MIRA
INFORM REPORT
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Report Date : |
25.07.2011 |
IDENTIFICATION DETAILS
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Name : |
TT LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.09.1978 |
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Com. Reg. No.: |
55-009241 |
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Capital
Investment / Paid-up Capital : |
Rs.214.981 millions |
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CIN No.: [Company Identification
No.] |
L18101DL1978PLC009241 |
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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, Exporter and Supplier of Cotton Products, Cotton Garments,
Yarns and Fabrics and Agro Products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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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 3310000 |
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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 an old and established 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 / with some cautions. |
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
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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
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Registered Office : |
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Tel. No.: |
91-11- 45060708 |
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Fax No.: |
91-11- 45060741, 23632283 |
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E-Mail : |
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Website : |
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Factory 1 : |
Gajroula (Uttar Pradesh), Avinashi, Distt. Tirupur (Tamil Nadu) |
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Factory 2 : |
Rajula, ( |
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Branches : |
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DIRECTORS
As on 31.03.2011
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Name : |
Dr. Rikhab C. Jain |
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Designation : |
Chairman |
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Name : |
Shri V.R. Mehta |
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Designation : |
Director |
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Name : |
Shri Navratan Dugar |
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Designation : |
Director |
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Name : |
Shri Sanjay Kumar Jain |
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Designation : |
Managing Director |
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Name : |
Dr. (Prof.) V.K. Kothari |
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Designation : |
Director |
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Name : |
Smt. Jyoti Jain |
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Designation : |
Jt. Managing Director |
KEY EXECUTIVES
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Name : |
Shri Sunil Mahnot |
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Designation : |
Vice President (Finance) and Company
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding
of promoters and Promoter Group |
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1. Indian |
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Individuals / Hindu Undivided Family |
11351002 |
52.80 |
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Bodies Corporate |
151000 |
0.70 |
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Sub Total (A)
(1) |
11502002 |
53.50 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
800 |
-- |
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Financial Institutions / Banks |
700 |
-- |
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Sub Total (B)
(1) |
1500 |
0.01 |
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2. Non
Institutions |
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Bodies Corporate |
1181979 |
5.50 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
7278501 |
33.86 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
1072496 |
4.99 |
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Any other
[Specify] |
461572 |
2.15 |
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Clearing Members |
9927 |
0.05 |
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NRI Non Resident Indian |
40985 |
0.19 |
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Trusts |
500 |
-- |
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Hindu Undivided Family |
410160 |
1.91 |
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Sub Total |
9994548 |
46.49 |
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Sub Total (B) =
(B) (1) + (B) (2) |
9996048 |
46.50 |
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Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
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Total (A) + (B) +(C) |
21498050 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Supplier of Cotton Products, Cotton
Garments, Yarns and Fabrics and Agro Products. |
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Products : |
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PRODUCTION STATUS As on 31.03.2011
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Yarn |
Spindles [Kg.] |
58224 |
9207768 |
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Fabrics |
Kg. |
20 Lakhs |
844849 |
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Ginning |
M.T. |
60000 |
2769 |
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Power |
Mega Watt [Unit] |
3.75 |
7353696 |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking Relations
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-- |
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Auditors : |
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Statutory
Auditors |
Doogar And Associates Chartered Accountant |
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Internal
Auditors. : |
R.S. Modi and Company Chartered Accountant |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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30,000,000 |
Equity Shares |
Rs.10/-each |
Rs.300.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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21,498,050 |
Equity Shares |
Rs.10/-each |
Rs.214.981 millions |
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Note : 1) Of the above equity shares 1,24,000 have been issued as fully
paid up bonus shares by capitalization of reserves.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
214.981 |
214.981 |
214.981 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
613.872 |
518.314 |
530.508 |
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4] (Accumulated Losses) |
0.000 |
[25.459] |
[130.183] |
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NETWORTH |
828.853 |
