MIRA
INFORM REPORT
|
Report Date : |
23.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
RASHTRIYA ISPAT
NIGAM LIMITED |
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Registered Office : |
Administrative
Building, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
18.02.1982 |
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Com. Reg. No.: |
01-3404 |
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CIN No.: [Company
Identification No.] |
U27109AP1982GOI003404 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
VPNR00283D /
VPNR00392A |
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Legal Form : |
Public Limited
Liability Company The company’s
entire capital is held by Government of India |
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Line of Business : |
Manufacturing and
Marketing of steel products |
RATING & COMMENTS
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MIRA’s Rating : |
A (60) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 515400000 |
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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 government of 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) |
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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 : |
Administrative
Building, Vishakhapatnam – 530 031, |
|
Tel. No.: |
91-891-2518325 /
538 / 2888360 / 390 / 2888247 / 2518360 |
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Fax No.: |
91-891-2518753 /
756 / 2888316 /2518321 |
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E-Mail : |
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Website |
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Area: |
22685 sq. m. |
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Location: |
Owned |
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Regional
Office : |
1, |
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Regional
Office : |
101, Free Press
House, Nariman Point, Mumbai - 400 021, |
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Regional
Office : |
184, Anna Salai,
Chennai - 600 006, |
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Regional
Office : |
15, 110 066, |
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Factory 1 : |
Vishakhapatnam,
District Vishakhapatnam, |
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Factory 2 : |
Jaggayyapeta,
District Krishna, |
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Factory 3 : |
Madharam,
District Khamman, |
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Guest House: |
1, |
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Tel. No.: |
91-33-2242 2856 /
2242 1968 / 2334 4034 (Res.) |
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Fax No.: |
91-33-2242 7896 |
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Guest House: |
Khanji Bhavan,
10-3-311/A, Masab Tank, Ground Floor, |
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Tel. No.: |
91-40-2353 5167 /
6267 / 2406 9207 (Res.) |
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Fax No.: |
91-40-2353 2167 |
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Northern
Region : |
Ř
6TH Floor, Ř
Block No.38/4-B, F-10 & 11, Near
Punjab & Sind Bank, Friends Centre, Sanjay Place, AGRA - 282 002 Ř
117/L/452,Channi House, 1st
Floor, Naveen Nagar, Near Double Pullia, Ř
S.C.O.No.141-142, 2nd Floor, Sector
8-C, Ř
SCO-3, 1st Floor, HUDA
Complex,Sec-19, Ř
B-5, RDC, Ř
Ř
Master Chambers, 5th Floor, 19, Firoz
Gandhi Market, Ř
33/20,Ganapati Kunj, |
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Eastern
Region: |
Ř
1, Ř
IPICOL House, Ř
West Boring |
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Western
Region: |
Ř
101, Free Press House, Free Ř
NBCC Hours, 1st Floor, Near Ř
107-109, Ř
3025/8, Shreenidhi Chambers, 1st
Floor, Senapati Bapat Marg, PUNE - 411 016 Ř
317, |
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Southern
Region: |
Ř
Ř
303, 3rd Floor, Ř
Ř
Ř
457/1B1, Deshpande Nagar, Hubli - 580
029 |
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Andhra Region:
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Ř
10-3-311/a, Khanij Bhavan, Ř
D-Block, Project Office Complex,
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D-Block, Project Office , |
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Marketing Department 530 031. |
DIRECTORS
As on : 24.07.2010
|
Name : |
Mr. Y. Manohar |
|
Designation : |
Director |
|
Address : |
D-1, Director’s Bunglow, Sector – 7, Ukkunagaram, |
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Date of
Birth/Age : |
15.09.1950 |
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Date of
Appointment : |
20.03.2007 |
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Name : |
Mr. P K Bishnoi |
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Designation : |
Director - Finance |
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Date of
Birth/Age : |
03.07.1951 |
|
Address : |
Steel House, Directors Bungalow , Sector – 7, |
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Qualification
: |
BE, MBA |
|
Date of
Appointment : |
01.04.2004 |
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Name : |
Mr. Umesh Chandra |
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Designation : |
Director – (Operations) |
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Address : |
D-1, Ukkunagaram, |
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Date of
Birth/Age : |
02.07.1954 |
