MIRA INFORM REPORT
|
Report Date : |
19.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
MAHINDRA COMPOSITES LIMITED (w.e.f. 17.01.2007) |
|
|
|
|
Formerly Known
As : |
SIRO PLAST LIMITED |
|
|
|
|
Registered
Office : |
145, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
18.08.1982 |
|
|
|
|
Com. Reg. No.: |
028040 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24117MH1982PTC028040 |
|
|
|
|
Legal Form : |
Public Limited Liability Company Company’s shares are listed on the stock exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of engineering plastics with wide applications
in the automobile and electrical industries, the Defence, etc. |
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 594000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular 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 : |
145, |
|
Tel. No.: |
91-20-
27425265 / 66 |
|
Fax No.: |
91-
20-27425272 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Survey No. 178/0, Village |
|
Tel. No.: |
91-2140-263128/112 |
|
Fax No.: |
91-2140-263145 |
DIRECTORS
As on 31.03.2010
|
Name : |
Hemant Luthra |
|
Designation : |
Chariman |
|
|
|
|
Name : |
P |
|
Designation : |
Director |
|
|
|
|
Name : |
R R Krishnan |
|
Designation : |
Director |
|
|
|
|
Name : |
C S Devale |
|
Designation : |
Director |
|
|
|
|
Name : |
M R Joshi |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,977,203 |
44.90 |
|
|
1,977,203 |
44.90 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1,977,203 |
44.90 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,050 |
0.05 |
|
|
1,600 |
0.04 |
|
|
3,650 |
0.08 |
|
|
|
|
|
|
183,644 |
4.17 |
|
|
|
|
|
|
1,638,901 |
37.21 |
|
|
500,155 |
11.36 |
|
|
100,456 |
2.28 |
|
|
100,456 |
2.28 |
|
|
2,423,156 |
55.02 |
|
Total Public shareholding (B) |
2,426,806 |
55.10 |
|
Total (A)+(B) |
4,404,009 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of engineering plastics with wide
applications in the automobile and electrical industries, the Defence, etc. |
|
|
|
GENERAL INFORMATION
|
Bankers : |
HDFC Bank Limited |
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
Mumbai |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4388261 |
Equity Shares |
Rs. 10/- each |
Rs. 43.882 Millions |
As on 23.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4404009 |
Equity Shares |
Rs. 10/- each |
Rs. 44.040 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 |
43.900 |
43.900 |
43.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
104.600 |
89.200 |
70.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
148.500 |
133.100 |
114.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
55.600 |
50.500 |
50.600 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.900 |
|
|
TOTAL BORROWING |
55.600 |
50.500 |
50.600 |
|
|
DEFERRED TAX LIABILITIES |
6.200 |
7.600 |
7.300 |
|
|
|
|
|
|
|
|
TOTAL |
210.300 |
191.200 |
173.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
77.500 |
76.100 |
74.000 |
|
|
Capital work-in-progress |
4.700 |
3.700 |
0.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
4.200 |
3.400 |
5.400 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
41.700
|
34.800 |
24.700 |
|
|
Sundry Debtors |
132.200
|
121.600 |
114.200 |
|
|
Cash & Bank Balances |
8.900
|
9.200 |
7.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
17.400
|
21.200 |
20.700 |
|
Total
Current Assets |
200.200
|
186.800 |
167.400 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
58.400
|
66.600 |
63.300 |
|
|
Provisions |
17.900
|
12.800 |
10.600 |
|
Total
Current Liabilities |
76.300
|
78.800 |
73.900 |
|
|
Net Current Assets |
123.900
|
108.000 |
93.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
210.300 |
191.200 |
173.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
459.000 |
427.100 |
322.600 |
|
|
|
Other Income |
2.600 |
10.300 |
1.000 |
|
|
|
TOTAL (A) |
461.600 |
437.400 |
323.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials |
309.700 |
291.500 |
212.000 |
|
|
|
Power and Fuel Cost |
8.600 |
8.200 |
7.900 |
|
|
|
Employee Cost |
39.000 |
31.900 |
27.700 |
|
|
|
Other manufacturing expenses |
15.900 |
11.500 |
8.500 |
|
|
|
Selling and Administration Expenses |
25.200 |
23.300 |
20.700 |
|
|
|
Miscellaneous Expenses |
9.100 |
14.100 |
17.100 |
|
|
|
Increase/Decrease in Stock |
(5.400) |
(2.800) |
0.400 |
|
|
|
TOTAL (B) |
402.100 |
377.700 |
294.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
59.500 |
59.700 |
29.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
7.200 |
5.700 |
6.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
52.300 |
54.000 |
22.900 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13.700 |
8.600 |
7.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
38.600 |
45.400 |
15.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
12.900 |
16.600 |
4.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
25.700 |
28.800 |
11.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
69.000 |
52.700 |
46.900 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
12.200 |
12.500 |
5.200 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
82.500 |
69.000 |
52.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.51 |
6.22 |
2.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
120.800 |
125.300 |
124.500 |
|
Total Expenditure |
107.800 |
117.800 |