707.836 |
615.306 |
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LOAN FUNDS |
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1] Secured Loans |
2198.752 |
2234.243 |
1972.119 |
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2] Unsecured Loans |
147.139 |
169.876 |
72.725 |
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TOTAL BORROWING |
2345.891 |
2404.119 |
2044.844 |
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DEFERRED TAX LIABILITIES |
37.348 |
0.000 |
0.000 |
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TOTAL |
3212.092 |
3111.955 |
2660.150 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1987.296 |
2063.895 |
1668.250 |
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Capital work-in-progress |
19.596 |
17.695 |
360.686 |
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INVESTMENT |
0.047 |
1.570 |
2.488 |
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DEFERREX TAX ASSETS |
0.000 |
44.409 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
678.195
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491.007 |
223.928 |
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Sundry Debtors |
339.993
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287.210 |
196.498 |
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Cash & Bank Balances |
37.463
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16.585 |
10.572 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
343.598
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433.195 |
457.707 |
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Total
Current Assets |
1399.249
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1227.997 |
888.705 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
34.195
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155.352 |
183.178 |
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Other Current Liabilities |
88.768
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77.237 |
68.973 |
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Provisions |
71.133
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11.022 |
7.828 |
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Total
Current Liabilities |
194.096
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243.611 |
259.979 |
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Net Current Assets |
1205.153
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984.386 |
628.726 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3212.092 |
3111.955 |
2660.150 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
4866.265 |
3536.033 |
2441.065 |
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Other Income |
38.780 |
6.607 |
37.109 |
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TOTAL (A) |
4905.045 |
3542.640 |
2478.174 |
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Less |
EXPENSES |
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Material, Manufacturing, Personnel |
3628.926 |
2689.847 |
1958.669 |
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Administrative & Selling Expenses etc. |
810.154 |
633.602 |
648.293 |
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Increase (Decrease) in Stock |
[120.652] |
[127.580] |
[22.771] |
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TOTAL (B) |
4318.428 |
3195.869 |
2584.191 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
586.617 |
346.771 |
[106.017] |
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Less |
FINANCIAL
EXPENSES (D) |
234.100 |
190.897 |
178.677 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
352.517 |
155.874 |
[284.694] |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
112.815 |
95.558 |
77.737 |
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PROFIT BEFORE
TAX (E-F) (G) |
239.702 |
60.316 |
[362.431] |
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Less |
TAX (I) |
81.757 |
[44.409] |
82.651 |
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PROFIT AFTER TAX
(G-I) (J) |
157.945 |
104.725 |
[279.780] |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[25.459] |
[130.183] |
48.778 |
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Less |
APPROPRIATIONS |
|
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Transfer to General Reserve |
70.000 |
0.000 |
[100.819] |
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Dividend |
21.498 |
0.000 |
0.000 |
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Dividend Distribution Tax |
3.570 |
0.000 |
0.000 |
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BALANCE CARRIED
TO THE B/S |
37.418 |
[25.458] |
[130.183] |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Goods calculated on CIF basis |
2804.045 |
2299.092 |
1384.683 |
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TOTAL EARNINGS |
2804.045 |
2299.092 |
1384.683 |
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IMPORTS |
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Raw Materials |
0.000 |
115.887 |
131.470 |
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Stores & Spares |
12.681 |
5.568 |
4.430 |
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Capital Goods |
0.000 |
0.000 |
46.535 |
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TOTAL IMPORTS |
12.681 |
121.455 |
182.435 |
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Earnings Per
Share (Rs.) |
7.35 |
4.87 |
[13.01] |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.22
|
2.96 |
[11.29] |
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Net Profit Margin (PBT/Sales) |
(%) |
4.92
|
1.70 |
[14.85] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.08
|
1.83 |
[14.17] |
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Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.08 |
[0.59] |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.06
|
3.74 |
3.74 |
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Current Ratio (Current Asset/Current Liability) |
|
7.21
|
5.04 |
3.42 |
LOCAL AGENCY FURTHER INFORMATION
Company History
Company's
name T.T or "Tarun Textiles", was inspired from famous Twenty Tirthankaras
(T.T.) of Jain religion, who got 'nirvana' or salvation. Shortly thereafter,
the business was joined by second Brother, Shri Jhanwar Lal Baid. The present
and founder Chairman of T T Group, being the youngest of three brothers joined
business at
REVIEW OF
OPERATIONS
The year 2010-11 was the best year ever for the company. Its turnover grew
from Rs.3540.000 millions to Rs.4870.000 millions i.e. a 38 % increase. Its
profit before deferred taxes went up by 297%. The company was able to use its
strengths to leverage the turn round in the global economy and make the most of
it. There was an unprecedented rise in raw cotton prices due to a demand-supply
mismatch arising from crop failures in Pakistan/China, which had a cascading
impact on the entire textile chain. The integrated nature of the company made
it benefit from the same and post an all time high net profit of Rs.157.900
millions.