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Date of
Appointment : |
01.11.2008 |
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Name : |
Mr. A.P. Choudhary |
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Designation : |
Director |
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Address : |
Kalyani Apartments, A-108, Sector – 6, Vasundhara, Gaziabad – 201012, |
|
Date of
Birth/Age : |
26.12.1953 |
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Date of
Appointment : |
01.06.2009 |
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Name : |
Mr. P. Madhusudhan |
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Designation : |
Director |
|
Address : |
D-3, Director’s Bunglow, Sector – 7, Ukkunagaram, |
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Date of
Birth/Age : |
09.04.1958 |
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Date of Appointment : |
02.11.2009 |
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|
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|
Name : |
Mr. S. Machendranathan |
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Designation : |
Additional Secretary and Financial Advisor Ministry of Steel |
|
Address : |
A-1-5, Koyembedu, South Asia Games, |
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Date of
Birth/Age : |
07.03.1954 |
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Date of Appointment : |
24.05.2010 |
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Name : |
Mr. Dilip Singh |
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Designation : |
IAS, Joint Secretary, Ministry Steel |
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Address : |
L-31, Nevedita Kunj, Sector – 10, R.K. Puram, |
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Date of
Birth/Age : |
09.04.1956 |
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Date of Appointment : |
07.11.2008 |
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|
Name : |
Prof. Ramesh Chandra |
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Designation : |
Director |
|
Address : |
38/01, |
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Date of
Birth/Age : |
01.07.1957 |
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Date of Appointment : |
03.08.2009 |
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KEY EXECUTIVES
|
Name : |
Mr. P. Mohan Rao |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 24.07.2010
|
Names of Shareholders (Equity Shares) |
|
No. of Shares |
|
The President of |
|
48898456 |
|
Mr. P.K. Bishnoi |
|
3 |
|
Mr. P. Madhusudan |
|
1 |
|
Mr. S. Machendranathan |
|
1 |
|
Mr. Dilip Singh, IAS |
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1 |
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|
|
|
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Total |
|
48898462 |
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Names of Shareholders (Preferences Shares) |
|
No. of Shares |
|
The President of |
|
29374700 |
|
|
|
|
|
Total |
|
29374700 |
As on : 24.07.2010
|
Category |
Percentage |
|
Government
(Central and State ) |
100.00 |
|
Bodies corporate |
0.00 |
|
Directors or relatives of Directors |
0.00 |
|
Other top fifty shareholders |
0.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Marketing of steel products |
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Products : |
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Brand Names : |
Rabars: Vizar TMT Strycturals:
Vizag Ukku |
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Agencies Held : |
Sold through own
Branches |
PRODUCTION STATUS ( AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Wire Rods |
Tonnes in ‘000s |
850 |
1015 |
|
Light &
Medium Merchant Products-Bar Mill |
Tonnes in ‘000s |
710 |
870 |
|
Saleable Billets |
Tonnes in ‘000s |
246 |
100 |
|
Medium Merchant
Structural Mill |
Tonnes in ‘000s |
850 |
1073 |
|
|
|
|
|
|
Pig Iron |
Tonnes in ‘000s |
556 |
403 |
|
Granulated Slag |
Tonnes in ‘000s |
1440 |
1334 |
|
Coke Ovens
By-products |
Tonnes in ‘000s |
186 |
169 |
GENERAL INFORMATION
|
No. of Employees : |
16610 (
Approximately) |
|
|
|
|
Bankers : |
·
State
Bank of ·
Andhra
Bank, Vishakhapatnam, ·
Bank
of ·
Canara
Bank ·
UCO
Bank ·
Central
Bank Of ·
Dena
Bank ·
·
Oriental
Bank of Commerce ·
State
Bank of ·
State
Bank of Saurashtra ·
State
Bank of ·
Indian
Overseas Bank ·
Indian
Bank ·
HSBC
Bank ·
IDBI
Bank ·
Allahabad
Bank |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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|
Name : |
B. V. Rao and Company Chartered Accountants |
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Address : |
Flat No. FF-01, |
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|
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Joint Venture : |
International Coal Ventures Private Limited RINMOIL Ferro Alloys Private Limited |
CAPITAL STRUCTURE
As on : 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48900000 |
Equity shares |
Rs. 1000/- each |
Rs. 48900.000 millions |
|
31100000 |
Preference Shares |
Rs. 1000/- each |
Rs. 31100.000 millions |
|
|
Total |
|
Rs. 80000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
48898462 |
Equity shares |
Rs. 1000/- each |
Rs. 48898.462 millions |
|
29374700 |
Cumulative
Redeemable preference shares |
Rs. 1000/- each |
Rs. 29374.700 millions |
|
|
Total |
|
Rs. 78273.162 Millions |
Note:
Of the above 2181612 Equity Shares of Rs. 100 Each
were allotted as fully paid-up for consideration other than cash.
