MIRA
INFORM REPORT
|
Report Date : |
07.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
EUROTEX INDUSTRIES AND EXPORTS LIMITED |
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|
|
|
Registered Office : |
809, Raheja Chambers, 8th Floor, 213, Nariman Point, Mumbai
– 400021, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
16.02.1987 |
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Com. Reg. No.: |
11-42598 |
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Capital
Investment/ Paid-up Capital: |
Rs.87.402
millions |
|
|
|
|
CIN No.: [Company Identification No.] |
L17120MH1987PLC042598 |
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|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
MUME05241F |
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|
|
|
PAN No.: [Permanent Account No.] |
AAACE1569M |
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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 : |
Manufacturing of cotton yarns and fabrics. |
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|
|
No. of Employees : |
780 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (31) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2100000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Pradeep Savant |
|
Designation : |
Accountant |
|
Date : |
02.06.2011 |
LOCATIONS
|
Registered Office : |
809, Raheja Chambers, 8th Floor, 213, Nariman Point, Mumbai
– 400 021, |
|
Tel. No.: |
91-22-22041408 / 66301400 |
|
Fax No.: |
91-22-22044139 / 22873774 |
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E-Mail : |
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Website : |
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Area: |
Owned |
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|
Factory : |
E-23 and E-1, MIDC, Gokul Shirgaon, |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Krishan Kumar Patodia |
|
Designation : |
Chairman and Managing Director |
|
Qualification : |
B. Sc. Textiles (Hons) |
|
Date of Appointment : |
1st October, 1988 |
|
Previous Employment : |
PBM Polytex Limited |
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|
|
|
Name : |
Mr. Hariprasad Siotia |
|
Designation : |
Director |
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|
Name : |
Mr. Gopal Patodia |
|
Designation : |
Director |
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|
Name : |
Mr. Narayan Patodia |
|
Designation : |
Managing Director |
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Name : |
Mr. Rajiv Patodia |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Gurmukh J. Mirchandani |
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Designation : |
Director |
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|
Name : |
Mr. A. R. Garde |
|
Designation : |
Director |
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|
Name : |
Mr. Dharam Paul |
|
Designation : |
Director |
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|
Name : |
Mr. D. K. Patel |
|
Designation : |
Director |
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|
Name : |
Mr. V. K. Gupta |
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Designation : |
Director |
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|
Name : |
Mr. Pratap Padamshi Dundh |
|
Designation : |
Director |
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|
Name : |
Mr. M. L Bagaria |
|
Designation : |
Director |
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|
Name : |
Mr. M. D. Sohani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
R. K. Agrawal |
|
Designation : |
Company
Secretary and Compliance Officer |
|
|
|
|
Name : |
Mr.
G S Ramakrishnan |
|
Designation : |
Company
Secretary and Compliance Officer |
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|
|
|
Name : |
Mr. Pradeep Savant |
|
Designation : |
Accountant |
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|
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|
Name : |
Mr. Narayan Patodia |
|
Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
|
No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
174,937 |
2.00 |
|
|
5,074,172 |
57.99 |
|
|
- |
- |
|
|
5,249,109 |
59.99 |
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Total shareholding of Promoter and Promoter Group (A) |
5,249,109 |
59.99 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
7,850 |
0.09 |
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|
1,380 |
0.02 |
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|
44,650 |
0.51 |
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|
53,880 |
0.62 |
|
|
|
|
|
|
219,167 |
2.50 |
|
|
|
|
|
|
1,966,095 |
22.47 |
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|
1,195,071 |
13.66 |
|
|
66,543 |
0.76 |
|
|
66,543 |
0.76 |
|
|
3,446,876 |
39.39 |
|
Total Public shareholding (B) |
3,500,756 |
40.01 |
|
Total (A)+(B) |
8,749,865 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
8,749,865 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of cotton yarns and fabrics. |
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Products : |
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Terms : |
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Purchasing : |
Depend |
PRODUCTION STATUS (As on 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Spindles |
Nos. |
61632 |
- |
|
Knitting Machines |
Nos. |
24 |
- |
|
Cotton Yarn |
Kg. |
- |
7319307 |
|
Fabrics |
Kg. |
- |
220152 |
GENERAL INFORMATION
|
Customers : |
Wholesalers and Manufacturer |
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No. of Employees : |
780 (Approximately) |
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Bankers : |
v
State Bank of v
Bank of v
IDBI Bank Limited v
Expoty Import Bank v
Punjab National Bank v
State Bank of v
State Bank of v
The Dhanalakshmi Bank Limited v
State Bank of |
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Facilities : |
Notes: Loans in (a)
and (b) above are secured by way of first mortgage on all immovable
properties of the Company, both present and future and a first charge by way of
hypothecation of all movable properties of the Company (save and except book
debts), both present and future, ranking pari passu interest, subject to
prior charges created in respect of borrowings from banks as referred for (c)
and (d) below. Loans in (c) above are secured by way of hypothecation of Vehicles
purchased there against. Facilities in (d) above and non-fund limits of Rs.
Nil (Previous year Rs.7.125 Millions are secured by way of hypothecation of,
both present and future, inventories and book debts and by way of second
charge created on Company's immovable and other movable assets. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lodha
and Company Chartered
Accountants |
|
Address : |
Mumbai,
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Associates: |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
30000000 |
Preference Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
Total |
|
Rs.400.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8749865 |
Equity Shares |
Rs.10/- each
|
Rs.87.499
millions |
|
|
Less: Allotment money receivable (Other than from directors) |
|
Rs.0.097
million |
|
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Total |
|
Rs.87.402 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
87.402 |
87.402 |
87.402 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
446.424 |
449.352 |
567.580 |
|
|
4] (Accumulated Losses) |
[7.009] |
[27.296] |
0.000 |
|
|
NETWORTH |
526.817 |
509.458 |
654.982 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1006.966 |
1002.592 |
1024.290 |
|
|
2] Unsecured Loans |
0.300 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
1007.266 |
1002.592 |
1024.290 |
|
|
DEFERRED TAX LIABILITIES |
181.780 |
181.780 |
181.780 |
|
|
|
|
|
|
|
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TOTAL |
1715.863 |
1693.831 |
1861.052 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
1082.923 |
1180.674 |
1222.980 |
|
|
Capital work-in-progress |
3.972 |
3.263 |
9.507 |
|
|
Assets held for disposal |
2.900 |
2.900 |
2.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
31.827 |
31.827 |
31.827 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
548.826
|
523.634 |
515.000
|
|
|
Sundry Debtors |
51.735
|
65.094 |
48.994
|
|
|
Cash & Bank Balances |
11.761
|
4.042 |
14.086
|
|
|
Other Current Assets |
98.502
|
83.853 |
80.773
|
|
|
Loans & Advances |
74.196
|
71.457 |
95.696
|
|
Total
Current Assets |
785.020
|
748.080 |
754.549 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
153.377
|
|
156.273
|
|
|
Other Current Liabilities |
32.170
|
40.715 |
|
|
|
Provisions |
5.232
|
4.872 |
4.438
|
|
Total
Current Liabilities |
190.779
|
272.913 |
160.711
|
|
|
Net Current Assets |
594.241
|
475.167 |
593.838
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1715.863 |
1693.831 |
1861.052 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1750.894 |
1244.049 |
1373.777 |
|
|
|
Other Income |
99.709 |
51.105 |
45.290 |
|
|
|
TOTAL (A) |
1850.603 |
1295.154 |
1419.067 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material |
1046.380 |
780.477 |
795.974 |
|
|
|
Manufacturing, Administrative,
Selling and Other Expenses |
510.500 |
510.906 |
513.803 |
|
|
|
Amount Withdrawn from Revaluation Reserve |
[2.928] |
[2.960] |
(3.335) |
|
|
|
Increase/ Decrease in Stock |
98.235 |
[63.047] |
(10.567) |
|
|
|
Exceptional Item |
[28.181] |
0.000 |
(13.375) |
|
|
|
TOTAL (B) |
1624.006 |
1225.376 |
1282.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I |
226.597 |
69.778 |
136.567 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
103.814 |
111.150 |
90.365 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
122.783 |
[41.372] |
46.202 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
102.496 |
99.191 |
96.193 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
20.287 |
[140.563] |
[49.991] |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.979 |
[15.651] |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
20.287 |
[141.542] |
[35.340] |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
[27.296] |
92.951 |
NA |
|
|
|
General
Reserve Transfer to Profit and loss account |
NA |
21.295 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
[7.009] |
[27.296] |
-- |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1235.710 |
785.491 |
950.403 |
|
|
TOTAL EARNINGS |
1235.710 |
785.491 |
950.403 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
151.735 |
114.184 |
131.953 |
|
|
|
Stores & Spares |
5.931 |
15.470 |
22.341 |
|
|
|
Capital Goods |
1.398 |
39.777 |
24.985 |
|
|
TOTAL IMPORTS |
159.064 |
169.431 |
179.279 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic/ Diluted
before Exceptional Item |
[0.90] |
[16.06] |
(3.92) |
|
|
|
Basic/ Diluted
after Exceptional Item |
2.32 |
[16.18] |
-- |
|
|
Particulars |
|
|
31.03.2011 |
|
Sales Turnover |
|
|
More than
2500.000 |
The above information has been parted by Mr. Pradeep Savant (Accountant)
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
530.930 |
539.080 |
544.240 |
491.610 |
|
Total Expenditure |
469.820 |
476.760 |
473.160 |
448.810 |
|
PBIDT (Excl OI) |
61.110 |
62.320 |
71.080 |
42.800 |
|
Other Income |
0.000 |
4.360 |
13.170 |
6.170 |
|
Operating Profit |
61.110 |
66.680 |
84.260 |
48.970 |
|
Interest |
28.480 |
22.880 |
25.070 |
27.640 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
32.630 |
43.800 |
59.190 |
21.330 |
|
Depreciation |
24.700 |
25.000 |
24.900 |
24.640 |
|
Profit Before Tax |
7.930 |
18.800 |
34.280 |
[3.310] |
|
Tax |
0.000 |
0.500 |
0.000 |
[0.240] |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
7.930 |
18.300 |
34.280 |
[3.070] |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
7.930 |
18.300 |
34.280 |
[3.070] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.10
|
(10.93) |
(2.42)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.16
|
(11.30) |
(3.64)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.09
|
(7.29) |
(2.53)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
(0.28) |
(0.08)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.27
|
2.50 |
1.81
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.11
|
2.74 |
4.70
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Belonging to the Patodia group and promoted by PBM Polytex,
Subject commenced manufacture in 1989. The company manufactures cotton yarn of
various counts -- from 30s to 100s. It diversified into the processing of yarn
and manufacture of woven and knitted superfine cotton fabric of international
standards, for which it came out with a rights issue at a premium in Oct.'92.
The company, a 100% EOU, has agency and selling arrangements with various
reputed buyers in the
OPERATIONS
During the year, turnover of the Company was Rs.1750.900 Millions as
compared to Rs.1244.700 Millions in the previous year. The Company has earned a
Net Profit after Tax of Rs.20.300 Millions as against a Net Loss after Tax of
Rs.141.500 Millions in the previous year.
AWARDS
The Company conceived and implemented successfully an Energy
Conservation project for the complete plant which resulted in substantial power
saving. In appreciation of the same the Company received the National Energy
Conservation Award, Textile Sector, from Government of India, Ministry of Power
for the year 2009. The Award was presented by Hon. Union Minister of Power,
Shri Sushil Kumar Shinde, at Vigyan Bhawan,
The Company has received an award from the Government of Maharashtra, in
recognition of Company's Export Performance in Textile - Large Scale Industry
Category for the year 2007-08.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
a) Industry
Structure and Development:
The Company is having cotton spinning and knitted fabrics manufacturing
unit. Textile is the oldest and most important industry with high employment
potential. The textile industry provides jobs for semi-skilled and unskilled
labourers, women in particular, on a large scale in the country.
Eurotex has a state of art modern spinning mills manufacturing and
exporting cotton yarn all over the world.
b) Opportunities
and Threats:
In the post quota regime, the Indian textile exporters have got very
good opportunity for increasing their export of cotton yarn and value added
products. Due to very good demand from domestic export oriented garment
manufacturers, the cotton yarn manufacturers have got good opportunities in
local markets also.
At the same time the Indian textile industry is facing threat from other
textile exporting countries due to high power cost, cost of Raw materials and
rigid labour laws of the country.
c) Segment or
product wise performance:
The Company operates primarily in one business segment viz cotton yarn
and knitted fabric and has its production facilities and assets located in
d) Outlook, Risks
and Concern:
The Company has invested substantially in modernization and upgradation of
its production facilities and the Company is poised to take maximum advantage
of demand in quality goods in post quota regime. The exchange rate
fluctuations, power cost increase due to increase in oil prices and state grid
power rates are the risks and matters of concern and may adversely affect its
profitability
CONTINGENT
LIABILITIES: (As on 31.03.2010)
Contingent
liabilities not provided for in respect of :
|
Particulars |
Amount
RS.
in Millions |
|||||||||||||||||||||
|
a) Amount outstanding in respect of Bills discounted under Export
Letter of Credit (Since realised Rs. 103.725 Millions Previous Year Rs.
100.496 Millions) |
252.610 |
|||||||||||||||||||||
|
b) Disputed Statutory claims / levies, including, those pending in
court and other claims not acknowledged as debts (excluding interest where
not ascertained /demanded) in respect of: |
||||||||||||||||||||||
|
(Rs.
in Millions)
|
||||||||||||||||||||||
FIXED
ASSETS
v
Land Freehold
v
Land Leasehold
v
Buildings
v
Plant
and Machinery
v
Electrical
Installations
v
Office
Equipment
v
Furniture
and Fittings
v
Vehicles
WEBSITE DETAILS:
PROFILE:
The Patodia Group of Industries of national and international fame was founded
by Late Shri B. L. Patodia as early as 1938 and pioneered the business of
cotton and art silk yarns in
These towering accomplishments have been the inspiration to the
formation of EUROTEX which was incorporated in 1989. The Company's plant,
spread out over a sprawling 18 acres at
AWARDS
The Patodia Eurotex group of companies has won several international and
national awards. Some of the awards include:
The EU-Impressa Award 2001
Conferred by the European Union, for highest textile exports to the EU.
The Texprocil Award
Consistently awarded to the group since 1988 for best national export
performance in textiles.
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.44.72 |
|
|
1 |
Rs.73.46 |
|
Euro |
1 |
Rs.65.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
31 |
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.