MIRA
INFORM REPORT
|
Report Date : |
21.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
HONDA SIEL POWER PRODUCTS LIMITED |
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Registered
Office : |
3 and 4/48, 2nd floor, Enkay House, Malcha Marg Shopping Complex,
Chanakyapuri, New Delhi – 110021, Delhi |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.09.1985 |
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Com. Reg. No.: |
203950 |
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CIN No.: [Company Identification
No.] |
L40103DL2004PLC203950 |
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|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange |
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Line of Business
: |
Manufacturer of Power Products and Related Parts. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (59) |
|
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 |
|
Maximum Credit Limit : |
USD 8094116 |
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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 Joint Venture between Honda Motor Company The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 (GENERAL DETAILS)
|
Name : |
Mr. Rajaram |
|
Designation : |
Accounts |
|
Date : |
19.01.2011 |
LOCATIONS
|
Registered Office : |
3 and 4/48, 2nd floor, Enkay House, Malcha Marg Shopping
Complex, Chanakyapuri, New Delhi – 110021, Delhi, India |
|
E-Mail : |
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Website : |
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Factory 1 : |
Plot No.5, Sector No.41 (Kasna), Gautam Budh Nagar – 201310, |
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Tel. No.: |
91-120-2341050-59 |
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Fax No.: |
91-120-2341078-79 |
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Showroom : |
H-111, GF, Sushant Shopping Arcade, B Block, Sushant Lok – 1, Gurgaon
– 122002, India |
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Tel No.: |
91-124-2570550 |
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|
Branches : |
DIRECTORS
AS ON 19.08.2010
|
Name : |
Mr. Siddharth Shriram |
|
Designation : |
Director |
|
Address : |
No.3A, Chitrakoot The Green, Opp Air Force stat, Rajokri, NCT of Delhi
– 110038, India |
|
Date of Birth/Age : |
18.01.1940 |
|
Date of Appointment : |
19.09.1985 |
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|
|
|
Name : |
Mr. Takashi Hamasaki |
|
Designation : |
Director |
|
Address : |
B-500, 1st Floor, New Friends Colony, |
|
Date of Birth/Age : |
30.11.1960 |
|
Date of Appointment : |
01.04.2010 |
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|
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|
Name : |
Mr. Ysushi Watanabe |
|
Designation : |
Director |
|
Address : |
D-946, New Friends Colony, |
|
Date of Birth/Age : |
22.06.1956 |
|
Date of Appointment : |
01.01.2006 |
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|
Name : |
Mr. Takashi Nagi |
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Designation : |
Director |
|
Address : |
Hotel LE, |
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Date of Birth/Age : |
07.02.1959 |
|
Date of Appointment : |
01.04.2010 |
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|
Name : |
Mr. Jaito Masato |
|
Designation : |
Director |
|
Address : |
Room No.11D, Grand, Mercure Bangkok Asoke Residence 50 501, |
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Date of Birth/Age : |
09.07.1958 |
|
Date of Appointment : |
01.04.2010 |
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|
Name : |
Mr. Kobayashi Joji |
|
Designation : |
Director |
|
Address : |
C-616, New Friends Colony, |
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Date of Birth/Age : |
27.01.1958 |
|
Date of Appointment : |
01.08.2007 |
|
Date of Ceasing : |
31.03.2010 |
|
|
|
|
Name : |
Mr. Bi Desisinghrama Chandra |
|
Designation : |
Director |
|
Address : |
N108, No.1722, Hotel Le Meridien, Janpath, |
|
Date of Birth/Age : |
08.02.1946 |
|
Date of Appointment : |
11.08.1998 |
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Date of Ceasing : |
01.04.2010 |
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|
|
|
Name : |
Mr. Masahiro Takedagawa |
|
Designation : |
Director |
|
Address : |
Room No. 1722, Hotel Le Meridien, Janpath, |
|
Date of Birth/Age : |
26.04.1955 |
|
Date of Appointment : |
26.03.2005 |
|
Date of Ceasing : |
01.04.2010 |
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|
|
|
Name : |
Mr. Shigeaki Mizusawa |
|
Designation : |
Director |
|
Address : |
1-1 2 Chome Minato Ku Minami Aoyama |
|
Date of Birth/Age : |
26.11.1955 |
|
Date of Appointment : |
26.03.2005 |
|
Date of Ceasing : |
01.04.2010 |
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|
|
|
Name : |
Mr. Dharam Veer Kapur |
|
Designation : |
Director |
|
Address : |
405, Aradhana Aparments, R K Puram, NCT of |
|
Date of Birth/Age : |
09.09.1928 |
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Date of Appointment : |
31.03.1988 |
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|
Name : |
Mr. |
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Designation : |
Director |
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Address : |
N-12, |
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Date of Birth/Age : |
21.01.1943 |
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Date of Appointment : |
