MIRA
INFORM REPORT
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Report Date : |
14.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
ALFA LAVAL INDIA LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.12.2009 |
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Date of
Incorporation : |
15.12.1937 |
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Com. Reg. No.: |
002732 |
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Capital
Investment / Paid-up Capital : |
Rs.181.604
Millions |
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CIN No.: [Company Identification
No.] |
L29299PN1937PLC002732 |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturer of Process Vessels, Fermenters, Reactors. |
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No. of Employees
: |
1212 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (73) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 15099000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Alfa Laval Group, a multinational operations. It
is a well established and reputed company having excellent track. Financial
position is good. Fundamentals are strong and healthy. Trade relations are fair.
Payments are regular and as per commitments. The company can be considered good for any 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/ Head Office/ Factory 1 : |
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Tel. No.: |
91-20-27107100/ 66119100/ 27147721/ 7728/ 776321/ 797711 |
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Fax No.: |
91-20-27147711/ 779479 |
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E-Mail : |
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Website : |
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Factory 2 : |
Gat Nos.30 to 33 and 74 to 82, |
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Tel. No.: |
91-2113-282367 |
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Fax No.: |
91-2113-282301 |
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E-Mail : |
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Factory 3 : |
E-7/ E-8, M.I.D.C. Estate, Satara - 415 004, |
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Tel. No.: |
91-2162-244503 |
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Fax No.: |
91-2162-244268 |
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v
Plot
No. R-674, MIDC Rebale, TTC Industrial Area, Post Ghansoli, Navi Mumbai - 400
701, v
C-6,
Industrial Estate, S.No.39, |
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Sales and Service Network : |
Located at: v
v
v
v Chennai v
v
v
v
v
v
v Kolkata v Mumbai v
v
v Pune v
v
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DIRECTORS
As on 31.12.2009
|
Name : |
Mr. Giuseppe Falciola |
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Designation : |
Chairman |
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Name : |
Mr. Jose Hernanz |
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Designation : |
Managing Director |
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Name : |
Mr. Peter Leifland |
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Designation : |
Non Executive Director |
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Name : |
Mr. Kamaljit Singh |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Ashok .M Advani |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. Kewal Handa |
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Designation : |
Non Executive Independent Director |
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Name : |
Mr. Ravi Krishnamurthi |
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Designation : |
Non Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. V. Chandrasekhar |
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Designation : |
Company Secretary |
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Name : |
Crawford Bayley and Company |
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Designation : |
Legal Advisers |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
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16,120,281 |
88.77 |
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16,120,281 |
88.77 |
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Total
shareholding of Promoter and Promoter Group (A) |
16,120,281 |
88.77 |
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(B) Public
Shareholding |
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|
349 |
- |
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|
8,460 |
0.05 |
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|
215 |
- |
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|
9,024 |
0.05 |
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|
69,231 |
0.38 |
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1,855,259 |
10.22 |
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|
56,422 |
0.31 |
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|
50,266 |
0.28 |
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|
50,266 |
0.28 |
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|
2,031,178 |
