MIRA
INFORM REPORT
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Report Date : |
26.07.2011 |
IDENTIFICATION DETAILS
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Name : |
HARRISONS
MALAYALAM LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
05.01.1978 |
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Com. Reg. No.: |
09-2947 |
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Paid up Capital : |
Rs. 184.543 Millions |
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CIN No.: [Company
Identification No.] |
L01119KL1978PLC002947 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNH00049A |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
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No. of Employees : |
3000
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (61) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 12670732 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of RPG Group a medium sized Industrial House. It is an established company having fine track record. Financial
position of the company is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business 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
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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India |
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/Factory : |
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Tel. No.: |
91-484-2668023 |
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Fax No.: |
91-484-2667032 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Sanjiv Goenka |
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Designation : |
Chairman |
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Director |
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Name : |
Mr. P K Chowdhary |
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Designation : |
Director |
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Name : |
Mr. G Momen |
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Designation : |
Director |
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Name : |
Mr. Umang Kanoria |
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Designation : |
Director |
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Name : |
Mr. Ajit Singh Chouhan |
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Designation : |
Director |
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Name : |
Mr. Pankaj Kapoor |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Ravi A |
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Designation : |
Company Secretary and Head of
Accounts |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
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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 |
90,000 |
0.49 |
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Bodies Corporate |
5,554,005 |
30.09 |
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Foreign |
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Bodies Corporate |
3,640,000 |
19.72 |
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(B) Public
Shareholding |
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1. Institutions |
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Mutual Funds / UTI |
7,160 |
0.04 |
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Financial Institutions / Banks |
2,483 |
0.01 |
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Insurance Companies |
33,895 |
0.18 |
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Any Others
(Specify) |
2,090 |
0.01 |
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Trusts |
2,090 |
0.01 |
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2. Non
Institutions |
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Bodies Corporate |
1,215,885 |
6.59 |
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Individual shareholders holding nominal share capital up to Rs. 0.100
million |
6,435,221 |
34.87 |
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Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
1,004,538 |
5.44 |
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Any Others
(Specify) |
470,128 |
2.55 |
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Clearing Members |
89,092 |
0.48 |
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Market Maker |
126,459 |
0.69 |
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Non Resident Indians |
158,906 |
0.86 |
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Hindu Undivided Families |
95,671 |
0.52 |
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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) |
18,455,405 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
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Products : |
v
Black
Tea – v
Natural
Rubber Latex – 40-01-10 v
Somked
Rubber Sheets – 40-01-21 |
PRODUCTION STATUS 31.03.2010
|
Particulars |
Unit |
Actual
Production |
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Tea |
MT |
18404.285 |
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Rubber (Including Centrifuge Rubber Latex) |
MT |
9978.456 |
GENERAL INFORMATION
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No. of Employees : |
3000
(Approximately) |
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Bankers : |
·
State Bank of India ·
State Bank of Travancore ·
State Bank of Hyderabad ·
National Bank for Agriculture and Rural
Development ·
ICICI Bank ·
IDBI Bank |
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Facilities : |
Notes 1)
Term Loan from a bank to the extent of Rs.441.108
millions (previous year Rs.525.000 millions) is secured by equitable mortgage
of immovable properties of the Company situated in Wentworth Estate and
Coimbatore factory and also by a charge on the movable assets of the Company
