MIRA INFORM REPORT
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Report Date : |
14.04.2011 |
IDENTIFICATION DETAILS
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Name : |
ESSEL MINING AND INDUSTRIES LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
01.04.1950 |
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Com. Reg. No.: |
018728 |
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CIN No.: [Company Identification
No.] |
U51109WB1950PLC018728 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing of
Low Carbon Ferro Alloys and HDPE/PP Woven Sacks |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (76) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 173000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Aditya Birla Group, The company can be considered good for any normal 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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-33-39876000 |
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Fax No.: |
91-33-30518300 |
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E-Mail : |
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Head Office : |
Industry House, 18th Floor, 10, |
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Tel. No.: |
91-33-22827772/22828339/6378/6398 |
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Fax No.: |
91-33-2824998 |
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E-Mail : |
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Website : |
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Factory : |
At Post Jajang, Place Jilling, Via Joda, Taluka Barbil, Dist Keonjhar,
Orissa – 758052, |
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Tel. No.: |
91 - 6767- 275437, 275367, 279209 |
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Fax No.: |
91 - 6767 - 279218 |
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Warehouse: |
Ferro Chem Unit : Plot No. 165 / 166, G.I.D.C.,Vapi - 396 195, Dist. Valsad, Tel. No. 91-260-2423199/2436520 Fax No. 91-260-431099 E-Mail: info@emilvapi.com HDPE / PP Woven Sacks Unit : Plot A-6, Sector 20, Industrial Area, Jagdishpur - 227 817, Mines :
Post Barbil - 758035, Dist - Keonjhar, Orissa-758035, Tel. No.: 91-6767-275224/237
Industry House, 45,
14/3 Mile Stone,
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Branches : |
Industry House, 45, Tel. No. 91-80-2268441 Fax No.
91-80-2253920 E-Mail: hgi.blr@rme.sril.in
Mittal Court, B Wing, 12th Floor, 224, Nariman Point, Mumbai 400021, Tel. No.
91-22-282-6456/2844241/2822918 Fax No.
91-22-28844214 E-Mail: hgi.mum@rme.sril.in
Tel. No. 91-11-3359634/3739657 Fax No.
91-11-3323022 E-Mail: hgi.del@rme.sril.in |
DIRECTORS
AS ON 27.09.2010
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Name : |
Mr. Sunil Kumar
Daga |
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Designation : |
Director |
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Address: |
Rajanigandha, 25
Ballygunge Park, Flat No, 14 W, Kolkata - 700 019, West |
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Date of Birth : |
06.03.1941 |
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Date of Appointment : |
18.07.1975 |
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Name : |
Mr. Kumar
Mangalam Birla |
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Designation : |
Director |
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Address: |
Mangal Adityaayan,
20, |
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Date of Birth : |
14.06.1967 |
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Date of Appointment : |
09.05.2004 |
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Name : |
Mr. Ravindra
Kastia |
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Designation : |
Managing Director |
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Address: |
125, Satnam
Apartments, Cuffe Parade, Colaba, Mumbai – 400005, |
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Date of Birth : |
12.06.1955 |
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Date of Appointment : |
31.07.2004 |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Director |
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Address: |
Mangal Adityaayan, 20, |
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Date of Birth : |
15.09.1945 |
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Date of Appointment : |
09.05.2004 |
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Name : |
Mr. Ashwin Kumar Kothari |
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Designation : |
Director |
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Address: |
Gold Cornet, Flat No.4, 1st Floor, |
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Date of Birth : |
14.09.1942 |
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Date of Appointment : |
27.03.1970 |
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Name : |
Mr. Manish Newar |
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Designation : |
Director |
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Address: |
Kusum Apartments, |
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Date of Birth : |
30.03.1969 |
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Date of Appointment : |
08.12.1993 |
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Name : |
Mr. Nagendra Chandra Shah |
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Designation : |
