MIRA
INFORM REPORT
|
Report Date : |
12.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
RUPA AND COMPANY LIMITED |
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Registered
Office : |
1 Ho, Chi Minh Sarani Metroplaza, 8th Floor, Kolkata – 700071,
West Bengal |
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Country : |
India |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
06.02.1985 |
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Com. Reg. No.: |
21-038517 |
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Capital
Investment / Paid-up Capital : |
Rs. 79.629 Millions |
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CIN No.: [Company Identification
No.] |
L17299WB1985PLC038517 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CALR00153G |
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PAN No.: [Permanent Account No.] |
AABCR26478M |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange |
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Line of Business
: |
Manufacturers
Of Hosiery Dresses Hosiery Goods. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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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 5600000 |
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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 an established company having satisfactory track. General
financial position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported 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 |
LOCATIONS
|
Registered Office / Corporate Office : |
1 Ho, Chi Minh Sarani Metroplaza, 8th Floor, Kolkata –
700071, West Bengal, India |
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E-Mail : |
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Website : |
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Operation Office : |
Rupa Japan Ropongi Office, Makwadali Building, 7F 7-8-7, Roppongi,
Minto Ku, Tokyo |
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Tel. No.: |
91-3-6864-8614 |
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Fax No.: |
91-3-5414-7966 |
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E-Mail : |
DIRECTORS
AS ON 30.09.2010
|
Name : |
Mr. Prahalad Rai Agarwala |
|
Designation : |
Chairman Cum Managing Director |
|
Address : |
ACMPA 9021 B, 12 Sunny Park, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
11.05.1938 |
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Date of Appointment : |
06.02.1985 |
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Name : |
Mr. Ganshyam Prasad Agarwala |
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Designation : |
Whole Time Director |
|
Address : |
ADAPA 6335 M, 3 Alipora Road, Kolkata – 700027, West Bengal, India |
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Date of Birth/Age : |
14.11.1945 |
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Date of Appointment : |
13.07.1987 |
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Name : |
Mr. Kunj Bihari Agarwala |
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Designation : |
Managing Director |
|
Address : |
AFTPA 8749J, 3 Alipora Road, Kolkata – 700027, West Bengal, India |
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Date of Birth/Age : |
23.11.1949 |
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Date of Appointment : |
17.07.1987 |
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Name : |
Mr. Shiv Prakash Saraf |
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Designation : |
Whole Time Director |
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Address : |
ALEPS 7007E, 87 DUM Dum, Cossipore Road, Kolkata – 700074, West
Bengal, India |
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Date of Birth/Age : |
02.02.1963 |
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Date of Appointment : |
29.07.2000 |
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Date of Ceasing : |
27.07.2009 |
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Name : |
Mr. Mukesh Agarwal |
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Designation : |
Whole Time Director |
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Address : |
ACWPA 7562A, 3 Alipore Road, Kolkata – 700027, West Bengal, India |
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Date of Birth/Age : |
01.01.1971 |
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Date of Appointment : |
29.07.2009 |
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Name : |
Mr. Ramesh Agarwal |
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Designation : |
Whole Time Director |
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Address : |
ADAPA 4884F, 12 Sunny Park, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
07.06.1968 |
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Date of Appointment : |
29.07.2009 |
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Name : |
Mr. Sushil Patwari |
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Designation : |
Director |
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Address : |
WB/23/148/018578, 18, Alipore Road, Kolkata – 700027, West Bengal,
India |
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Date of Birth/Age : |
20.08.1954 |
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Date of Appointment : |
17.11.2003 |
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Name : |
Mr. Vinod Kumar Kothari |
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Designation : |
Director |
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Address : |
1012, Krishna Bilding, 224, AJC Bose Road, Kolkata – 700017, West
Bengal, India |
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Date of Birth/Age : |
01.09.1961 |
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Date of Appointment : |
26.07.2004 |
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Name : |
Mr. Shree Krishna Khaitan |
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Designation : |
Director |
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Address : |
AGAPK 2499K, 7 Keyatala, Lane, Kolkata – 700029, West Bengal, India |
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Date of Birth/Age : |
15.12.1939 |
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Date of Appointment : |
14.02.2000 |
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Name : |
Mr. Radhey Shyam Agarwal |
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Designation : |
