MIRA
INFORM REPORT
|
Report Date : |
24.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
DUNLOP INDIA LIMITED |
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Registered Office : |
“King’s Court”, Flat No.14 and 18, 46B, Chowringhee Road, Kolkata –
700071, West Bengal |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
19.08.1926 |
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Com. Reg. No.: |
008539 |
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Capital
Investment / Paid-up Capital : |
Rs.719.829 Millions |
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CIN No.: [Company
Identification No.] |
L25191WB1926PLC008539 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALD01170B |
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Legal Form : |
A Public Limited Liability Company. Company Shares are listed on the
stock exchange. |
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Line of Business : |
Manufacturer of tyres, tubes and other automobile components. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 45400900 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported as fair. Business is active. Payments are reported to be regular
and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 : |
“King’s Court”, Flat No.14 and 18, 46B, |
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E-Mail : |
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Corporate Office : |
‘Ruja Centre’, 46, |
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Tel. No.: |
91-33-22894747 |
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Fax No.: |
91-33-22893433 |
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E-Mail : |
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Website : |
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Factory : |
Tel No.: 91-33-2634 7660
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DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Pawan Kumar Ruia |
|
Designation : |
Chairman |
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Name : |
Mr. Ram Krishen Sadhu |
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Designation : |
Director |
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Name : |
Mr. Deepak Rudra |
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Designation : |
Director |
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Name : |
Mr. Mohan Lall Chauhan |
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Designation : |
Director |
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Name : |
Mr. Damodar Prasad Dani |
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Designation : |
Executive Director |
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Name : |
Mr. Virendra Kumar Agarwal |
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Designation : |
Director |
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Audit Committee : |
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Remuneration Committee : |
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KEY EXECUTIVES
|
Name : |
Mr. Raj Kumar Gupta |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. Damodar Prasad Dani |
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Designation : |
CEO |
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Name : |
Mr. Ashok Kumar Agarwal |
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Designation : |
Vice President – Legal and company secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
|
|
As a % of
(A+B+C) |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
20,109,137 |
27.94 |
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|
20,109,137 |
27.94 |
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|
|
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|
33,515,229 |
46.56 |
|
|
33,515,229 |
46.56 |
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Total
shareholding of Promoter and Promoter Group (A) |
53,624,366 |
74.50 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
306,925 |
0.43 |
|
|
32,428 |
0.05 |
|
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7,772,926 |
10.80 |
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|
22,576 |
0.03 |
|
|
8,134,855 |
11.30 |
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5,230,619 |
7.27 |
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4,778,972 |
6.64 |
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|
95,455 |
0.13 |
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118,608 |
0.16 |
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86,045 |
0.12 |
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|
32,563 |
0.05 |
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|
10,223,654 |
14.20 |
|
Total Public
shareholding (B) |
18,358,509 |
25.50 |
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Total (A)+(B) |