11.18 |
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Total Public
shareholding (B) |
2,040,202 |
11.23 |
|
Total (A)+(B) |
18,160,483 |
100.00 |
|
(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) |
18,160,483 |
- |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Process Vessels, Fermenters, Reactors. |
GENERAL INFORMATION
|
No. of Employees |
1212 (Approximately) |
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|
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Bankers : |
v
Bank of v Standard Chartered Bank v
Bank of v Industrial Development Bank of India Limited v
The Hongkong and v Corporation Limited |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.R. Batliboi and Associates Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18160483 |
Equity Shares |
Rs.10/- each |
Rs.181.604
Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
181.600 |
181.600 |
181.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3593.070 |
2890.900 |
2520.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3774.670 |
3072.500 |
2701.900 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
127.900 |
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2] Unsecured Loans |
46.060 |
53.700 |
59.900 |
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TOTAL BORROWING |
46.060 |
53.700 |
187.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3820.730 |
3126.200 |
2889.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
977.760 |
994.800 |
674.300 |
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Capital work-in-progress |
23.580 |
54.900 |
157.100 |
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INVESTMENT |
1233.850 |
354.500 |
208.500 |
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DEFERREX TAX ASSETS |
32.890 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
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Inventories |
1759.940
|
2025.700 |
1817.100 |
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Sundry Debtors |
1766.140
|
1681.800 |
1715.800 |
|
|
Cash & Bank Balances |
395.050
|
237.100 |
236.800 |
|
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Other Current Assets |
284.180
|
115.300 |
0.200 |
|
|
Loans & Advances |
605.640
|
684.800 |
622.100 |
|
Total
Current Assets |
4810.950
|
4744.700 |
4392.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors & Other Current Liabilities |
2516.190
|
2497.800 |
2061.500 |
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Provisions |
742.110
|
524.900 |
480.700 |
|
Total
Current Liabilities |
3258.300
|
3022.700 |
2542.200 |
|
|
Net Current Assets |
1552.650
|
1722.000 |
1849.800 |
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|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3820.730 |
3126.200 |
2889.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.12.2009 |
31.12.2008 |
31.12.2007 |
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SALES |
|
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Income |
8922.300 |
8019.400 |
6955.000 |
|
|
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Other Income |
(85.100) |
(101.100) |
105.400 |
|
|
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TOTAL (A) |
8837.200 |
7918.300 |
7060.400 |
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|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material |
5068.100 |
4991.900 |
4281.300 |
|
|
|
Power and fuel cost |
47.900 |
48.600 |
44.600 |
|
|
|
Employee cost |
672.300 |
678.900 |
539.900 |
|
|
|
Other manufacturing expenses |
374.900 |
421.600 |
434.800 |
|
|
|
Selling and administration expenses |
348.400 |
294.600 |
298.400 |
|
|
|
Miscellaneous expenses |
194.400 |
257.300 |
132.200 |
|
|
|
Stock adjustment |
11.600 |
(296.600) |
(165.200) |
|
|
|
Preoperative expenses capitalized |
(4.000) |
(2.100) |
(4.400) |
|
|
|
TOTAL (B) |
6713.600 |
6394.200 |
5561.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2123.600 |
1524.100 |
1498.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
82.700 |
75.000 |
48.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2040.900 |
1449.100 |
1450.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
129.600 |
99.200 |
75.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1911.300 |
1349.900 |
1374.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
677.900 |
448.200 |
459.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1233.400 |
901.700 |
914.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
67.92 |
49.65 |
50.38 |
|
QUARTERLY RESULTS
|
PARTICULARS |
31.03.2010 |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
5th
Quarter |
|
Net Sales |
1896.240 |
1934.610 |
2148.340 |
2381.150 |
2923.190 |
|
Total Expenditure |
1546.440 |
1636.330 |
1598.240 |
2020.820 |
2452.420 |
|
PBIDT (Excl OI) |
349.800 |
298.280 |
550.1000 |
360.330 |
470.770 |
|
Other Income |
47.920 |
62.670 |
63.650 |
57.740 |
122.630 |
|
Operating Profit |
397.720 |
360.950 |
613.750 |
418.070 |
593.400 |
|
Interest |
0.200 |
0.710 |
4.240 |
0.150 |
0.240 |
|
PBDT |
397.520 |
360.240 |
609.510 |
417.920 |
593.160 |
|
Depreciation |
31.780 |
31.430 |
31.940 |