Director |
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Address : |
118, Souther Avenue, Kolkata – 700029, West Bengal, India |
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Date of Birth/Age : |
06.01.1946 |
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Date of Appointment : |
01.02.2003 |
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Name : |
Mr. Dharam Chand Jain |
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Designation : |
Director |
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Address : |
9/1, Mani Mansion, Lower Rowdon Street, Kolkata – 700029, West Bengal,
India |
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Date of Birth/Age : |
28.08.1946 |
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Date of Appointment : |
31.03.2003 |
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Name : |
Mrs. Priya Punjabi |
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Designation : |
Secretary |
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Address : |
88, A Chittaranjan Avenue, Kolkata – 700012, West Bengal, India |
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Date of Birth/Age : |
14.03.1981 |
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Date of Appointment : |
23.06.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2010
|
Names of Shareholders |
No. of Shares |
% of
Shareholding |
|
Indian Promoters |
7.10 |
5958639 |
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Private Corporate Bodies |
2.62 |
1842960 |
|
Indian Public |
90.28 |
150857 |
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|
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Total |
100.00 |
7952456 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
Of Hosiery Dresses Hosiery Goods. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
·
CITI Bank N.A ·
Indusind Bank Limited ·
Standard Chartered Bank ·
State Bank of India ·
Development Credit Bank Limited, 301 Delta Plaza,
414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India ·
Industrial Development Bank of India Limited,
IDBI Tower WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra,
India |
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Facilities : |
Notes : a) The Working Capital
Loan is secured by hypothecation of the entire current assets of the Company,
equitable mortgage of certain property at Tirupur and Kolkata and Property at
Kolkata of Rupa Global (Private) Limited and corporate guarantee of
Rupa Global (Private) Limited and second charge on Domjur Unit. b) The term loan
from IDBl is secured by all movable and immovable Assets of Domjur and
Tirupur units of the Company and first charge on Wind Turbine Generator
including Land and Building at Dhule in the State of Maharastra. c) The term loan
from lndusind Bank is secured by first charge by way of hypothecation of
movable fixed assets and mortgage of immovable fixed assets of Domjur unit on
pari-passu. d) The above
loans are further secured by personal guarantee of Promoter Directors of the
Company. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
K. Agarwal and Company Chartered Accountant |
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Address : |
34, Ezra Street, 2nd Floor, Kolkata – 700001, West Bengal,
India |
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Subsidiary : |
·
Euro Fashion Inners
International (Private) Limited |
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Associate Companies : |
·
M/s Binod History ·
M/s Salaskar Project
and Estate Private Limited ·
M/s Siddhant Flats and
Apartments Private Limited ·
M/s Siddhant Credit
Capital Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7973356 |
Equity Shares |
Rs.10/- each |
Rs.79.733
Millions |
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7952456 |
Equity Shares |
Rs.10/- each |
Rs.79.524
Millions |
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|
Add : Forfeited Shares |
|
Rs. 0.104
Millions |
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Total |
|
Rs. 79.629 Millions |
Note :
1. Of the above 50000 Equity Shares of Rs. 10/- each have been allotted as fully
paid-up bonus shares by capitalization of General Reserves.
2.
1948356 Equity shares of
Rs. 10/- each fully Paid-Up has been converted from Deep Discount Debentures.
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 |
79.629 |
79.629 |
45.895 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1324.500 |
1137.293 |
406.297 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1404.129 |
1216.922 |
452.192 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1222.836 |
477.215 |
713.726 |
|
|
2] Unsecured Loans |
0.000 |
33.089 |
393.025 |
|
|
TOTAL BORROWING |
1222.836 |
510.304 |
1106.751 |
|
|
DEFERRED TAX LIABILITIES |
69.985 |
65.308 |
61.976 |
|
|
|
|
|
|
|
|
TOTAL |
2696.950 |
1792.534 |
1620.919 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
561.708 |
482.484 |
435.575 |
|
|
Capital work-in-progress |
287.952 |
54.952 |
25.243 |
|
|
|
|
|
|
|
|
INVESTMENT |
101.100 |
91.600 |
41.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1230.939
|
596.746 |
910.318 |
|
|
Sundry Debtors |
1023.015
|
710.171 |
537.110 |
|
|
Cash & Bank Balances |
61.993
|
48.371 |
32.668 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
241.944
|
336.360 |
367.455 |
|
Total
Current Assets |
2557.891
|
1691.648 |
1847.551 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Other Current Liabilities |
724.465
|
463.822 |
706.712 |
|
|
Provisions |
87.236
|
64.328 |
22.338 |
|
Total
Current Liabilities |
811.701
|
528.150 |
729.050 |
|
|
Net Current Assets |
1746.190
|
1163.498 |
1118.501 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2696.950 |
1792.534 |
1620.919 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5199.364 |
4118.377 |
3513.363 |
|
|
|
Other Income |
33.969 |
16.866 |
4.578 |
|
|
|
TOTAL (A) |
5233.333 |
4135.243 |
3517.941 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases |
183.138 |
102.663 |
34.680 |
|
|
|
Raw Material Consumed |
2569.442 |
1870.050 |
1606.632 |
|
|
|
Manufacturing Expenses |
1093.797 |
812.995 |
823.979 |
|
|
|
Payments to and Provision for Employees |
30.418 |
24.092 |
20.572 |
|
|
|
Selling, Distribution, Administration and Other Expenses |
1073.925 |
916.012 |
790.052 |
|
|
|
Increase / Decrease in Stock |
(178.453) |
88.848 |
(53.787) |
|
|
|
TOTAL (B) |
4772.267 |
3814.660 |
3222.128 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
461.066 |
320.583 |