The company has shifted emphasis in this year and will keep doing so, in
future as well, from commodity based Fibre to more value added segments of the
textile chain. In line with having a more balanced and stable product portfolio
and a balanced market between domestic and exports - the Company has entered
into an agreement to sell its ginning/oil undertaking in Gondal,
The Company has increased turnover of its knitwear segment by 50% this
year despite the very difficult situation in the market due to all time high
rise in yarn prices resulting in lower to flat growth rates in consumption. The
Company doubled its advertisement budget and introduced many new products in
the kids and ladies segment of inner and casual wear. It also launched online
shopping through its website www.ttgarments.com.
The major steps taken by the Company in this year were:
• Greater emphasis on domestic sales both in absolute terms and as a
percentage of total turnover.
• More focus on value added products like innerwear and casual wear.
• Brand building through electronic and print media to give boost to
domestic sales.
• Reduced exposure to commodity business like raw cotton fibre
• Increasing internal capacity of fabric and other backward integrated
segments to realize higher added value.
• Setting up exclusive “T T” shops to come closer to the final consumer
and establish presence in the growing retailing business.
• Introduction of new, value added products by entering the premium
segment of garments under brand name “COCO TREE” and organic products viz.
“Green range”.
• Tying up with all the major organized retail chains to establish
presence in the fastest growing distribution channel.
• Introduced value added yarn like Organic and Recycled products. The
company is also in the process of getting Fair Trade Registration.
All these measures has made the Company achieve highest ever profitability
and profit in both absolute and percentage terms.
The Company would have performed much better, but was inhibited due to
sudden changes in Government policies. The Government suspended exports of yarn
from December 1, 2010 to March 15, 2011 leading to a significant loss in export
revenues. Export incentives were also removed on yarn during the year leading
to lower margins. Further in March 2011 the Govt imposed excise duty on
garments leading to loss of sales for March 2011 for that segment. However
despite the above issues, the company was able to perform well.
It also completed the implementation of its ERP system. This marked a
significant step towards more efficient system and internal controls of sales,
purchases, inventory and finances.
FUTURE OUTLOOK
Cotton and yarn prices reached an all time high in a very short period.
This has lead to shifting in demand to other fibres and also price elasticity
of demand has come into play. The first quarter is going to be challenging as
there is an expected correction in prices due to the Projected bumper crop of
cotton in 2011-12 and slow down in demand due to high prices. The company has
brought down its inventory levels and is moving slowly and with due caution
till things stabilise in the coming days.
The strength of
The Government had suspended the Textile Upgradation Fund (TUF) in May
2010, and reinstated the same in April 2011. This scheme is operative till
March 2012. The Company has chalked out a Rs 1500.000 millions expansion plan
to take advantage of the scheme. It is investing Rs 250.000 millions in a
garment manufacture unit in Tirupur, Rs 100.000 millions in spinning facility
in Rajula, Gujarat and Rs 150.000 millions in a PP yarn facility in Gajroula,
UP and the balance Rs 100.000 millions for modernization of existing
facilities.
The company also plans to double its advertisement budget in the coming
year . It will leverage brand strength and focus on more value added products
in its knitwear category to capitalize on the booming domestic demand.
They are confident that the Company is set to achieve new heights. They
are glad that the management's policy of dynamic adaptability has paid
dividends and set the path of strong and fast growth. Our emphasis on high
margin business and focus on stable business portfolio can be expected to show
positive results for the Company and its stake holders.
MANAGEMENT
DISCUSSIONS AND ANALYSIS
Overview Of Indian
Textile Industry
The textile and clothing sector is the backbone of the Indian Economy.
It contributes about 14 percent to industrial production, 4 percent to GDP and
about 16 percent to exports. It is the 2nd largest employment provider after
agriculture. Exports constitute 1/3rd of the industry while the balance 2/3rd
is the domestic industry.
• 2nd largest producer of Raw Cotton Fibre.
• 2nd Largest exporter of Raw Cotton Fibre
• 2nd Largest Producer of Cotton Yarn
• Largest exporter of Cotton Yarn
• 2nd Largest producer of Silk
• 4th Largest producer of synthetic fibre / yarn
• Largest producer of Jute.