71,982,875 |
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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Total
(A)+(B)+(C) |
71,982,875 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of tyres, tubes and other automobile components. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2009)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Automotive Tyres • ' |
No. |
3500 |
3221 |
21 |
|
Automotive Tubes |
No. |
2927 |
3292 |
-- |
|
Cycle Tyres |
No. |
11224 |
-- |
-- |
|
Cycle Tubes |
No. |
11250 |
-- |
-- |
|
Cycle Rims |
No. |
2800 |
-- |
-- |
|
Fan & Vee Belts |
No. |
5511 |
-- |
-- |
|
Braided & Hydraulic |
Mtr. |
-- |
-- |
--- |
|
Brake Hoses |
Mtr. |
2000 |
2250 |
72 |
|
Textile & Sleelcord |
Mtr, |
--- |
-- |
-- |
|
Belting |
Mtr. |
253 |
244 |
-- |
|
Transmission Belting |
Kg |
915 |
1432 |
14 |
|
PVC Belting |
Kg. |
122 |
142 |
-- |
|
Metalastic |
Kg. |
560 |
700 |
-- |
|
Repair Material |
No. |
1823 |
1823 |
-- |
|
Dunloflex Hose |
No. |
195 |
244 |
-- |
GENERAL INFORMATION
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No. of Employee : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
K N Gutgutia and Company Chartered Accountant |
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Address : |
Kolkata |
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Subsidiaries : |
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Associates/Group Companies : |
· Acurate Traders Private Limited · Alpha Airways Private Limited · Anoush Traders Private Limited · Bharatiya Hotels Limited · Bloom Billions Sdn Bhd-Malaysia · BTR Sealing System UK Limited -UK · Chinsurah Chemicals Private Limited · Oil Rim and Wheel Corporation Limited-Mauritius · Dunlop Estates Private Limited · Dunlop Infrastructure Private Limited · Dunlop Investments Limited · Dunlop Properties Private Limited · Dunlop Rubber limited · Dunlop Tyres Limited · Dunlop UK limited UK · Falcon Tyres Limited · Falcon Tyres and Rubber Private Limited · Falcon Tyres Impex Private Limited · Global Finvest Limited UK · Globe Sugar Refinery Limited · Goldman Stock and Brokers Limited · Hirakud Industrial Works Limited · Hirakud Rolling Mill Limited · Hiland Traders Private Limited · India Tyre and Rubber Co (India) Limited · Indo-Wagon Engineering Limited · Jessop and Co. Limited 28) · Jessop Infotech Private Limited · Jessop Shipyard Limited · Jessop Estate Private Limited · Jessop Properties Private Limited · Jessop Infrastructure Private Limited · Jessop Wagons and Coaches Limited · Jacob and Jacob Polymer Private Limited · Kailash Enterprises (New Delhi) Private Limited · Kulu Properties and Finance Private Limited · Liluah Ceramics Private Limited · Manali Properties and Finance Private Limited · Malini Properties Private Limited · Metropole Hills Hotel Private Limited · Monotona Tyres Limited · Mudrika Commercials Private Limited · Pacific Apparels Limited · Pallavi Manufacturers Private Limited · Parnika Marketing Private Limited · Pawan Herbals Private Limited · Radient - Investment Limited-Maurititius · Raghav Industries Limited · Rapid Investment Limited - Maurititius · Ruia and Sons Private Limited · Ruia Agro. Products Private Limited · Ruia Hospital and Educational Research Institution · Ryham Private Limited - Singapore · Rose Investment Limited-Mauritius · Schlegel Automotive · Europe Limited-UK · Schlegel Automotive – India Private Limited · Securities Brokers India limited · Shalini Properties and Developers Private Limited · Spices Valley Estates Limited · SPR Resorts Limited · SPR Textiles Private Limited · Sanjose Polymers Private Limited · Subhra Marketing Limited · Suryamani Financing Company Limited · Walker Properties Private Limited · Wealth Sea Private Limited - Sinagpore · Wealth Overseas Private Limited -Sinagpore · Wealth Ocean Private Limited – Sinagpore · Wealth Sea Limited - Maurititius · Zipco Industrial Finance Private Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10070000 |
Preference Shares |
Rs.100/- each |
Rs.1007.000 Millions |
|
74300000 |
Equity Shares |
Rs.10/- each |
Rs.743.000 Millions |
|
|
Total |
|
Rs.1750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
61516308 |
Shares fully paid in cash
|
Rs.10/- each |
Rs.615.163 Millions |
|
199900 |
Shares alloted as fully paid up pursuant to a contract without payment being received in cash |
Rs.10/- each |
Rs.1.999 Millions |
|
10266667 |
Shares alloted as fully paid up by way of bonus shares by capitalisation of reserve and share premium |
Rs.10/- each |
Rs.102.667 Millions |
|
|
Total |
|
Rs.719.829
Millions |
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 |
719.829 |
719.829 |
719.829 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
10630.396 |
10684.663 |
12407.501 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
11350.225 |