295.813 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
56.991 |
77.435 |
86.322 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
404.075 |
243.148 |
209.491 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
35.491 |
30.738 |
29.058 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
368.584 |
212.410 |
180.433 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
127.176 |
75.833 |
64.273 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
241.408 |
136.577 |
116.160 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
327.088 |
252.030 |
166.620 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
25.000 |
15.000 |
12.000 |
|
|
|
Dividend |
51.690 |
39.762 |
16.026 |
|
|
|
Tax on Dividend |
8.585 |
6.757 |
2.723 |
|
|
BALANCE CARRIED
TO THE B/S |
483.220 |
327.088 |
282.030 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
89.154 |
119.311 |
119.054 |
|
|
TOTAL EARNINGS |
89.154 |
119.311 |
119.054 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Machinery |
218.732 |
Nil |
655.249 |
|
|
|
Machinery Spares Parts |
0.591 |
3.991 |
Nil |
|
|
|
Product Accessories |
0.052 |
0.164 |
0.045 |
|
|
TOTAL IMPORTS |
219.375 |
4.155 |
655.294 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
26.27 |
25.37 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.61
|
3.30 |
0.45 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.08
|
5.15 |
5.13 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.81
|
16.67 |
7.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.17 |
0.39 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.44
|
0.85 |
4.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.15
|
3.20 |
2.53 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Company has
achieved a growth of 26.25% in Sales and Income from Operations during the year
over the previous year. The Sales and Income from Operations including other income
during the year is Rs. 5233.334 millions as against Rs. 4135.243 millions in
the previous year. The Company has also achieved a growth of 43.82% in Gross
Profit before Interest, Depreciation and Tax and 76.76% in Profit after Tax
respectively during the period under review over the previous year. The Gross
Profit before Interest, Depreciation and Tax during the year is Rs. 461.068
millions as compared to Rs. 320.584 millions in the previous year. The Profit
after Tax for the year is Rs. 241.408 millions as / against Rs. 136.577
millions in the previous year.
OVERVIEW
The Company is a
market leader in hosiery sector and aims at becoming one of the largest hosiery
and knitwear suppliers which will allow it to cater to the needs of its
consumers. The Company has registered a 26+25% growth in the turnover
of the Company and an increase 76.76% in Profit after Tax.
FUTURE OUTLOOK
The Company has
achieved a 26.25% growth in the turnover. It has been constantly following
emerging market trends and accordingly from time to time revamped its marketing
strategies and product portfolios. The Company is trying to come up with some
new products and ranges of inner and fashion wears according to changing
consumer needs and demands and is on the path to becoming a lifestyle solution
for discerning customers with an offering of a range of fabrics, garments and
accessories in a premium shopping environment.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
The Indian
Textiles Industry has an overwhelming presence in the economic life of the
country. It contributes about 14% to industrial production, 4% to the country's
gross domestic product (GDP) and 17% to the country's export earnings
(according to the Annual Report 2009-1 0 of the Ministry of Textiles). The
textile group consisting of cotton, wool, silk and man-made by 7.5% during
April-November 2009 compared to 1 .O% during April-November the hosiery sector
(12.8%).
Apart from
providing one of the basic necessities of life, the textiles industry also
plays a pivotal role through its contribution to industrial output, employment
generation and the export earnings of the country. It provides direct
employment to over 35 million people and is the second largest provider of
employment after agriculture. Thus, the growth and all round development of
this industry has a direct bearing on the improvement of the economy of the
nation.
Opportunities
The outlook for
textile industry in India is very optimistic. It is expected that Indian textile
industry would continue to grow at an impressive rate. The Union Textiles
Minister has appreciated the Budget Proposals 2010-11 presented in Parliament.
The initiative of
Finance Minister to provide one time grant of Rs. 2000.000 millions to 20 Common
Effluent Treatment Plant (CETP) installed by dyeing units in Tirupur, Tamil
Nadu will supplement the efforts of Government of Tamil Nadu which had already
/' provided support of Rs. 1200.000 millions. Tirupur is the leading export
centre mainly for hosiery and provides employment to approximately 0.500
millions workforces and this measure will ensure protection of employment and
smooth production and export of knitwear
from Tirupur.
The recent
initiatives for attracting FDI in textile sector have been lauded in the
Economic Survey 2009-10 and Foreign Investment will help us to modernize
textile and clothing industry and aid its integration into the global textiles
market.
The micro, small,
medium enterprises in textiles sector have been given full CENVAT credit on
capital goods in one installment in the year of receipt of such goods and the
facility of payment of excise duty in quarterly basis.
The various
measures adopted by the government to assist the Textile industry have thrown
up opportunities for fundamentally strong companies such as the Company. The
Company is expected to benefit from the specific and targeted initiatives of
the government. It also has an edge in the form of strong domain expertise,
powerful brand positioning, strength and resilience of the brands, fully
integrated state of the art production facilities, cutting-edge technology and
unparalleled product innovation Capabilities combined with the deep retail
market penetration, which provides a highly potent platform to seize the
opportunities that are bound to arise during cyclical downturns in the form of
newer markets, new segments of customers, new channels of distribution, etc.
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. 44.68 |
|
|
1 |
Rs. 70.87 |
|
Euro |
1 |
Rs. 62.25 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.