MIRA
INFORM REPORT
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Report Date : |
23.04.2011 |
IDENTIFICATION DETAILS
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Name : |
ANJANI PORTLAND CEMENT LIMITED |
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Registered
Office : |
Sithanilayam, 153 D Warakapuri Colony, Punjagutta, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
18.12.1983 |
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Com. Reg. No.: |
01-004323 |
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CIN No.: [Company Identification
No.] |
L26942AP1983PLC004323 |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Cement |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (49) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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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 |
INFORMATION DENIED BY
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Name : |
Mr. Rao |
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Designation : |
Chief Financial Officer |
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Date : |
22.04.2011 |
LOCATIONS
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Registered Office : |
Sithanilayam, 153 D Warakapuri Colony, Punjagutta, |
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Tel. No.: |
91-40-23351696/97 |
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E-Mail : |
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Website : |
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Corporate Office : |
Plot No. 7 and 8,
Punjagutta, |
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Tel. No.: |
91-40-23353038 |
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Factory : |
Chintalapalem
(Village), Mellacheruvu (Mandalam), Nalgonda (District) – 508 246, |
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Branches : |
Located at:
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DIRECTORS
As On 31.03.2010
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Name : |
K.V. Vishnu Raju |
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Designation : |
Chairman and Managing Director |
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Qualification : |
M.S (Chemical) |
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Experience : |
21 Years |
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Date of Commencement of employment : |
27.12.1999 |
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Name : |
P.V.R.L. Narasimha Raju |
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Designation : |
Executive Director |
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Qualification : |
B.Com |
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Experience : |
10 Years |
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Date of Commencement of employment : |
01.04.2001 |
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Name : |
R.A. Rama Raju |
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Designation : |
Director |
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Name : |
P.S. Ranganath |
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Designation : |
Director |
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Name : |
P.V. Subba Rao |
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Designation : |
Director (from 30.10.2009) |
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Name : |
P. R. Raju |
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Designation : |
Director (from 12.08.2010) |
KEY EXECUTIVES
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Name : |
Mr. Rao |
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Designation : |
Chief Financial Officer |
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Name : |
S.V.S. Shetty |
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Designation : |
Chief Executive Officer |
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Name : |
R.V.A. Narasimha Rao |
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Designation : |
Chief Financial Officer |
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Name : |
S.N. Raju |
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Designation : |
Vice President (Works) |
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Name : |
Ch. Gandhi Raju |
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Designation : |
Vice President (Marketing) |
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Name : |
P. Sitharama Raju |
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Designation : |
Senior General Manager (Mechanical) |
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Name : |
N. Venkata Raju |
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Designation : |
Senior General Manager (Works) |
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Name : |
P.Satyanarayana Raju |
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Designation : |
Group General Manager (HR and MS) |
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Name : |
P. Ganapathi Raju |
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Designation : |
General Manager (Quality Control) |
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Name : |
M. Nagabhushana Rao |
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Designation : |
General Manager (Projects) |
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Name : |
Y. Eswara Reddy |
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Designation : |
General Manager (Marketing) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 31.12.2010
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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10,933,130 |
59.45 |
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365,000 |
1.98 |
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11,298,130 |
61.44 |
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Total shareholding of Promoter and Promoter Group (A) |
11,298,130 |
61.44 |
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(B) Public Shareholding |
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34,700 |
0.19 |
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24,300 |
0.13 |
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59,000 |
0.32 |
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1,657,665 |
9.01 |
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2,911,225 |
15.83 |
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2,442,177 |
13.28 |
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21,400 |
0.12 |
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19,899 |
0.11 |
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1,501 |
0.01 |
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7,032,467 |
38.24 |
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Total Public shareholding (B) |
7,091,467 |
38.56 |
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Total (A)+(B) |
18,389,597 |
100.00 |
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© Shares held by Custodians and against which Depository Receipts have
been issued |
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- |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Cement |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
31.03.2010 |
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Licensed |
1160000 TPA |
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Installed Capacity |
1160000 TPA |
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Actual Production |
497723 TPA |
Capacity includes
Expansion Project of 0.66 MTPA, which has commenced commercial operations from
27.03.2010.
