8.19

b. Banks, Financial Institutions, Insurance Companies(Central/State Government Institutions/Non-Government Institutions)

1650425

5.42

c. Flls

744525

2.45

Sub-Total

4885669

16.06

4. Others

 

 

a. Private Corporate Bodies

1381719

4.54

b. Indian Public

5220407

17.16

c. NRIs/OCBs/Foreign Nationals

1510663

4.97

d. Directors and their relatives

77655

0.26

e. Any other (NSDL transit)

20346

0.07

Sub-Total

8210790

27.00

GRAND TOTAL

30415061

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of web offset and sheet fed offset presses.

 

 

Products :

Product Description

Item code no. (ITC Code)

Sheet fed offset printing units

844312

Web offset printing units

844321

 

PRODUCTION STATUS

 

Particulars

Unit

Installed Capacity

Actual Production

Printing Units

Nos.

830

704

 

GENERAL INFORMATION

 

No. of Employees :

1337

 

 

Bankers :
  • State Bank of India
  • State Bank of Bikaner & Jaipur
  • Canara Bank
  • Syndicate Bank
  • ICICI Bank

 

 

Facilities :

SECURED LOANS

31.03.2007

Rs in millions

From State Bank of India

[The term loan is secured/to be secured by the mortgage by deposit of title deeds in respect of all the immoveable properties of the company and by hypothecation of all moveable assets of the company, present and future, subject to prior charges in favour of the company's bankers for securing the borrowings for working capital requirements, save and except property situated at Panhala, Kolhapur.]

692.202

 

 

From Export-Import Bank of India

 

Term loans under production programme.

 

[Secured by first charge by way of hypothecation of moveable fixed assets, present and future and mortgage of land and other immoveable properties, present and future save and except property situated at Panhala, Kolhapur]

231.294

 

 

UNSECURED LOANS

Fixed deposits

(Including Rs. 0.015 Millions - previous year: Rs. 3.276 Millions - repayable within one year)

0.015

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

B. F. Pavri and Company

Chartered Accountants

 

 

Associates :
  • Multigraph Machinery Company Limited
  • Manu Enterprises Limited
  • Manubhai Sons and Company
  • Manugraph Machinery Inc.
  • Manugraph Securities and Finance Private Limited
  • Printpak Machinery Limited

 

 

Subsidiaries :

  • Constrad Agencies [Bombay] Private Limited
  • Manugraph Kenya Limited
  • Manugraph DGM Inc. USA.
  • Manugraph Mauritius Holding Limited (upto 31st  August, 2006)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL STRUCTURE

 

(As on 31.03.2007):-

 

Authorised Capital :

No. of Shares

Type

Value

Amount

98500000

Equity Shares

Rs.2/- each

Rs.197.000 Millions

10000

Preference shares

Rs.100/- each

Rs. 1.000 Million

20000

Unclassified shares

Rs.100/- each

Rs. 2.000 Millions

350000

Redeemable preference shares

Rs.100/- each

Rs. 35.000 Millions

 

Total

 

Rs.235.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

30415061

Equity Shares

Rs.2/- each

Rs.60.830 Millions

 

Of the above equity shares:

 

221840 equity shares of Rs.10 each, fully paid-up, allotted (at premium of Rs. 10 per share) on conversion of part of the face value (i.e. Rs.40) of each 14 per cent secured redeemable convertible debenture of Rs. 140.

 

2028822 equity shares of Rs. 10 each, fully paid-up, allotted (at premium of Rs. 35 per share) on conversion of each zero per cent interest secured fully convertible debenture of Rs. 90.

 

320000 equity shares of Rs. 10 each, fully paid-up, allotted (at premium of Rs. 35 per share) on conversion of each zero per cent interest secured fully convertible debenture of Rs. 90 issued to non-residents of Indian nationality/ origin and Overseas Corporate Bodies.

 

1040000 equity shares of Rs. 10 each, allotted to shareholders of the erstwhile Manuweb International Limited in the ratio of one equity share of Rs. 10 each credited as fully paid up in exchange for one equity share of Rs. 10 each fully paid up held in the erstwhile Manuweb International Limited pursuant to Mumbai High Court's Order.

