MIRA
INFORM REPORT
|
Report Date : |
22.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
TVS INTERCONNECT SYSTEMS LIMITED [w.e.f. 05.11.1999] |
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Formerly Known
As : |
Sundram Auto Soft Private Limited |
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Registered
Office : |
7- B, |
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Country : |
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Financials (as
on) : |
30.09.2009 |
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Date of
Incorporation : |
25.09.1997 |
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Com. Reg. No.: |
18-039110 |
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Capital
Investment / Paid-up Capital : |
Rs.45.000 Millions |
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CIN No.: [Company Identification
No.] |
U72300TN1997PLC039110 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MRIT01435A MRIS00935E |
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PAN No.: [Permanent Account No.] |
AAATT6413G /
AADCS3666G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturing, Importing, Distributing and Selling Interconnect
Systems such as RF/COAX, Photonics, connectors, cable assemblies, electronic
connectors and other related products used in telecom industry. |
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No. of Employees
: |
400 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba [46] |
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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 560000 |
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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 subsidiary of T. V. Sundaram Iyengar and Sons Limited, In view of stronger promoters, 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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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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 : |
7- B, |
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Tel. No. : |
91-452-4356400 |
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Fax No.: |
91-452-2341587 |
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Email : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-80-30249000
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Fax No.: |
91-80-67179001 |
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Factory : |
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Tel. No.: |
91-452-2420215 /
2420216 |
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Fax No.: |
91-452-2420381 |
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Overseas Office : |
Located at
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DIRECTORS
As on 31.12.2009
|
Name : |
Mr. Anupam Thareja |
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Designation : |
Director |
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Address : |
House New No.12 (Old No.9), 1st |
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Date of Birth/Age : |
09.04.1972 |
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DIN : |
01091533 |
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Date of Appointment : |
03.09.2010 |
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Name : |
Mr. Ramchandran Haresh |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
29.11.1954 |
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Date of Appointment : |
10.11.1999 |
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Din : |
00363096 |
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Name : |
Mr. Ramchandran Dinesh |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
25.02.1965 |
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Date of Appointment : |
28.09.1998 |
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Din : |
00363300 |
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Name : |
Mr. Thomas Walter Schmocker |
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Designation : |
Director |
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Address : |
Unbit 12, |
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Date of Birth/Age : |
19.05.1945 |
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Date of Appointment : |
30.09.2000 |
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DIN : |
00649074 |
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Name : |
Mr. Keshavamurthy
Dhruva |
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Designation : |
Director |
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Address : |
No. 20/2,
Vinayaka Layout, 8th Main, Opp. Everest Apartment, Malleswaram, |
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Date of Birth/Age : |
15.10.1940 |
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Date of Appointment : |
21.11.2002 |
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DIN : |
00589233 |
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Name : |
Mr. Varadrajan
Babuji |
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Designation : |
Director |
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Address : |
204, Soundarya
Pride, 22/1,7th cross, III Floor, Malleswaram, |
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Date of
Birth/Age : |
12.06.1942 |
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Date of
Appointment : |
15.03.2003 |
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DIN : |
00290393 |
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Name : |
Mr. Thillasthanam
Venkatachari Srinivasan |
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Designation : |
Director |
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Address : |
#4063, Sobha Jasmine,
Outer Ring Road, and |
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Date of
Birth/Age : |
19.04.1947 |
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Date of
Appointment : |
30.04.2008 |
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DIN : |
02047752 |
KEY EXECUTIVES
|
Name : |
Mr. M. G.