GENERAL INFORMATION
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No. of Employees : |
Information not divulged by management |
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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 : |
M. Anandam and Company Chartered Accountant |
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Address : |
7 ‘A’, |
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Subsidiaries : |
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Enterprises owned or significantly influenced by key management
personnel : |
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CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
14% Cumulative Redeemable Preference Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
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20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
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Total |
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Rs. 210.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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18394463 |
Equity Shares |
Rs. 10/- each |
Rs. 183.945
Millions |
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Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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18389597 |
Equity Shares |
Rs. 10/- each |
Rs. 183.896
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
183.896 |
183.896 |
183.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
469.562 |
374.113 |
239.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
653.458 |
558.009 |
423.600 |
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LOAN FUNDS |
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1] Secured Loans |
1411.789 |
145.406 |
172.900 |
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2] Unsecured Loans |
577.366 |
354.161 |
293.600 |
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TOTAL BORROWING |
1989.155 |
499.567 |
466.500 |
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DEFERRED TAX LIABILITIES |
92.769 |
31.935 |
0.000 |
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TOTAL |
2735.382 |
1089.511 |
890.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2176.218 |
556.740 |
545.400 |
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Capital work-in-progress |
2.456 |
177.147 |
0.000 |
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INVESTMENT |
164.695 |
164.695 |
184.700 |
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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 |
123.354
|
83.605 |
110.200 |
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Sundry Debtors |
111.628
|
84.280 |
98.100 |
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Cash & Bank Balances |
25.985
|
24.887 |
33.200 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
312.046
|
211.970 |
172.500 |
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Total
Current Assets |
573.013
|
404.742 |
414.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
147.810 |
85.103 |
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Other Current Liabilities |
40.853
|
36.283 |
170.400 |
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Provisions |
(7.663)
|
92.427 |
83.700 |
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Total
Current Liabilities |
181.000
|
213.813 |
254.100 |
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Net Current Assets |
392.013
|
190.929 |
159.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2735.382 |
1089.511 |
890.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
1226.283 |
1291.674 |
1031.300 |
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Other Income |
34.316 |
2.295 |
0.700 |
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TOTAL (A) |
1260.599 |
1293.969 |
1032.000 |
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Less |
EXPENSES |
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Material consumption |
323.367 |
307.022 |
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Manufacturing administrative and selling expenses |
650.485 |
576.020 |
696.600 |
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Increase/Decrease in stocks |
(14.505) |
17.278 |
7.900 |
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Extraordinary item |
0.000 |
40.000 |
0.000 |
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TOTAL (B) |
959.347 |
940.320 |
704.500 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
301.252 |
353.649 |
327.500 |
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Less |
FINANCIAL
EXPENSES (D) |
53.375 |
62.914 |
65.600 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
247.877 |
290.735 |
261.900 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
39.946 |
37.293 |
31.300 |
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PROFIT BEFORE
TAX (E-F) (G) |
207.931 |
253.442 |
230.600 |
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Less |
TAX (I) |
91.038 |
86.716 |
67.500 |
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PROFIT AFTER TAX
(G-I) (J) |
116.893 |
166.726 |
163.100 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
349.113 |
223.660 |
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Less |
APPROPRIATIONS |
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Transfer to General Reserve |
3.000 |
9.000 |
NA |
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Proposed Dividend |
18.390 |
27.584 |
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Proposed for Dividend Tax |
3.054 |
4.688 |
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BALANCE CARRIED
TO THE B/S |
441.562 |
349.113 |
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Earnings Per
Share (Rs.) |
6.35 |
9.07 |
8.87 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
355.380 |
304.300 |
421.520 |
|
Total Expenditure |
295.560 |
278.740 |
285.070 |
|
PBIDT (Excl OI) |
59.820 |
25.560 |
136.450 |
|
Other Income |
0.230 |
5.060 |
0.000 |
|
Operating Profit |
60.050 |
30.620 |
136.450 |
|
Interest |
58.260 |
64.600 |
70.640 |
|
PBDT |
1.790 |
(33.990) |
65.810 |
|
Depreciation |
31.010 |
31.260 |
31.550 |
|
Profit Before Tax |
(29.220 |
(65.250 |
34.260 |
|
Tax |
0.000 |
17.460 |
5.810 |
|
Profit After Tax |
(29.220 |
(82.710) |
28.450 |
|
Net Profit |
(29.220 |
(82.710) |
28.450 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.27
|
12.88 |
15.80 |
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Net Profit Margin (PBT/Sales) |
(%) |
16.96
|
19.62 |
22.36 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.56
|
26.36 |
24.04 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.20 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.32
|
1.28 |
1.70 |
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Current Ratio (Current Asset/Current Liability) |
|
3.17
|
1.89 |
1.63 |
LOCAL AGENCY FURTHER INFORMATION
The details of
sundry creditors
Rs.