31.03.1988 |
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|
Name : |
Mr. |
|
Designation : |
Director |
|
Address : |
9-B, Anand Lok, |
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Date of Birth/Age : |
19.11.1937 |
|
Date of Appointment : |
25.03.2005 |
KEY EXECUTIVES
|
Name : |
Mr. Rajaram |
|
Designation : |
Accounts |
|
|
|
|
Name : |
Ms. Payal Chaddha |
|
Designation : |
Secretary |
|
Address : |
227-C Express View Apartments, Sector – 93, Noida – 201301, Gautam
Budh Nagar, Uttar Pradesh |
|
Date of Birth/Age : |
27.08.1977 |
|
Date of Appointment : |
18.09.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Bodies corporate |
101433 |
1.00 |
|
2) Foreign |
|
|
|
a) Bodies corporate |
6762000 |
66.67 |
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
20 |
-- |
|
b) Financial Institutions/Banks |
1100 |
0.01 |
|
c) Insurance Companies |
30566 |
0.30 |
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
982209 |
9.68 |
|
|
|
|
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b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
1646404 |
16.23 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
440784 |
4.35 |
|
|
|
|
|
c) Any other |
|
|
|
i) NRI |
101732 |
1.00 |
|
ii) Clearing Member |
76548 |
0.75 |
|
iii) Trust |
275 |
-- |
|
|
|
|
|
Total |
10143071 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Power Products and Related Parts. |
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Exports : |
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Products : |
Power Products |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Portable generating sets |
|
** |
175000 |
50848 |
|
Internal combustion engines |
|
** |
*** |
*** |
|
Pumping sets |
|
** |
*** |
*** |
* Ascertified by the management and relied upon by the auditors, being a technical matter.
** Not applicable, as the products manufactured by the company are delicensed.
*** Installed capacity is common with portable generating sets.
GENERAL INFORMATION
|
Customers : |
Corporates |
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|
|
|
No. of Employees : |
850 (In office 250 + In factory 600) |
|
|
|
|
Bankers : |
Bank of |
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|
|
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Facilities : |
-- |
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|
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
BSR and Company Chartered Accountant |
|
Address : |
Building No10, 8th Floor, Tower B, |
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Ultimate Holding and Holding Company : |
Honda Motor Company Limited, |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
10144000 |
Equity Shares |
Rs.10/- each |
Rs.101.440 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10143071 |
Equity Shares |
Rs.10/- each |
Rs.101.431
Millions |
|
|
|
|
|
* Of the above, 6,762,000 (Previous year 6,762,000) equity shares of Rs.10 each are held by Honda Motor Company Limited., Japan, the holding company, also being the ultimate holding company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
101.431 |
101.431 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
1922.098 |
1842.667 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
2023.529 |
1944.098 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
23.202 |
|
|
|
|
|
|
|
|
TOTAL |
|
2023.529 |
1967.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
634.205 |
613.136 |
|
|
Capital work-in-progress |
|
34.383 |
35.857 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
19.362 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
473.048 |
574.180 |
|
|
Sundry Debtors |
|
153.268 |
84.425 |
|
|
Cash & Bank Balances |
|
1008.593 |
831.345 |
|
|
Other Current Assets |
|
9.017 |
10.650 |
|
|
Loans & Advances |
|
189.746 |
168.043 |
|
Total
Current Assets |
|
1833.672 |
1668.643 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
325.397 |
215.547 |
|
|
Other Current Liabilities |
|
101.680 |
64.034 |
|
|
Provisions |
|
71.016 |
70.755 |
|
Total
Current Liabilities |
|
498.093 |
350.336 |
|
|
Net Current Assets |
|
1335.579 |
1318.307 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
2023.529 |
1967.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
3058.005 |
2314.078 |
|
|
|
Job Work Charges (Gross) |
|
26.115 |
21.095 |
|
|
|
Other Income |
|
88.576 |
137.418 |
|
|
|
TOTAL (A) |
|
3172.696 |
2472.591 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
|
1951.771 |
1497.439 |
|
|
|
Personal Cost |
|
248.511 |
227.573 |
|
|
|
Other Expenses |
|
500.190 |
432.814 |
|
|
|
Exceptional Items |
|
200.446 |
11.937 |
|
|
|
TOTAL (B) |
|
2900.918 |
2169.763 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
271.778 |
302.828 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
1.863 |
2.087 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
269.915 |
300.741 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
74.281 |
57.901 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
195.634 |
242.840 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
68.736 |
86.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
126.898 |
156.440 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
725.636 |
632.363 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
|
40.572 |
40.572 |
|
|
|
Corporate Dividend Tax |
|
6.895 |
6.895 |
|
|
|
General Reserve |
|
12.700 |
15.700 |
|
|
BALANCE CARRIED
TO THE B/S |