Sivasubramanian |
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Designation : |
Company Secretary
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Address : |
6th D
Cross, Poojappa Layout, Kaggadasapura, C.V. Raman Nagar, |
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Date of
Birth/Age : |
02.07.1957 |
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Date of
Appointment : |
08.10.2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2009
|
Names of Shareholders |
|
No. of Shares |
|
T. V. Sundaram Iyengar and Sons Limited, |
|
4499994 |
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Mr. R. Haresh and
T. V. Sundaram Iyengar and Sons
Limited |
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1 |
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Mr. R. Naresh and
T. V. Sundaram Iyengar and Sons
Limited |
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1 |
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Mr. R. Dinesh and
T. V. Sundaram Iyengar and Sons
Limited |
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1 |
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Ms. Shobhana
Ramachandhran and T. V. Sundaram
Iyengar and Sons Limited |
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1 |
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Mr. B Ganapathi
Sarma and T. V. Sundaram Iyengar and
Sons Limited |
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1 |
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Mr. E. Sivaraman
and T. V. Sundaram Iyengar and Sons
Limited |
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1 |
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Total |
|
4500000 |
As on 31.12.2009
|
Category |
Percentage |
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Bodies corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing, Importing, Distributing and Selling Interconnect
Systems such as RF/COAX, Photonics, connectors, cable assemblies, electronic connectors
and other related products used in telecom industry. |
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Products : |
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PRODUCTION STATUS As on 30.09.2009
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Particulars |
Unit |
Actual
Production |
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Antennae |
Nos. |
20782 |
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Electronic Connector |
Nos. |
67799 |
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RF COAX |
Nos. |
587017 |
GENERAL INFORMATION
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No. of Employees : |
400 [Approximately] |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial
Institution : |
Easyaccess Financial Services Limited, Spl Guindy House, 95, Mount
Road, Guindy, Chennai - 600032, Tamil Nadu, India |
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Auditors : |
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Name : |
Price Waterhouse and Company Chartered Accountant |
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Address : |
32, |
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Subsidiaries : |
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Fellow Subsidiaries : |
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Associates : |
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Holding Company : |
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CAPITAL STRUCTURE
As on 30.09.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
|
|
25,000,000 |
Equity Shares |
Rs.10/-each |
Rs.250.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
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|
|
|
|
4,500,000 |
Equity Shares |
Rs.10/-each |
Rs.45.000 millions |
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Note : All the shares are held by TV Sundram Iyengar
and Sons Limited, the holding company, along with its nominee
As on 31.12.2009
Authorised Capital : Rs.600.000 millions
Issued, Subscribed & Paid-up Capital : Rs.245.000
millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
Particulars |
30.09.2009 [18 Months] |
31.03.2008 [12 months] |
31.03.2007 [12 months] |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
45.000 |
45.000 |
45.000 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
95.130 |
73.901 |
52.192 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
140.130 |
118.901 |
97.192 |
|
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LOAN FUNDS |
|
|
|
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1] Secured Loans |
1084.774 |
1762.223 |
691.396 |
|
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2] Unsecured Loans |
153.994 |
110.000 |
0.893 |
|
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TOTAL BORROWING |
1238.768 |
1872.223 |
692.289 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
1378.898 |
1991.124 |
789.481 |
|
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|
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APPLICATION OF FUNDS |
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|
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|
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FIXED ASSETS [Net Block] |
114.993 |
79.209 |
77.148 |
|
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Capital work-in-progress |
0.000 |
20.010 |
0.000 |
|
|
|
|
|
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INVESTMENT |
