MIRA
INFORM REPORT
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Report Date : |
10.08.2011 |
IDENTIFICATION DETAILS
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Name : |
PROCTER AND GAMBLE HOME PRODUCTS LIMITED |
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Registered Office : |
P and G Plaza, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
19.01.1989 |
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Com. Reg. No.: |
11-50398 |
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Capital Investment/
Paid-up Capital: |
Rs.112.922
millions |
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CIN No.: [Company
Identification No.] |
U24240MH1989PLC050398 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP10704B |
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PAN No.: [Permanent
Account No.] |
AAACP4643H |
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Legal Form : |
A Closely held public limited liability company. |
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Line of Business : |
Manufacturer and Exporter of Cosmetics, Toiletries and
Skin Health and Beauty Care Products. |
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No. of Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 15280000 |
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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 a reputed company and a part of
Procter and Gamble group worldwide. Financial position of the company appears
to be satisfactory. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. 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
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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 : |
P and G Plaza, |
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Tel. No.: |
91-22-28266000 |
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Fax No.: |
91-22-56939696 / 66939698 |
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E-Mail : |
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Website : |
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Factory : |
Plot 182, Sector A, Industrial Area, Mandideep, District
Raisen-462010, |
DIRECTORS
AS ON 30.09.2009
|
Name : |
Mr. Shantanu Khosla |
|
Designation : |
Managing Director |
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Address : |
63 Silverene, Ground Floor, Khan Abdul Gaffar Road, Worli, Mumbai-
400030, Maharashtra, India |
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Date of Birth/Age : |
25.01.1960 |
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Date of Appointment : |
01.08.2007 |
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Name : |
Mr. Deepak J. Acharya |
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Designation : |
Director |
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Address : |
IIB, 1203, Dheeraj Guarav Heights, Off New Link Road, Andheri, Mumbai-
400053, Maharashtra, India |
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Date of Birth/Age : |
18.09.1967 |
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Date of Appointment : |
01.08.2007 |
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Name : |
Mr. Sumeet Vohra |
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Designation : |
Director |
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Address : |
A -303, Quantum Park, Union Park, Khar West, Mumbai- 400052,
Maharashtra, India |
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Date of Birth/Age : |
07.11.1968 |
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Date of Appointment : |
22.01.2007 |
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Name : |
Mr. Sachin Harlalka |
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Designation : |
Director |
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Address : |
C-706 |
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Date of Birth/Age : |
18.07.1976 |
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Date of Appointment : |
01.01.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2009
|
Names of Shareholders |
No. of Shares |
|
Procter and Gamble Overseas |
11292241 |
|
Procter and Gamble Far East Incorporation - |
1 |
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Procter and Gamble NDP Incorporation – |
1 |
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The Procter and Gamble Company - |
1 |
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The Procter and Gamble Distribution Company Limited – |
1 |
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The Procter and Gamble Manufacturing Company – |
1 |
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Procter and Gamble |
1 |
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Total |
11292247 |
(AS ON 30.09.2009)
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Category |
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Percentage |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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100.00 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Cosmetics, Toiletries and
Skin Health and Beauty Care Products. |
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Brand Names : |
Tide and Ariel |
PRODUCTION STATUS
(As On 31.03.2009)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Cosmetics. Personal Products. |
Tones |
Na |
1958 |
957 |
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Toilet Preparations, etc |
Kis |
26000 |
46318 |
11452 |
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Soaps and Detergents |
Tones |
Na |
250000 |
128490 |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Facilities : |
* (Due within one year Rs. 3321.100 millions (previous year
Rs.3263.505 millions) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
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Tel. No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679100 |
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Pan No.: |
AACFD4815A |
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Ultimate Holding Company : |
The Procter and Gamble Company - |
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Holding Company : |
Procter and Gamble Overseas |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
16000000 |
Equity Share |
Rs.10/- Each |
Rs.160.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11292247 |
Equity Share |
Rs.10/- Each |
Rs.112.922
millions |
NOTE
All the 11292247 Equity, shares (Previous period : 11292247) are held by the ultimate holding company, The Procter and Gamble Company, USA and its subsidiaries, of which 11292241 Equity (Previous period : 11292241) shares are held by Procter and Gamble overseas India BV, Netherlands.