|
792.367 |
725.636 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
|
395.170 |
343.179 |
|
|
TOTAL EARNINGS |
|
395.170 |
343.179 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials |
|
19.944 |
84.183 |
|
|
|
Components |
|
336.659 |
233.707 |
|
|
|
Consumables |
|
0.989 |
1.347 |
|
|
|
Stores, tools and machinery spares |
|
1.523 |
2.267 |
|
|
|
Spares for sale |
|
0.000 |
0.167 |
|
|
|
Capital goods |
|
1.748 |
4.717 |
|
|
TOTAL IMPORTS |
|
360.863 |
326.388 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
12.51 |
-- |
|
QUARTERLY
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1127.700 |
1000.400 |
|
Total Expenditure |
|
939.300 |
897.000 |
|
PBIDT (Excl
OI) |
|
188.400 |
103.400 |
|
Other Income |
|
20.800 |
21.400 |
|
Operating
Profit |
|
209.200 |
124.800 |
|
Interest |
|
0.200 |
0.300 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
209.000 |
124.500 |
|
Depreciation |
|
17.900 |
19.700 |
|
Profit
Before Tax |
|
191.100 |
104.800 |
|
Tax |
|
63.700 |
34.200 |
|
Reported PAT |
|
127.400 |
70.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
127.400 |
70.600 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
|
3.99 |
6.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
6.40 |
10.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
7.93 |
10.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.09 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.25 |
0.18 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
3.68 |
4.76 |
LOCAL AGENCY FURTHER INFORMATION
|
|
Rs.
In Millions 31.03.2010 |
Rs.
In Millions 31.03.2009 |
|
Sundry creditors |
|
|
|
Total outstanding dues to micro and small enterprises* |
9.835 |
2.483 |
|
Total outstanding dues to others |
315.562 |
213.064 |
NOTE:
The registered office address of the company has been shifted from Plot No.5,
Sector No.41 (Kasna), Greater Noida Industrial L Development Area G B Nagar,
Gautam Budh Nagar – 201310,
DOMESTIC MARKETS AND
EXPORTS
The Company has achieved a Sales volume of 1,90,538 Units (as against 1,30,937 units in 2008-09) in domestic and export markets during the financial year 2009-10. This represents a growth of 46% over previous year. This increase in sales was primarily due to growth in Engine and Water Pump business which had registered record sales during the year.
A detailed report on operations titled 'Management Discussion and Analysis Report is annexed to the Directors' Report as annexed B and together with Audited Accounts of the Company for the year ended forms part thereof.
INDIGENISATION
PROGRAMME
The Company is continuously working on cost reduction by
localization of critical parts with the support of Honda Motor Company Limited,
During the year, the Company has successfully developed critical electrical partssuch as Switch Assembly Engine Stop, Terminal Assembly High Tension and Cap Assembly Noise Suppressor. Since these parts shall be used in production in next financial year, savings on account of these parts will be realized in the next Financial Year 2010-11.
INFORMATION
TECHNOLOGY ('IT')
After successful completion of upgradation of Oracle Application, from the earlier desupported version (11.5.4) to the latest supported version (11.5.10.2), Enterprise Resource Planning ('ERP') has been made fully operational during the year 2009-10. The company has also implemented other modules during the year there by making optimum utilization of upgraded ERP in the Company.
To further take advantage of information technology in more operational functions of the Company, the following projects were initiated during- the year:
a) Online, restricted and secured access of ERP was given to suppliers to enhance the efficiency in transaction handling, as well as for avoiding duplication of processes. This project was initially started with few suppliers. However, after successful trials, it is now ready forfull fledged roll out.
b) Human Resources Information System (HRIS), was planned for better handling of Human Resources data, online communication with Company Personnel and for fully integrated seamless data transfer to Oracle application. The process for the same has been initiated and the same is expected to roll out within first half of the year 2010-11.
ENVIRONMENT
PROTECTION AND SAFETY
The Company is committed towards the protection and safety of the environment. All employees make efforts in daily operation towards controlling emissions, effluents and waste disposal arising out of manufacturing processes, product and services as per the predefined norms. Environmental improvements were achieved by completing the following actions:
- Ensuring cleaner environment by retrofitting of gas fired burners in existing High Speed Diesel (HSD) fired melting cum holding furnace.
- New ETP (Effluent Treatment Plant) lab made for ensuring effective monitoring of treated water quality.
- New centralized oil yard made for storage of oil.
- The products manufactured by the Company strictly comply with air emission and noise regulation norms notified by the Ministry of Environment and Forests (MOEF). The 'confirmation of production' to the air emission and noise regulation is done as laid down by MOEF.
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.45.58 |
|
|
1 |
Rs.72.73 |
|
Euro |
1 |
Rs.61.45 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
59 |
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.