11404.492 |
13127.330 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
457.932 |
120.583 |
128.613 |
|
|
2] Unsecured Loans |
1987.885 |
1599.521 |
1162.931 |
|
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TOTAL BORROWING |
2445.817 |
1720.104 |
1291.544 |
|
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DEFERRED TAX LIABILITIES |
296.631 |
302.056 |
353.451 |
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|
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TOTAL |
14092.673 |
13426.652 |
14772.325 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
11958.854 |
12352.487 |
12728.422 |
|
|
Capital work-in-progress |
813.723 |
354.694 |
10.406 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.905 |
0.905 |
1435.710 |
|
|
DEFERREX TAX ASSETS |
955.400 |
619.600 |
757.100 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
414.535
|
105.654
|
163.962 |
|
|
Sundry Debtors |
501.855
|
562.621
|
307.769 |
|
|
Cash & Bank Balances |
39.505
|
17.418
|
24.403 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
257.909
|
185.272
|
227.694 |
|
Total
Current Assets |
1213.804
|
870.965
|
723.828 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
237.271
|
134.105
|
184.394 |
|
|
Current Liabilities |
519.530
|
584.759
|
883.141 |
|
|
Provisions |
93.212
|
80.236
|
0.000 |
|
Total
Current Liabilities |
850.013
|
799.100
|
883.141 |
|
|
Net Current Assets |
363.791
|
71.865
|
(159.313) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
27.101 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
14092.673 |
13426.652 |
14772.325 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
1755.574 |
1773.796 |
1179.548 |
|
|
|
Other Income |
51.447 |
56.277 |
42.049 |
|
|
|
TOTAL (A) |
1807.021 |
1830.073 |
1221.597 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
1690.859 |
1568.243 |
1083.503 |
|
|
|
Personal Cost |
16.472 |
91.494 |
0.000 |
|
|
|
Administrative Expenses |
43.343 |
72.805 |
62.905 |
|
|
|
TOTAL (B) |
1750.674 |
1732.542 |
1146.408 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
56.347 |
97.531 |
75.189 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
28.147 |
70.190 |
2.775 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
28.200 |
27.341 |
72.414 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
14.072 |
13.594 |
11.170 |
|
|
|
|
|
|
|
|
|
Less |
Exceptional
Items |
0.000 |
(5.551) |
(7.027) |
|
|
|
Prior Period
Adjustment |
1.457 |
5.427 |
(5.668) |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
12.671 |
13.623 |
48.549 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.0000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
12.671 |
13.623 |
48.549 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
0.000 |
16.506 |
21.401 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
31.999 |
NA |
|
|
|
Finished Goods |
NA |
NA |
2.802 |
|
|
|
Capital Goods |
NA |
NA |
1.334 |
|
|
|
Others |
0.172 |
NA |
NA |
|
|
TOTAL IMPORTS |
0.172 |
31.999 |
4.136 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.18 |
0.19 |
0.69 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.70
|
0.74 |
3.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.72
|
0.76 |
4.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.09
|
0.10 |
0.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.31
|
0.24 |
0.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.42
|
1.08 |
0.81 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the period, the plants were opened and production is getting stabilized.
MANAGEMENT DISCUSSION
and ANALYSIS REPORT
Economic Review
Indian economy has
shown a lot of resilience to the recessionary conditions prevailing world wide
in the last year. It showed good GDP growth compared to the negative growth in
the other countries due to the timely stimulus packages given by the
Government. Driven by the estimated growth of 8.4% in the fourth quarter, the
economy is expected to grow at 7.1% in the last concluded 2009 -10 fiscal year.
GDP growth is estimated to be 9.2% during 2010-11. The better performance will
be mainly contributed by the growth of 4% in the agriculture, up from negative
growth of 0.2% last fiscal year and improvement in the service sector growth to
9.3% from 8.1% in 2009-10. However, there is a major concern on the inflation
which has gone upto 9.9% in March, 2010. While the food inflation shows scant
sign of abating, inflation in manufactured products (7.13%) and Fuel and Power
(12.71%) is now significantly higher than years ago. The contribution of the
non food inflation to overall inflation is now almost 50% up from almost zero a
few months ago. RBI is expected to tighten its monetary policies and Government
will attempt to increase food supply from buffer stocks and exit from the
excessive accommodative fiscal stance to bring down the inflation.
