MIRA
INFORM REPORT
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Report Date : |
03.05.2011 |
IDENTIFICATION DETAILS
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Name : |
RADICO KHAITAN LIMITED |
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Registered Office : |
Bareilly Road, Rampur-244901, Uttar Pradesh |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
21.07.1983 |
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Com. Reg. No.: |
20-027278 |
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CIN No.: [Company
Identification No.] |
L26941UP1983PLC027278 |
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Legal Form : |
Subject is Public Limited Liability Company. The Company shares are
listed on the stock exchange. |
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Line of Business : |
Manufacturing of Indian made Foreign Liquor, Country Liquor and Silent Spirit. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 23800000 |
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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 an established company having fine track. General financial
position of the company is good. Trade relations are fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for good 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
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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
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Registered Office / Factory 1 : |
Bareilly Road, Rampur-244901, |
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Tel. No.: |
91-595-2350601/602, 22354161,2351703 |
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Fax No.: |
91-595-2350009 |
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Email: |
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Website : |
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Corporate Office : |
Plot No. J-1, Block B-I, Mohan Co-operative Industrial
Area, Mathura Road, New Delhi-110044, |
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Tel. No.: |
91-11-26975403-26975409/40975400/5500 |
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Fax No.: |
91-11-26975339/40 |
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E-Mail : |
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Factory 2 : |
Plot No. B-24, A-25, Shree Khatushyamji Industrial
Complex, RIICO, Reengus, District Sikar, |
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Factory 3 : |
B-3, UPSIDC Industrial Development Area, Phase-I, Sultanpur
Patti, Bajpur District Udham Singh Nagar, |
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Factory 4 : |
S-59, |
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Plant Located: |
44 KM Stone, |
DIRECTORS
AS ON 31.03.2010
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Name : |
Dr. Lalit Khaitan |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
62 years |
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Qualification : |
B. Com. |
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Experience : |
45 years |
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Date of Appointment : |
20.02.2003 |
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Name : |
Mr. Abhishek Khaitan |
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Designation : |
Managing Director |
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Date of Birth/Age : |
34 years |
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Qualification : |
BE (Industrial Production) |
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Experience : |
15 years |
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Date of Appointment : |
20.02.2003 |
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Name : |
Mr. K P Singh |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
32 years |
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Qualification : |
B.Sc. & DIFAT |
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Experience : |
54 years |
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Date of Appointment : |
02.12.1996 |
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Last Employment Held: |
Kedia Distilleries Limited, Chief Executive |
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Name : |
Mr. Raghupati Singhania |
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Designation : |
Director |
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Name : |
Mr. Amit Burman |
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Designation : |
Additional Director |
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Date of Birth/Age : |
16.07.1969 |
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Qualification : |
B. Sc. (Industrial Engineering) M. Sc. (Industrial Engineering) |
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Experience : |
Industrialist |
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Date of Appointment : |
31.03.2005 |
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Other Directorships : |
(1) Dabur India Limited (2) Dabur Foods Limited (3) Dabur Pharma Limited (4) Apollo Health Street Limited (5) E. Medlife.com Limited (6) QH Talbros Limited (7) Pasadensa Foods Limited (8) Burmans Finvest Limited |
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Name : |
Mr. Karna Singh Mehta |
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Designation : |
Director |
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Date of Birth/Age : |
15.01.1946 |
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Qualification : |
FCA, ACIS ( |
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Experience : |
Expertise in the field of Finance and Accounts |
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Date of Appointment : |
10.03.2003 |
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Other Directorships : |
(1) Prudential ICICl Management Company Limited (2) Medpat Finance Limited (3) Kothari Industrial Management Company Limited (4) Gas Auto Limited (5) Blue Coast Hotels & Resorts Limited (6) Transport Corporation of India Limited (7) Ayurvet Limited (8) Delhi Stock Exchange Association Limited |
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Name : |
Mr. Ashutosh Patra |
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Designation : |
Director |
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Date of Birth/Age : |
15.03.1946 |
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Qualification : |
MA, LLM |
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Experience : |