24.597 |
23.597 |
0.000 |
|
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DEFERREX TAX ASSETS |
32.700 |
23.021 |
28.234 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
168.095
|
237.055 |
288.722 |
|
|
Sundry Debtors |
670.039
|
548.406 |
681.921 |
|
|
Cash & Bank Balances |
121.180
|
300.167 |
141.743 |
|
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Other Current Assets |
981.990
|
587.453 |
37.813 |
|
|
Loans & Advances |
362.544
|
490.489 |
140.061 |
|
Total
Current Assets |
2303.848
|
2163.570 |
1290.260 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1057.470
|
293.811 |
581.173 |
|
|
Other Current Liabilities |
31.864
|
11.442 |
15.474 |
|
|
Provisions |
7.906
|
13.030 |
9.514 |
|
Total
Current Liabilities |
1097.240
|
318.283 |
606.161 |
|
|
Net Current Assets |
1206.608
|
1845.287 |
684.099 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1378.898 |
1991.124 |
789.481 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2009 [18 Months] |
31.03.2008 [12 months] |
31.03.2007 [12 months] |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales Income |
2047.728 |
2354.788 |
1257.326 |
|
|
|
Income from Erection & Commissioning services |
1804.602 |
27.969 |
53.328 |
|
|
|
Infrastructure Support Services |
0.000 |
7.812 |
0.000 |
|
|
|
Licence Fees |
0.000 |
8.780 |
0.000 |
|
|
|
Profit on Sale of Telecom Passive Infrastructure business |
0.000 |
64.886 |
0.000 |
|
|
|
Agency commission |
0.000 |
0.927 |
13.164 |
|
|
|
Other Income |
85.394 |
97.069 |
29.225 |
|
|
|
TOTAL (A) |
3937.724 |
2562.231 |
1353.043 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
1861.152 |
2018.249 |
1001.411 |
|
|
|
Erection & Commissioning charges |
1468.825 |
29.731 |
43.085 |
|
|
|
Employee costs |
337.094 |
103.762 |
60.751 |
|
|
|
Other expenses |
465.124 |
164.748 |
103.860 |
|
|
|
TOTAL (B) |
4132.195 |
2316.490 |
1209.107 |
|
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
[194.471] |
245.741 |
143.936 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
251.709 |
159.002 |
93.136 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[446.180] |
86.739 |
50.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
28.069 |
27.976 |
6.959 |
|
|
|
|
|
|
|
|
|
|
Exceptional Item - Profit on sale of Investment |
500.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
25.751 |
58.763 |
43.841 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
9.394 |
32.813 |
20.624 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
16.357 |
25.950 |
23.217 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
77.352 |
54.034 |
30.817 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
0.000 |
2.250 |
0.000 |
|
|
|
Tax on Dividend |
0.000 |
0.382 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
93.709 |
77.352 |
54.034 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Agency Commission |
0.000 |
0.927 |
13.164 |
|
|
|
Export of Goods |
0.649 |
0.000 |
0.000 |
|
|
|
Income from Erection and Commissioning Services |
8.636 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
9.285 |
0.927 |
13.164 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
248.799 |
64.937 |
74.936 |
|
|
|
Trading Stocks |
1282.787 |
1558.981 |
836.287 |
|
|
|
Capital Goods |
0.000 |
0.000 |
6.487 |
|
|
TOTAL IMPORTS |
1531.586 |
1623.918 |
917.710 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.63 |
5.77 |
5.16 |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2009 [18 Months] |
31.03.2008 [12 months] |
31.03.2007 [12 months] |
|
PAT / Total Income |
(%) |
0.41
|
1.12 |
1.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.26
|
2.49 |
3.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.06
|
2.62 |
3.21 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.49 |
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
16.67
|
18.42 |
13.36 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.10
|
6.80 |
2.13 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF OPERATIONS
The Company achieved a turnover of Rs.3940.000 millions
during the 18 months period ended 30.09.09 as against Rs.2560.000 millions
achieved in the 12 months ended 31.03.08.
Telecom Products Division
This division achieved a turnover of Rs.1820.000 millions as
against Rs.2030.000 millions in previous year. The division was affected badly
due to the drop in selling prices resulting in the realization going below cost
especially in the sale of RF cables. The division was also affected by exchange
loss due to depreciation of the rupee. On the positive side, the division
successfully executed multiple large orders for antennae from Tata Telecom
Services Limited and Tata Tele services Maharashtra Limited The division has
been able to indigenize the components for antennae and reduce the cost of the
product, thereby improving the Company’s competitive position, in this price
sensitive market.
Networking Division
This division earned a revenue of Rs 350.000 millions in the
period as against Rs.350.000 millions in the previous year. The division
successfully executed the orders received for highway traffic management
projects. This has opened a new opportunity for the business in the coming
years. Order booking was below expectations in this division as many projects
of prospective customers were put on hold or did not achieve financial
closure during the period as a result of
the economic slowdown which started from 2008.
