MIRA
INFORM REPORT
|
Report Date : |
07.04.2011 |
IDENTIFICATION
DETAILS
|
Name : |
INDO AMINES
LIMITED |
|
|
|
|
Registered Office : |
W-38/39, Phase –
II, MIDC, Dombivili (East), District Thane – 421 203, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
17.12.1992 |
|
|
|
|
Com. Reg. No.: |
11-70022 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1992PLC070022 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMI02235C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACI1374A |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The company’s shares are listed on the stock exchanges. |
|
|
|
|
Line of Business : |
Manufacturer of
Amines, Pharmaceuticals and Speciality Chemical. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 688000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having
satisfactory track. Trade relations are fair. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered normal for business
dealings 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 : |
W-38/39, Phase –
II, MIDC, Dombivili (East), District Thane – 421 203, |
|
Tel. No.: |
91-251-2871354/
2870939 |
|
Fax No.: |
91-251-2871635 |
|
Email: |
|
|
Website: |
|
|
|
|
|
Factory: |
Ř Survey No. 1723, Tundav, Taluka Savli, Ř
W-37/38/39,
MIDC, Phase – II, Dombivili (East), Thane – 421 203, Ř
W-265,
W-266A, T.T.C. Industrial Area, Rabale MIDC, Navi Mumbai-400701, |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Vijay B.
Palkar |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Kirit H. Shah |
|
Designation : |
Whole Time
Director ( Promoter ) |
|
|
|
|
Name : |
Mrs. Bharati V.
Palkar |
|
Designation : |
Non - Executive
Promoter Director |
|
|
|
|
Name : |
Mr. Rahul V.
Palkar |
|
Designation : |
Executive
Promoter Director |
|
|
|
|
Name : |
Mr. N. G. Mane |
|
Designation : |
Executive Independent Director |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
Name : |
Mr. Suresh Iyer |
|
Designation : |
Executive
Independent Director |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
Name : |
Mr. Milind P.
Patil |
|
Designation : |
Executive Independent Director |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
Name : |
Mr. R.
Raghavendra Ravi |
|
Designation : |
Independent Non Executive Director |
|
Date of Appointment : |
01.08.2004 |
|
|
|
|
Name : |
Mr. Dr. J. H.
Shah |
|
Designation : |
Independent Non Executive Director |
|
|
|
|
Name : |
Dr. Deepak S Kanekar |
|
Designation : |
Chairman (Independent non executive additional director) |
|
Date of Appointment : |
31.03.2009 |
|
|
|
|
Name : |
Mr. Dhawal J Vora |
|
Designation : |
Independent non executive additional director |
|
|
|
|
Name : |
Mr. Changdeo L Kadam |
|
Designation : |
Independent non executive additional director |
|
Date of Appointment : |
29.12.2008 |
|
|
|
|
Name : |
Mr. Vishwas V Mehendale |
|
Designation : |
Independent non executive additional director |
|
Date of Appointment : |
09.02.2009 |
|
|
|
|
Name : |
Mrs. Ashwini R Palker |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS
As on 31.12.2010
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,526,190 |
17.32 |
|
|
2,981,814 |
33.84 |
|
|
4,508,004 |
51.16 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
4,508,004 |
51.16 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
227,764 |
2.58 |
|
|
|
|
|
|
2,695,526 |
30.59 |
|
|
968,678 |
10.99 |
|
|
411,918 |
4.67 |
|
|
2,401 |
0.03 |
|
|
409,517 |
4.65 |
|
|
4,303,886 |
48.84 |
|
Total Public shareholding (B) |
4,303,886 |
48.84 |
|
Total (A)+(B) |
8,811,890 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
8,811,890 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millions
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Amines, Pharmaceuticals and Speciality Chemical. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION
STATUS
As on 31.03.2010
|
Particulars |
Unit |
Installed Capacity |
|
Fatty Amines / Quaternary Ammonium Compounds |
MT |
6000 |
|
Organic Chemicals |
MT |
1860 |
|
Speciality Chemicals |
MT |
4000 |
|
Bulk Drugs |
MT |
1200 |
GENERAL
INFORMATION
|
No. of Employees : |
200 Approximately
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ř
State Bank of Ř
State Bank of Ř
State Bank of Ř
Union Bank of Ř
Indus Ind Bank Limited Ř
Magma Fincorp Bank Ř
HDFC Bank Ř
Shriram City Union Finance Limited Ř
IDBI, Cuffe Parade Branch, Mumbai Ř
ICICI Bank Ř
Dombivli Nagari Sahakari Bank Limited |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
--- |
|
|
|
|
Auditors : |
Kulkarni and
Khanolkar Chartered
Accountant |
|
Address: |
Mumbai, |
|
|
|
|
Associates: |
Ř Versatile Chemicals Private Limited Ř Oleo Formulations Private Limited Ř Techno Holdings (I) Private Limited Ř Techno Securities (I) Private Limited Ř Palkar Finance and Consultancy Services
Private Limited Ř Sheiraj Chemicals and Pharmaceuticals