situated in the above properties. 2)
Term Loans from banks to the extent of Rs.93.854
millions (previous year Rs.Nil) are secured on a pari passu basis by
equitable mortgage of immovable property of the Company situated in Mayfield
Estate and also by a charge on the movable assets of the Company situated in
the above estate. 3)
Term Loan from a bank to the extent of
Rs.Nil (previous year Rs.50.000
millions was secured by equitable mortgage of immovable properties of the
Company situated in Kumbazha, Koney, Wallardie, Mooply, Palapilly, Kundai
Estates and also by a charge on the movable assetes of the Company situated
in the above estates. 4)
Cash Credit facilities are secured by equitable
mortgage of immovable properties of the Company situated in Arrapetta Estate,
hypothecation of standing crop in Achoor, Arrapetta, Panniar, Mayfield,
Lahai, Isfield and Nagamallay Estates and by hypothecation of stocks of tea,
rubber, trading merchandise, stores and spares, book debts and other movable
assets both present and future. 5)
Term loans from others are secured by
hypothecation of assets acquired out of these loans. 6)
Unsecured Loans include Rs.121.215 millions
(previous year Rs.35.000 millions) repayable within one year. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Price Waterhouse Chartered Accountant |
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Address : |
32, Khader Nawaz Khan Road, Nungambakkam, Chennai - 600 006,
Tamilnadu, India |
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Associates/Subsidiaries : |
· Sentinel Tea and Exports Limited. · Harrisons Agro- Products Limited. · Harrisons Rubber Products Limited. ·
Harrisons Malayalam Financial Services
Limited. |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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3,00,00,000 |
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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1,84,55,405 |
Equity Shares |
Rs. 10/- each |
Rs. 184.554
Millions |
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Less – Allotment Money in Arrears |
|
Rs. 0.011
Million |
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Total |
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Rs. 184.543 Millions |
Notes:
1. Number of Equity Shares allotted as fully paid up for consideration other than cash in terms of the Scheme of Arrangement and Amalgamation
2. Number of Equity Shares allotted as fully paid up by way of Bonus Shares through capitalisation of general reserve.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
184.543 |
184.538 |
184.538 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2983.140 |
2898.506 |
2870.503 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3167.683 |
3083.044 |
3055.041 |
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LOAN FUNDS |
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1] Secured Loans |
915.092 |
848.226 |
818.384 |
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2] Unsecured Loans |
127.773 |
73.353 |
36.482 |
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TOTAL BORROWING |
1042.865 |
921.579 |
854.866 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4210.548 |
4004.623 |
3909.907 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4179.943 |
1799.125 |
1806.051 |
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Capital work-in-progress |
35.860 |
34.194 |
13.114 |
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INVESTMENT |
0.120 |
120.973 |
120.990 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
338.856
|
129.812 |
107.783 |
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Sundry Debtors |
133.703
|
111.366 |
148.659 |
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Cash & Bank Balances |
72.800
|
89.675 |
198.960 |
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Other Current Assets |
58.215
|
29.397 |
5.159 |
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Loans & Advances |
164.888
|
2240.161 |
2241.455 |
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Total
Current Assets |
768.462
|
2600.411 |
2702.016 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
367.393
|
289.824 |
519.218 |
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Other Current Liabilities |
106.317
|
27.464 |
5.246 |
|
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Provisions |
300.127
|
232.792 |
207.800 |
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Total
Current Liabilities |
773.837
|
550.080 |
732.264 |
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Net Current Assets |
(5.375)
|
2050.331 |
1969.752 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4210.548 |
4004.623 |
3909.907 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Sales |
3067.176 |
2675.112 |
1954.235 |
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Services – Contract Jobs and Others |
81.231 |
52.413 |
55.802 |
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Sale of Rubber/Grevillea Trees |
105.622 |
145.075 |
6.377 |
|
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Other Income |
91.417 |
51.886 |
69.993 |
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TOTAL (A) |
3345.446 |
2924.486 |
2086.407 |
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Less |
EXPENSES |
|
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|
|
|
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|
Cultivation, Manufacturing and Operating Expenses |
3107.298 |
2578.928 |
1764.836 |
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|
Selling and Other Expenses |
231.616 |
232.503 |
226.639 |
|
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|
Increase/(Decrease) in value of stock in Trade |
(161.118) |
(1.274) |
(4.982) |
|
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TOTAL (B) |
3177.796 |
2810.157 |