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 |
78273.162 |
78273.162 |
78273.162 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
50576.794 |
45925.769 |
36537.239 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
128849.956 |
124198.931 |
114810.401 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4072.766 |
9077.214 |
3327.820 |
|
|
2] Unsecured
Loans |
8252.693 |
1000.410 |
1079.481 |
|
TOTAL BORROWING
|
12325.459 |
10077.624 |
4407.301 |
|
|
DEFERRED TAX
LIABILITIES |
978.248 |
1244.948 |
1631.248 |
|
|
|
|
|
|
|
TOTAL
|
142153.663 |
135521.503 |
120848.950 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
14653.933 |
12221.059 |
13846.814 |
|
Capital work-in-progress
|
75068.937 |
46519.893 |
20871.906 |
|
|
|
|
|
|
|
Investments
|
2.504 |
0.504 |
0.504 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
24515.221 |
32152.763 |
17611.454 |
|
|
Sundry Debtors
|
1811.869 |
1912.717 |
934.158 |
|
|
Cash & Bank Balances
|
54155.425 |
66241.723 |
76991.085 |
|
|
Other Current Assets
|
1374.045 |
2589.129 |
2924.267 |
|
|
Loans & Advances
|
13650.189 |
15696.915 |
19584.851 |
Total Current Assets
|
95506.749 |
118593.247 |
118045.815 |
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
28719.544 |
25607.883 |
16101.415 |
|
|
Provisions
|
14358.916 |
16205.317 |
15814.674 |
Total Current Liabilities
|
43078.460
|
41813.200
|
31916.089
|
|
Net Current Assets
|
52428.289 |
76780.047 |
86129.726 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
142153.663 |
135521.503 |
120848.950 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
106346.300 |
101047.100 |
|
|
|
Other Income |
|
|
|
|
|
|
TOTAL |
|
106346.300 |
101047.100 |
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
Office Expenses |
|
|
|
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
93190.000 |
80781.200 |
|
|
|
Interest |
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
TOTAL |
|
93190.000 |
80781.200 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
|
12476.500 |
20265.900 |
|
|
|
|
|
|
|
|
|
|
TAX |
|
4517.800 |
6910.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
|
7958.700 |
13355.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
51.400 |
27.31 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.48
|
13.21 |
-- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.73
|
20.05 |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.32
|
15.49 |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.15 |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.42
|
0.40 |
0.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.21
|
2.83 |
3.69 |
LOCAL AGENCY FURTHER INFORMATION
Year 2009-2010
The year 2009-10 has been an eventful year for the Company as because
the impact of the Global Financial crisis that started in the second half of
the previous year has been gradually assimilated and the Company withstood the
crisis consequent to a strong recovery in the Indian economy, thanks to the
timely and proactive initiatives of the Govt. of India to boost economic growth
by enabling injecting funds in various industries like construction,
infrastructure, auto mobile and Power Sectors. Yet, 2009-10 was at best a year
of cautious recovery but encouraging year for the Company. The Steel Markets
saw a growth in consumption but the prices continued to be under pressure.
During the year, the Company has achieved some of the best ever
yearly performances in respect of production of value added steel (2.403 Million
Tonnes), steel dispatches by rail of 2.07 million tonnes and best ever gross
sales of Rs.10635 Crores in addition to best technoeconomic parameters achieved
in terms of yields (Wire Rods and MMSM Mills) and specific Water consumption of
2.16 Cub. Mtrs./tls. This could be possible despite certain constraints like
Power availability, etc.
Global Steel Industry
The Global Economy
has showed signs of recovery with Global Steel Capacity utilization ratio
showing improvement at 75.1 % in Dec’09 ( as compared to 58.1 % in Dec ’08).
