MIRA
INFORM REPORT
|
Report Date : |
27.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
MSPL LIMITED |
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Registered Office : |
No.117, “Baldola Bhavan”, |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
18.10.1961 |
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Com. Reg. No.: |
11-012160 |
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CIN No.: [Company
Identification No.] |
U13100MH1961PLC012160 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM10132D |
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PAN No.: [Permanent
Account No.] |
AABCM1040N |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Mines, Processes and Exports of
Iron Ore. |
RATING & COMMENTS
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MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 55000000 |
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Status : |
Good |
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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.
Financial position of the company appears to be sound. Trade relations are reported
as fair. Payments are reported to be regular and as per commitments. The company can be considered good for 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
|
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 |
INFORMATION PARTED BY
|
Name : |
Mr. Srikars Bhatt |
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Designation : |
Vice President Corporate Affairs |
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Contact No.: |
91-8394-232002 |
|
Date : |
26.04.2011 |
LOCATIONS
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Registered Office : |
No.117, “Baldola Bhavan”, |
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Tel. No.: |
91-22-22030989 |
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Fax No.: |
91-22-24133766 /22019762 |
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E-Mail : |
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Website : |
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Area : |
5000 sq. ft. (Approximately) |
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Location : |
Owned |
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Head/Corporate Office : |
Baldota Enclave, |
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Tel. No.: |
91-8394-232002/232003/232004 Mines: 91-8394-244158 |
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Fax No.: |
91-8394-232333
/ 232444 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory 1 : |
Mines and Export
Oriented Unit |
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Area : |
347.2 Hectare |
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Location : |
Leased |
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Factory 2 : |
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Windmill : |
Vankusawade, Satara, |
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Branches 1: |
Baldota
Villa, No.368, 12th Cross, R.M.V. Hig House, Dollars Colony, New BEL Road,
Devasandra, Bangalore 560094, Karnataka. |
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Telefax No.: |
91-80-23511988/9 |
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E-Mail : |
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Branch 2 : |
Chennai
Office: Door No.10, Plot No.56, Sriram
Nagar, 1st |
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Tel. No.: |
91-44-24911875 |
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E-Mail : |
DIRECTORS
As On : 09.02.2011
|
Name : |
Mr. Abheraj Narendrakumar Baldota |
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Designation : |
Chairman |
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Address : |
Chinar, Baldota Colony, Hospet, Bellary – 583 203, Karnataka. |
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Date of Birth/Age : |
27.12.1940 |
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Date of Appointment : |
11.06.1966 |
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DIN No : |
00130619 |
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Name : |
Mr. Rahul Kumar N. Baldota |
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Designation : |
Director |
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Address : |
Chinar, Baldota Colony, Dam Road, Hospet 583203, Karnataka, India |
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Date of Birth/Age : |
26.12.1967 |
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Date of Appointment : |
16.12.1995 |
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DIN No : |
00130764 |
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E-Mail : |
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Qualification : |
B.E, MBA |
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Name : |
Mr. Shrenik Kumar Narendrakumar Baldota |
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Designation : |
Director |
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Address : |
Chinar, Baldota Colony, Dam Road, Hospet 583203, Karnataka, India |
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Date of Birth/Age : |
27.11.1971 |
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Date of Appointment : |
21.09.1998 |
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DIN No : |
00130831 |
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E-Mail : |
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Qualification : |