Eminent Supreme Court Lawyer & Legal Expert |
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Date of Appointment : |
28.01.2003 |
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Name : |
Mr. Sanju Jalan |
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Designation : |
Director |
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Name : |
Mr. Mahendra Kumar Doogar |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Dr. Arun Mohan Bansal |
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Designation : |
Head – Legal and Company Secratory |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 01.01.2011
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Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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412,210 |
0.31 |
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52,567,021 |
39.66 |
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52,979,231 |
39.97 |
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Total shareholding of Promoter and Promoter Group (A) |
52,979,231 |
39.97 |
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(B) Public Shareholding |
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16,766,171 |
12.65 |
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721,120 |
0.54 |
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31,620 |
0.02 |
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1,843,972 |
1.39 |
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37,057,701 |
27.96 |
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56,420,584 |
42.56 |
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11,273,851 |
8.50 |
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10,495,272 |
7.92 |
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240,881 |
0.18 |
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1,148,385 |
0.87 |
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1,101,385 |
0.83 |
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47,000 |
0.04 |
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23,158,389 |
17.47 |
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Total Public shareholding (B) |
79,578,973 |
60.03 |
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Total (A)+(B) |
132,558,204 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
132,558,204 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturing of Indian made Foreign Liquor, Country Liquor and Silent Spirit. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Rectified Spirit |
KL |
75000 |
75000 |
39691 |
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Bio Gas |
000’M3 |
-- |
-- |
27987 |
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Pet Bottles |
Nos. / 1000 |
-- |
546684 |
373646 |
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Malt Spirit |
KL |
460 |
460 |
608 |
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Grain Spirit |
KL |
27000 |
27000 |
31529 |
GENERAL INFORMATION
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Bankers : |
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Financing Institutions : |
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Facilities : |
Note:
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Banking
Relations : |
- |
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Auditors : |
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Name : |
V. Sankar Aiyar and Company Chartered Accountants Internal
Auditors Grant Thornton Chartered Accountants L 41 Connaught Circus, |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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170000000 |
Equity Shares |
Rs. 2/- Each |
Rs. 340.000 millions |
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6000000 |
Preference Shares |
Rs. 100/- Each |
Rs. 600.000 millions |
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Total
: |
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Rs. 940.000
millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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131830525 |
Equity Shares |
Rs. 2/- Each |
Rs. 263.661
millions |
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Note :
1. In terms of a
scheme of rehabilitation of Abhishek Cement Limited.(ACL) approved by BIFR vide
order dated 30.12.2002, the then Radico Khaitan Limited. was merged with ACL
and on merger, the latter was renamed as Radico Khaitan Limited Post merger,
the then existing share holders of Radico Khaitan Limited. were issued shares
of the amalgamated company aggregating to Rs 191.716 millions.
2 During the year,
449,306 shares have been alloted under ESOP scheme and 28,919,000 shares
alloted under Qualified Institutional Placement. (QIP)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
263.661 |
204.924 |
204.924 |
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2] Share Application Money |
0.000 |
0.000 |
113.469 |
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3] Reserves & Surplus |
5662.427 |
2101.293 |
2190.628 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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5] Employees Stock Options Outstanding |
26.194 |
30.679 |
25.054 |
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NETWORTH |
5952.282 |
2336.896 |
2534.075 |
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LOAN FUNDS |
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1] Secured Loans |
2449.233 |
4002.532 |
2109.839 |
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2] Unsecured Loans |
2012.194 |
3001.106 |
3290.451 |
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TOTAL BORROWING |
4461.427 |
7003.638 |
5400.290 |
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DEFERRED TAX LIABILITIES |
451.000 |
367.000 |
321.700 |
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TOTAL |
10864.709 |
9707.534 |
8256.065 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4139.355 |
4006.997 |
3472.224 |
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Capital work-in-progress |
529.641 |
769.772 |
409.164 |
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INVESTMENT |
893.663 |
525.866 |
335.713 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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Foreign Currency Monetary Item Translation Difference Account |
(12.521) |
45.341 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1230.479
|
1084.351
|
767.850 |
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Sundry Debtors |
2355.536
|
1700.268