31.950 |
32.570 |
|
Profit Before Tax |
365.740 |
328.810 |
577.570 |
385.970 |
560.590 |
|
Tax |
117.200 |
109.900 |
206.830 |
142.950 |
182.660 |
|
Profit After Tax |
248.540 |
218.910 |
370.740 |
243.020 |
377.930 |
|
Net Profit |
248.540 |
218.910 |
370.740 |
243.020 |
377.930 |
KEY RATIOS
|
PARTICULARS |
|
31.12.2009 |
31.12.2008 |
31.12.2007 |
|
PAT / Total Income |
(%) |
13.96
|
11.39 |
12.96 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.42
|
16.83 |
19.77 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
32.45
|
23.52 |
27.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.44 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.88
|
1.00 |
1.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.48
|
1.57 |
1.73 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS AND FINANCIAL
RESULTS:
The sound order backlog at the commencement of the year provided a
momentum but with the uncertain market environment continuing to haunt the
order intake, to begin with, had a wobble before recovering in the later stages
of the year with large value orders to record a positive growth. While the
Equipment Division and Group Manufacturing Unit operations witnessed a
downturn, the Process Technology Division continued its surge to make up for
the shortfall to push the order intake for the year to Rs.9799.410 millions
As against the previous years order intake of Rs.9499.850 millions. This
positive development, though marginal, reflected on the sales turnover for the
year which increased to Rs.8875.730 millions (2008:Rs.7,993.06 M) registering a
double digit growth year on year basis. With the other income being constant,
the total income for the year was at Rs.8990.980 millions (2008:Rs.8108.870
millions). Considering the uncertain
market environment, the Company did engage itself in controlling the costs
besides enhancing the production efficiencies as a part of its profit
protection plan. While these steps
definitely were significant to the Company’s journey on the path of growing
profitably, some factors, recurrence of which cannot always be expected, were
particularly instrumental to the noteworthy growth in the profitability.
PROSPECTS:
The current order books are at Rs.6548.000 millions continues to be
healthy. The recovery in the industrial sector is evident but uncertainty over shadows
the pace of recovery in view of the factors leading to inflation and probable
rise in interest rates, which could briefly derail the reviving economy. On the
positive side, business optimism expressed by the industry is indicative of
larger investments thereby generating greater business opportunities for the
Company to sustain a higher growth in order intake. Again, the resounding order
backlog at the beginning of the year would contribute, in a big way, to the
sales revenues for the current year. However, since a majority of the Company’s
business is Projects intense, the timing of the receipt of fresh orders
executable during the year together with the scheduled implementation of the
orders on hand would assume much significance for the Company to meet the
targets set for 2010. Overall, the
performance of the Company during the current year is expected to move along as
the revival of the economy gathers pace barring unforeseen contingencies.
Over the past few years, the Company has built up capacity additions
involving substantial capital expenditure. Consequently, in the last two years,
capital expenditure was concentrated on bridging the gaps for enhancing the
effectiveness of enlarged production capacity besides development of
infrastructure to achieve optimum productivity. During the current year, a
sizeable capital expenditure is proposed of which major portions are earmarked
for the air handling unit factory and development of infrastructure to boost
the productivity.
WEBSITE DETAILS:
HISTORY:
In 2008, Alfa Laval celebrated its 125th anniversary.
With the help of some of the most important milestones, you can follow Alfa
Laval’s growth towards the large international group it has become today.
1845 Alfa Laval’s founder, Gustaf de Laval, is born in the
1877 After reading an article in the German periodical, Milchzeitung,
Gustaf de Laval starts to work on the development of a centrifugal separator.
1879 The first continuous separator is demonstrated in
1883 Gustaf de Laval and his partner, Oscar Lamm, establish the company AB Separator. The De Laval
Cream Separator Co. is formed in the
1888 The first pumps are
sold. They are used to pump skimmed milk from the centrifugal separator.
1889 The German inventor, Clemens von Bechtolsheim’s patent for conical
metal discs is acquired. By using these so called Alfa-discs, the separator’s capacity is increased many times over.
1890 Alfa
1898 The first yeast separator
is installed in a customer’s production line.
1910 Gustaf de Laval begins to work on the design of a milking machine.
1913 Gustaf de Laval dies
at the age of 67. During his lifetime, he acquires 92 Swedish patents and
establishes 37 companies. His memorial is engraved with the inscription: “The
Man of High Speed”.
