MIRA
INFORM REPORT
|
Report Date : |
07.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
DECCAN CEMENTS LIMITED |
|
|
|
|
Registered
Office : |
6-3-666/B, Deccan Chambers, Somajiguda, |
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Country : |
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|
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
31.07.1979 |
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|
Com. Reg. No.: |
002500 |
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|
|
CIN No.: [Company Identification
No.] |
L26942AP1979PLC002500 |
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|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
HYDD00643G HYDD00633D HYDD00009C |
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|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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|
Line of Business
: |
It is engaged in manufacturing of cement. The Company is
also engaged in the generation of power through hydel and wind power. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 6900000 |
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|
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|
Status : |
Good |
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|
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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.
General financial position of the company is good. Trade relations are fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business for good business
dealings at usual at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
6-3-666/B, Deccan Chambers, Somajiguda, |
|
Tel. No.: |
91-40-2331016823310552/23310561/23310599 |
|
Fax No.: |
91-40-23318366 |
|
E-Mail : |
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|
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Factory : |
Cement Plant Bhavanipuram, Janpahad P. O, Nalgonda District 508218, |
|
Tel. No.: |
91-8683-229503/229504/229505/229507 |
|
Fax No.: |
91-8683-229502 |
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|
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|
Factory 2 : |
Hydel Power Plant GBC-1, Head Regulator, |
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|
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Factory 3 : |
Wind Farms |
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Factory 4 : |
Navaneethakrishnapuram Surandai Taluk Tirunulveli
District, Tamil |
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Factory 5 : |
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DIRECTORS
As On 31.03.2010
|
Name : |
M.B. Raju |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Umesh
Shrivastava |
|
Designation : |
Director |
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|
Name : |
D.R.K. Rao |
|
Designation : |
Director |
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|
Name : |
P. Venugopal
Raju |
|
Designation : |
Director |
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|
Name : |
R.S. Agarwal |
|
Designation : |
Director |
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|
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|
Name : |
J.
Narayanamurthy |
|
Designation : |
Director |
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|
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|
Name : |
P. Parvathi |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
L Jayashankar |
|
Designation : |
President |
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|
Name : |
Harish Chandra |
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Designation : |
Joint President |
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|
Name : |
G.R. Ram |
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Designation : |
Senior Vice
President |
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|
Name : |
M. Krishnam Raju |
|
Designation : |
Senior General
Manager (Marketing) |
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|
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|
Name : |
C. Srinivasan |
|
Designation : |
General Manager
(Legal) and Company Secretary |
|
|
|
|
Name : |
H.V. Badri
Narayana Murthy |
|
Designation : |
General Manager
(Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2010
|
Names of Shareholders |
|
No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
639,696 |
9.13 |
|
|
3,025,531 |
43.20 |
|
|
194,810 |
2.78 |
|
|
194,810 |
2.78 |
|
|
3,860,037 |
55.11 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,860,037 |
55.11 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,850 |
0.05 |
|
|
494 |
0.01 |
|
|
1,950 |
0.03 |
|
|
6,294 |
0.09 |
|
|
|
|
|
|
1,070,613 |
15.29 |
|
|
|
|
|
|
1,123,004 |
16.03 |
|
|
296,949 |
4.24 |
|
|
646,853 |
9.24 |
|
|
646,375 |
9.23 |
|
|
478 |
0.01 |
|
|
3,137,419 |
44.80 |
|
Total Public shareholding (B) |
3,143,713 |
44.89 |
|
Total (A)+(B) |
7,003,750 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
7,003,750 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Persons Acting in ConcertBUSINESS DETAILS
|
Line of Business : |
It is engaged in manufacturing of cement. The Company is
also engaged in the generation of power through hydel and wind power. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Cement Division |
|
Mt |
297000 |
296800 |
|
Slag Cement Division |
|
Mt |
1500000 |
800155 |
|
Wind Power |
|
KWH |
31554000 |
12610459 |
|
Hyderl Power |
|
KWH |
20740000 |
19406600 |
|
Thermal Power |
|
KWH |
157680000 |
53546116 |
GENERAL INFORMATION
|
Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
M. Bhaskara Rao and Company Chartered Accoutant |
|
Address : |
5-D, 5ht Floor, 6-3-652, Somajiguda, |
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7003750 |
Equity Shares |
Rs. 10/- each |
Rs. 70.038