1986.493 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
167.650 |
114.329 |
99.914 |
|
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Less |
FINANCIAL
EXPENSES (D) |
-- |
-- |
-- |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
167.650 |
114.329 |
99.914 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
44.040 |
34.205 |
30.030 |
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PROFIT BEFORE
TAX (E-F) (G) |
123.610 |
80.124 |
69.884 |
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Less |
TAX (I) |
24.500 |
19.736 |
8.119 |
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PROFIT AFTER TAX
(G-I) (J) |
99.110 |
60.388 |
61.765 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
844.530 |
819.547 |
793.257 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
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|
Transfer to General Reserve |
7.433 |
3.020 |
3.089 |
|
|
|
Proposed Dividend |
36.911 |
27.681 |
27.683 |
|
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|
Dividend Tax |
6.273 |
4.704 |
4.703 |
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|
BALANCE CARRIED TO
THE B/S |
893.023 |
844.530 |
819.547 |
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
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Export Earnings |
274.029 |
284.082 |
NA |
|
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TOTAL EARNINGS |
274.029 |
284.082 |
NA |
|
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IMPORTS |
|
|
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|
|
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|
Stores & Spares |
3.927 |
2.108 |
NA |
|
|
|
Capital Goods |
7.502 |
2.766 |
NA |
|
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TOTAL IMPORTS |
11.429 |
4.874 |
NA |
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Earnings Per
Share (Rs.) |
5.37 |
3.27 |
3.35 |
|
QUARTERLY RESULTS
(UNAUDITED)
(Rs. In Millions)
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
765.300 |
905.600 |
950.300 |
1087.000 |
|
Total Expenditure |
763.500 |
917.200 |
872.000 |
948.800 |
|
PBIDT (Excl OI) |
1.800 |
(11.600) |
78.300 |
138.200 |
|
Other Income |
3.500 |
3.500 |
9.900 |
8.100 |
|
Operating Profit |
5.300 |
(8.100) |
88.200 |
146.300 |
|
Interest |
30.400 |
36.200 |
16.700 |
34.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(25.100) |
(44.300) |
71.500 |
111.500 |
|
Depreciation |
13.800 |
15.500 |
15.800 |
16.000 |
|
Profit Before Tax |
(38.900) |
(59.800) |
55.700 |
95.500 |
|
Tax |
0.000 |
0.000 |
0.000 |
13.000 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(38.900) |
(59.800) |
55.700 |
82.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(38.900) |
(59.800) |
55.700 |
82.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
2.96
|
2.06 |
2.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.03
|
2.99 |
3.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.49
|
1.82 |
1.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.02 |
0.02 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.47 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99
|
4.72 |
3.68 |
LOCAL AGENCY FURTHER INFORMATION
Background
Subject is a 100 year old Company with a strong presence in Tea and Rubber Plantations. It is the largest producer of Natural Rubber in India and the second largest single producer of Tea in South India.
The Companies operations are spread over 24 estates, 6 rubber factories and 12 tea factories along with a blending and processing unit in Coimbatore for Tea. The Company cultivates about 13,389 Ha. of land. In addition to the main crops of Tea and Rubber, the Company also cultivates pineapple and banana in these areas as intercrops. With a production of about 10000 tonnes of Rubber, 18500 tonnes of tea and 2500 tonnes of pineapple, HML is South India's largest agriculture operator.
The Projects division of the Company takes up civil and electrical projects and is presently handling some prestigious projects in the state of Kerala. The Company also has a Plant Tissue Culture unit in Surianalle in the High Range, which essentially caters to the internal needs.
As a part of insulating the Company's main products namely Tea and Rubber from the commodity price cycle and ensure robust performance in the future years and also to sustain the stake holders interest, the Company has embarked upon a series of initiatives, which would definitely yield results in the years to come.
Performance
The Company achieved a turnover of Rs.3345.400 millions for the financial year (Previous year - Rs.2924.500 millions). Despite wide fluctuations in the price of Rubber during the year, the average RSS IV price for the industry was Rs.14 per kilo higher than the previous year. The average HML Rubber price was Rs.127.75 as against Rs. 113.01 of the previous year. Tea industry experienced buoyancy after a long time. During the year, the auction averages registered an upward movement. HML Tea prices in Auction at Rs.85.38 per kilo was higher than Rs.69.27 per kilo of last year. The average price realization for Tea was Rs.89.01 per kilo (previous year Rs.74.80). The Company has made substantial progress in Bought Operations in Tea and Rubber which has contributed in improving the capacity utilisation of the factories. This has resulted in higher turnover and improved profitability. The Company's efforts in improving labour productivity through incentive schemes and reorganised work continued to yield positive results. The Company has made substantial investments in bringing larger areas under replanting in Rubber and infilling in Tea. Also, substantial improvements were made in upgrading the Tea and Rubber factories resulting in lowering the costs and improving the quality of the products. They believe these
investments would give us long term benefits.