Director |
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Address: |
1, |
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Date of Birth : |
10.08.1935 |
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Date of Appointment : |
05.11.1973 |
KEY EXECUTIVES
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Name : |
Mrs. Rakhi Agarwal |
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Designation : |
Secretary |
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Date of Appointment : |
30.03.2009 |
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Name : |
Mr. H C Daga |
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Designation : |
Senior President |
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Name : |
Mr. R P Pansari |
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Designation : |
Senior President and Chief Finance Officer |
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Name : |
Mr. Ramesh Aggarwal |
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Designation : |
Senior Vice President (F and C) |
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Name : |
Mr. G K Ravinder |
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Designation : |
Senior Vice President – HR |
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Name : |
Mr. R S Sharme (Mining Division) |
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Designation : |
Jt. Executive President |
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Name : |
Mr. Ravi Bansal (Ferro Chem Division) |
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Designation : |
Vice President |
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Name : |
Mr. M P Dhanuka (Nitrogen Gas Division) |
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Designation : |
Vice President |
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Name : |
Mr. Ashok Kumar Baid |
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Designation : |
Company Secretary |
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Address: |
22, |
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Date of Birth : |
15.09.1956 |
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Date of Appointment : |
11.04.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 27.09.2010
LIST OF PREFERENCE
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Surya Abha Investments Pte Limited, |
29920000 |
AS ON 27.09.2010
|
Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Public Financial Companies |
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0.01 |
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Bodies corporate |
|
93.90 |
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Directors or relatives of directors |
|
1.83 |
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Other top fifty shareholders |
|
4.26 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Low Carbon Ferro Alloys and HDPE/PP Woven Sacks |
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Products : |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
2000
Approximately |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S r Batliboi and Company Chartered Accountant |
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Address : |
22, |
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Subsidiary Company
: |
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Affiliates: |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
10000000 |
Equity Shares |
Rs. 10 each |
Rs.100.000 millions |
|
299000000 |
Preference Shares |
Rs. 100 each |
Rs. 29900.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
492695 |
Equity Shares [Including
397,694 Equity Shares issued for consideration other than cash and 80,000 Equity
Shares issued as Bonus Shares by capitalisation of General Reserve]. |
Rs. 10 each |
Rs.4.927 millions |
|
29920000 |
(-)9.50% Redeemable Cumulative Preference Shares (redeemable at par on 11th
April, 2010) |
Rs. 100 each |
Rs. 2992.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2996.927 |
2996.927 |
4.927 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
40353.482 |
35259.753 |
25693.659 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
43350.409 |
38256.680 |
25698.586 |
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LOAN FUNDS |
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1] Secured Loans |
21000.707 |
24970.590 |
20064.904 |
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2] Unsecured Loans |
0.000 |
150.000 |
0.000 |
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TOTAL BORROWING |
21000.707 |
25120.590 |
20064.904 |
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DEFERRED TAX LIABILITIES |
332.294 |
331.541 |
448.161 |
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TOTAL |
64683.410 |
63708.811 |
46211.651 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4535.087 |
4634.538 |
4794.147 |
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Capital work-in-progress |
648.803 |
407.812 |
205.313 |
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INVESTMENT |
29312.768 |
27517.328 |
15892.879 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
813.523
|
1689.653 |
1949.740 |
|
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Sundry Debtors |
939.648
|
1303.134 |
1542.454 |
|
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Cash & Bank Balances |
30.209
|
416.736 |
374.327
|
|