Millions |
|
|
|
|
|
Notes:
Of the above shares 3501875 equity shares of Rs.10/- each were allotted on 02.01.1995 for a consideration other than cash as fully paid up bonus shares by capitalisation of Securities Premium / General Reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
70.038 |
70.038 |
70.038 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1659.401 |
1640.502 |
1322.786 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1729.439 |
1710.540 |
1392.824 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3059.475 |
3012.051 |
1436.584 |
|
|
2] Unsecured Loans |
275.129 |
246.419 |
186.950 |
|
|
TOTAL BORROWING |
3334.604 |
3258.470 |
1623.534 |
|
|
DEFERRED TAX LIABILITIES |
427.155 |
321.956 |
177.208 |
|
|
|
|
|
|
|
|
TOTAL |
5491.198 |
5290.966 |
3193.566 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4367.967 |
3964.379 |
756.278 |
|
|
Capital work-in-progress |
542.170 |
873.680 |
1983.286 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.102 |
1.102 |
0.590 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
265.070
|
227.912 |
93.760 |
|
|
Sundry Debtors |
109.725
|
25.366 |
9.966 |
|
|
Cash & Bank Balances |
337.289
|
116.339 |
385.843 |
|
|
Other Current Assets |
2.667
|
2.347 |
3.641 |
|
|
Loans & Advances |
308.158
|
1002.813 |
533.069 |
|
Total
Current Assets |
1022.909
|
1374.777 |
1026.279 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
71.791
|
268.472 |
52.667 |
|
|
Other Current Liabilities |
236.599
|
201.282 |
142.955 |
|
|
Provisions |
134.560
|
453.218 |
381.784 |
|
Total
Current Liabilities |
442.950
|
922.972 |
577.406 |
|
|
Net Current Assets |
579.959
|
451.805 |
448.873 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.539 |
|
|
|
|
|
|
|
|
TOTAL |
5491.198 |
5290.966 |
3193.566 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2962.104 |
1854.668 |
1880.123 |
|
|
|
Dividend on investments |
0.044 |
0.049 |
0.457 |
|
|
|
Profit on sale of fixed assets |
1.179 |
0.000 |
0.173 |
|
|
|
Other Income |
26.434 |
14.703 |
29.731 |
|
|
|
TOTAL (A) |
2989.761 |
1869.420 |
1910.484 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing, administration, selling and other expenses |
2294.439 |
1227.466 |
1124.292 |
|
|
|
Stock variation |
(71.906) |
(26.948) |
(14.705) |
|
|
|
Prior years adjustments |
(0.111) |
0.233 |
0.070 |
|
|
|
TOTAL (B) |
2222.422 |
1200.751 |
1109.657 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
767.339 |
668.669 |
800.827 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
340.337 |
45.753 |
11.575 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
427.002 |
622.916 |
789.252 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
238.095 |
70.114 |
58.062 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
188.907 |
552.802 |
731.190 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
145.507 |
210.504 |
251.531 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
43.400 |
342.298 |
479.659 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1126.341 |
842.855 |
435.743 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
4.340 |
34.230 |
47.965 |
|
|
|
Proposed for Dividend |
21.011 |
21.011 |
21.011 |
|
|
|
Corporate Dividend Tax |
3.490 |
3.571 |
3.571 |
|
|
BALANCE CARRIED
TO THE B/S |
1140.900 |
1126.341 |
842.855 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components and Spares Parts |
12.302 |
0.000 |
0.000 |
|
|
|
Capital Goods |
0.000 |
86.183 |
3.434 |
|
|
TOTAL IMPORTS |
12.302 |
86.183 |
3.434 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.20 |
48.87 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
792.280 |
706.950 |
842.950 |
|
Total Expenditure |
681.320 |
670.700 |
653.300 |
|
PBIDT (Excl OI) |
110.960 |
36.250 |
189.650 |
|
Other Income |
2.850 |
3.160 |
2.350 |
|
Operating Profit |
113.810 |
39.410 |
192.000 |
|
Interest |
96.840 |
97.040 |
101.600 |
|
PBDT |
16.980 |
(57.630) |
90.400 |
|
Depreciation |
60.590 |
60.930 |
60.100 |
|
Profit Before Tax |
(43.610) |
(118.550) |
30.300 |
|
Tax |
4.060 |
(23.080) |
9.630 |
|
Profit After Tax |
(47.670) |
(95.470) |
20.670 |
|
Net Profit |
(47.670) |
(95.470) |
20.670 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.45
|
18.31 |
25.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.38
|
29.81 |
38.89 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.50
|
10.35 |
41.02 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.32 |
0.52 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.17
|
2.44 |
1.58 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.31
|
1.49 |
1.78 |
LOCAL AGENCY FURTHER INFORMATION
RESULTS OF
OPERATIONS:
The performance of the Company for the year was satisfactory in spite of steep fall in cement prices for over six months. Sales turnover was at Rs. 2962.100 million compared to Rs. 1854.700 million in the previous year mainly due to increase in capacity during the financial year. Net profit before tax for the year was lower at Rs. 188.900 million (Rs. 552.800 million) due to sluggish market demand coupled with excess supply of cement in the market which resulted in steep fall in selling prices. The company's production and dispatches were also affected by the drop in government orders, flash floods, problems in logistics and civil unrest in the region that crippled the transportation industry which is vital for industry's incoming raw materials and outgoing finished products.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
INDUSTRY STRUCTURE
AND DEVELOPMENT
Cement production in the Country during 2009-10 was 160.000 million tonnes compared to 143.000 million tonnes in the previous year, registering a growth of 11.89%. Cement dispatches for 2009-10 recorded a growth of 12.09% at 159.430 million tonnes, against the figure of 142.230 million tonnes in 2008-09.
