MIRA
INFORM REPORT
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Report Date : |
24.05.2011 |
Note:
Correct name of the company is “HICAL
TECHNOLOGIES PRIVATE LIMITED”.
IDENTIFICATION DETAILS
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Name : |
HICAL TECHNOLOGIES PRIVATE LIMITED (w.e.f. 25.07.2006) |
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Formerly Known
As : |
HICAL MAGNETICS PRIVATE LIMITED |
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Registered
Office : |
Survey No.46, 47 (Part), Phase – II, Electronic City, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of Incorporation
: |
02.04.1990 |
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Com. Reg. No.: |
08-010854 |
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Capital
Investment / Paid-up Capital : |
Rs.99.430 Millions |
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CIN No.: [Company Identification
No.] |
U31909KA1990PTC010854 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
BLRH01817E |
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PAN No.: [Permanent Account No.] |
AAACH3639K |
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Legal Form : |
Private Limited Liability Company |
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Line of Business
: |
Subject is engaged
in manufacture of Electronic assemblies and hence falls into single segment
viz., Electronic Manufacturing Services (EMS). |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 654000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
some losses being incurred by the company in current year i.e. 2009-10. However,
trade relations are reported as fair. Business is active. Payments are
reported to be slow but correct. The company can be considered for business dealings with some caution.
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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/ Corporate Office : |
Survey No.46, 47 (Part), Phase – II, Electronic City, |
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Tel. No.: |
91-80-66122504/ 66189600 |
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Mobile No.: |
91-9845694624 (Mr. Mahesh B.P.) |
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Fax No.: |
91-80-28520558/ 448 |
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E-Mail : |
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Website : |
DIRECTORS
As on 14.09.2010
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Name : |
Mr. Shashikiran Siddalingamurthy Mullur |
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Designation : |
Managing Director |
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Address : |
No.131, I Block, 3rd |
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Date of Birth/Age : |
01.06.1959 |
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Date of Appointment : |
02.04.1990 |
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DIN No.: |
00219672 |
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Other Directorship : |
Hical Technologies Private Limited U31909KA1989PTC010584 |
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Name : |
Mr. Sujaya Shashikiran |
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Designation : |
Director |
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Address : |
No.131, I Block, 3rd |
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Date of Birth/Age : |
01.06.1961 |
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Date of Appointment : |
02.04.1990 |
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DIN No.: |
00219686 |
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Name : |
Mr. Venkatesh Bakthavatchalan Vallam |
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Designation : |
Director |
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Address : |
Vallam, 17, 2nd |
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Date of Birth/Age : |
01.02.1959 |
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Date of Appointment : |
04.08.1990 |
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DIN No.: |
00219696 |
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Name : |
Mr. Bharatesh Siddalingamurthy Mullur |
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Designation : |
Director |
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Address : |
122/1, |
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Date of Birth/Age : |
26.08.1962 |
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Date of Appointment : |
15.04.1991 |
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Date of Ceasing : |
14.09.2010 |
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DIN No.: |
00203146 |
KEY EXECUTIVES
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Name : |
Mr. Mahesh B.P. |
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Designation : |
Senior Manager (Sales and Order Processing) |
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Name : |
Manjunath N.P. |
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Designation : |
Senior General Manager (Business Development) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 14.09.2010
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Names of Shareholders |
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No. of Shares |
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Shashikiran Mullur |
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4516785 |
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Sujaya Shashikiran |
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2471553 |
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Venkatesh V.B. |
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1930887 |
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Bharatesh M.S. |
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1023750 |
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Total
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9942975 |
As on 14.09.2010
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Equity Share Breakup |
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Percentage of Holding |
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Category |
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Directors
or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is
engaged in manufacture of Electronic assemblies and hence falls into single segment
viz., Electronic Manufacturing Services (EMS). |
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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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Transformers |
Nos. |
NA |
4,800,000 |
2,810,232 |
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Chargers |
Nos. |
NA |
7,476,480 |
1,376,105 |
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Pulser Board Assembly |
Nos. |
NA |
36,000 |
4,960 |
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Ferrite Assembly |
Nos. |
NA |
600,000 |
77,091 |
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Surge Counters |
Nos. |
NA |
36,000 |
19,458 |
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Uni Splitter |
Nos. |
NA |
-- |
-- |
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Cameras |
Nos. |
NA |
450,000 |
289,281 |
Notes;
Licensed capacity for
individual products is not applicable in view of the Company's products having
been delicensed as per the licensing policy of the Government of India.