|
1389.748 |
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Cash & Bank Balances |
332.445
|
419.768
|
831.461 |
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Other Current Assets |
123.556
|
156.688
|
121.047 |
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Loans & Advances |
2727.800
|
2357.300
|
2222.811 |
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Total
Current Assets |
6769.816
|
5718.375
|
5332.917 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
862.568
|
774.289
|
NA |
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Current Liabilities |
113.283
|
91.888
|
804.571 |
|
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Provisions |
479.394
|
492.640
|
489.382 |
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Total
Current Liabilities |
1455.245
|
1358.817
|
1293.953 |
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Net Current Assets |
5314.571
|
4359.558
|
4038.964 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10864.709 |
9707.534 |
8256.065 |
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PROFIT & LOSS
ACCOUNT
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|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Sales |
8355.507 |
11747.266 |
12281.871 |
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Other Income |
71.047 |
349.986 |
141.023 |
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TOTAL (A) |
8426.554 |
12097.252 |
12422.894 |
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Less |
EXPENSES |
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Raw Material Consumed |
4048.089 |
3426.564 |
4507.452 |
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|
Increase/(Decrease) in Finished Goods |
(121.328) |
(106.338) |
(46.500) |
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Salaries, Wages, Bonus, etc. |
540.164 |
552.452 |
496.471 |
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Excise Duty |
0.000 |
4786.975 |
4187.747 |
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Other Expenditure |
2587.002 |
2631.247 |
2352.769 |
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TOTAL (B) |
7053.927 |
11290.900 |
11497.939 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1372.627 |
806.352 |
924.955 |
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Less |
FINANCIAL
EXPENSES (D) |
617.186 |
451.470 |
343.696 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
755.441 |
354.882 |
581.259 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
256.046 |
231.219 |
189.839 |
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PROFIT BEFORE
TAX (E-F) (G) |
499.395 |
123.663 |
391.420 |
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Less |
TAX (H) |
84.000 |
58.300 |
60.700 |
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PROFIT AFTER TAX
(G-H) (I) |
415.395 |
65.363 |
330.720 |
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IMPORTS |
|
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|
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|
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|
Raw Materials |
14.874 |
30.487 |
17.389 |
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|
|
Stores & Spares |
5.541 |
6.881 |
0.271 |
|
|
|
Capital Goods |
13.227 |
161.568 |
48.657 |
|
|
|
Other |
3.970 |
2.966 |
1.789 |
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TOTAL IMPORTS |
37.612 |
201.902 |
68.106 |
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|
|
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|
Earnings Per
Share (Rs.) |
4.02 |
0.64 |
3.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
2384.930 |
2275.730 |
2729.530 |
|
Total Expenditure |
2044.330 |
1902.350 |
2317.910 |
|
PBIDT (Excl OI) |
340.600 |
373.380 |
411.620 |
|
Other Income |
6.200 |
5.760 |
14.860 |
|
Operating Profit |
346.800 |
379.140 |
426.480 |
|
Interest |
62.270 |
59.710 |
79.710 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
284.530 |
319.430 |
346.770 |
|
Depreciation |
69.000 |
66.000 |
72.000 |
|
Profit Before Tax |
215.530 |
253.440 |
274.770 |
|
Tax |
55.000 |
65.000 |
70.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
160.530 |
188.440 |
204.770 |
|
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 |
160.530 |
188.440 |
204.770 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.92
|
0.54
|
2.66 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.97
|
1.05
|
3.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.57
|
1.27
|
4.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
1.27
|
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.06
|
3.58
|
2.76 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.65
|
4.21
|
4.12 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The Company
operates in one core business segment, i.e., manufacturing, sales and
distribution of Indian Made Foreign Liquor (IMFL). The year of 2009-10 was a year
of 'return on growth' path for the Company after the two consolidation years of
2007-08 and 2008-09 in all the business segments. The Company carries a
boutique of Branded portfolio catering all the major segments of market i.e.
Whisky, Rum, Brandy and Vodka. The overall strategy has been to focus on growth
of its mainline brands and development of New Brands through in-house research
and innovation. The company closed the year with Sales volume of close to 14.6
million cases, where sales of all the key brands grew significantly over the
last fiscal.
Company's policy
of premiumization of branded portfolio is now paying well as is evident from
growth in sale volume of their Magic Moments Vodka. Magic Moments saw a volume
growth of 39% over last year and closed the year with sale volume of 1.42 mn
c/s. Launch of their new "Morpheus" Super Premium Brandy was also a
success with brand witnessing sale of 80K case in the launch year itself. They
expect good growth in the current year. Company was able to get the price
increase from the trade and thus improved its sale realization per c/s and also
the operating margins through a mix of improvement in saliency of premium brand
as well as the price increases. Molasses prices after going through the roof in
the first quarter of 2009-10 started falling and are now in comfort Zone. Due
to the improvement in the acreage, yield as well as hike in the minimum support
prices of Sugarcane by the state Govt, they hope that it should result in
higher Molasses Production in the country in the Sugar Year 2010-11, which
would further ease off pressure on Molasses Prices and enable them to improve
their margins.