In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors
|
|
|
|
|
- Dues to MSMED Enterprises |
-- |
-- |
NA |
|
- For Others |
147.810 |
85.103 |
NA |
|
Total |
147.810 |
85.103 |
NA |
REVIEW OF
OPERATIONS:
The company has produced 4,97,723 MT of cement during the current
financial year compared to the previous year production of 4,74,030 MT registering
a growth of 5 %. The cement sold during the year stands at 4,94,362 MT compared
to the quantity of 4,74,003 MT during the previous financial year showing an
increase of 4.3%. However, the gross sales in terms of value during the year
were at Rs.1514.705 Millions as against Rs.1659.951 Millions during the
previous financial year translating into a drop of 8.75 %. Similarly the Profit
Before Tax for the current financial year amounts to 207.930 Millions as
against Rs. 253.442 Millions during the previous financial year. The profit
after tax for the year stands at Rs.116.892 Millions compared to Rs.166.726
Millions during the previous financial year.
Though the production quantities have shown improvement in physical
terms, there was a drop in the value of sales during the year which is
primarily due to sharp decline in the prices of cement during the second half
of current financial year compared to the previous financial year. It is also
pertinent to note here that the drop in prices has been more significant in the
state of Andhra Pradesh compared to the other addressable markets of the
company. As the members are aware, there is a significant improvement in terms
of physical parameters such as the production quantity and consumption factors
and the unit’s profitability would have been much better had there been no
pressure on the cement prices.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Cement Industry
Structure and Development:
The Indian Cement
Industry is the second largest producer of globally benchmarked Cement. The
demand for cement, being a derived demand, depends primarily on the industrial
activity, real estate business, construction activity and investment in the
infrastructure sector projects like Roads and Buildings, Ports etc., and the
irrigation projects of the Government of India and State Governments. Indian
cement industry is globally competitive as the industry has witnessed healthy
trends such as cost control and continuous technology upgradation.
The cost of the
raw material and fuel namely limestone, coal and power are all controlled/
influenced by the Government authorities/policies and any increase in the price
of the above affects the cost of production adversely on which the Company does
have little control.
Opportunities and
Challenges:
Opportunities:
Despite
apprehensions about the impact of inflation and slowdown in Industrial
production and overall economic scenario, the outlook for the cement sector
remains positive with the growth in Infrastructure, Housing, Roads, ports,
power, urban infrastructure and irrigation projects. The year has witnessed
turbulence in the state of Andhra Pradesh which has adversely affected the
consumption & demand for cement in the state. The drop in demand, which is
a consequence of the above unforeseen circumstances, coupled with increase in
costs have lead to erosion in margins.
However, Cement
demand is likely to remain robust in the near term, driven by the housing and
infrastructure sectors which will correspondingly be aided by higher disposable
income, rising population, changing demographics and reduction in average size
of household.
Challenges:
A mention was made
in there last year review that “a Sharp slowdown in real estate and the
capitalstarved infrastructure sector, coupled with a broad economic downturn
may see the industry face considerable pressure on profitability.” Though the
cement sector had seen a rise in prices driven by strong demand in the
financial years 2007-08 & 2008-09, the slowdown in the real estate sector
and additional capacities of cement plants have had a cumulative effect of over
supply of cement and consequently, a fall in prices during the year.
In order to meet
the competitive market situation all round efforts were taken including expansion
(for economies of scale) cost reduction techniques and market driven pricing
strategy which have helped at least contain the erosion in margins and allow
the company to be better positioned to face the possible challenges ahead.
Segment Wise Performance:
The company’s main
business activity is manufacturing of Cement which falls in a single segment.
Outlook:
There is bound to
be a phenomenal growth in consumption of cement in the years to come. The
Government is focusing on infrastructure development like express highways and
other large irrigation projects. There is also an increase in Export Market.