Private Limited Ř Marvel Indenting Private Limited Ř Mecham Engineers Ř Universal Distributor Ř Pure Organics Industries Limited Ř Unigroup Resources Private Limited Ř Indo Amines ( |
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 |
|
8378890 |
Equity Shares |
Rs. 10/- each |
Rs. 83.788 Millions |
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 |
83.789 |
79.619 |
75.869 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Convertible Warrants |
1.304 |
2.550 |
2.867 |
|
|
4] Reserves & Surplus |
87.062 |
79.786 |
44.130 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
172.155 |
161.955 |
122.866 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
200.042 |
174.002 |
161.592 |
|
|
2] Unsecured Loans |
6.286 |
33.490 |
17.799 |
|
|
TOTAL BORROWING |
206.328 |
207.492 |
179.391 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
378.483 |
369.447 |
302.257 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
114.951 |
99.348 |
92.101 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT (Long Term) Indo Amines
(Europe) Limited (25 A type and 25 B type Equity shares of face value 1GBP
each valued at Rs.84.88 per GBP) Equity Shares of
DNSB ( 1750 Equity shares, FV Rs.50/- each) |
0.004 0.088 |
0.004 0.000 |
0.004 0.000 |
|
|
DEFERREX TAX ASSETS |
3.504 |
2.239 |
0.676 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
115.312
|
91.347
|
113.432 |
|
|
Sundry Debtors |
305.519
|
161.017
|
194.591 |
|
|
Cash & Bank Balances |
6.667
|
29.635
|
17.875 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
129.372
|
117.791
|
61.074 |
|
Total
Current Assets |
556.870
|
399.790
|
386.972 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
203.004
|
73.953
|
0.000 |
|
|
Current Liabilities |
93.932
|
57.981
|
177.496 |
|
|
Provisions |
0.000
|
0.000
|
0.000 |
|
Total
Current Liabilities |
296.936
|
131.934
|
177.496 |
|
|
Net Current Assets |
259.934
|
267.856
|
209.476 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
378.483 |
369.447 |
302.257 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
925.109 |
952.567 |
944.552 |
|
|
|
Other Income |
2.452 |
5.228 |
21.422 |
|
|
|
TOTAL
(A) |
927.561 |
957.795 |
965.974 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
127.563 |
117.789 |
206.721 |
|
|
|
Administrative Expenses |
62.954 |
73.955 |
64.527 |
|
|
|
Raw Material Consumed |
451.695 |
622.478 |
618.734 |
|
|
|
Purchases made for re-sale |
233.433 |
31.207 |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
(13.427) |
2.313 |
0.000 |
|
|
|
TOTAL (B) |
862.218 |
847.742 |
889.982 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
65.343 |
110.053 |
75.992 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
19.821 |
31.856 |
19.592 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
45.522 |
78.197 |
56.400 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
25.484 |
24.829 |
22.881 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
20.038 |
53.368 |
33.519 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
6.734 |
18.837 |
11.706 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
13.304 |
34.531 |
21.813 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
58.661 |
24.130 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend |
5.865 |
NA |
NA |
|
|
|
Tax on Dividend |
0.997 |
NA |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
65.103 |
58.661 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
347.242 |
529.732 |
445.392 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
147.539 |
223.033 |
224.272 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.59 |
4.34 |
2.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
455.340 |
496.160 |
298.430 |
|
Total Expenditure |
434.910 |
475.620 |
278.910 |
|
PBIDT (Excl OI) |
20.430 |
20.540 |
19.520 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
20.430 |
20.540 |
19.520 |
|
Interest |
3.520 |
4.950 |
4.710 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
16.910 |
15.590 |
14.810 |
|
Depreciation |
6.300 |
6.300 |
6.300 |
|
Profit Before Tax |
10.610 |
9.290 |
8.510 |
|
Tax |
3.000 |
3.000 |
3.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
7.610 |
6.290 |
5.510 |
|
Net Profit |
7.610 |
6.290 |
5.510 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.43 |
3.60 |
2.26 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.16 |
5.60 |
3.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.98 |
10.69 |
6.99 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.33 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.92 |
2.10 |
2.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87 |
3.03 |
2.18 |
LOCAL AGENCY FURTHER INFORMATION
History:
1994 - Techno Chemical Industries went Public to emerge as
subject which had two Manufacturing Sites focusing
on Fine
and Speciality Chemicals to become one of
1995 - Started
1997 - Divided the two units into two Business Divisions
2000 - Started exporting to 29 countries around the Global.