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 |
112.922 |
112.922 |
112.922 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3708.827 |
1797.729 |
1915.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
3821.749 |
1910.651 |
2028.422 |
|
|
LOAN FUNDS |
|
|
|
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
3405.844 |
3283.908 |
1789.902 |
|
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TOTAL BORROWING |
3405.844 |
3283.908 |
1789.902 |
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DEFERRED TAX LIABILITIES |
179.419 |
73.426 |
99.145 |
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|
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TOTAL |
7407.012 |
5267.985 |
3917.469 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4474.445 |
3273.998 |
2972.393 |
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Capital work-in-progress (including advances on capital account) |
990.572 |
898.960 |
273.374 |
|
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
2206.858
|
2060.097 |
2088.570
|
|
|
Sundry Debtors |
1406.701
|
574.918 |
422.474
|
|
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Cash & Bank Balances |
84.821
|
63.858 |
410.835
|
|
|
Other Current Assets |
0.062
|
0.013 |
0.000
|
|
|
Loans & Advances |
1520.894
|
1155.852 |
1178.406
|
|
Total
Current Assets |
5219.336
|
3854.738 |
4100.285 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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|
Sundry Creditors |
2903.352
|
2452.891 |
3072.993
|
|
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Current Liabilities |
251.283
|
221.548 |
222.260
|
|
|
Provisions |
122.706
|
85.272 |
133.330
|
|
Total
Current Liabilities |
3277.341
|
2759.711 |
3428.583 |
|
|
Net Current Assets |
1941.995
|
1095.027 |
671.702
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
7407.012 |
5267.985 |
3917.469 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
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Income |
21041.695 |
12743.527 |
13036.916 |
|
|
|
Other Income |
457.174 |
111.135 |
165.942 |
|
|
|
TOTAL (A) |
21498.869 |
12854.662 |
13202.858 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw and packing material consumed |
7765.390 |
5923.907 |
5641.517 |
|
|
|
Purchased of Finished Goods |
1567.594 |
1073.655 |
968.353 |
|
|
|
Payments to and provision for employees |
1204.242 |
714.827 |
723.094 |
|
|
|
Operating and other expenses |
7974.495 |
5162.341 |
5138.472 |
|
|
|
Increase in finished goods and
work-in-process |
(56.493) |
(211.461) |
(643.307) |
|
|
|
TOTAL (B) |
18455.228 |
12663.269 |
11828.129 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3043.641 |
191.393 |
1374.729 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
207.124 |
243.843 |
138.632 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2836.517 |
(52.450) |
1236.097 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
406.326 |
217.380 |
222.225 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2430.191 |
(269.830) |
1013.872 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
519.093 |
(152.060) |
234.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1911.098 |
(117.770) |
779.372 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1233.279 |
1351.049 |
571.677 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
3144.377 |
1233.279 |
1351.049 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
73.416 |
44.943 |
|
|
|
Other Earnings |
|
4.281 |
16.692 |
|
|
TOTAL EARNINGS |
NA |
77.697 |
61.635 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
849.121 |
1788.488 |
|
|
|
Packing Materials |
|
70.669 |
108.932 |
|
|
|
Stores & Spares |
|
37.528 |
84.081 |
|
|
|
Capital Goods |
|
182.141 |
50.619 |
|
|
TOTAL IMPORTS |
NA |
1139.459 |
2032.120 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
169.24 |
(10.43) |
69.02 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
8.89 |
(0.92) |
5.90 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.55 |
(2.12) |
7.78 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.07 |
(3.79) |
14.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.64 |
(0.14) |
0.50 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.75 |
3.16 |
2.57 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59 |
1.40 |
1.20 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANCE
During the year,
sales at Rs.21041.700 millions were up by 61% against sales of Rs.12743.500 millions
of the previous accounting period (July 2008 to March 2009), driven by all
round growth in all the categories they operate in. Please note the last year’s
numbers are not comparable as the Company changed its financial year from
July-June to April-March leading to just nine months of operations in the last
fiscal year.