CAPITAL PROJECTS:
During the year
the Company has incurred Rs.275 Million on the various capital projects for
capacity addition to take care of future, it includes putting additional
Printing Machines at bottle Printing Unit, capacity expansion at Pet bottle
plant and Malt spirit Maturation facility . The Joint Venture Company, Radico
NV Distilleries aharashtra Ltd. has
successfully commissioned another 12 million litres of quality Grain ENA
Distillery in Maharashtra in February 2010 This distillery is meeting their
Alcohol requirement of Contract bottling units in the Western and Southern
states. Now the Company has two of its own distilleries in major sugar
producing belts of Uttar Pradesh and
FUTURE STRATEGY
AND GROWTH:
Indian Made
Foreign Liquor (IMFL) industry is growing steadily over the last decade with
many enablers working in its favour on the back of improved demography,
increasing social acceptance, favorable bias towards Spirits and consistent
growth in GDP. The IMFL has grown at a CAGR of over 10% in volumes and over 12%
in value term during the period CY03-09 which is expected to be maintained or
even -escalate over the next few years. The Alcoholic Beverage industry in
MANAGEMENT
DISCUSSIONS AND ANALYSIS FOR THE YEAR 2008-09:
COMPANY OVERVIEW
Radico Khaitan
Limited (RKL) is the one of the major player in
brands and
successful launch of new brands in premium space over the last decade. In its
strategy of moving up the value chain, the Company has successfully sustained
its growth at the higher end in the industry. The success of "Magic
Moments", 1.4 m+ cases brand, is now being followed up by the launch of a
super premium brandy "Morpheus" and two premium whisky brands. With
strong 15%+ volume CAGR expected in IMFL brands and premiumization of
portfolio, Radico continues to play a pivotal role in the growth of IMFL
Industry.
ECONOMIC REVIEW
The year FY 2009-10
has been a year of robust bounce back after the downturn which the economy
witnessed in the year 2008-09 with each sector of the economy getting seriously
affected. It was a year of challenge where each industry player tried its level
best to come out of the hard days. There are signs of turnaround in industrial
production and exports with emerging economies growing at a faster pace. The
world economy reveals that "financial markets are buoyant, business
confidence is coming back and global growth seems increasingly robust." It
is predictable that the global output rate will grow on a purchasing power
basis, compared to what it was foreseen months ago. "With global
investment accelerating and consumer spending strong, there is growing optimism
that the recovery is becoming self sustaining." (Source: The Economist,
April 2010).
BUSINESS STRATEGY
DRIVEN BY PREMIUMIZATION
The Company would
remain focused preferred quality products provider in the semi premium and
premium categories. The aim is to gain significant market share in Brown Spirit
and fastest growing White Spirit segments. In
distribution
network and manufacturing network of five owned and twenty seven Contract
manufacturing units across the country. This will ensure wide reach for the
Company and enable the company to tackle high inter-state taxes levied on
movement of finished and in process liquor. Premiumization is the way forward
for the Company. As the
brand portfolio
moves towards the higher end, they see the Company's per case realization and
contribution trending closer to other eminent players. Also, the Company
intends to increase its business mix towards IMFL to 80% by FY12E from 73 %
currently.
KEY INITIATIVES UNDERTAKEN
The Company's
business remained robust as the year under review witnessed strong demand.
Several measures have been taken with focus on cost optimization, value
engineering, and overhead control. The Company has put the best management
practices to ensure that all the resources are utilized optimally.
AWARDS AND
RECOGNITION:
- Radico has
received a series of awards and recognitions for achievements in the
business and operations.
- Dr. Lalit Khaitan was awarded the
Inspirational Life Time Achievement Award by Alcobev Magazine
for 2008.
- The Magic
Moments was awarded best packaging innovation for the year by
Alcobev.
- Mr. Abhishek
Khaitan was conferred the top entrepreneur of the year
by Ambrosia Indspirit 2008.
- In the same
event, the Magic Moments Vodka was awarded the best marketing initiative
of the year.
- In the Monde
Selection 2009, the following awards were conferred:
- Magic Moments
Premium Grain Vodka-Gold Medal
- Magic Moments
Flavored Green Apple Vodka-Bronze Medal
- Magic Moments
Flavored Lemongrass & Ginger Vodka-Gold Medal.
FIXED ASSETS:
Intangible
- Brands and Trade Marks
- Goodwill
Tangible
- Buildings
- Plant and Machinery
- Furniture and Fittings
- Vehicles
- Leasehold Improvements
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.44.30 |
|
|
1 |
Rs.73.90 |
|
Euro |
1 |
Rs.65.57 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.