However, the core strength of Indian raw cotton fibre until recently was
vanishing due to uncontrolled export of cotton fibre leading to unprecedented
shortage in the country. Now Government of India has restricted Cotton Fibre
exports to a safe level from the point of smooth year long continuous supplies
to domestic textile industry. This has lead to fibre security in the country
and acts as a big incentive for the value added industry to grow to take
advantage of the availability of local cotton.
Indian domestic consumption of textiles is growing at a fast phase of
15-20% annually. Hence the importance of this segment is growing and there is
great potential for Companies with a good domestic distribution network and
brand equity. Hence in future companies need to have more balanced presence in
both exports and domestic market to reduce uncertainties and have balanced
growth.
GOVERNMENT POLICY
Over years the Textile Upgradation Fund (TUF) scheme of the Government
where it provides interest subsidy of upto 5% and capital subsidy of upto 10%
has lead to big investments in the industry. In particular the spinning industry
has become world class and is the largest exporter in the world. The Government
had suspended the scheme from May, 2010 suddenly however the same has been
reinstated in April 2011 till the end of March 2012. Its not clear in what form
and how the scheme would be re-introduced after the end of the current scheme
and hence industry is trying to plan investments within this period.
The Government had suddenly in April 2010 removed all export incentives
(drawback/DEPB) on cotton yarn. This has impacted the offered prices in
international market making yarn to that extent more expensive. This incentive
was just a refund of taxes which was abruptly removed by Government. The same
is expected to be reinstated very soon in 2011.
Interest subvention of 2% was being provided on working capital for
exports. The same was removed from April 2010 and its not expected to be
restored in near future.
Excise duty was imposed on branded garments in the Union Budget 2011.
This gave a severe setback to the domestic industry which was already reeling
under very high yarn prices and other input cost rise. This has burdened the
consumer more and has had a short term impact on consumption.
Government is very keen to increase textile exports. Its target of USD
50 billion by 2012 has fallen short significantly due to recession and many
bottlenecks which could not be effectively be removed. The Government has
planned a major skill up gradation program to improve availability of skilled
labour for the industry. National Skill Development Corporation has been formed
under whose aegis many projects shall be undertaken.
COTTON PRICES
Since mid 2009, there was a rebound in consumption of textile products
after a prolonged period of recession. This lead to an increase in consumption of
cotton based textiles and an increase in prices from a low level reached in
2008-9. This coupled with a failure in crop in
In
Such a steep increase in prices was unprecedented and it shook the whole
textile economy. Consumption shifted to other fibres like polyester, however
they also went up steeply leading to slow down in demand across the world in
textiles. Further farmers are expected to sow a much larger crop across the
world. This expectation and slowdown in demand is expected to lead to
correction in cotton prices to a more reasonable level.
FUTURE OUTLOOK
Its relative advantage in cotton based textiles in terms of cost will
lead to expansion of global markets, a trend noticed this year already. The
same is expected to continue in the medium to long term.
NATIONAL FIBRE
POLICY
The Ministry of Textiles formulated a draft National Fibre Policy
incorporating inputs from all the major stakeholders. The Policy has been
designed with a decadal perspective (2010-20) and seeks to place
The National Fibre Policy has the following aims and objectives:
• Augmenting investment and providing support on both fiscal and
non-fiscal front to increase fibre availability in the country and facilitate
high growth and competitiveness of the textile sector;
• Focusing on improving quality of the fibre produced in
• Devising means to augmenting remuneration of all the stakeholders
within the fibre eco-system;
• Correcting fiscal anomalies and policy limitations that are currently
present in the fibre eco-system in order to ensure balanced growth of the
textile industry;
• Providing assistance for building capacity in both industry segment
and human capital required for processing the expected surge in the fibre
production;
• Supporting modernisation and technological up-gradation of various
segments of the industry, to increase its competitiveness;
• Addressing the problem of infrastructure bottlenecks.
Contingent
Liabilities :
Rs. in millions
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Contingent Liabilities not provided for in respect of |
|
|
|
-- Export Bills discounted with banks under Irrevocable Letter of
Credit |
409.484 |
447.617 |
|
-- Income Tax liability not acknowledged and contested |
1.586 |
1.586 |
FIXED ASSETS :
- Building
- Plant and
Machinery
- Furniture and Fixture
- Electric Installation
- Office
Equipment
- Vehicles
- Wind Mill
- Software
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.44.37 |
|
|
1 |
Rs.72.34 |
|
Euro |
1 |
Rs.63.87 |
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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--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.