B.Com |
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Name : |
Mr. Ravindra Madhava |
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Designation : |
Director |
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Address : |
Flat 1 B, PGP Manor 29, Barnby Road, Kilapuk, Vhennai-600010, Tamil
Nadu, India |
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Date of Birth/Age : |
08.12.1939 |
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Date of Appointment : |
01.11.2005 |
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Name : |
Mr. Ramakrishna Hemappa Sawkar |
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Designation : |
Director |
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Address : |
292, 5th Block, 38th A cross. Jaya Nagar, Bangalore 560041, Karnataka,
India |
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Date of Birth/Age : |
29.03.1935 |
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Date of Appointment : |
21.09.1998 |
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DIN No : |
00143273 |
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E-Mail : |
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Name : |
Mr. Madhava Ravindra |
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Designation : |
Director |
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Address : |
1-B, P G P Manor, 29, Bamaby Road, Kilpauk, Chennai 600 010, Tamil
Nadu, India |
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Date of Birth/Age : |
08.12.1939 |
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Date of Appointment : |
01.11.2005 |
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DIN No : |
01086790 |
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E-Mail : |
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Name : |
Mr. Anirudha R. Barwe |
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Designation : |
Independent Director |
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Address : |
B-1, Bageshree Shankar Ghanekar Marg, Prabhadevi, Mumbai 400025,
Maharashtra, India |
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Date of Birth/Age : |
06.10.1938 |
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Date of Appointment : |
04.01.2006 |
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DIN No : |
00288552 |
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Date of Ceasing : |
05.10.2010 |
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E-Mail : |
KEY EXECUTIVES
|
Name : |
Mr. Ramanathan PR |
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Designation : |
Secretary |
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Address : |
H No.374, 3rd Cross M J Nagar, Hospet, Bellary-583203,
Karnataka, India |
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Date of Birth/Age : |
16.04.1958 |
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Date of Appointment : |
30.06.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 09.02.2011
|
Names of Shareholders |
|
No. of Shares |
|
Mrs. Vasanti Abheraj Baldota |
|
6716160 |
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Mr. Narendra Kumar Baldota |
|
9024000 |
|
Mr. Rahul Kumar Baldota |
|
19353600 |
|
Mrs. Lavina Baldota |
|
9600000 |
|
Mr. Shrenik Kumar Baldota |
|
30442980 |
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Mrs. Chitra Baldota |
|
200 |
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Mrs. Rashmi Baldota |
|
960 |
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Mr. Narendra Kumar Baldota HUF |
|
1651200 |
|
Mrs. Rashmi Baldota |
|
2880 |
|
Ramgad Minerals and Mining Private Limited, India |
|
8020 |
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Total |
|
76800000 |
AS ON 09.02.2011
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
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Bodies corporate |
|
0.01 |
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Directors or relatives of directors |
|
99.99 |
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Total
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Mines, Processes and Exports of
Iron Ore. |
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Products : |
·
·
Wind Power –Largest
Investor in ·
Super high Grade
Lumps ·
Aggregated Iron Ore ·
Iron Ore
Concentrates |
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Exports : |
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Products : |
Iron Ore |
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Countries : |
China |
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Terms : |
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Selling : |
Cash, Credit (30 / 60 / 90 days) |
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Purchasing : |
Cash, Credit (30 / 60 / 90 days) |
PRODUCTION STATUS (As On : 30.09.2010)
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Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
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|
MT |
NA |
777041 |
|
Wind Power Generation |
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KWH |
335858400 |
428626215 |
GENERAL INFORMATION
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Customers : |
·
Retailers ·
End Users ·
OEM’s |
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No. of Employees : |
2000 (Approximately) |
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Bankers : |
State Bank of India, college Road Branch, Parwaj Plaza, College Road,