The investment
cycle is gaining strength and more money will be raised from the non banking
source and from the equity market during the current financial year. In view of
the trend observed in the latter part of 2009, Infrastructure spending will
continue to be the top priority of the Government. It is unlikely that the
banks will increase interest rate because of the excess liquidity in the
system. Expected GD growth of 9.2%
during 2010-11, lower inflation and higher investment in industry and infrastructure bodes well for the Tyre
Industry.
Overall Review,
Industry Structure and Developments
Tyre industry is
expected to attain turnover of Rs. 250000 millions during 2009-2010 against Rs.
225000 millions last year showing growth of 11%. Truck tyre constitutes around
65% of the total turnover. The truck tyre industry is estimated to show a
growth of 15% in volume during 2009-2010 compared to 2% deacceleration in
2008-09. The growth in demand has been mainly due to the pick up in economic activity,
the revival in demand of the commercial vehicle and additional tax benefit
given to the users of vehicles. Truck tyre industry volume are expected to be
14.700 millions tyres during 2009-2010 compared to 12.839 millions tyres during
2008-09. India's share in the global tyre industry has improved from 2.8% in
2005 to 5% in 2009 due to CAGR growth of 8.6% in India compared to negative
growth all over the globe. Though there has been an increase in the
radialization of truck
tyres from 2% in
2005 to 10% in the current year, Biased tyres continue to be in demand in the
local markets, the Asian Countries and .Middle East Countries. They expect
Truck Tyre Industry to grow to approx. 10% in the coming years in the Biased
tyre segment.
They are confident
that their customers will repose faith in their product and they shall be able
to regain reasonable market share n the short term. There has been slow down in
the infrastructure activities including mining activities and road
construction. The company is manufacturing Off the Road tyres for the above
usage. Revival in Demand has already started and is expected to pick up due to
the huge fund allocation on infrastructure developments and mining activities.
Dunlop has taken up development activities to manufacture the industrial tyres
for usage in the Backhoe loaders and dumpers, which has a huge demand. They
have given tyres for test trials and will be launching the same after
successful report in the next 3 months. They are making efforts to widen their
range in the OTR segments. This will allow the company to exploit the future
opportunity.
During the year,
the company has also taken up development activities in the truck tyres and is
proposing to launch truck tyre in the Economy range. The company is also positioning
its MAHAAN TYRE as a premier truck tyre in the industry. The company has
also done various development activities for cost cutting, better operating
efficiency, higher productivity and enriching its product mix.
The company has made
an application for obtaining the BIS Certification for all truck tyres
manufactured in the company. They are expecting to get the certification
shortly. This will give confidence to the customers that their plant products
are at par with the industry, inspite of aged Plants.
The company's
focus in the current year will remain in marketing the truck tyres in the
domestic replacement market and exports to the Asian Countries and Middle East.
Fixed Assets:
- Plant and Machinery
- Furniture and Fittings
- Motor Vehicles
Web Details:
THE JOURNEY OF DUNLOP
IN
Pneumatic
The beginning of Dunlop legacy occurred in 1888.
The first company founded by John Boyd Dunlop was Dunlop Tyres.
1896: Dunlop started marketing cycle tyres in
1926: Dunlop incorporated its business in
1928: Dunlop Rubber Co (I) Ltd was renamed Dunlop India Ltd (DIL).
1936: Dunlop’s Head Quarter in
1942: Toward the end of the 2nd World War Sahaganj started manufacturing tyres for aircrafts.
1946: Dunlop
1952: First Conveyer belt rolled out of the Dunlop Plant.
1956: Production of OTR tyres started.
1959: DIL set up its second plant in
1987: Steel Chord belt production started.
2005: The Ruia Group led by Mr Pawan Kumar Ruia took control of DIL. At this point DIL had liabilities in excess of Rs.6.500 Million.
2006: The DIL plant at Ambattur resumed production on 27 August, while Sahaganj opened its gates on 31 October.
2007: Dunlop came out of BIFR’s purview on 19 December.
.
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.28 |
|
|
1 |
Rs.73.30 |
|
Euro |
1 |
Rs.63.61 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
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 |
|
51 |
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 and 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.