112.400 |
|
PBIDT (Excl OI) |
13.000 |
7.500 |
12.100 |
|
Other Income |
0.100 |
0.100 |
0.000 |
|
Operating Profit |
13.100 |
7.600 |
12.100 |
|
Interest |
1.800 |
1.500 |
1.700 |
|
PBDT |
11.300 |
6.100 |
10.400 |
|
Depreciation |
2.400 |
2.600 |
2.900 |
|
Profit Before Tax |
8.900 |
3.500 |
7.500 |
|
Tax |
3.000 |
1.300 |
2.500 |
|
Profit After Tax |
5.900 |
2.200 |
5.000 |
|
Net Profit |
5.900 |
2.200 |
5.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.57
|
6.58 |
3.40 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.40
|
10.63 |
4.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.90
|
17.29 |
6.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.10 |
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.89
|
0.97 |
1.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.62
|
2.37 |
2.26 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject is a manufacturer of engineering plastics with wide applications
in the automobile and electrical industries, the Defence, etc. The company is
having their manufacturing facilities located at Raigad and Pune in
OPERATIONS:
The Company's performance this year has been that
of consolidation with small growth in sales of 5%. This is
much lower than what was envisaged at the
beginning of the year, primarily
due to postponement of
customers' plans in all
new businesses / new products which were
targeted by the Company. The postponement of customers'
plans was on account of world wide
economic crisis which affected almost every Company in
In view of the
delays communicated by customers, the Company took prudent action in controlling expenses as well
as investments, thereby maintaining
EBIDTA at Rs.59.600 millions.
Material cost showed
some reduction from 67% to
66%. However, other variables, including electricity nullified
this saving and
overall contribution was maintained at 27%.
Increase in interest
rates combined with one time special depreciation of
tooling had large effect on PBT in spite of maintaining EBIDTA.
New business development activity is being
aggressively pursued and with overall
revival of the
economy in India as
well as in
the world, significant
improvement should be expected in the coming years.
INNOVATION AND TECHNOLOGY DEVELOPMENT:
The focus on
innovation led to the setting up of the innovation centre. The Company now has
a strong technical team of design and tooling engineers. At the innovation centre, several projects were successfully
designed and executed by this
competent team.
The team designed a
bonnet for the Subject Gujarat Tractors on an 'art to part' basis in 3 months. A NVH canopy for
the Generator industry is also in the advanced stage of development and
undergoing testing. This can lead to
substantial volume growth.
Similarly the
team designed and delivered a composite body for the
Fast Action Vehicle in record time for the defence forces.
The team has successfully developed the
technology locally to manufacture
seamless wind mill
blades in carbon fibre. These blades
for a 3.5 KW
windmill are in pilot production.
The innovation
centre has also designed and developed
a Drinking Water Trolley
for the National Rural Employment Guarantee
Scheme in Andhra Pradesh. This is in line with the
Subject concept of ESOPS. They propose
to promote this product thro' NGO's for remote areas.
SEGMENT WISE PERFORMANCE:
Business segments
continue to be Compound and Components. Components sales this year will increase due to expected
sale of Electra and also components from
the 2000 T press. The sale of Wind Mill Blades started in F-l 1 will open up a new market segment.
Summary of F10 performance is as below:
Sales growth was to
come from New Products in Automotive Industry
thro' Technology Agreement with iNoPlast,
Solar dish of Infinia and
Electra boxes. The 1st two did
not happen and the tendering of 'electra'
business was much less than the
expectations. So they had to push
existing products and ended up
generating just about 7% growth.
Even with this
background, by reducing material costs by 1%, they were able to off set major
cost increase in personnel area
(wage agreement & management staff) to large extent. They
achieved EBITDA same as last year of Rs 59.500 millions.
However the PBT took
an hit due to higher interest costs and an one
time large depreciation relating
to tools made for BHEL, which
had to be depreciated in this year. With some help on deferred tax
account, PAT was only 10%
lower from last year at Rs.
25.900 millions and they could
maintain same Dividend as last
year.
OUTLOOK F-11:
The Company has
taken up an ambitious target for significant jump in sales through new
products. Initiatives already
taken give rise
to this confidence and
are not dependent entirely on
customer's growth, but substantially on new products.
Renewed buoyancy in Electrical Industry gives
confidence of achieving the growth budgets
in Sales of Compounds. First quarter
demand from all customers
is already looking up and is
strong. New grades will
further contribute to growth.
Electrical business which remained a concern last year
will grow in a big way this year.
The Export
Business which remained low last
year is
showing signs of recovery. Besides GE, the Company is also
designing and developing products for the medical equipment division of
Philips.