Hospet-583201, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Mr. S.B. Chhajed and Company Chartered Accountants |
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Address : |
Flat No. 202, |
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Pan No : |
ABCFS0439E |
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Subsidiaries : |
-
MSPL Maritime Private Limited -
MSPL Diamond Pte. Limited |
CAPITAL STRUCTURE
As On : 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs. 5/- each |
Rs. 500.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
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|
76800000 |
Equity Shares |
Rs. 5/- each |
Rs. 384.000
millions |
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Note : of the above 76000000 shares of Rs. 5/- each
represent bonus shares by capitalization of profits.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2010 (6 Months) |
31.03.2009 (12 Months) |
31.03.2008 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
384.000 |
384.000 |
384.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10985.375 |
12458.174 |
10789.752 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
11369.375 |
12842.174 |
11173.752 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6093.112 |
2370.959 |
2519.391 |
|
|
2] Unsecured Loans |
4.668 |
54.900 |
0.000 |
|
|
TOTAL BORROWING |
6097.780 |
2425.859 |
2519.391 |
|
|
DEFERRED TAX LIABILITIES |
343.563 |
843.563 |
1299.418 |
|
|
|
|
|
|
|
|
TOTAL |
17810.718 |
16111.596 |
14992.561 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
3978.798 |
5265.324 |
5347.515 |
|
|
Capital work-in-progress |
2857.745 |
680.187 |
240.802 |
|
|
|
|
|
|
|
|
INVESTMENT |
5221.218 |
6136.060 |
7032.207 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1079.466
|
1027.555 |
1413.061 |
|
|
Sundry Debtors |
278.647
|
810.638 |
2121.262 |
|
|
Cash & Bank Balances |
900.722
|
1030.919 |
793.711 |
|
|
Other Current Assets |
8.964
|
10.227 |
0.000 |
|
|
Loans & Advances |
5287.587
|
2117.262 |
2107.853 |
|
Total
Current Assets |
7555.386
|
4996.601 |
6435.887 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
973.062 |
933.410 |
1892.065 |
|
|
Other Current Liabilities |
422.374
|
10.841 |
277.239 |
|
|
Provisions |
407.843
|
23.604 |
1896.112 |
|
Total
Current Liabilities |
1803.279
|
967.855 |
4065.416 |
|
|
Net Current Assets |
5752.107
|
4028.746 |
2370.471 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.850 |
1.279 |
1.566 |
|
|
|
|
|
|
|
|
TOTAL |
17810.718 |
16111.596 |
14992.561 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2010 (6 Months) |
31.03.2009 (12 Months) |
31.03.2008 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
11169.267 |
17395.264 |
25166.481 |
|
|
|
Other Income |
1492.334 |
1035.102 |
1187.766 |
|
|
|
TOTAL (A) |
12661.601 |
18430.366 |
26354.247 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of product for sale |
3887.129 |
1316.370 |
3247.338 |
|
|
|
Manufacturing Expenses |
6121.612 |
12333.207 |
13453.842 |
|
|
|
Miscellaneous Expenditures W/Off |
0.430 |
0.286 |
0.286 |
|
|
|
Increase/(Decrease) in Finished Goods |
(92.496) |
352.448 |
(610.390) |
|
|
|
Loss from forward and option contracts |
3246.463 |
1785.138 |
(536.431) |
|
|
|
Impairment Loss |
0.000 |
0.000 |
1.145 |
|
|
|
TOTAL (B) |
13163.138 |
15787.449 |
15555.790 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(501.537) |
2642.917 |
10798.457 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
314.357 |
127.084 |
195.211 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(815.894) |
2515.833 |
10603.246 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1156.904 |
859.552 |
954.170 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(1972.798) |
1656.281 |
9649.076 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(500.000) |
(235.000) |
1210.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(1472.798) |
1891.281 |
8438.576 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
10586.516 |
9019.142 |
5018.509 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
189.128 |
843.857 |
|
|
|
Dividend |
0.000 |
115.200 |
1536.000 |
|
|
|
Tax on Dividend |
0.000 |
19.579 |
522.086 |
|
|
|
Proposed Final Dividend |
0.000 |
0.000 |
1536.000 |
|
|
BALANCE CARRIED
TO THE B/S |
9113.718 |
10586.516 |
9019.142 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7681.042 |
13764.748 |
NA |
|
|
|
FRIGHT Recovered from Customers |
1643.173 |
2681.839 |
NA |
|
|
|
Other Earnings |
162.430 |
0.000 |
NA |
|
|
TOTAL EARNINGS |
9486.645 |
16446.587 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
7.942 |
27.028 |
NA |
|
|
|
Capital Goods |
606.550 |
499.634 |
NA |
|
|
TOTAL IMPORTS |
614.492 |
526.662 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(19.18) |
24.63 |
109.88 |
|
Expected Sales (2010-2011) : Rs.15000.000 millions
Expected Sales (2011-2012) : Rs. 18000.000 millions
KEY RATIOS
|
PARTICULARS |
|
30.09.2010 (6 Months) |
31.03.2009 (12 Months) |
31.03.2008 (12 Months) |
|
PAT / Total Income |
(%) |
(11.63)
|
10.26 |
32.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(17.66)
|
9.52 |
38.34 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(17.10)
|
20.96 |
81.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.17)
|
0.13 |
0.86 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.72
|
0.33 |
0.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.19
|
5.16 |
1.58 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
(RS.