The recovery in Housing Sector shall also facilitate to improve the demand
further. It is also pertinent to note here that the per capita consumption of
cement in
The Company has
taken up capacity expansion enabling it to tap new markets and also widen its
dealer network. With the initiatives taken by the Government of India and
Government of Andhra Pradesh for infrastructure development, irrigation and
housing projects will further increase the demand in the state, where the
Company sells a major portion of its produce.
Discussion on
Financial Performance with respect to Operation Performance:
The financial
performance with respect to the operations of the Company is discussed below:
The sales and
other income were at Rs. 1549.021 Millions as against Rs. 1662.246 Millions in
the previous year.
The profit before
tax of the Company was Rs.207.930 Millions as compared to Rs. 253.442 Millions
in the previous year. The net profit for the year was Rs. 116.892 Millions
against Rs. 166.726 Millions in the previous year.
The reasons for
the drop in the total income, Profit before tax and Profit after tax compared
to the previous financial year were already briefly touched upon in the
sections “opportunities and challenges”.
Contingent Liabilities:
(As On 31.03.2010)
a) Bank Guarantees: 12.200 Millions
b) The Company has disputed a demand of Rs 9.293 Millions originally
raised by M/s AP Transco Limited on account of minimum demand charges claimed
by them during the period 16.04.1997 to 15.12.1999. Subsequently they have
revised the claim as per court order and demanded Rs 5.529 Millions after
adjusting Rs 1.565 Millions which was paid under protest. The Honorable High
Court has granted absolute stay subject to payment of Rs 3.000 Millions and the
same was paid accordingly. In the opinion of the management of the company the
demand is not justified. Accordingly the provision for the entire claim has not
been made pending disposal of the case.
c) The company had availed input credit amounting to Rs 2.000 Millions
on coal purchases from 01.04.2005 to 31.12.2005. The AP Government vide GO no
MS 2201 Ref CT II dept dated 29.12.2005 made input tax on coal purchase ineligible
w.e.f 01.04.2005 and raised a demand for Rs 2.000 Millions. The Company has
appealed against the GO in Honourable High Court and paid 50% of disputed tax
i.e 1.000 Millions for admission of appeal.
Fixed Assets:
- Free hold land
- Buildings
- Plant and machinery
- Vehicles
- Office equipment
- Furniture and fixtures
AS PER WEBSITE DETAILS
PROFILE:
Subject is a
popular brand in south
Starting with initial production capacity of 0.3 million tonnes per annum in
1999, the Company has now achieved a quantum shift in its production capacity
to 1.2 million tonnes per annum. The second plant powered with the latest and
modern technology and infrastructure has started operations in 2010 and has
poised the company on an energized growth path to achieve new performance
levels and service standards.
The professional teams of technical, financial, marketing, strategic planning
and human resources have served through prestigious capacities in the industry
with integrity and repute for more than 30 years. The responsibility and
accountability of these professionals is evident in their good management
practices and shared objectives. The present standing of Anjani Cement is
credited to the commitment of this notch team.
The cement is only as good as its raw materials and primarily depends on the quality of the lime stone used. The limestone mines of Anjani are acclaimed as the best mines amongst the cement brackets of Nalgonda district, thus confirming the superior quality of the cement produced.
With its exemplary growth in production and services, Anjani Cement has
captured the market in Andhra Pradesh and competes with the national players in
the industry. Anjani has now extended its reach to Tamil Nadu, Orissa and
Karnataka and also made forays into the markets of
Sound R and D ensures continuous innovation in technology and realization of
best quality standards. Anjani Powder Research Centre conducts research and
takes up relentless testing procedures of cement of all available brands for
improvement and standardization of the products.
Subject also makes persistent effort to restore and maintain the eco balance
and greening process in and around the cement plants. The RABH technology
ensures minimum air pollution in and around the plant. Efforts are made
towards greening the environment by planting and nurturing trees and other
flora in the cement plant vicinity.
As a responsible corporate, Anjani cement has taken conscious and decisive measures to develop knowledge based society by providing quality education for the families of the employed and neighboring villages. An innovative venture – BV Raju Institute of Cement Technology was initiated by the company to train the rural youth in cement technology and production for potential employment in cement industries.
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.44.30 |
|
|
1 |
Rs.72.92 |
|
Euro |
1 |
Rs.64.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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.