SEGMENT WISE PRODUCTIVE PERFORMANCE:
Net power generation through Wind mills in Andhra Pradesh was satisfactory at 32 lakh units during the year compared to 28 lakh units, during the previous year, registering an increase of 4 lakh units (14.85%). Wind power generation in Tamilnadu had also performed better at 93 lakh units during the year compared to 87 lakh units during the previous year. Power generation through Hydel unit was tow at 190 lakh units compared to 206 lakh units generated in the previous year, the reduced generation being due to delayed onset of monsoon in the State.
OUTLOOK:
Based on the projected domestic demand and supply,
read with the high input costs, the outlook for the cement industry, at
least in
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER / PERIOD ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Three Months Ended 31.12.2010 (Unaudited) |
Year to date figures for current year 31.12.2010 (Unaudited) |
|
a) Net Sales / Income from Operations |
842.954 |
2342.183 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
(30.039) |
(3.063) |
|
(b) Consumption of Raw Materials |
72.361 |
210.787 |
|
(c) Purchase of traded goods |
0.000 |
0.000 |
|
(d) Employees Cost |
29.000 |
90.793 |
|
(e) Depreciation |
60.104 |
181.629 |
|
(f) Other Expenditure |
|
|
|
i) Power |
92.151 |
196.215 |
|
ii) Fuel |
198.614 |
649.864 |
|
ii) others |
291.215 |
860.715 |
|
Total Expenditure |
713.406 |
2186.940 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
129.548 |
155.243 |
|
Other Income |
2.350 |
8.361 |
|
Profit/(Loss) before Interest and Exceptional items |
131.898 |
163.604 |
|
Interest and finance charges |
101.596 |
295.468 |
|
Profit / (Loss) after interest before Exceptional items |
30.302 |
(131.864) |
|
Exceptional Items |
-- |
-- |
|
Profit / (Loss) From
Ordinary activities before Tax |
30.302 |
(131.864) |
|
Tax Expenses |
9.635 |
(9.386) |
|
Net Profit/(Loss) From Ordinary activities after Tax |
20.667 |
(122.478) |
|
Extraordinary Items |
-- |
-- |
|
Net Profit/(Loss) for the period |
20.667 |
(122.478) |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
70.038 |
70.038 |
|
Reserves (Excluding Revaluation Reserves) |
- |
- |
|
Earnings per share
(EPS) |
|
|
|
-Basic and Diluted EPS before and after extraordinary items for the period for the year to date and for the previous year (not to be annualized) |
2.95 |
(17.49) |
|
Public Share Holding |
|
|
|
- Number of Shares |
3143713 |
3143713 |
|
- Percentage of shareholding |
44.89 |
44.89 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
Nil |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
3860037 |
3860037 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
|
- Percentage of Share (as a % of the total share capital of the company) |
55.11 |
55.11 |
Notes:
- The Statutory auditors of the company have carried out a limited
review of the above results.
- The above results have been reviewed by the audit committee and
thereafter, approved and taken on record by the board of directors at
their meeting held on 11.02.2011.
- There were no investor complaints pending at the beginning of the
quarter. Four complaints were received and disposed off during the
quarter.
- There is no reportable segment pursuant to AS-17 (Segment Reporting)
issued by the Institute of Chartered Accountants of India.
- Previous year / period figures have been regrouped/recast, wherever
necessary, to conform to the current period classification.
Fixed Assets:
·
Freehold land
·
Compensatory land for
afforrestation
·
Free hold land mining
·
Buildings
·
Plant and machinery
·
Other equipment
·
Furniture and fixtures
·
Office equipment
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.20 |
|
|
1 |
Rs.72.24 |
|
Euro |
1 |
Rs.63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.