Profit Before Tax
(PBT) at Rs. 2430.200 millions was up when compared to a negative PBT of
Rs.269.800 millions for the previous accounting period
BUSINESS REVIEW:
During the year the
Company's products in the Hair care categories recorded an outstanding growth
on sales besides the impressive increase in the volume share levels. The
Company's popular brand in the Hair care category namely Head and Shoulders
grew substantially and is now the highest distributed P and G Brand with its
storage coverage and penetration at an all time high. In the laundry business
also the Company experienced an increase in the sales and the volume share. In
their premier laundry product 'Ariel' they initiated packaging change in order
to clearly define all its variants and also introduced canisters which met with
an amazing response from consumers.
In the Diaper
category sales of PAMPERS recorded a very impressive growth in sales besides
recording an amazing increase in the volume share. PAMPERS gained a leadership
position in volume share as well as value share and is one of the most widely
available brand in the category. The Finance Bill 2010 introduced excise duty
on Baby Care with effect from March 1, 2010. The Company is currently looking
out for adequate plans to recover additional cost and will implement the
required price action in the next fiscal year.
During this
period, the Skin Care business of the Company emerged as one of the most
successful categories in
FIXED ASSETS
v Land – Freehold
v Land- Leasehold
v Building
v Plant and Machinery
v Furniture and Fixture
v Computer and Office Equipments
v Moulds and Dies
v Vehicles
AS PER WEB DETAILS
HISTORY
In 1993, Subject is incorporated as a 100% subsidiary of The
Procter and Gamble Company,
In 1993, Procter and Gamble
In 1995, Subject enters the Haircare Category with the launch of Pantene Pro-V.
In 1997 Subject launches Head and Shoulders shampoo.
In 2000, Subject introduced Tide Detergent Powder - the largest selling
detergent in the world.
In June 2000, Subject launched Pantene Lively Clean its unique Pro-Vitamin
formula cleans oil-build up, dirt and grime in just one wash, delivering
lively, free-flowing and sparkling-clean hair.
In August 2000, Subject launched New Ariel Power Compact detergent with a new
global technology that breathes new life into clothes, by removing dinginess
from them and restoring the original colors of the fabric, by detecting and
removing deposits which are left behind from successive washes.
In November 2000, Subject presented
During this period, Procter and Gamble Home Products also re-launched the
international range of Head and Shoulders, best-ever Anti-dandruff shampoo with
an improved formula, new pack-design and logo, in three variants - Clean and
Balanced, Smooth and Silky and Refreshing Menthol, which offers the fine
combination of anti-dandruff efficacy and hair conditioning.
In January 2001, Subject and Whirlpool India Limited launched a special 'Ariel
- Whirlpool Superwash' offer, making washing machines more affordable to the
people of
In June 2001, Procter and Gamble in partnership with the Association of Beauty
Therapy and Cosmetology (ABTC),
In July 2001, Subject launched New Ariel Total Compact with Magicare a New
System of Washing that completely removes stains without scrubbing,
significantly reducing time spent on washing clothes.
In September 2001, Procter and Gamble Home Products launched New Pantene Pro-V
range of five shampoos in
In December 2001, Procter and Gamble in partnership with the Southern India
Beauty Specialists and Hairdressers Association (SIBHA) hosted the
Pantene-SIBHA Look N Learn Seminar where Raman Bhardwaj hairdresser to former
Miss
In April 2002, Subject announced the launch of a special Ariel Bar Refund Offer
along with its new Advanced Ariel Compact. Under the Ariel Bar Refund Offer,
consumers could exchange their detergent bar on purchase of Advanced Ariel
Compacts 1kg and 500gms packs, and avail of a Rs.15 and Rs.7 discount
respectively on MRP.