Installed capacity is as certified by the Management and accepted by
auditors, being a technical matter.
GENERAL INFORMATION
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Bankers : |
State Bank of India, Specialized Commercial Branch, Krishi Bhavan,
First Floor, Hudson Circle, Bangalore – 560 001, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Rajagopal and Badrinarayanan Chartered Accountants |
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Address : |
No.25, Padmashree Mansions, II Floor, 2nd Cross, Sampige Road,
Malleshwaram, Bangalore – 560 003, Karnataka, India |
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Associates/Subsidiaries : |
Lemon Tree Media Private Limited CIN No.: U74999KA2007PTC043381 Yagachi
Vidyunmaan Private Limited (formerly Hical Engineering Private Limited) |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9942975 |
Equity Shares |
Rs.10/- each |
Rs.99.430 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
99.430 |
99.430 |
99.430 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
64.011 |
76.306 |
75.799 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
163.441 |
175.736 |
175.229 |
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LOAN FUNDS |
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1] Secured Loans |
47.290 |
46.326 |
63.194 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
47.290 |
46.326 |
63.194 |
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DEFERRED TAX LIABILITIES |
0.001 |
0.001 |
0.001 |
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TOTAL |
210.732 |
222.063 |
238.424 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
126.899 |
140.604 |
161.623 |
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Capital work-in-progress |
4.108 |
0.837 |
0.000 |
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INVESTMENT |
8.400 |
0.900 |
8.401 |
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DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
54.234
|
52.267
|
68.064 |
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Sundry Debtors |
59.921
|
79.827
|
102.594 |
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Cash & Bank Balances |
8.310
|
7.156
|
0.402 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
28.193
|
24.602
|
23.004 |
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Total
Current Assets |
150.658
|
163.852
|
194.064 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
47.793
|
51.138 |
54.522 |
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Other Current Liabilities |
22.198
|
14.803
|
19.127 |
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Provisions |
9.342
|
18.189
|
52.015 |
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Total
Current Liabilities |
79.333
|
84.130
|
125.664 |
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Net Current Assets |
71.322
|
79.722
|
68.400 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
210.732 |
222.063 |
238.424 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
329.890 |
443.900 |
550.510 |
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|
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Other Income |
5.670 |
39.250 |
65.730 |
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TOTAL (A) |
335.560 |
483.150 |
616.240 |
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Less |
EXPENSES |
|
|
|
|
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|
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|
324.740 |
439.930 |
519.490 |
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Administrative Expenses |
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Advertising Expenses |
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TOTAL (B) |
324.740 |
439.930 |
519.490 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
10.820 |
43.220 |
96.750 |
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Less |
FINANCIAL
EXPENSES (D) |
6.430 |
10.380 |
12.310 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4.390 |
32.840 |
84.440 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.650 |
21.650 |
23.830 |
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PROFIT BEFORE
TAX (E-F) (G) |
(12.260) |
11.190 |
60.610 |
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Less |
TAX (H) |
0.030 |
3.700 |
6.560 |
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PROFIT AFTER TAX
(G-H) (I) |
(12.290) |
7.490 |
54.050 |
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
-- |
-- |
6.100 |
|
|
|
Interim and Final Dividend |
-- |
5.970 |
35.790 |
|
|
|
Dividend Distribution Tax |
-- |
1.010 |
6.080 |
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|
BALANCE CARRIED TO
THE B/S |
(12.290) |
0.510 |
6.080 |
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EARNINGS IN
FOREIGN CURRENCY |
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|
FOB Value of Exports |
258.346 |
344.240 |
419.168 |
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TOTAL EARNINGS |
258.346 |
344.240 |
419.168 |
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IMPORTS |
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|
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|
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Capital Goods |
1.153 |
1.780 |
3.048 |
|
|
|
Raw Materials |
93.568 |
133.831 |
227.543 |
|
|
|
Stores, Spares
and production consumables |
7.905 |
13.627 |
5.525 |
|
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TOTAL IMPORTS |
102.626 |
149.238 |
236.116 |
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|
|
Earnings Per
Share (Rs.) |
(1.24) |
0.75 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(3.66)
|
1.55 |
8.77 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
(3.72)
|
2.52 |
11.01 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.42)
|
3.68 |
17.04 |
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
0.06 |
0.35 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
0.74 |
1.08 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.90
|
1.95 |
1.54 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT DISCUSSION AND ANALYSIS
a) Sales
Gross income for
the year ended March 31, 2010 decreased from Rs.443.900 millions for the year
ended March 31, 2009 to Rs.329.890 millions, i.e., by Rs.114.010 millions in value
terms. The net exports (net of freight) is Rs.275.680 millions as against
Rs.363.260 millions in the previous year, a decrease Rs.87.580 millions being a
decrease by 24.11%. While domestic sales, net of excise duty, is Rs.53.230
millions as against Rs.77.730 millions in the previous year a decrease by
Rs.24.500 millions over previous year. In percentage terms the decrease is
31.52%. A steep fall in overall sales (excluding scrap sales) by 25.42% has
pulled down the top line of the Company by 25.68%.
