1. Summary Information

 

 

Country

India

Company Name

I G PETROCHEMICALS LIMITED

Principal Name 1

Mr. M. M. Dhanuka

Status

Good

Principal Name 2

Mr. Nikunj Dhanuka

 

 

Registration #

--

Street Address

211, 2nd Floor,  Kamat Towers, EDC Complex, Patto Plaza, Panaji, Goa-403001,India

Established Date

18.10.1988

SIC Code

--

Telephone#

91-832-2438212

Business Style 1

Manufacturer and Exporter of Organic Chemicals.

Fax #

--

Business Style 2

--

Homepage

--

Product Name 1

Phthalic Anhydribe

# of employees

295

Product Name 2

--

Paid up capital

307,981,000

Product Name 3

--

Shareholders

Bodies Corporate - 70.02

Banking

State Bank of India

 

Public Limited Corp.

--

Business Period

23 years

IPO

---

International Ins.

-

Public Enterprise

---

Rating

Ba (52)

Related Company

Relation --

Country --

Company Name

--

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2010

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

846,383,000

Current Liabilities

648,867,000

Inventories

358,829,000

Long-term Liabilities

536,313,000 

Fixed Assets

2,232,560,000

Other Liabilities

--

Deferred Assets

--

Total Liabilities

1,185,180,000

Invest& other Assets

148,081,000

Retained Earnings

2,092,692,000

 

 

Net Worth

2,400,673,000

Total Assets

3,585,853,000

Total Liab. & Equity

3,585,853,000

 Total Assets

(Previous Year)

3,530,322,000

 

 

P/L Statement as of

31.03.2010

(Unit: Indian Rs.)

Sales

5,418,642,000

Net Profit

273,167,000

Sales(Previous yr)

5,564,901,000

Net Profit(Prev.yr)

13,268,000

 

 

MIRA INFORM REPORT

 

 

Report Date :

01.03.2011

 

IDENTIFICATION DETAILS

 

Name :

I G PETROCHEMICALS LIMITED

 

 

Registered Office :

211, 2nd Floor,  Kamat Towers, EDC Complex, Patto Plaza, Panaji, Goa-403001

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.10.1988

 

 

Com. Reg. No.:

000915

 

 

CIN No.:

[Company Identification No.]

L51496GA1988PLC000915

 

 

Legal Form :

Public Limited Liability Company. Company’s shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer and Exporter of Organic Chemicals.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (52)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 9602692

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having good track. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments.

 

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

211, 2nd Floor,  Kamat Towers, EDC Complex, Patto Plaza, Panaji, Goa-403001,India

Tel. No.:

91-832-2438212

E-Mail :

igpetro@vsnl.com

Website :

http://www.igpetro.com

 

 

Executive Office :

D-4, Jyothi Complex, 134/1, Infantry Road, Bangalore- 560001, Karnataka, India.

Tel. No.:

91-80-22868372/ 22868778

Fax No.:

91-80-22868778

 

 

Corporate Office :

401, Raheja Centre, 214, Nariman Point, Mumbai-400021, Maharashtra, India

Tel. No.:

91-22-30286100/ 30286132/ 30286133

Fax No.:

91-22-22040747/ 22836392

 

 

Factory  :

T-2, MIDC Industrial Area, Taloja-410208, District-  Raigad, Maharashtra, India

Tel. No.:

91-22-39289100/ 39289146

Fax No.:

91-22-27410192

 

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

 Mr. M. M. Dhanuka

Designation :

Chairman

 

 

Name :

Mr. Nikunj Dhanuka

Designation :

Managing Director

 

 

Name :

Mr. Premjit Singh

Designation :

Director

 

 

Name :

Mr. Rajesh Muni

Designation :

Director

 

 

Name :

Mr. A K A Rathi 

Designation :

Executive Director

 

 

Name :

Mr. J.K. Saboo

Designation :

Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. R. Chandrasekaran

Designation :

President Finance and Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2010

 

Names of Shareholders

No. of Shares

Percentage of Holding

Shareholding of Promoter Group

 

 

 

 

 

Indian

 

 

Individuals / Hindu Undivided Family

508862

1.65

Bodies Corporate

21562063

70.02

 

 

 

Foreign

 

 

 

 

 

Total Shareholding of Promoter Group

 

 

 

 

 

Public shareholding

 

 

Institutions

 

 

Mutual Funds / UTI

9500

0.03

Financial Institutions/Banks

5400

0.02

Foreign Institutional Investors

3100

0.01

 

 

 

Non-Institutions

 

 

Bodies Corporate

813350

2.64

 

 

 

Individuals -

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million.

6016934

19.54

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million.

1345583

4.37

 

 

 

Any Other (specify)

 

 

NRI

517484

1.68

Clearing Members

6874

0.02

Directors and their Relatives and Friends

5700

0.02

 

 

 

GROUND TOTAL

30794850

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Organic Chemicals.

 

 

Products :

Item Code No. (UTC Code)

291735

Product Description

Phthalic Anhydribe

 

PRODUCTION STATUS [As on 31.03.2010]

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Phthalic Anhydribe

MT

116110

116110

97870

 

 

 

 

 

 

(As per Industrial Entrepreneur's Memorandum filed with the Ministry of Industry)

Note: The need for licensing no longer exists following the amendment to the Industries (Development and Regulation) Act, 1951. As such no IDR Licences are now required by us to operate our plants and the figures of Licences above, are based on the original documents issued before such amendments.

 

 

GENERAL INFORMATION

 

No. of Employees :

295

 

 

Bankers :
  • State Bank of India
  • Barclays Bank
  • HDFC Bank
  • Vijaya Bank

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Term loan

 

 

1. Bank

185.645

322.500

2. Other

4.206

7.245

Working Capital facilities from Bank

65.379

62.655

Factoring Facility

167.844

87.119

Hire Purchase Finance

13.394

6.474

Total

436.468

485.993

 

Notes:

a. Term loan from Bank of America (BOA) is secured by:

  • Equitable mortgage of immovable properties at Taloja, Maharashtra and Land at Gujarat by way of first priority charge by deposit of title deeds with IL and FS Trust Company Limited  (ILFS) acting as Security Trustee for BOA.
  • Tangible movable Plant and Machinery.
  • Hypothecation of movable properties (present and future) of the Company subject to the charges created in favour of the bankers for working capital facilities.

b. Term loan from others is secured on the specific Plant and Machinery so procured.

c. Working Capital facilities are secured by:

  • Hypothecation of all movable properties of the Company including stock of raw materials, stock in process, finished goods and Book Debts.
  • Second and subservient charge by way of equitable mortgage of immovable properties of the Company at Taloja, Maharashtra.
  • Personal guarantee by two Directors of the Company.

d. Factoring facility is issued by:

  • Respective book debts Personal guarantee by two directors of the company.

 e. Hire Purchase Loans are secured by the assets acquired through such loans.

 

Unsecured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Short term Loans and Advanced

 

 

From a Bank

32.915

5.552

Other Loans and Advanced

 

 

From Bodies

(Payable within one year Rs. Nil)

66.930

98.032

Total

99.845

103.584

 

 

 

 

 

Banking Relations :

-

 

 

Auditors :

 

Name :

M/s. Hariharan and company

Chartered Accountant

Address :

No.133, 26th Cross, 6th Block, Jayanagar, Bangalore- 560082

 

 

Internal Auditors:

M/s. Malpani and Associates

Chartered Accountant

Address :

307, Chartered House, 297/299, Dr. Caswaji Hormasji Street, Near Marine Lines Church, Mumbai- 400002

 

 

Enterprises owned or significantly influenced :

 

Mysore Petro Chemicals Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

40000000

Equity Shares

Rs.10/- Each

Rs.400.000 Millions

1000000

Preference Shares

Rs.100/- Each

Rs.100.000 Millions

TOTAL

 

 

Rs.500.000 Millions

 

Issued:

No. of Shares

Type

Value

Amount

30801350

Equity Shares

Rs.10/- Each

Rs.308.014 Millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

30794850

Equity Shares

Rs.10/- Each

Rs.307.949 Millions

Add:

Amount paid up on 6500 shares forfeited

-----

Rs.0.032 Million

 

TOTAL

-----

Rs.307.981

 

 

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

307.981

307.981

307.981

2] Share Warrant

0.000

11.625

11.625

3] Reserves & Surplus

2092.692

1846.529

1871.890

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2400.673

2166.135

2191.496

LOAN FUNDS

 

 

 

1] Secured Loans

436.468

491.545

734.181

2] Unsecured Loans

99.845

98.032

146.918

TOTAL BORROWING

536.313

589.577

881.099

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

2936.986

2755.712

3072.595

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2232.560

2375.911

2470.674

Capital work-in-progress

147.489

42.223

25.616

 

 

 

 

INVESTMENT

0.592

0.592

0.592

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

358.829

345.549

383.461

 

Sundry Debtors

429.490

355.488

495.859

 

Cash & Bank Balances

67.207

193.098

324.852

 

Other Current Assets

0.011

0.008

0.005

 

Loans & Advances

349.675

217.453

244.143

Total Current Assets

1205.212

1111.596

1448.320

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

345.315

240.112

312.837

 

Others Current Liabilities

290.515

524.614

547.926

 

Provisions

13.037

9.884

11.844

Total Current Liabilities

648.867

774.610

872.607

Net Current Assets

556.345

336.986

575.713

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2936.986

2755.712

3072.595

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

5418.642

5564.901

5868.613

 

 

Other Income

69.706

19.590

38.054

 

 

TOTAL                                     (A)

5488.348

5584.491

5906.667

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

4248.571

4578.125

4741.320

 

 

Increased/(Decreased) In Inventories

15.616

30.754

(21.272)

 

 

Purchases of Traded Goods

61.585

0.000

0.000

 

 

Personal Expenses

157.788

143.617

125.825

 

 

Manufacturing and others Expenses

394.100

466.572

391.217

 

 

TOTAL                                     (B)

4877.660

5219.068

5237.090

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

610.688

365.423

669.577

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

145.132

213.555

193.119

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

465.556

151.868

476.458

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

136.459

134.347

129.839

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

329.097

17.521

346.619

 

 

 

 

 

Less

TAX                                                                  (I)

55.930

4.253

40.996

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

273.167

13.268

305.623

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1200.300

1187.032

899.423

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

0.000

0.000

15.397

 

 

Tax on Dividend

0.000

0.000

2.617

 

BALANCE CARRIED TO THE B/S

1473.467

1200.300

1187.032

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

870.313

2056.337

3500.083

 

TOTAL EARNINGS

870.313

2056.337

3500.083

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

610.945

775.360

1551.411

 

 

Stores & Spares

14.170

23.927

12.593

 

 

Capital Goods

36.573

0.000

24.236

 

 

Others

28.794

0.000

34.019

 

TOTAL IMPORTS

690.482

799.287

1622.259

 

 

 

 

 

 

Earnings Per Share (Rs.)

8.87

0.43

--

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

Type

1st Quarter

2nd Quarter

3rd Quarter

 Sales Turnover

1646.570

1541.590

1350.070

 Total Expenditure

1521.920

1417.760

1257.930

 PBIDT (Excl OI)

124.650

123.830

92.140

 Other Income

3.690

1.220

2.090

 Operating Profit

128.340

125.050

94.230

 Interest

31.220

25.980

40.010

 Exceptional Items

0.000

0.000

0.000

 PBDT

97.120

99.070

54.220

 Depreciation

34.000

35.000

35.000

 Profit Before Tax

63.120

64.060

19.220

 Tax

12.580

12.770

3.830

 Reported PAT

50.540

51.290

15.390

Extraordinary Items       

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

50.540

51.290

15.390

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
4.98
0.24

5.17

 

 
 
 

 

Net Profit Margin

(PBT/Sales)

(%)
6.07
0.31

5.87

 

 
 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)
9.57
0.64

11.38

 

 
 
 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.14
0.008

0.16

 

 
 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 
0.49
0.63

0.80

 

 
 
 

 

Current Ratio

(Current Asset/Current Liability)

 
1.86
1.43

1.66

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Operations and Performance Review

 

The overall performance of the Company during the year was satisfactory with a production of 97870 MT. at 84.29% as against 106471 MT. at 91.70% during the previous year 2008-2009. The production was lower due to stoppage of one of the plants on account of Catalyst change and a fire during the 3rd quarter of 2009. The gross sales value was Rs.5739.895 Millions as against Rs.5947.475 Millions in the previous year. The Gross Profit was Rs.610.688 Millions as against Rs.365.423 Millions and Net Profit was higher at Rs.273.167 Millions as against Rs.13.268 Millions during the previous year.

 

The Company has converted itself from 100% EOU into a domestic unit since 6th November 2008. As such the sale in the domestic market has increased since that period. Out of the total sales of 100315 MT. (106696 MT.), local sales was 64532 MT. (48093 MT.), deemed exports 17837 MT. (18479 MT.) and export sales was 17946 MT. (40124 MT.). The emphasis has therefore been on local a market which has resulted in better realizations. The balance quantity is sold to deem exporters and overseas customers in view of the established contacts in the international markets all these years.

 

The Company has sold 15,06,240 units (17,31,000 units) of power to the Maharashtra State Electricity Board (MSEB) and generated revenue of Rs.4.519 Millions (Rs.5.193 Millions) during the year. The Company received the Best Vendor Award for the year 2009-10 from Kansai Nerolac Paints Ltd. for its marketing efficiency.

 

Contribution to exchequer

 

The Company has contributed Rs.561.523 Millions to the Central and State exchequer by way of Excise Duty, Sales Tax (including Surcharge), Income Tax, Wealth Tax, Professional Tax and Customs Duty.

 

Opportunities and Future Outlook

 

The year 2008-2009 witnessed abnormal situation caused by the drastic fluctuations of crude oil price coupled with an economic upheaval globally. Due to the financial mess in US and other European Countries there was recession all over the globe and it affected the asian markets including India very badly. However the year 2009-2010 saw revival in the industry and business operations were normalized. The improved market environment provides an assurance to growth in industrial activities.

 

The Phthalic Anhydride (PA) industry is growing at the moment with rising demand. The end users of the products

like PVC, paints, constructions, phthalate plasticizers are getting expanded and broad based and are expected to grow at 10-12% cumulatively and the Alkyd resins, Unstaurated Polyester Resins (UPR), Dyes and Pigments, CPC and Specialty Chemicals segments and other related products are expected to grow at over 20%.

 

The Company after getting converted into a domestic unit during November 2008 is well placed to take advantage of the growth opportunities in the domestic and international arena. The crude oil price is stable and is expected to remain so in the near future. As a result the Company's performance is expected to post a healthy operating scenario. The situation improved from the first quarter of 2009 and the demand has been increasing along with the price of the product.

 

Also the safeguards duty imposed by the Government, of 25% and 15% in two tranches from January to June 2009 and July to December 2009 respectively added to further improvements in product prices. The safeguards duty was upto 31.12.2009 and thereafter there has been a surge in imports and the prices of PA are steadily declining. However due to the increased demand for PA in the user industry, the increase in supply has been absorbed and hence the price of PA is expected to remain stable in the near future.

 

The Indian economy is expected to grow over 8% in the current year with continued thrust on infrastructure which would result in increased construction and other activities.

As a result the related industries would also witness a stable growth prospects. The recessionary trend in the US and other European markets has been a cause of concern for the growth prospects of Indian economy. However analysts are of the view that both US and European Union will stabilize by 2010-2011 which will result in improved market conditions worldwide including India.

 

Website Details:

 

Incorporated in the year 1988 as 100%, I G Petrochemicals Limited has relentlessly marched towards achieving their goals and objectives.

 

They adhere to international standards while producing Phthalic Anhydride and their persistent stress on quality has made them a respected name in international markets. Their strict quality control standards are their hallmark. They are Six-Sigma practicing company with ISO 9000/2000 certification.

 

Their principal business revolves around the production of Phthalic Anhydride, which is mainly used in the manufacture of Plasticizers for production of PVC products, shoe soles and other commodities, Alkyd Resins for manufacturing of paints, as an intermediate in production of dyes and pigments, and in production of Unsaturated Polyester Resins (UPRs).

 

They constantly strive to grow and expand as an organisation, setting new standards for themselves. In 1997, they enhanced their production capacity from 45,000 MTPA to 1,10,000 MTPA to tap growing national and export markets.

 

Their future plans include, capacity increase on a mega scale and product diversification into petrochemicals.

 

They at I G Petrochemicals Limited believe they all are responsible for the air they breathe, the water they drink and the space they take up. They all are utmost concern. The effluent water which is rich in Maleic acid resulting from production of Phthalic Anhydride is recycled to manufacture Maleic Anhydride. Similarly, the Phthalic Anhydride distillation residues, like high boiling residue and low boiling residue, are mixed together and fired in the heat transfer oil heater along with the furnace oil as fuel.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.45.18

UK Pound

1

Rs.72.78

Euro

1

Rs.62.15

 

 

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

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

 

52

 

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.