 

During the year ended 31st March, 2002, the company bought-back and cancelled 1105825 equity shares of Rs. 10 each under the scheme of buy-back of the shares at Rs. 30 per share. Accordingly, the issued and subscribed share capital was reduced from Rs. 71.091 Millions to Rs. 60.033 Millions.

 

The equity shares of Rs. 10 each have been sub-divided into 5 equity shares of Rs. 2 each pursuant to the resolution passed by the shareholders at the extraordinary general meeting held on 19th September, 2005.

 

398306 equity shares of Rs. 2 each, fully paid-up, allotted to 9 foreign nationals at premium of Rs. 246 per share on 20th December, 2006. Accordingly, the issued and subscribed share capital increased from Rs. 60.033 Millions to Rs. 60.830 Millions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

60.830

60.034

60.034

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1545.073

1093.316

607.990

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1605.903

1153.350

668.024

LOAN FUNDS

 

 

 

1] Secured Loans

923.496

172.849

272.234

2] Unsecured Loans

0.015

3.276

121.644

 

130.440

0.000

0.000

TOTAL BORROWING

1053.951

176.125

393.878

DEFERRED TAX LIABILITIES

28.720

26.196

22.078

 

 

 

 

TOTAL

2688.574

1355.671

1083.980

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

591.739

466.565

401.308

Capital work-in-progress

3.663

52.040

35.468

 
 

 

 

INVESTMENT

1654.993

265.417

82.088

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
892.892

1033.449
858.518

 

Sundry Debtors
272.135

133.925
259.811

 

Cash & Bank Balances
82.238

207.901
0.000

 

Other Current Assets
0.000

0.000
94.395

 

Loans & Advances
983.352

673.330
328.602

Total Current Assets
2230.617

2048.605

1541.326

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
995.575

852.788
690.952

 

Provisions
796.863

624.168
285.258

Total Current Liabilities
1792.438

1476.956

976.210

Net Current Assets
438.179

571.649
565.116

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2688.574

1355.671

1083.980

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

3688.432

3215.047

2864.946

Operating Income

95.107

64.219

0.000

Other Income

28.216

53.130

0.000

Total Income

3811.755

3332.396

2864.946

 

 

 

 

Profit/(Loss) Before Tax

704.106

917.887

449.139

Provision for Taxation

230.049

299.508

295.272

Profit/(Loss) After Tax

474.057

618.379

153.867

 

 

 

 

Earnings in Foreign Currency :

 

 

 

 

Export of printing units (calculated on F.O.B. basis)

1227.024

1034.730

 

Dividend

1.791

0.000

597.021

 

Interest

2.171

0.000

 

 

Miscellaneous receipts

0.463

0.000

 

Total Earnings

1231.449

1034.730

597.021

 

 

 

 

Imports :

 

 

 

Components

339.369

247.006

 

 

Capital Goods

84.835

60.504

335.251

 

Stores & Spares

7.082

6.586

 

Total Imports

431.286

314.096

335.251

 

 

 

 

Expenditures :

 

 

 

Materials

2235.149

1673.706

 

 

Other Expenses

767.237

671.066

 

 

Depreciation & Amortization

74.185

60.533

2415.807

 

Interest

31.078

9.204

 

Total Expenditure

3107.649

2414.509

2415.807

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2007 [1st Quarter]

30.09.2007 [2nd Quarter]

31.12.2007 [3rd Quarter]

 Sales Turnover

 959.200

 1102.900

 932.400

 Other Income

 36.400

 115.900

 109.100

 Total Income

 995.600

 1218.800

 1041.500

 Total Expenditure

 774.800

 890.300

 836.700

 Operating Profit

 220.800

 328.500

 204.800

 Interest

 13.300

 9.800

 8.000

 Gross Profit

 207.500

 318.700

 196.800

 Depreciation

 19.100

 21.300

 21.000

 Tax

 60.500

 100.800

 52.800

 Reported PAT

 127.900

 196.600

 123.000

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

0.45

0.31

0.69

Long Term Debt-Equity Ratio

0.43

0.21

0.41

Current Ratio

1.26

1.33

1.31

TURNOVER RATIOS

 

 

 