b) Cost of Goods Sold
Cost of Raw
materials, packing cases, job works, and other indirect materials was
Rs.309.670 millions at 69.76% of net sales of Rs.443.900 millions in the
previous year as against a cost of Rs.220.380 millions, i.e., 66.80% of net sales
of Rs.329.890 millions in the current year. However, manufacturing and other
expenses was at 12% of net sales in previous year as against 12.39% of net
sales in current year, being a marginal increase by 0.39% as a percentage of
net sales. Whereas, there is a significant reduction in exchange loss at
Rs.3.390 millions for the year as against exchange loss of Rs.13.490 millions
during previous year. Employee costs were at 17.34% of net sales in previous
year as against 19.25% of net sales during current year. Although employee
costs have been reduced by 13.470 millions in value terms compared to previous
year, employee cost as percentage of net sales has gone up since sales value
has come down by 25.68%.
c) Selling Expenses
Selling expenses
for the year was at Rs.5.890 millions as compared to Rs.2.790 millions during
the previous year, accounting for increase in selling expenses by Rs.3.100
millions. This is mainly due to debts written off as bad of Rs.3.240 millions,
marginal increase in advertisement expenses, participation in trade fairs and
exhibitions to promote Company’s products, carriage outwards and significant
reduction in commission on export sales. However, selling expenses was at 1.79%
of net sales as against 0.63% of net sales in the previous year.
d) Interest and finance charges
Interest and
finance charges have been decreased by Rs.3.950 millions over previous year.
This is mainly due to reduction in interest cost by 3.020 millions both on term
loan and packing credit. This has been possible due to timely servicing of debt
and better management of working capital facilities. The FCNRB loan was fully
repaid in January 2010 and the Rupee Term Loan was also fully repaid in March
2010. Also, there has been a decrease in bank charges by 0.850 million. Due to
above reduction, interest and finance expenses is at 1.95% of net sales as
against 2.34% of net sales in the previous year.
e) Financial Performance
During the year,
the Company has achieved an operating profit (PBDIT) of Rs.5.150 millions as
against Rs.3.970 millions in the previous year. The major reason for this being
fall in cost of goods sold from 69.76% to 66.80% and also the fall in foreign
exchange losses by Rs.10.110 millions for the year being a decrease of 74.94%
year-on-year. Although there has been a significant decrease in interest and
finance cost from 2.34% to 1.95%, there has been a loss before tax of Rs.12.250
millions as against Profit of Rs.11.190 millions in the previous year. This is
mainly due to steep fall in non-operating income from 39.250 millions to 5.670
millions, a decrease by 85.55%. The Loss after tax was Rs.12.290 millions as
against Profit of Rs.7.490 millions in the previous year.
The Company initiated
several cost reduction measures which have helped in containing the costs
despite rise in prices of raw materials. The Company is continuing the process
of cost reduction to achieve further reduction in costs.
Business Outlook
The company has begun
to establish itself clearly as a manufacturer of high-reliability components,
and as a provider of Electronics Manufacturing Services for high reliability
applications. Two major corporations are developing their parts for aerospace
and defense applications in the company and another three are in serious
discussions for the same purpose.
The number of
approvals have hence increased, but the volumes have not, which will take some
more months, and the volumes for approved parts will begin to build up from
2011. However, the company will certainly benefit over the long term from the
steady flow of approvals in the high-reliability segment.
As further proof
of acceptance by the majors, the United Technologies Corporation of the
When awarded the
certification, the company stands to gain from the "feed the gold"
policy of the corporation and, besides, the aerospace industry knows the value
of a winner of Supplier Gold, and will follow United Technologies to the
company.