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Other Current Assets |
0.000
|
0.000 |
0.000
|
|
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Loans & Advances |
32001.788
|
29850.989 |
24225.808
|
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Total
Current Assets |
33785.168
|
33260.512 |
28092.329 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Sundry Creditors |
1918.787
|
1671.994 |
1410.961 |
|
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Other Current Liabilities |
1350.523
|
273.470 |
1001.161
|
|
|
Provisions |
329.106
|
165.915 |
360.895
|
|
Total
Current Liabilities |
3598.416
|
2111.379 |
2773.017 |
|
|
Net Current Assets |
30186.752
|
31149.133 |
25319.312 |
|
|
|
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|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
64683.410 |
63708.811 |
46211.651 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
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SALES |
|
|
|
|
|
|
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Sales |
24878.826 |
32382.404 |
23054.482 |
|
|
|
Other Income |
724.178 |
962.878 |
766.804 |
|
|
|
TOTAL (A) |
25603.004 |
33345.282 |
23821.286 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
731.802 |
1640.512 |
2195.923 |
|
|
|
Directors Remuneration |
306.175 |
195.566 |
147.030 |
|
|
|
Increase/(Decrease) in Finished Goods |
784.358 |
231.527 |
(952.497) |
|
|
|
Raising, Manufacturing, Selling, Administrative
and Other Expenses |
11846.969 |
13129.524 |
7767.630 |
|
|
|
Excise Duty on Stocks |
2.326 |
(16.787) |
6.375 |
|
|
|
Purchase of Finished Goods |
1519.924 |
598.755 |
8.102 |
|
|
|
Other Expenses |
0.000 |
0.000 |
416.696 |
|
|
|
TOTAL (B) |
15191.554 |
15779.097 |
9589.259 |
|
|
|
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|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10411.450 |
17566.185 |
14232.027 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2376.688 |
2829.416 |
1643.371 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
8034.762 |
14736.769 |
12588.656 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
356.506 |
349.593 |
308.567 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
7678.256 |
14387.176 |
12280.089 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2241.037 |
4486.117 |
3914.803 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5437.219 |
9901.059 |
8365.286 |
|
|
|
|
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|
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|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
21761.602 |
13195.508 |
5681.751 |
|
|
|
|
|
|
|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
1000.000 |
840.000 |
|
|
|
Transfer to Capital Redemption Reserve |
2992.000 |
0.000 |
|
|
|
|
Proposed Dividends on Equity Shares |
9.854 |
9.854 |
9.854 |
|
|
|
Dividends on Preference Shares |
284.240 |
276.453 |
|
|
|
|
Tax on Dividend |
49.396 |
48.658 |
1.675 |
|
|
BALANCE CARRIED
TO THE B/S |
22863.331 |
21761.602 |
13195.508 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
10185.082 |
14822.428 |
7567.389 |
|
|
|
Commission Earnings |
10.545 |
0.000 |
0.000 |
|
|
|
Other Earnings |
0.000 |
79.464 |
0.000 |
|
|
TOTAL EARNINGS |
10195.627 |
14901.892 |
7567.389 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
456.461 |
1091.477 |
1837.011 |
|
|
|
Stores & Spares |
19.226 |
20.195 |
10.675 |
|
|
|
Capital Goods |
38.873 |
41.290 |
19.017 |
|
|
TOTAL IMPORTS |
514.560 |
1152.962 |
1866.703 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10361.83 |
19439.25 |
16978.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
21.23
|
29.69 |
35.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.86
|
44.42 |
53.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.03
|
37.96 |
37.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.37 |
0.47 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.72 |
0.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
9.38
|
15.75 |
10.13 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS AND OVERALL PERFORMANCE
During the year, the
net turnover of the Company was Rs. 24878.800 millions. The softening of
prices, by approximately 21% on an aggregate basis, and a 5% decline in the
quantum of sale, impacted realizations. The second half of the financial year
encountered logistics and regulatory constraints, which affected growth. Profit
after Tax for the year was Rs. 5437.200 millions. Expenses were higher owing to
the levy of an ad–valorem royalty of 10% on the iron ore prices declared by
IBM.
The major
contribution to profits was from the Mining Division, which recorded a total
PBDT of Rs.10550.900 millions. There was substantial improvement in the
performance of the Ferro Chem Division also, which posted a profit of Rs.
50.400 millions, against a loss of Rs.132.900 millions in the previous fiscal.
The PBDT of the Wind Power Division also witnessed a surge, from Rs.113.700
millions in FY 2009 to Rs. 404.400 millions in FY 2010.
FINANCE
2,99,20,000, 9.5%
Redeemable Preference Shares (Series –B) of Rs 100/– each were redeemed
on the 10th of April 2010. Further, 2992, 9.5% Secured Compulsorily Convertible
Debentures (Series–C) of Rs 1.000 millions each were converted into
2,99,20,000, 9.5% Redeemable Preference Shares (Series–C) of Rs 100/–
each on 11th April 2010.
FUTURE PROSPECTS
The Company will
continue to sustain its performance and make profits in the years to come.