Additionally, Procter and Gamble Home Products announced the Beat The Summer
Dandruff offer on which 200ml Head and Shoulders bottle was available for
Rs.99/- only, thus giving a benefit of a Rs.23/- discount to consumers.
In August 2002, Pantene unveiled the launch of the Shine Morning to Night
campaign that helps consumers get long lasting hair shine with regular use of
Pantene. The Shine Morning to Night campaign had two exciting components to it
The MTV Shine Soul contest where one could win diamonds worth Rs.12.5 lacs and
the launch of the Pantene Shine Booths across the country to help achieve the
shine that lasts from morning to night.
During the same period, Pantene also hosted Hair Asia Pacific 2002 the biggest
Hair Cutting and Styling event in
Additionally, Pantene also hosted Pantene World Teen Queen contest in
In November 2002, Subject launched Head and Shoulders Naturally Clean, a new
variant in its Head and Shoulders range of Shampoos especially for Tamil Nadu,
Kerala, Andhra Pradesh, Karnataka and
In January 2003, Subject reduced the prices of Pantene and Head and Shoulders
7.5ml sachets from Rs. 4/- to Rs. 3/-, with no change in its superior
product-quality or packaging, improving affordability to a large number of
Indian consumers.
Subject also announced the launch of its Tide Super Whiteness Gold Dhamaka at
the Tide Junction in Giant Hypermarket,
In June 2003, Subject launched Pampers - world’s number one selling diaper
brand with sales of US$ 6 billion annually. Pampers provides superior dryness
for uninterrupted overnight sleep, with just one pampers diaper. In
In July 2003, Subject launched Pantene Long Black, the ultimate solution for
achieving the Long and Black hair look, and Head and Shoulders Silky Black -
the only shampoo in
In September 2003, Subject announced that its superior quality Tide sachet is
now available at Re. 1 per sachet and its Ariel sachet at Rs. 2 per sachet,
thus making the world’s best detergents available at lower prices.
In January 2004, Subject announced the launch of Rejoice – Asia’s No. 1
shampoo, in
In March 2004, Subject reduced the prices of Ariel and Tide bags (large packs)
by 20-50%, while maintaining the superior quality. The superior quality one kg
pack of Tide now cleans a family’s one month laundry in just Rs.23/-, while a
one kg pack of Ariel cleans a family’s one month laundry in just Rs.50/-.
In April 2004, Subject announced the launch of Pantene Hair Fall Control, which
is designed to free women of their hair fall concerns by reducing hair fall due
to breakage by up to 50% within just two months, thus giving them stronger,
thicker looking and beautiful hair. The prices of Pantene 100ml and 200ml
bottles were reduced by 16%, offering superior value to consumers.
In August 2004, Subject signed Preity Zinta – Bollywood's #1 Actress, as Brand
Ambassador for its Head and Shoulders anti-dandruff shampoo that gives 100%
dandruff-free soft beautiful hair.
In October 2004, Subject launched New Pantene Amino Pro-V Complex shampoos,
which makes hair ten times stronger.
In November 2004, Subject launched New Tide Bar. The New Tide Bar is unique as
compared to the available detergent bars because of its three unique features:
(i) It has green speckles called Whiteons, which release a unique whitening
action on reacting with sunlight; (ii) Its technology also ensures that it
lasts longer, does not dissolve easily and delivers a good balance between
bar-hardness and ease of application on clothes and; (iii) It has a lemony and
refreshing fragrance that lingers on clothes hours after wash.
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] 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.45.17 |
|
|
1 |
Rs.73.72 |
|
Euro |
1 |
Rs.64.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.