MANAGEMENT
DISCUSSION AND ANALYSIS
TEA
World tea production during the calendar year 2009 at 3860 Million kgs.
was marginally lower compared to 3864 Million Kgs., a decline of 4 Million kgs.
While Kenya and Sri Lanka showed a drop in their production by over 9%, Indian
production at 979 Million kgs. in 2009 is almost stagnant at the previous year
level. This means that inventories in the supply chain are almost dry and any
trigger in supply concerns may move the prices sharply.
In India, North regions reported an incremental crop of 2.8 Million
kgs.. South Indian crop was lower by 1 Million kg. during 2009 as compared to
previous year. The first six months of the current calendar year 2010 shows the
tea production on the rise and is 5.1 Million kgs. Higher than in 2009. On the
export front. South Indian Tea exports were higher by 11.7 Million kgs. during
the period Jan - Jun
2010.
The average price realization in South India during the first six months
of 2010 was Rs. 12.28 per kg lower than 2009, while it was down by Rs. 4.60 per
kg. on an all India basis.
Outlook
Tea production during 2010 would be in line with the 2009 production.
However, the prices which have so far have shown a decline, is expected to
improve in the second half. HML has modernized its tea factories in Wallardie,
Arrapetta and Chundale which produce tea that fetch remunerative prices.
Various cost reduction initiatives have been initiated at the factories which
would result in lower conversion costs. Flexibility has also been built into
the manufacturing process to switch over between CTC and Orthodox production at
a very short notice. Large areas have been taken up for infilling thus
increasing the bush stand per hectare. Soil Conservation and Water Management
initiatives would result in HML bettering its production in the years to come.
RUBBER
Global warming has
had an impact on the world natural rubber production in 2009 resulting in
production being down by 4.2%. While production in Thailand, Vietnam and China
increased, the output in Indonesia, Malaysia and India declined. Overall
consumption has also been low by 7.7%, while there has been a marginal increase
in the consumption in India.
The rubber prices
have been bullish during the year and RSS IV touched a high of Rs. 156 per kg.
on March 31, 2010. The prices have since continued to increase and on 28th
August stood at a high of Rs.171.
Continued focus on quality
and optimum product mix such as manufacturing Pale Latex Crepe etc and
strategic exports enabled the Company to fetch premium in the market for its
products. The premium for the Company's rubber over RSS IV grades is one of the
highest in recent times. This year the Company exported the highest quantity of
rubber. The modernizing of the factories carried out during the year should
ensure that the Company maintains the leadership for different grades of rubber
produced.
Outlook
Preliminary studies by
the Rubber Research Institute of India and feedback from International Study
group also indicate Global warming is expected to have a negative impact on
future production.
The Indian Auto
sector's performance has been good and with the general increase in domestic
consumption, the natural rubber prices are expected to be bullish for the year.
The Company's focus on quality and the initiatives for increasing the
production levels further should lead to better performance in future.
Company's own production levels would remain flat as currently the Company is
going for massive replanting exercise that would start producing results in 2-3
year's time and would make HML the highest land productivity in the Rubber
Plantation Sector.
OPPORTUNITIES AND THREATS
At the expected
price levels of Tea and Rubber and considering the investments made in
Replanting and Infilling in Rubber and Tea, the Company will be better placed
to perform well. The investments made in the Fruits, Spices and Other crops
segment (FSO) has started yielding results. Also, the Company has bagged some
prestigious Engineering projects which would pave the way to insulate the
Company against the volatile commodity prices of Tea and Rubber. While there
may be odd quarters showing negative profitability. Management is confident of
showing incrementally better results in the coming years.
Fixed
Assets
v
Land
v
Building
v
Plant
and machinery
v
Furniture
and Fixture
v
Water
v
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 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.44.41 |
|
|
1 |
Rs.72.49 |
|
Euro |
1 |
Rs.63.86 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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.