However, there may be fluctuations, owing to factors such as a continuing
global economic slowdown, the debt crisis in the Euro–zone, pricing strategies
of the major global players,
MANAGEMENT
DISCUSSION AND ANALYSIS
BUSINESS OVERVIEW
Global Steel and
Year 2009–10
saw the global economies on the mend. This was reflected in the gradual
recovery of crude steel production in the developed economies running alongside
substantial growth in the Chinese output. Crude steel production increased
globally by 3.5% in 2009–10 over 2008–09 to 1295 Mt primarily
because of a belligerent growth of 19% by
Indian Steel and
In mid–FY 2010,
the Odisha Government strengthened the controls over mining operations and
movement of iron ore by implementing several stringent measures. These measures
had an adverse impact on overall mining operations in the State. There was a
complete standstill in the supply chain of iron ore in Odisha during the fourth
quarter of FY 2010. The imposition of a 10% ad–valorem royalty by the
State Government and a 5% export duty by the Central Government has had a
further negative impact on the iron ore market.
BUSINESS
PERFORMANCE
The Mining
Division recorded a net revenue of Rs. 23533.7 millions during FY 2010, as
against Rs. 30266.5 millions in FY 2009. The major reasons for the dip in
performance were lower realization in the first half of the fiscal year,
coupled with lower volumes in the second half owing to regulatory and logistics
issues. The year–on–year increase in the PBDT of the Ferro–Chem
Division was Rs. 183.3 millions. The Wind Power Division maintained its
production levels and performance.
FIXED ASSETS:
·
Goodwill
·
·
·
Mining Lease and Mining
Rights
·
Buildings
·
Railway Sidings
·
Plant and Machinery
·
Furniture, Fixtures and
Fittings
·
Vehicles
·
Cylinders
FORM 8
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U51109WB1950PTC018728 |
|
Name of the
company |
ESSEL MINING AND INDUSTRIES LIMITED |
|
Address of the registered
office or of the principal place of
business in |
10, |
|
Type of charge |
Book Debts Others (Stocks –
as specified in the deed of Hypothecation)
|
|
Particular of charge
holder |
The Hong Kong and
Shanghai Banking Corporation Limited, Hong Kong House, 31, BBD Bag, Kolkata –
700 001, West Bengal, India E-Mail: mohanmotwani@hsbc.co.in |
|
Nature of description
of the instrument creating or modifying the charge |
Hypothecation
Deed dated 14th January, 2009 executed by the company in favour of
the Bank, the company has hypothecated the revolving stocks of raw materials,
semi finished goods, finished goods and book debts, as specified in the Deed
of Hypothecation dated 14th January 2009 both present and future
to the Bank by way of first charge to secure the various credit facilities
ranking pari passu with the charges created/ to be created by the company in
favour of other banks. |
|
Date of
instrument Creating the charge |
14.01.2009 |
|
Amount secured by
the charge |
Rs.400.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest:
Interest as per agreed rte, subject however that the Bank shall have right to
change the rate of Interest after giving notice to the company. Commission to be paid
by the company in respect of Letter of Credit and others as per tariff of the
Bank and/ or as per Reserve Bank of Terms of
Repayment: Repayable on demand. Margin: The
company shall at all times during the continuance of this security keep and
maintain such margin as of security in favour of the Bank. If and so often as
the said margin shall fall to be maintained then the borrower shall forth
with either hypothecate to the Bank further assets or tangible moveable
property approved by the Bank and of sufficient value to make up the
deficiency or shall reduce the amount for the time being due to the Bank by a
cash and of sufficient value to make up the deficiency or shall reduce the
amount for the time being due to the Bank by a cash payment so as to maintain
the said margin. Extent and
Operation of the charge: The company hypothecated its stock of raw materials,
book debts both present and future as specified in the Deed of Hypothecation
dated 14th January, 2009, by way of 1st pari passu
charge to secure credit facilities upto the aggregate limit of Rs.400.000
millions together with interest, commission and all costs, charges and
expenses and all other moneys payable thereunder with the 1st
hypothecation and/or charge created and/or to be created in favour of the
other Banks. |
|
Short particulars
of the property charged |
Company’s stocks,
book debts both present and future as specified in the Deed of Hypothecation
dated 14th January, 2009. |
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.44.48 |
|
|
1 |
Rs.72.37 |
|
Euro |
1 |
Rs.64.42 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
76 |
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.