The financial crisis in the previous year has effected many Nations. However,
the Indian Economy showed tremendous resilience and withstood the global
volatility by maintaining the GDP Growth relatively at a higher level as compared
to the earlier period. The Indian steel industry has also shown signs of
improvement everywhere by a positive growth of 2.7% over the previous year,
while other developed countries showed a negative growth.
The consumption of Steel continues to be a major growth driver and the
consumption growth projected at 7% based on GDP Growth rate of 7% to 7.5% and
production of 110 million tonnes much earlier than 2019 – 20 as was projected
in the National Steel Policy. Global Crude Steel production reached 1220
Million Tonnes. Further, consolidation in the Industry has facilitated the
growth and investor confidence and the international prices have been high in
the year helping the Companies in
Indian Steel
scenario
Outlook for the
Company in 2010-11
On the back of strong commitment for infrastructure funding and revival
and strong come back by the auto sector, the Steel demand in the country is
projected to go up by 10% giving an encouraging opportunity for the Company to
improve its overall performance. However, the raw material prices continue to
be a major concern as they have cut into the margins of the company for the
year and shall continue to show a negative impact in the coming year as well
cutting in to the bottom line of the company. The Iron ore prices have already
been increased by 40% from the price level of 2009-10 and are likely to go up
further while the imported coking coal prices have gone up by 56% in the First
Quarter of 2010-11. The Company will continue to face stiff competition from
steel producers in the private sector who are making higher availability of
long products in the market particularly in the Southern India Region. Efforts
would continue for improvement of the net sales realization in general and by
value added production and better delivery mechanisms to enhance consumption.
But recent financial crisis in some European countries affecting Steel market
sentiments including in
FORM : 8
|
Corporate
identity number of the company |
U27109AP1982GOI003404 |
|
Name of the
company |
RASHTRIYA ISPAT
NIGAM LTD |
|
Address of the
registered office or of the principal place of business in |
Administrative
Building, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Book debts Others |
|
Particular of
charge holder |
State Bank Of |
|
Nature of
instrument creating charge |
Supplemental
Agreement Of Hypothecation Of Goods And Assets For Increase In Overall Limits Dated 08.01.2010 |
|
Date of
instrument Creating the charge |
08/01/2010 |
|
Amount secured by
the charge |
Rs. 21145.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest : 1.25% below SBAR
with a minimum of 11% p.a. (at present) Terms of repayment : On Demand Working
Capital Limits Of Rs 11145.000 millions Project Letter Of
Credit Same As Earlier. Margin : As Mentioned At
Form Extent and operation of the charge : 1. Pari Passu First
Charge On ( Hypothecation) On Current Assets Along With Other Banks Under
Multiple Banking Arrangement. 2. Pari Passu
First Charge On ( Hypothecation) On All Assets Created Out Of Project Letter Of Credit
Along With Other Banks Under Multiple Banking Arrangement Other : Cash Credit (Hyp)
Facility of Rs.1000.000 millions with-in-which a sub-Limit of DD Purchase of
Rs.100.000 millions and EPC of Rs.1000.000 millions, Letters of Credit Limit
of Rs.9000.000 millions, Project Letters of Credit Limit of Rs.10000.000
millions, Bank Guarantee Limit of Rs.1000.000 millions and Forward Contract
Limit of Rs.145.000 millions. Working Capital
Demand Loan of Rs.3000.000 millions will be made available by carving out
from unutilized LC Limit of Rs.9000.000 millions. |
|
Short particulars
of the property charged (Including location of the property) |
1. Pari Passu
First Charge On ( Hypothecation) On Current Assets Along With Other Banks Under
Multiple Banking Arrangement. 2. Pari Passu
First Charge On ( Hypothecation) On All Assets Created Out Of Bank Finance. |
|
Date of
instrument modifying the charge |
15/10/2007 |
|
Particulars of
the present modification |
Charge Earlier
Created For Rs.18250.000 millions, Which Is Now Enhanced To Rs.21145.000
millions. Pari Passu First
Charge On (Hypothecation) On Current Assets Along With Other Banks Under Multiple Banking Arrangement. Pari
Passu First Charge On (Hypothecation) On All Assets Create Out Of Bank
Finance. |
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. 44.97 |
|
|
1 |
Rs. 73.35 |
|
Euro |
1 |
Rs. 63.98 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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.