1916 Alfa Laval sells the first separator for oil purification.
1919 – 1936 Subsidiaries
are formed in
1933 The world’s first hermetic
separator is introduced by Alfa Laval at an exhibition in
1938 Alfa-Laval introduces its first
heat exchanger. Pontus Hytte, son of the famous Swedish painter Carl
Larsson, moves the development and production of heat exchangers to
1951 Sales of the “self-cleaning”
centrifugal separator and decanter centrifuges begins.
1958 The first automatic CIP
(Cleaning-In-Place) system is installed in a Swedish dairy.
1961 The first sterilization
processing system is installed in
1962 AB Rosenblad’s patents
are acquired, bringing the spiral heat exchanger as well as a series of
industrial plate designs into the possession of AB Separator.
1963 The company changes its name from AB Separator to
1965 The first large computerized
control system is delivered to a dairy in
1971 Alfa-Laval acquires a majority interest in the Danish company
Lavrids Knudsens Maskinfabrik (LKM), marking Alfa-Laval’s establishment in the fluid handling business.
1976 This is a year of substantial
investments. In
1981 Alfa
1991 Tetra Pak, which
provides packaging solutions to the food industry worldwide, acquires Alfa Laval. Tetra Pak is
owned by the Rausing family.
1993 Alfa Laval becomes an independent
industrial group within the Tetra Laval Group. Liquid food processing
activities are integrated with Tetra Pak’s business. Farm equipment and systems
are reorganized into a new industrial group, Alfa Laval Agri.
1996 A new factory for
heat exchangers, fluid handling equipment and modules for the food and beverage
industry was opened in
1999 Alfa Laval launches an innovative oil treatment system for ships as well as the most advanced
automated control of valves in the industry.
2000 The investment company Industri
Kapital buys the Alfa Laval Group. Industri Kapital’s intention is to
further develop Alfa Laval’s global leadership within its key technologies
Separation, Heat Transfer and Fluid Handling, with the intention of listing the
shares publicly within a five-year period.
2001 Major restructuring of
Alfa Laval into market-oriented divisions and segments with distinct customer
focus.
2002 Alfa Laval returns to the Stockholm
Stock Exchange. The main strategy is to create profitable growth, both
organically and through acquisitions, which in 2002 include two Danish
companies; Danish Separation Systems A/S (DSS), a specialists in membrane
filtration for the pharmaceutical and food industries, and the Toftejorg Group,
the world’s leading supplier of advanced tank cleaning systems.
2003 AlfaNova, a major
breakthrough in heat transfer, is launched. AlfaNova is a totally new type of
plate heat exchanger, based on Alfa Laval’s patented method of brazing the
plates, called AlfaFusion. AlfaNova’s extraordinary strengths in regard to
temperatures, pressures and fatigue resistance open new and interesting
possibilities in existing and future applications.
2004 Lars Renström is appointed
new CEO and President of the Alfa Laval Group. He has a solid and successful
record within Swedish industrial companies. Alfa Laval and Haldex, a
multinational supplier of vehicle technology, form a jointly owned company,
2005 Packinox
2006 A very high demand in most of Alfa Laval’s end markets – primarily
the energy and energy-related sectors – contributes to the increase in order
intake by 30 per cent from 2005.
Tetra Pak’s fruit concentrate unit is acquired, which means that Alfa Laval
will penetrate this market through its own sales companies.
2007 Alfa Laval takes important steps towards becoming a world-leading
provider of air heat exchangers by acquiring Netherlands-based Helpman and Finnish Fincoil, both leading European suppliers of air heat
exchangers. Helpman's products are used for commerical refrigeration, for
example in the sensitive logistic chain for food. Fincoil is
particularly strong within industrial power cooling.
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.44.91 |
|
|
1 |
Rs.73.05 |
|
Euro |
1 |
Rs.64.03 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
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.