2001 - Focus on Exports with the expanding market and
opportunities, were we could foresee our growth.
2003 - Research and Development took a major lead role,
continuous effort were being made to bring it
Products as
per Internationally recognized Quality standards.
2004 - Started Performance Chemicals Division
2005 - Subject was awarded with ISO 9001 -2000 certification
from TUV that has given it and its products global
acceptance.
2006 - Acquired Flame Pharmaceuticals and Sheeraj Chemicals
2007 - Started Bulk Drugs and Intermediates Business
Division
2009 - Received First Award for outstanding export
performance in Inorganic and Organic chemicals for the.
financial year 2006-07
OPERATIONS:
The turnover of
the Company for the Financial year 2009-10 was Rs.940.988 millions compared to
last year of Rs.955.482 millions decrease of 1.52 % in comparison to last year.
Company has made a profit before tax of Rs.20.038 millions compared to last
year Rs. 53.368 millions. The reduction in profit is due to increased prices of
raw material which cannot be passed on to customers immediately due to period
specific agreements. However, the price revision is effected immediately at the
time of renewal of contract.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
A) Industry
Overview :
The cyclical
slowdown in the industrial sector which began in fiscal 2008 got compounded by
the global slowdown and was arrested only at the last quarter of fiscal 2010.
The Company took lot of efforts to maintain its turnover with marginal dip.
However, the profitability remains a concern throughout the fiscal 2010. The
Company has taken the requisite steps to improve the bottom line in fiscal
2011.
B) Opportunities,
Concerns and Outlook :
The company is a
manufacturer, developer and supplier of Fine chemicals, Oleo chemicals,
Specialty chemicals, Performance Chemicals, Perfumery Chemicals and Active Pharmaceutical
Ingredients. The products manufactured find inputs to large number of other end
user industries and the demand of its products is linked to the performance of
the end user products of these industries Due to the growing economy the demand
for their products are increasing constantly in domestic market but there is
lot of pressure on the profit margins due to the following circumstances:
1. The rising cost
of raw material and fuel has added pressure on the margins of the Company,
since they were not able to pass on the same to their customers.
2. It becomes a
difficult task to sell high quality products at low rates in view of the high
overheads necessary to manufacture and sell these products by the Company in
the international market.
3. One of the most
challenging tasks faced by the Company is the high attrition rate, especially
in the marketing and sales staff. The vast opportunities available in the
market and the rising trend of salaries offered by different sections of the
market has resulted in the Company losing good employees. To contain the
attrition rate a lot of measures such as improvement in the remuneration
structure, growth opportunities and various training programmers have been
initiated by the Human Resource Department to address this issue
The aforesaid
effects have been somewhat offset due to cost cutting measures and full
utilization of exciting capacity.
FIXED ASSETS:
v
Land
and Sheds
v
v
Plant and Machinery
v
Electrical Equipment
v
Motor Vehicles
v
Office Equipments
v
Furniture and Fixtures
v
Cylinder
v
Computer
v
Scooter
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. 72.25 |
|
Euro |
1 |
Rs. 63.09 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.