Fixed Assets

3.75

3.78

3.32

Inventory

4.27

3.79

3.86

Debtors

20.28

18.21

9.36

Interest Cover Ratio

16.07

34.93

20.26

Operating Profit Margin(%)

20.04

25.37

18.94

Profit Before Interest And Tax Margin(%)

18.23

23.68

16.86

Cash Profit Margin(%)

13.32

17.18

12.62

Adjusted Net Profit Margin(%)

11.52

15.49

10.54

Return On Capital Employed(%)

37.63

70.99

50.55

Return On Net Worth(%)

34.37

60.97

53.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE :

 

Regarding “Mercongraphic FZC” – no information is available on the same, as it is not an Indian Company.

 

HISTORY

 

Incorporated in Apr.'72 as Machinenfabrik Polygraph (India) by chairman Sanat M Shah, Manugraph India Limited, formerly known as Manugraph Industries (MIL) adopted its present name in 1993. The company initially manufactured the older type of letter press printing machines. The product range was extended to Web Offset Machines and Sheet-Fed Offset machines.  

 
In Aug.'93, the company came out with a Rs 55.800 Millions rights issue of 18.63 equity shares at a premium of Rs 20 each. The object was to increase long-term working capital requirements of the company. The company has a technical collaboration with Solna, Sweden, for the manufacture of printing machinery.  

 
Subject had two subsidiary companies, Manuweb International and Printpak Machinery. The first was amalgamated with MIL effective from 1 Apr.'94 under an order of the Bombay High Court.  

 
In 1995-96, the company set up the property development division which will be carrying out all the activities and projects. 
 
During 1996-97, Printpak Machinery Limited ceased to be a subsidiary of the company. The company shifted its focus from domestic to the export markets by investing substantially in trade shows, exhibitions and new distributors.

 

BUSINESS

 

Manufacturing and Exporting of Printing Machinery, (presses, screen printers and other special printing machines), type-founding machinery, type-setting machinery, machines for photo-type setting and composing machines, blocks, plates and cylinders and other printing components, book binding machinery and machines for uses ancillary to printing (stockers, feeders, folders, gummers and staplers).

 

 

 

 
INDUSTRY STRUCTURE AND OPPORTUNITIES: 

 
In the year ended March, 2007, the demand continues to remain strong both in domestic and international markets. More utilization of capacity with vendors, resulting in increased outsourcing and rapid modernization of shop floor through increased capital expenditure has enabled the company to increase production of machines with state of the art technology. 

 
Seeing an opportunity to enter the American market the company has successfully negotiated and purchased Dauphin Graphics Machines Inc., a company in the United States of America at Harrisburg, Pennsylvania [renamed as Manugraph DGM Inc. 

 
(MDGM)] The company is No. 1 in the US market in four page segment complementing their product range. Their consolidated accounts reflect only five months' working of MDGM. 

 
The Agreement of Business Co-operation for marketing, with MAN Roland, Germany, is under negotiation. 
 
OUTLOOK 

The decline in US market due to economic slow down will affect MDGM operation during the current year. The process of synergising the energies is in progress and the benefits thereof will accrue from financial year 2008. Endeavours for outsourcing of component parts from India, marketing Manugraph machines in North America have been already initiated; the results of which would be evident from financial year 2008 onwards. 

 
Although the business outlook for 2007-08 continues to be favourable with strong domestic demand, due to appreciation of rupee value and reduction in import duty, the margin will be under pressure. 

 
The company will continue to participate in trade shows in the USA, CIS and IFRA events in the current year. 

 

TRADE REFERENCES:-

 

v                  Accura-Tech

v                  Bajage Engineering and Fabrication

v                  Bhavani Iron Industries

v                  Chemi Flow Rubber Industries

v                  Gauraj Metal Finishers

v                  Gaurav Electroplaters and Engineers

v                  Gorson Enterprises

v                  Master Precision

v                  Metachem

v                  Paco Industries

v                  Perfect Engineering Enterprises

v                  Quality Engineers

v                  Raj Engineering Works

v                  Shanti Iron and Steel

v                  Shri Jagdamba Engineering Works

v                  Shree Refrigeration

v                  Sky Engineers

v                  Somaiya Techno Products

v                  Swapnagandha Enterprises

v                  Technoskill Engineering Works

v                  Thermo Tools and Components

v                  Toolex Engineering Service

v                  Ulka Industries

v                  United Castings

v                  United Industries

v                  Vital Industrial Products

 