So the long term
appears very promising for the company, but in the short term it must face the
challenge of lower sales accruing out of the planned abandonment of high-volume
commodity-businesses which was done over the last two years.
Subsidiaries
During the end of
the previous year, the subsidiary Lemon Tree Media Private Limited could not
generate any revenue due to lack of viewership during the year. However, the
management of subsidiary is hopeful of generating revenue during 2010-11.
FORM 8:
|
Corporate
identity number of the company |
U31909KA1990PTC010854 |
|
Name of the
company |
HICAL TECHNOLOGIES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in |
Survey No.46, 47 (Part), Phase – II, Electronic City, E-Mail: vishwanath.bhandary@hical.com |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90192091 |
|
Type of charge |
Immovable
Property Book Debts Movable Property Others (Stocks,
Machineries, etc) |
|
Particular of
charge holder |
State Bank of India, Specialized Commercial Branch, Krishi Bhavan,
First Floor, Hudson Circle, Bangalore – 560 001, Karnataka, India E-Mail: jsurya@vsnl.com |
|
Nature of
description of the instrument creating or modifying the charge |
Supplemental
Agreement of hypothecation of goods and assets for increase in the overall limit
(C.2-A) Letter recording the
grant of individual limits within the overall limit (C.5) Memorandum of
deposit for creation of further charge for term loan (C.10) Form - B (All the
documents relate to the same modification) |
|
Date of
instrument Creating the charge |
03.11.2010 |
|
Amount secured by
the charge |
Rs.176.900
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Terms of
Repayment: CC : Repayable on
demand TL (Rs.10.000 millions):
Repayable in 9 quarters of Rs.0.600 millions Repayable in 2
quarters of Rs.1.500 millions Repayable in 1
quarters of Rs.1.600 millions Margin: Raw
materials : 15% Finished
goods : 15% Stock in process
: 15% Receivables : 25% TL : 25.54% BG : 10% Extent and
Operation of the charge: Charge extends by
way of extension of EM on the assets offered as collateral security
throughout the period of sanctioned limits. Others: Total limits sanctioned
are as under : 1) Yagachi
Vidyumaan Private Limited : Rs.66.200 millions 2) Hical
Technologies Private Limited : Rs.110.700 millions Total :
Rs.176.900 millions |
|
Short particulars
of the property charged |
Hypothecation of
the whole of the present and future stocks of raw materials, stock in
process, finished goods, book debts, receivables, machineries and other
current assets belonging to the company towards various credit facilities
sanctioned to the company and to Yagachi Vidyumaan Private Limited EM on company's
immovable properties situated at Sy. No. 46 and 47 (Part), Phase II,
Electronic City, Hosur Road, Bangalore towards various credit facilities
sanctioned to the company and to Yagachi Vidyumaan Private Limited |
|
Date of latest modification
prior to the present modification |
12.05.2010 |
|
Particulars of
the present modification |
Total limits
enhanced to Rs.176.900 millions. EM on company's immovable properties
situated at Sy. No. 46 and 47 (Part), Phase II, Electronic City, Hosur Road,
Bangalore towards various credit facilities sanctioned to the company and to
Yagachi Vidyumaan Private Limited. All
other terms, conditions and existing securities to continue. |
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN RESPECT OF:
|
Particulars |
31.03.2010 (Rs. in millions) |
|
a) Letters of credit opened and not yet closed |
3.033 |
|
|
|
|
b) Bank Guarantees executed |
Nil |
|
|
|
|
c) Income tax disputes pending before the authorities@ |
5.283 |
|
|
|
|
d) Claims against the Company not acknowledged as debts |
Nil |
@The Company is
contesting the demand and the Management having consulted its tax advisers, believes
that its position is likely to be upheld by the appellate authorities.
Management believes that the ultimate outcome of this Proceeding will not have
a material adverse effect on the Company’s financial position and results of
operations
FIXED ASSETS:
·
Land (Freehold)
·
Buildings
·
Plant and Machinery
·
Plant and Machinery (R and D)
·
Computers and DPE
·
Computer (R and D)
·
Office Equipments
·
Lab Equipments
·
Furniture and Fixtures
·
Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.28 |
|
|
1 |
Rs.73.30 |
|
Euro |
1 |
Rs.63.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
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.