Managed Services Division
This division was able to scale up operations during the
year. The orders from India Telecom Infra Limited were below expectations but
this was partially compensated by the success, the division had in getting
orders from new customers such as
PROSPECTS FOR THE CURRENT YEAR
The Company is taking various measures to recover from the
setback suffered in the 18 months ended 30.09.09. The focus on improving
margins and managing our working capital more carefully has started yielding
results and would become a foundation for future growth. Telecom Products
Division is trying to change its product mix to bring in products for entering
new markets or moving up the value chain. Some of the products are In-Building
Solutions, Noise Filters and Fiber Based products. The Company continues its
efforts to get its antennae approved by new customers such as Ericsson and Idea
Cellular.
SUBSIDIARIES
Three new Wholly owned Subsidiaries – Tor Projects and Services
Limited, NK Telecom Products Limited and NK Tele Systems Limited were
incorporated to provide a suitable platform for the Company to pursue some
emerging opportunities in the telecom sector. NK Digital Infrastructure
Services Limited which was renamed as India Telecom Infra Limited, ceased to be
a subsidiary during the year. NSM Finance Limited was renamed as NSM Holdings
Limited.
JOINT VENTURES
TVS UNEECO Networks Solutions WLL commenced operations and
has been bidding for a number of IT infrastructure related projects especially
in
Contingent
Liabilities
Claims against the Company not acknowledged as debts:
Rs
in Millions
|
Particulars |
30.09.2009 |
31.03.2008 |
|
a) Service Tax |
3.293 |
3.293 |
|
b) Others |
1.447 |
1.447 |
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U72300TN1997PLC039110 |
|
Name of the
company |
TVS INTERCONNECT
SYSTEMS LIMITED |
|
Address of the registered
office or of the principal place of
business in |
TVS
Building,7-B,West Veli Street, Madurai-1, Madurai-1, Tamil Nadu – 600001, |
|
This form is for |
Modification of charge |
|
Charge identification
(ID) number of the charge to be modified |
10140868 |
|
Type of charge |
Book Debts Others |
|
Particular of
charge holder |
Easyaccess Financial Services Limited, Spl Guindy House, 95, Mount
Road, Guindy, Chennai - 600032, Tamil Nadu, India |
|
Nature of
instrument creating charge |
Letter from
Easyaccess Financial Services Ltd dt.28th March, 2011 for Rs.50.000 millions
in addition to the existing limit of Rs.180.000 millions enhancing the total
limit to Rs.230.000 millions. |
|
Date of instrument
Creating the charge |
28.03.2011 |
|
Amount secured by
the charge |
Rs.230.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest
- Factoring rate at 17% per annum Terms of Repayment
- Upto 180 days (The period of validity of adhoc limit of Rs.50.000 millions
is 95 days) Margin - Nil Extent and
Operation of the charge - Hypothecation by way of SUBSERVIENT CHARGE to
Easyaccess Financial Services Limited of all present and future stocks of raw
materials, being brought and stored in TVSICS's factories, offices, including
in transit and those held by any party to the order. Books debts, outstanding monies,
receivables, claims, bills which are due and owning or which may at times
during the continuance of this security become due and owning to TVSICS and
all current assets in the course of its business. |
|
Short particulars
of the property or asset(s) charged (including complete address and location
of the property) |
Hypothecation by
way of all present and future stocks of raw materials, stores, tools,
finished goods, work in progress being brought and stored in TVSICS's
factories, offices, godowns, depots. Book debts,
outstanding monies, receivables, claims, bills which are due and owning or
which may at times during the continuance of this security become due and
owning to TVSICS and all current assets |
|
Date of
instrument modifying the charge |
21.01.2011 |
|
Particulars of
the present modification |
The limit under Factoring
facility has been increased from Rs.180.000 millions to Rs.230.000 millions |
FIXED ASSETS :
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Software
·
Office Equipments
·
Vehicles
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.44.43 |
|
|
1 |
Rs.71.89 |
|
Euro |
1 |
Rs.63.40 |
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 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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.