 

FIXED ASSETS

 

v      Land

v      Leasehold land

v      Building

v      Office premises

v      Plant and machinery

v      Jigs and fixtures

v      Dies and patterns

v      Instruments

v      Electrical installations

v      Furniture

v      Fixtures and equipments

v      Vehicles

v      Technical documentation

v      Technical know-how

 

AS PER WEBSITE

 

PROFILE

 

Established in the year 1972 by its founder Mr. S. M. Shah. The company is manufacturer of web offset and sheet fed offset presses.

 

Ever motivating management practices, excellent leadership, highly skilled workforce and a well – focused approach led them to achieving their goal of being a leader in the niche 4-page newspaper offset printing press market. They owe their strong position as a supplier of printing presses not only to their technical competence, but also to their clear orientation towards the wishes of their customers. At the company, they recognize, meet and exceed their customers' needs with precision quality, while their commitment to excellence in every phase of their business reflects in the quality of their products.

 

In its relentless efforts to meet and exceed the needs and demands of it's customers the company has made rapid progress in the international market. Leading publishers from South America, Europe, Middle East, Asia and the CIS countries have all invested in their presses.

 

In India, subject ranks as the Number One in the manufacturing and supplying of web offset presses. With a whopping 70 % market share, their presses are present in nearly all-major publication houses. With presses having speeds ranging from 35,000 – 55,000 copies per hour, they can meet their production needs efficiently. Their customers count on them to give them a product of superior quality at the lowest cost of ownership. Their technical expertise and unrelenting thrust towards continuous quality improvement are the principal strengths of Manugraph.

 

 

MILESTONE

A TIMELINE OF VARIOUS HISTORIC DEVELOPMENTS ACHEIVED BY MANUGRAPH.


1972     Company Formation.

 

1973     Commencement of production with Auto Stop Cylinder Press model OM II under East German collaboration.


1976     Introduction of commercial web offset press model RO 62.


1977     Introduction of indigenously designed Auto Platen press model. GRAFART.


1984     Introduction of the single color sheet fed press PO 25.


1985     Large size indigenously designed single color sheet fed press model PO 36.


1986     High-speed commercial web offset press ZIRCON 66 introduced with German collaboration.


1987     Setting up of new production unit for manufacturing newspaper offset press, COROSET, a joint venture (Financial) with Plamag, Germany.


1990     Agreement signed with Solna, A.B., Sweden for manufacturing of SHIVA state of the art multicolor sheet fed offset press with exclusive manufacturing and world marketing rights.


1993     Newsline 45, a high speed newspaper for large circulation introduced.


1994     Newsline 30, a web offset press for small to medium circulation newspaper introduced. Manuline 45, a 16 page commercial heat set multicolor web offset press introduced.


1995     Set up of the 3rd manufacturing facility for the production of component manufacturing begins.


1996     Awarded ISO 9001 certification.


1997     Development of the Hiline 45 Tower for newspaper industry for printing all color supplements.


1998     Newsline 20 web offset press introduced with a speed of 20,000 copies per hour.


1999     Newsline S 30 web offset press introduced with speeds of 30,000 copies per hour.


2000     A historic agreement of business cooperation signed between Manugraph and MAN Roland, Germany for marketing Manugraph’s single width presses worldwide.


2001     The very first order of UNISET 60 signed for an Indian customer. This was a result of the historic agreement signed with MAN Roland.


2002     Introduction of the Cityline web offset press with a speed of 25,000 Copies per hour and the Printmagic 74 at a major show in Mumbai. A more automated version the Cityline Express with 35000 copies per hour introduced during NEXPO, U.S.A.


2004     Introduction of Frontline web offset press with a speed of 55,000 Copies per hour launched at drupa 2004.

 

 

 

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.42.93

UK Pound

1

Rs.84.17

Euro

1

Rs.66.82

 

 

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

8

--PROFITABILIRY

1~10

8

--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

YES

--AFFILIATION

YES/NO

YES

--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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions