MIRA
INFORM REPORT
|
Report Date : |
14.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
BALLARPUR INDUSTRIES LIMITED |
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Registered
Office : |
P O Ballarpurpaper Mills, Chandrapur Ballarpur - 442901, |
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Country : |
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Financials (as
on) : |
30.06.2010 |
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Date of
Incorporation : |
26.04.1945 |
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Com. Reg. No.: |
11-010337 |
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|
CIN No.: [Company Identification
No.] |
L21010MH1945PLC010337 |
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|
Legal Form : |
Public Limited Liability Company The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business
: |
Manufacture And Exporter of Paper. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 66052000 |
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|
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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 well established company having fine track. Financial position
of the company appears to be sound. Trade relations are fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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 : |
P O Ballarpurpaper Mills, Chandrapur Ballarpur - 442901, |
|
Tel. No.: |
91-124-2804 242/43 |
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Fax No.: |
91-124-280 4260/61 |
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E-Mail : |
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Website : |
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Head Office : |
Thapar House, 124 Janpath, |
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Operating Office : |
First India Place, Tower – C, Block – A, Sushant Lok – I, Mehrauli –
Gurgaon Road, Gurgaon - 122002 |
DIRECTORS
AS ON 30.06.2010
|
Name : |
Mr. Gautam Thapar |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. R. R. Vederah |
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Designation : |
Manager Director |
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Name : |
Mr. B. Hariharan |
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Designation : |
Group Director |
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|
Name : |
Mr. Sanjay Labroo |
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Designation : |
Director |
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|
Name : |
Mr. A. S. Dulat |
|
Designation : |
Director |
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|
Name : |
Mr. Ashish Guha |
|
Designation : |
Director |
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|
Name : |
Dr. Pramath Raj Sinha |
|
Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
1,161,216 |
0.18 |
|
2) Foreign |
|
|
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a) Bodies corporate |
322,689,469 |
49.23 |
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|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
a) Mutual Funds |
86,154,289 |
13.14 |
|
b) Financial Institutions/Banks |
112,841 |
0.02 |
|
c) Central Government / State Governments |
5,550 |
0.00 |
|
d) Insurance Companies |
66,106,576 |
10.08 |
|
e) Foreign Institutional Investors |
72,637,695 |
11.08 |
|
Any Other (Specify) |
9,041,138 |
1.38 |
|
Foreign Financial Institutions |
9,041,138 |
1.38 |
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
34,501,484 |
5.27 |
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|
|
|
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b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
41,200,310 |
6.29 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
12,821,269 |
1.96 |
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|
|
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c) Any other |
|
|
|
Clearing Member |
1,261,642 |
0.19 |
|
Non Resident Indian |
7,440,033 |
1.13 |
|
Trusts |
339,042 |
0.05 |
|
|
|
|
|
Total |
97,614,942 |
14.89 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture And Exporter of Paper. |
PRODUCTION STATUS AS ON 30.06.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Paper including wrapper and coated paper |
M.T. |
232.068 |
206.313 |
|
|
|
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|
Note:
a) The installed
capacity is as certified by the Management and license capacity is not given as
licensing is not applicable.
b) Includes Production
9263 MT (Previous Year 9007 MT) of Coated Paper at Unit ShreeGopal converted
out of the paper manufactured by company.
c) Includes
Production 5411 MT (Previous Year 4915 MT) of Paper Stationery converted out of
the paper manufactured by company.
d) The Installed Capacity and Actual Production of paper & wrapper
includes Specialised Grades of paper.
GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
K. K. Mankeshwar and Company Chartered Accountant |
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|
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Associates/Subsidiaries : |
Step Down subsidiaries of Ballarpur International Holdings B.V. |
CAPITAL STRUCTURE
AS ON 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1487500000 |
Equity Shares |
Rs.2/- each |
Rs. 2975.000 Millions |
|
|
(Previous Year 1487500000 Equity Shares of Rs.2/- each) |
|
Rs. 1025.000 Millions |
|
|
10250000 (Previous Year 10250000) Preferance Shares of Rs. 100/- each |
|
Rs. 4000.000 Millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
1030005910 |
Equity Shares |
Rs.2/- each |
Rs. 2060.000 Millions |
|
|
(Previous Year 930005910 Equity Shares of
Rs. 2/- each) |
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
655773584 |
Equity Shares |
Rs. 2/- each |
1311.546 |
|
|
(Previous Year 555773584 Equity Shares) |
|
|
|
Less : 249745 |
Equity Shares of Rs. 2/- each forfeited |
|
0.499 |
|
|
(Previous Year 249745 Equity Shares of forfeited) |
|
|
|
655523839 |
Equity Shares |
|
1311.047 |
|
Add: |
Forfeited Shares (amount paid up) |
|
0.187 |
|
|
|
|
1311.234 |
I. PRE-SPLIT AND BUYBACK OF EQUITY SHARES:
a) 35,000 Equity Shares
of Rs. 10/- each allotted as fully paid up without payment being received in
cash.
b) 15,423,900-1/2
Equity Shares of Rs. 10/- each allotted as fully paid up by way of Bonus Shares
capitalised from General Reserve and Share Premium
Account.
c) 950,000 Equity
Shares of Rs.10/- each fully paid up issued to Financial Institutions on part
conversion of Loans/Debentures.
d) 4,374,945
Equity Shares of Rs.10/- each allotted as fully paid up to the Shareholders of Amalgamating
Companies pursuant to the Schemes of
Amalgamation.
e) 135,174 Equity
Shares of Rs.10/- each allotted as fully paid up on conversion of 237-4% Euro
Bonds of the Face Value of US$ 11,85,000/-.
f) 11,887,469
Equity Shares of Rs.10/- each allotted as fully paid up, in terms of Scheme of
Arrangement & Reorganisation.
g) 12,649,218
Equity Shares of Rs.10/- each allotted as fully paid up, pursuant to the scheme
of Arrangement & Amalgamation between the company
and Bilt Graphic
Papers Ltd.
h) 21,160,820
Equity shares of Rs 10/- each allotted as fully paid up against Global
Depository Shares (GDS) aggregating to USD 350.000 Million.
i) 92,775 Equity
Shares of Rs.10/- each allotted as fully paid up on conversion of 9.5 % Fully
Convertible Debentures.
j) 23,278,276
Equity shares of Rs.10/- each allotted in the previous year at a premium of Rs.
76.20/- per share against conversion of Foreign Currency
Convertible Bonds
(FCCB) of Face Value US$ 45,000,000.
II. POST-SPLIT AND
BUYBACK OF EQUITY SHARES :
a) P ursuant to
the Scheme of Arrangement and Reorganisation under Section 391 - 394 of the
Companies Act 1956, approved by High Court of Mumbai
(Nagpur Bench)
vide its order dated 30.11.2007 (Scheme), one Equity Share of Rs. 10/- each was
subdivided into five Equity Shares of Rs. 2/- each
and simultaneous
compulsory buyback of two Equity Shares of Rs. 2 each at a price of Rs. 25/-
each per share. Consequently 371,414,860, Equity
Shares of Rs. 2/-
each were bought back by the Company at a price of Rs. 25/- per share.
b) P ursuant to
the Scheme, certain small shareholders, holding 1,598,451 equity share of Rs.
2/- each exercised their option for buyback at a price of
Rs. 30/- per
share. and were bought back by the Company.
c) During the
year, the Company had allotted the following equity shares to Bilt Paper
Holdings Limited (BPHL), a promoter:
(i) 45,000,000
Equity Shares at Rs. 30/- per share (face value of Rs. 2/- and Premium of Rs.
28/-)
(ii) 55,000,000
Equity Shares at Rs. 30/- per share (face value of Rs. 2/- and Premium of Rs.
28/-) upon conversion of 55,000,000 unsecured zero coupon
compulsory convertible bonds.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1311.234 |
1111.234 |
1111.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15201.781 |
12386.488 |
11568.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16513.015 |
13497.722 |
12679.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3864.525 |
5090.402 |
5427.800 |
|
|
2] Unsecured Loans |
4756.292 |
3806.037 |
3979.100 |
|
|
TOTAL BORROWING |
8620.817 |
8896.439 |
9406.900 |
|
|
DEFERRED TAX LIABILITIES |
1008.713 |
968.713 |
916.178 |
|
|
|
|
|
|
|
|
TOTAL |
26142.545 |
23362.874 |
23003.034 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9715.808 |
8488.151 |
7639.253 |
|
|
Construction and Installation – in Progress including Expenditure
thereon (Pending Allocation |
855.139 |
1918.260 |
747.504 |
|
|
Advance against Capital Assets |
29.613 |
22.353 |
598.945 |
|
|
|
|
|
|
|
|
INVESTMENT |
11510.275 |
2855.471 |
2855.471 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1783.281 |
1300.003 |
1344.596 |
|
|
Sundry Debtors |
2218.652 |
2054.245 |
1852.520 |
|
|
Cash & Bank Balances |
821.917 |
104.107 |
3637.830 |
|
|
Interest accured on Investment and Fixed Deposits |
0.239 |
0.197 |
0.113 |
|
|
Loans & Advances |
4447.613 |
10298.534 |
7831.924 |
|
Total
Current Assets |
9271.702 |
13757.086 |
14666.983 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
150.778 |
34.907 |
20.118 |
|
|
Other Current Liabilities |
2474.552 |
1426.159 |
1283.973 |
|
|
Provisions |
2614.662 |
2254.030 |
2260.655 |
|
Total
Current Liabilities |
5239.992 |
3715.096 |
3564.746 |
|
|
Net Current Assets |
4031.710 |
10041.990 |
11102.237 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
36.649 |
59.624 |
|
|
|
|
|
|
|
|
TOTAL |
26142.545 |
23362.874 |
23003.034 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
10205.779 |
9993.310 |
9349.200 |
|
|
|
Other Income |
63.195 |
49.503 |
30.012 |
|
|
|
TOTAL (A) |
10268.974 |
10042.813 |
9379.212 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Costs |
6566.364 |
6475.062 |
5878.397 |
|
|
|
Purchases |
566.741 |
432.620 |
359.841 |
|
|
|
Personnel Costs |
697.591 |
617.964 |
491.719 |
|
|
|
Administration, Selling and Miscellaneous Costs |
505.045 |
360.631 |
201.670 |
|
|
|
Deferred Revenue Expenditure – Amortised (Net) |
36.649 |
40.973 |
64.095 |
|
|
|
Increase / Decrease in Stock |
(34.420) |
(214.020) |
98.862 |
|
|
|
TOTAL (B) |
8337.970 |
7713.230 |
7094.584 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1931.004 |
2329.583 |
2284.628 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
223.226 |
137.766 |
278.128 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1707.778 |
2191.817 |
2006.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
833.743 |
769.544 |
633.780 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
874.035 |
1422.273 |
1372.720 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
291.201 |
168.420 |
78.242 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
582.834 |
1253.853 |
1294.478 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3025.269 |
2271.384 |
1704.639 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
150.000 |
250.000 |
300.000 |
|
|
|
Proposed Dividend |
382.199 |
324.968 |
388.867 |
|
|
BALANCE CARRIED
TO THE B/S |
3150.904 |
3025.269 |
2271.384 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F. O B. Value of Exports |
204.988 |
96.874 |
230.731 |
|
|
|
Interest on Loan |
53.849 |
212.671 |
70.917 |
|
|
|
Other Earnings |
6.621 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
265.211 |
309.545 |
301.648 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
900.043 |
549.735 |
977.940 |
|
|
|
Components, Spare Parts and Other Stores |
127.502 |
520.568 |
86.913 |
|
|
|
Others |
50.288 |
47.685 |
22.345 |
|
|
TOTAL IMPORTS |
1077.833 |
1117.988 |
1087.198 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.02 |
2.26 |
2.33 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.09.2010 |
31.12.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
2569.70 |
2764.50 |
|
Total Expenditure |
|
2133.20 |
2322.70 |
|
PBIDT (Excl
OI) |
|
436.50 |
441.80 |
|
Other Income |
|
0.00 |
0.00 |
|
Operating
Profit |
|
436.50 |
441.80 |
|
Interest |
|
84.80 |
84.90 |
|
Exceptional
Items |
|
0.00 |
0.00 |
|
PBDT |
|
351.70 |
356.90 |
|
Depreciation |
|
193.30 |
208.00 |
|
Profit
Before Tax |
|
158.40 |
148.90 |
|
Tax |
|
61.30 |
58.10 |
|
Reported PAT |
|
97.10 |
90.80 |
|
Extraordinary Items |
|
0.00 |
0.00 |
|
Prior Period Expenses |
|
0.00 |
0.00 |
|
Other Adjustments |
|
0.00 |
0.00 |
|
Net Profit |
|
97.10 |
90.80 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
5.67 |
120.23 |
13.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.51 |
136.38 |
14.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.42 |
10.33 |
9.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.05 |
0.10 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.31 |
0.27 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76 |
3.70 |
4.11 |
LOCAL AGENCY FURTHER INFORMATION
Operations:
The net sales of the
Company increased by 34 per cent over the previous year to Rs.37945.900
Millions. Despite significantly higher depreciation and finance charges on
account of significant on stream capacity expansions, the Company increased its
net profit after tax by almost 28 per cent over the previous year to Rs.
2404.100 Millions.
During the year,
there were significant turnarounds in the pulp business at Kamalapuram and the
Malaysian operations at Sabah Forest Industries Sdn. Bhd. (SFI), the Company’s
Malaysian subsidiary. SFI registered an annual domestic volume growth of 30 per
cent.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30.09.2009
|
Particulars |
|
31.12.2010 (Unaudited) |
|
Operating Income |
|
|
|
a) Net Sales / Income from Operations |
|
2,14,632 |
|
b) Other Operating Income |
|
739 |
|
Total Operating Income |
|
215,371 |
|
Expenditure |
|
|
|
(a) Amortisation |
|
25 |
|
(b) (Increase)/decrease in Stock in Trade |
|
(4,776) |
|
(c) Consumption of Raw Materials |
|
80,158 |
|
(d) Purchases of Traded Goods |
|
4,046 |
|
(e) Consumption of store and spares |
|
35,969 |
|
(f) Power, Fuel and water charges |
|
31.045 |
|
(g) Personal Cost |
|
13.165 |
|
(h) Depreciation |
|
16.078 |
|
(i) Other Expenditure |
|
13.032 |
|
Total Expenditure |
|
1,88,742 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
26,629 |
|
Other Income |
|
0.000 |
|
Profit/(Loss) before Interest and Exceptional items |
|
26.629 |
|
Interest |
|
13.517 |
|
Profit / (Loss) after interest before Exceptional items |
|
13.112 |
|
Exceptional Items |
|
0.000 |
|
Profit / (Loss) form Ordinary Activities before tax |
|
13.112 |
|
Tax Expense –
Estimated -Current Tax / MAT |
|
994 |
|
-Deferred Tax Liability |
|
1,196 |
|
Net Profit/(Loss) after exceptional item |
|
10,922 |
|
Net Profit/(Loss) after tax |
|
8,892 |
|
Earnings Per Share
(EPS) |
|
|
|
- Before Deferred Tax |
|
1.58 |
|
- After Deferred Tax |
|
1.33 |
|
- Diluted EPS for the Quarter / year |
|
1.33 |
Fixed Assets:
- Land
- Building
- Railway Sidings
- Plant, Machinery
- Furniture
- Office Equipment
- Improvements to Leased Assets
- 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 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.45.21 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.62.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
65 |
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.