MIRA
INFORM REPORT
|
Report Date : |
25.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
MALWA INDUSTRIES LIMITED |
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Registered
Office : |
230 Industrial Area A, Ludhiana-141003, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
30.03.1993 |
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Com. Reg. No.: |
16-013187 |
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Capital
Investment / Paid-up Capital : |
Rs.402.413
Millions |
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CIN No.: [Company Identification
No.] |
U17219PB1993PLC013187 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDM02516D |
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PAN No.: [Permanent Account No.] |
AABCM1287D |
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Legal Form : |
A closely held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer and Exporter of Sewing Accessories and Knitwear Knitted Fabrics. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 2400000 |
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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 a well established company having moderate track.
Profitability of the company is under pressure. 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
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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory : |
230 Industrial Area A, Ludhiana-141003, |
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Tel. No.: |
91-161-2229146 |
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Fax No.: |
91-161-2223603 |
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E-Mail : |
DIRECTORS
As on 30.09.2010
|
Name : |
Mr. Jangi Lal Oswal |
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Designation : |
Non-Executive Chairman/ Director |
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Address : |
B-83, The Mall, Ludhiana-141001, |
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Date of Birth/Age : |
18.07.1951 |
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Date of Appointment : |
30.11.1996 |
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Name : |
Mr. Rishi Oswal |
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Designation : |
Managing Director |
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Address : |
B-83, The Mall, Ludhiana-141001, |
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Date of Birth/Age : |
26.11.1972 |
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Date of Appointment : |
30.11.1996 |
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Name : |
Mr. Rahul Oswal |
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Designation : |
Executive Director |
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Address : |
B-83, The Mall, Ludhiana-141001, |
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Date of Birth/Age : |
07.01.1974 |
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Date of Appointment : |
30.11.1996 |
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Name : |
Mr. Rajiv Dewan |
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Designation : |
Non-Executive Director |
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Address : |
96-F, Rishi Nagar, Ludhiana-141001, |
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Date of Birth/Age : |
30.11.1961 |
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Date of Appointment : |
26.07.2002 |
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Name : |
Mr. R C Singal |
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Designation : |
Non-Executive Director |
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Address : |
B-23/750, Street No. 5, Janakpuri, Ludhiana-141003, |
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Date of Birth/Age : |
27.01.1954 |
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Date of Appointment : |
30.06.1998 |
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Name : |
Mr. Hemant Kalia |
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Designation : |
Non-Executive Director |
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Address : |
154-G, BRS Nagar, Ludhiana-141001, |
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Date of Birth/Age : |
17.12.1954 |
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Date of Appointment : |
30.06.1998 |
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Name : |
Dr. P R Roy |
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Designation : |
Non-Executive Director |
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Address : |
36, Amaltas Bungalows, |
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Date of Birth/Age : |
11.07.1941 |
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Date of Appointment : |
27.04.2006 |
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Name : |
Mr. Kamal Kant Upadhyay |
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Designation : |
Non-Executive Director |
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Address : |
Flat No. 1502 B, IDBI Officers Flats, Sector 38-B, Chandigarh-160034, |
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Date of Birth/Age : |
23.05.1966 |
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Date of Appointment : |
08.09.2008 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
|
No. of Shares |
|
Malwa Cotton SPG Mills Limited, |
|
9630700 |
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Neelam Growth Fund Private
Limited, |
|
9323000 |
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Jangi Growth Fund Private
Limited, |
|
9302600 |
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Rishi Growth Fund Private
Limited, |
|
9390000 |
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|
185400 |
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Aeneas Evolution Portfolio Limited |
|
1417000 |
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Minivet Limited |
|
750000 |
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Prime Holding Private
Limited, |
|
150000 |
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Divoja Investment And Finance Private Limited, |
|
47000 |
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Vidya Sagar Oswal |
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45000 |
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Jasbir Singh |
|
100 |
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Ram Kumar |
|
100 |
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Vinod Gupta |
|
200 |
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Mahesh Malwa Cotton SPG Mills Limited, |
|
100 |
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Rajesh Kumar Verma |
|
100 |
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|
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Total |
|
40241300 |
As on 30.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
5.39 |
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Bodies
corporate |
|
94.50 |
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Directors
or relatives of directors |
|
0.11 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Sewing Accessories and Knitwear Knitted Fabrics. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2010)
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Particulars |
Unit |
Installed
Capacity |
|
Rotors |
Nos. |
1840 |
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Spindles |
Nos. |
7596 |
|
Looms |
Nos. |
95 |
|
Garmenting |
Pcs. |
4.5 mn pcs p.a.
(On 2 shifts basis) |
|
Particulars |
Unit |
Actual
Production |
|
Yarn* |
Lacs Kgs |
67.13 |
|
Denim Fabric# |
Lacs Mtrs |
143.22 |
|
Garments |
Lacs Pcs. |
12.90 |
|
Electricity (*) |
Lacs Units |
335.25 |
Note:
- * Includes 65.77 Lacs Kgs. Yarn transferred to weaving unit for
captive consumption.
- # Include 13.67 Lacs Meters Fabric transferred to Garment Division
for captive consumption.
- (*) Includes 64 Lacs units being self consumption of CPP and 271
Lacs units internal transfer to Fabric/Garments units.
GENERAL INFORMATION
|
Bankers : |
Canara Bank, Bharat Nagar Chowk Branch, Ludhiana-141001, |
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Facilities : |
Note:
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.C. Vasudeva and Company Chartered Accountant |
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Address : |
B-41, Panchseel Enclave, New Delhi-110017, |
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Tel. No.: |
91-161-2774527 |
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Mobile No.: |
91-9815420555 |
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Fax No.: |
91-161-2771618 |
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E-Mail : |
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Website: |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 30.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
74000000 |
Equity Shares |
Rs.10/- each |
Rs.740.000 Millions |
|
1000000 |
Preferences Shares |
Rs.10/- each |
Rs.10.000 Millions |
|
|
Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40241300 |
Equity Shares |
Rs.10/- each |
Rs.402.413
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 |
402.413 |
402.413 |
402.413 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
208.695 |
383.263 |
749.193 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
611.108 |
785.676 |
1151.606 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2697.488 |
2712.147 |
2477.976 |
|
|
2] Unsecured Loans |
52.500 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
2749.988 |
2712.147 |
2477.976 |
|
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DEFERRED TAX LIABILITIES |
194.534 |
205.831 |
228.491 |
|
|
|
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|
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TOTAL |
3555.630 |
3703.654 |
3858.073 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1492.293 |
1641.043 |
1787.111 |
|
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Capital work-in-progress |
17.607 |
2.960 |
2.960 |
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|
|
|
|
|
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INVESTMENT |
346.547 |
203.085 |
203.085 |
|
|
DEFERREX TAX ASSETS |
0.000 |
2.832 |
2.832 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
877.624
|
876.877 |
876.253 |
|
|
Sundry Debtors |
815.786
|
791.847 |
808.540 |
|
|
Cash & Bank Balances |
11.007
|
6.935 |
31.809 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
161.833
|
346.477 |
296.522 |
|
Total
Current Assets |
1866.250
|
2022.136 |
2013.124 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
134.300
|
102.100 |
|
|
|
Other Current Liabilities |
32.767
|
66.302 |
115.883 |
|
|
Provisions |
0.000
|
0.000 |
35.156 |
|
Total
Current Liabilities |
167.067
|
168.402 |
151.039 |
|
|
Net Current Assets |
1699.183
|
1853.734 |
1862.085 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3555.630 |
3703.654 |
3858.073 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2083.000 |
1824.400 |
1965.200 |
|
|
|
Other Income |
77.000 |
(44.500) |
117.500 |
|
|
|
TOTAL (A) |
2160.000 |
1779.900 |
2082.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
1014.800 |
958.200 |
725.800 |
|
|
|
Manufacturing Expenses |
531.500 |
523.100 |
533.000 |
|
|
|
Personnel Expenses |
162.500 |
157.400 |
195.300 |
|
|
|
Administrative and Others
Charges |
82.800 |
69.800 |
103.200 |
|
|
|
Selling and Distribution Expenses |
68.300 |
72.500 |
94.000 |
|
|
|
Increase / Decrease in WIP and Finished Goods |
24.100 |
(15.000) |
(44.700) |
|
|
|
TOTAL (B) |
1884.000 |
1766.000 |
1606.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
276.000 |
13.900 |
476.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
289.300 |
247.400 |
161.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(133.000) |
(233.500) |
314.700 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
153.900 |
153.200 |
174.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
(167.200) |
(386.700) |
140.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7.400 |
(20.900) |
44.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(174.600) |
(365.800) |
96.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
357.000 |
722.900 |
626.500 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
182.400 |
357.100 |
722.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
686.500 |
547.100 |
759.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
40.123 |
3.700 |
7.900 |
|
|
|
Dyes and Chemical |
29.953 |
37.300 |
31.900 |
|
|
|
Components and Spares Parts |
57.450 |
54.700 |
70.300 |
|
|
|
Capital Goods |
12.785 |
0.000 |
44.000 |
|
|
TOTAL IMPORTS |
140.311 |
95.700 |
154.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(3.95) |
(9.09) |
2.40 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(8.08)
|
(20.55) |
4.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.03)
|
(21.20) |
7.15 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.97)
|
(10.56) |
3.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.27)
|
(0.49) |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.77
|
3.67 |
2.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
11.17
|
12.00 |
13.33 |
LOCAL AGENCY FURTHER INFORMATION
Operations
The Company achieved a gross turnover of Rs. 2160.000 Millions
registering a growth of 21% over the previous year. The production of Denim Fabric
achieved was 143.22 Lac meters during the period over the production levels of
123.54 Lacs meters during the previous year. The production was higher by 15.93
% as compare to last year. The net sales increased in 2010 by 13% for the
following:
a) Sales in Garment division increased by
31 % due to tie up from the leading brands.
b) Export Sales in Garment is increased by
31%.
During the year the Company achieved a turnover of Rs. 467.200 Millions
in garment unit as compared to Rs. 357.000 Millions during the pervious year.
During the year Captive Power Plant (CPP) of 6 MW capacity generated 335.25
lacs units of power against 364.21 lacs unit last year. During the year under
review, the Company has earned a Profit before Financial Expenses and Depreciation,
written offs and Taxes (PBDIT) for Rs. 276.600 Millions. The Company’s Net Loss
after exceptional items and taxes stood at Rs. 174.500 Millions during the
year.
The company’s improved its performance during the year which has been
adversely affected on account of global meltdown leading to lesser utilization
of capacities and various other unfavorable external factors last to last year.
Though there was improved demand in domestic market however the denim export
market remained sluggish due to continuous slowdown of Europe and
Business
Augmentation
Denim Fabric
business:
The Company’s R and D Department continue to develop various new value
added varieties of Denim Fabrics. Further, the Company continues its thrust on
value added products, increase its sale to Brands, optimum utilization of
resources and cost minimization.
Garment business:
The Company has successfully serviced various International European
Brands during the year including Mark and Spencer, Topshop, Perry Ellis etc.
After partially recovery from the global slowdown the Company is shifting
towards niche brands to increase the margins and within the brands move to
brands next in ladder thus increase the realisation.
Future Plans
The company continues to focus on increase sales to Brands in Fabric in
domestic and exports by presenting and developing differentiated products for them.
In garments the company continues to focus on moving up in the value chain of
the Brands the company is catering and to induct brand in higher value chain.
The company has been successful in inducting Mark and Spencer and
Future Outlook
The company has started turnaround from the 3rd quarter of
this year but the impact of this will be visible in the next financial year.
The domestic demand for the denim is growing and the company is focusing on new
product developments in this segment. Exports turnover is expected to grow
significantly in the next year due to the efforts made in this year to increase
exports to derisk overdependence on domestic market and for long term better
margin business in Brand nominated segment. However, the cotton and yarn prices
have shown an increasing trend in the first quarter of year 2010-11. Increase
is still more in the 2nd qtr on account of reported damage of cotton
crops in
The company is leveraging its relationship with large apparel buyers
globally to move itself up the value chain creating differentiated fabrics and
supply fashion forward fabrics to leading apparel brands across the globe.
The Company is now supplying directly to
the international brands and its fabric has been nominated by some of them and
the Company is focusing on (a) moving up
in value chain of the products by offering differentiated denim products with
specialized finishes and (b) moving up in value chain from distributor segment
to direct brands sale.
Overseas Ventures
The Company has a defined vision to become a leading international Denim
player to be known equally for its niche products and as valuable partner for
renowned brands facilitated through its multi-location and vertical integration.
The Company’s foreign acquisitions in Jordon and
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90173496 |
|
Corporate
identity number of the company |
U17219PB1993PLC013187 |
|
Name of the
company |
MALWA INDUSTRIES
LTD |
|
Address of the
registered office or of the principal place of business in |
230 Industrial Area A, Ludhiana-141003, |
|
Type of charge |
Book Debts Movable Property
(not being pledge) |
|
Particular of
charge holder |
Canara Bank, Bharat Nagar Chowk Branch, Ludhiana-141001, |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
Joint Deed of Hypothecation dated 19th APRIL
2011 executed between
Malwa Industries Limited and Canara Bank acting as the Lead bank of the
Consortium for itself and other consortium members consisting of State Bank
of India, State Bank of Patiala ,Standard Chartered Bank and IDBI Bank
Limited |
|
Date of
instrument Creating the charge |
19.04.2011 |
|
Amount secured by
the charge |
Rs.806.500
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Different rate of
interest of banks under consortium for the facilities granted by bank as
provided in the documents Supplemental Joint Deed of Hypothecation. Terms of
Repayment Being working
capital facilities, these are payable within one year. Margin Different rate of
margin on banks under consortium for the facilities granted by them ranging
from 10% to 25%. Extent and
Operation of the charge 100% |
|
Short particulars
of the property charged |
I)
Primary
security -1st charge on the current
assets of the Company on pari passu basis amongst consortium members on
working capital and Corporate loans II)
2nd charge on the current assets of the
Company on pari passu basis amongst consortium members on FITL III)
2nd charge on the Fixed Assets incl Plant and
Machinery (Present and Future) of the Company on pari passu basis amongst
consortium members on FITL IV)
Collateral
-2nd charge on the fixed assets (Present and Future) of the company on pari-
passu basis for working capital, corporate loans and FITL V)
2nd charge on the Fixed Assets (Present and
Future) of the Company on pari passu basis amongst consortium members on FITL |
|
Date of latest
modification prior to the present modification |
30.06.2009 |
|
Particulars of
the present modification |
Working Capital
Reduced To Rs. 806.500 Millions (Rs.725.000 Millions As Fund based And Rs.81.500
Millions As Non Fund based) From Rs.926.500 Millions ,Which Was Last Modified On 30/05/2008. |
Fixed Assets:
- Building
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Computer
- Vehicles
- Patents
- ERP
AS PER WEBSITE DETAILS:
PROFILE:
MALWA INDUSTRIES LIMITED (MIL) - Denim arm of the Malwa
Group.
In 1997, Mr. Rishi Oswal, the scion of the Oswal family and the Managing Director
of subject started the denim manufacturing facility in response to the
increased market demand for Jeans in the 1990's. Commercial operations started
in FY97-98 and since then the company has been growing at a fast pace. Subject
premier denim manufacturing plant is located at
Equipped with the latest machines imported from
The Jeans manufacturing facility at Jordan (Third Dimension Apparel LLC or more
popularly
The Italian venture (Emmetre) is a fully automated state-of-the-art facility
for Garment Dyeing and Finishing. It caters to the top end of the market and
has a client base comprising of leading designer labels and fashion brands. The
facility brings to subject fold, prized knowledge of emerging fashion trends in
denim making MIL a trendsetter by virtue of this knowledge. This facility also
adds 2.5million pieces annually in capacities to subject denim stable.
Subject today stands tall and proud of its stature as one amongst a handful of
denim suppliers, globally, to possess capabilities in offering Total Solutions
in Denims and that too from a single point interface.
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.44.94 |
|
|
1 |
Rs.71.89 |
|
Euro |
1 |
Rs.64.09 |
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 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.