The productivity
linked wage agreement for a period
of 4 years was successfully signed with the workmen.
Power availability remains a concern. Rain water harvesting continues to benefit the plant by reducing water costs at Mangaon plant.
SYNERGIES WITH PARENT:
Synergies within the
Subject Systech Group:
They are
part of the Subject Systech group of companies in
the Subject group, which
aims to leverage
the global competitiveness of Indian
companies in the automobile component sector. Companies within the Subject
Systech are present
in complementary businesses
such as steel manufacturing, castings,
stampings, ferrites, composites
and gear manufacturing, and provide engineering
and design services,
contract sourcing services. They believe that they derive significant
advantages of synergies and cross selling because of presence of the
Subject group in these businesses. For example, Subject
Hinoday, Magnetic Product division
supported MCL for
developing a magnetic latch required for
one of the medical equipment enclosure designed
& manufactured by us. MCL has proposed a signage system for Subject Hinoday
Casting division for Urse plant. MCL has
plans to promote this signage system for the Systech group companies as
well as
other Subject group companies. This
is completely designed, developed and manufactured in-house
by the company.
Strong Parentage and Brand Value:
Subject group is one
of the leading industrial houses in
They believe that the association with the Subject
group has enabled us to absorb its corporate values and principles and
adhere to the established corporate governance practices. They also believe that
the association with the Subject
Group aids us in
winning new businesses
and obtaining financial
assistance.
Subject is one of
They offer innovative composite solutions for various industries such
as: automotive, electrical, infrastructure, alternate energy and defense. They
are the pioneers in
MCL’s efforts for export foray bore fruits at the start of the new
millennium. They have been exporting to reputed global customers like General
Electrical’s Health Care and industrial application division. Today Exports
constitute close to 20% of sales and are slated to rise significantly in
future.
The principles that drive Subject in their pursuit of excellence are
customer centricity and ‘Quality First’ Approach.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED ON 31ST
DECEMBER, 2010
Rs. in Millions
|
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
31.12.2010 |
31.12.2010 |
|
|
|
|
|
(a)
Net Sales / Income from operations |
123.700 |
367.500 |
|
(b)
Other Operating Income |
0.800 |
3.100 |
|
Total
Income |
124.500 |
370.600 |
|
Expenditure |
|
|
|
a)
(Increase) / Decrease in stock in trade and work in progress |
(2.300) |
(0.300) |
|
b)
Consumption of raw materials |
83.900 |
247.500 |
|
c)
Purchase of traded goods |
0.000 |
0.000 |
|
d)
Employees cost |
12.200 |
35.000 |
|
e)
Depreciation |
2.900 |
7.900 |
|
f)
Other expenditure |
18.600 |
55.800 |
|
Total |
115.300 |
345.900 |
|
Profit
from operations before other income, interest and exceptional Items |
9.200 |
24.700 |
|
Other
income |
0.000 |
0.200 |
|
Profit
before interest and exceptional Items |
9.200 |
24.900 |
|
Profit
before deprecation, interest, exceptional items and tax |
12.100 |
32.800 |
|
Interest |
1.700 |
5.000 |
|
Profit after Interest but
before Exceptional Items |
7.500 |
19.900 |
|
Exceptional
Items |
0.000 |
0.000 |
|
Profit (+)/Loss(-) from
Oridinary Activities before tax |
7.500 |
19.900 |
|
Tax
expense |
2.500 |
6.800 |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
5.000 |
13.100 |
|
Extra Ordinary Items |
0.000 |
0.000 |
|
Net
Profit (+) / Loss (-) for the year period |
5.000 |
13.100 |
|
Paid
up equity share capital (Face value of Rs.10/- per share) |
44.000 |
44.000 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
-- |
|
Earning
per share (EPS) |
|
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be annualised) |
1.13 |
2.98 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
1.12 |
2.96 |
|
Public
shareholding |
|
|
|
Number of shares |
2426806 |
2426806 |
|
Percentage of shareholding |
55.10 |
55.10 |
|
|
|
|
|
Promoters
and Promoters group Shareholding- |
|
|
|
a)
Pledged /Encumbered |
|
|
|
Number
of shares |
-- |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
-- |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
Number
of shares |
1977203 |
1977203 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
44.90 |
44.90 |
Notes:
- The above results have been reviewed by the audit committee and
taken on record by the board of directors in meeting held on 20.01.2011
- The statutory auditors have carried out a “Limited Review” of the
aforesaid results.
- The company has allotted 15748 shares to the employees under the
employee stock option scheme.
- The figures of the previous period have been regrouped/ restated
wherever necessary to conform to current period’s classification.
- Investor complaints nos:
- Opening balance Nil, complaints received 01, complaints disposed off
01, closing balance Nil.
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.44.27 |
|
|
1 |
Rs.72.07 |
|
Euro |
1 |
Rs.63.66 |
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 |
|
- |
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.