IN MILLIONS)
|
Particulars |
30.09.2010 (6 Months) |
31.03.2009 (12 Months) |
31.03.2008 (12 Months) |
|
SUNDRY CREDITORS |
|
|
|
|
Other than dues to micro and small enterprises |
973.062 |
933.410 |
1892.065 |
|
|
|
|
|
|
Total |
973.062 |
933.410 |
1892.065 |
FINANCIAL PERFORMANCE:
The turnover of
the Company for the period stands at Rs.
11169.300 millions which is lower by 57% on annualized basis compared to
that of the previous year at Rs. 17395.300 millions. This is mainly due to non
availability of removal permits for own iron ore from their mines and
imposition of export ban on iron ore from the State of Karnataka by the State
Government. In order to partially make good
the loss of turnover, the Company has taken overseas trading initiative in iron
ore from Goa where the ores available are essentially of low grades. As a
result, both volume and realization have been adversely affected significantly.
Besides, the wind
mill division has generated revenue off Rs. 1484.800 millions which is higher
by 13% YOY basis due to higher
availability of wind in one hand and monsoon seasons twice covered by the
period. Sale of CER was also higher at Rs.
162.400 millions as against by Rs. 47.800 millions for the previous year. Due to lower volume and
grades in trading and consequent lower realization for sale of iron ore as well
as continuous inflationary pressures all around, the gross margin at EBIDTA
level has been lower by 59% annualized on YOY basis at Rs. 72745.000 millions as compared to Rs. 74428.300 millions in the previous
year.
There was also a
sizeable increase in interest charges at Rs. 314.400 millions for 18 months as against Rs. 127.100
millions in the previous year registering annualized increase of 65%. This is
mainly due to higher working capital financing by way fresh borrowings and
higher interest cost involved in trading business and north bound interest rate
regime in order to contain spiraling inflationary pressure faced by the
economy.
Apart from all
these operational factors, there was a serious blow on the Company's
profitability and liquidity by way of loss on account of settlement of foreign
exchange derivatives and options which stands at Rs. 3246.500 millions for 18 months as compared to Rs. 1785.100 millions in the previous
year.
However, even
after sizeable deferred tax credits of Rs.
500.000 millions the Net loss at PAT level stands at Rs. 1472.800
millions only compared to net profit of Rs. 1891.300 millions for the previous year.
OPERATING
PERFORMANCE
Last 18 months,
the Company faced lot of problems and challenges in achieving its targeted
production level and export performances on account of non-availability of
removal permits from the concerned Government Departments. The position was
further compounded by the imposition of export ban from the State Government of
Karnataka. The refusal to issue removal permits for movement of iron ore from
the mines was challenged in the court of law and found favour for removal of
Company's iron ore as awarded by the Court, but unfortunately this was
immediately followed by the export ban as aforesaid. Both the adversities had
taken a heavy toll on Company's operation resulting into disappointing top and
bottom lines.
However, the Board
is quite confident that the export activity would resume shortly and operation
will gather mornentum and encash the market opportunities available currently
in terms of high demand for better quality of iron ore in China at a premium
price realization due to unforeseen flood situation in Australia affecting up
plies badly and gradual recovery of global economy in general as well as high
consumption rate of iron ore in China, in particular.
FIXED
ASSETS:
·
·
Buildings
·
·
Mining Lease Rights
·
Plant, Machinery and Equipments
·
Railway Siding
·
Furniture, Fixtures and Office Equipment
·
Vehicles and Barges
·
Aircrafts
·
Software – SAP License Fees and
Development Charges
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.44.59 |
|
|
1 |
Rs.73.44 |
|
Euro |
1 |
Rs.64.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
|
|
--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 |
|
64 |
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.