MIRA
INFORM REPORT
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Report Date : |
14.10.2011 |
IDENTIFICATION DETAILS
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Name : |
KGN ENTERPRISES LIMITED |
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Formerly Known
As : |
KGN INFO – TECH LIMITED AAVAS BUILDERS PRIVATE LIMITED |
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Registered
Office : |
23, Vaswani Mansion, 4th Floor, Dinshaw Vaccha Road,
Opposite K. C. College, Churchgate, Mumbai – 400020, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
15.06.1994 |
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Com. Reg. No.: |
11-204203 |
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Capital
Investment / Paid-up Capital : |
Rs.204.700 Millions |
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CIN No.: [Company Identification
No.] |
L45201MH1994PLC204203 |
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IEC No.: |
0807017388 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMK04426C |
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PAN No.: [Permanent Account No.] |
AACCR1335E |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Exporter of Castor Oil Derivatives, Castor Cakes and
Castor seeds. |
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No. of Employees
: |
150 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (29) |
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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 1500000 |
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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. Profitability
of the company appears to be low. Trade relations are reported as fair.
Business is active. Payments are reported to slow but correct. The company can be considered for business dealings with some caution. |
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 – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
INFORMATION PARTED BY
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Name : |
Mr. I G Memon |
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Designation : |
Marketing Department |
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Contact No.: |
91-9825023899 |
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Date : |
29.10.2011 |
LOCATIONS
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Registered Office : |
23, Vaswani Mansion, 4th Floor, Dinshaw Vaccha Road,
Opposite K. C. College, Churchgate, Mumbai – 400020, Maharashtra, India |
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Tel. No.: |
91-22-66841100/01/02/03 |
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Mobile No.: |
91-9825023899 (Mr. I. G. Memon) |
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Fax No.: |
91-22-66541111/21 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office/ Factory : |
Block No. 315, 361/1, 318, Kheda Dholka Highway, Near Gandhipura,
Village Hariyala, Kheda, Gujarat, India |
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Tel. No.: |
91-2694-224460 |
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Fax No.: |
91-2694-224461 |
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E-Mail : |
Owned |
DIRECTORS
As on 27.09.2010
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Name : |
Mr. Babulal Jethalal Hirani |
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Designation : |
Chairman and Managing Director (w.e.f. 24.12.2008) |
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Address : |
302, Vraj Apartment, Naranpura, Ahmedabad – 380013, Gujarat, India |
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Date of Birth/Age : |
23.11.1945 |
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Date of Appointment : |
24.12.2008 |
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DIN No.: |
02362983 |
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Other Directorship :
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Name : |
Mr. Aftab Ahmed Isamiya Kadri |
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Designation : |
Director |
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Address : |
105, Silver Peles, Khanpur, Darvajasame, Ahmedabad – 380001, Gujarat,
India |
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Date of Birth/Age : |
05.09.1943 |
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Date of Appointment : |
29.01.2007 |
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DIN No.: |
01738367 |
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Other Directorship :
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Name : |
Mr. Ismail Memon |
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Designation : |
Director |
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Address : |
3, Adinath Apartment, Near Chitracode Society, Rajnagar Paldi, Ahmedabad
– 380007, Gujarat, India |
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Date of Birth/Age : |
11.03.1945 |
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Date of Appointment : |
31.07.2010 |
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DIN No.: |
00209507 |
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Other Directorship :
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KEY EXECUTIVES
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Name : |
Mr. I G Memon |
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Designation : |
Marketing Department |
SHAREHOLDING PATTERN
Equity Share Break up (Percentage of Total Equity)
As on 27.09.2010
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Category |
Percentage |
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Bodies corporate |
48.60 |
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Directors or relatives of Directors |
4.90 |
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Other top fifty shareholders |
0.60 |
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Others |
45.90 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Castor Oil Derivatives, Castor Cakes and
Castor seeds. |
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Products : |
Trading |
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Exports : |
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Products : |
·
Castor Oil Derivates ·
Castor Cakes ·
Castor Seeds |
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Countries : |
·
European Countries ·
USA ·
China ·
Gulf Countries ·
South Africa |
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Terms : |
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Selling : |
L/C, Cash/ Credit |
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Purchasing : |
Cash/ Credit |
GENERAL INFORMATION
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Customers : |
·
End Users |
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No. of Employees : |
150 (Approximately) |
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Bankers : |
·
Industrial Development Bank of India, IDBI Tower,
WTC Complex, Colaba, Mumbai – 400005, Maharashtra, India ·
State Bank of India, Navarangpura, Ahmedabad,
Gujarat, India ·
HDFC Bank Limited, Paldi, Ahmedabad, Gujarat,
India ·
Axis Bank Limited, Law Garden, Ahmedabad,
Gujarat, India ·
Bank of Baroda, Ashram Road, Ahmedabad, Gujarat,
India ·
Oriental Bank of Commerce, Ashram Road,
Ahmedabad, Gujarat, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kiritkumar and Company Chartered Accountants |
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Address : |
4, Nina Society, Near Shreyas Railway Crossing, Ambawadi, Ahmedabad,
Gujarat, India |
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PAN.: |
AAMPB2998N |
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Sister Concerncs : |
·
KGN Biotech Limited ·
KGN Green Limited ·
KGN Proteins Limited |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21000000 |
Equity Shares |
Rs.10/- each |
Rs.210.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20470000 |
Equity Shares |
Rs.10/- each |
Rs.204.700
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 |
240.700 |
204.700 |
204.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
171.826 |
112.619 |
103.152 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
376.526 |
317.319 |
307.852 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
150.000 |
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2] Unsecured Loans |
219.297 |
0.000 |
0.000 |
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TOTAL BORROWING |
219.297 |
0.000 |
150.000 |
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DEFERRED TAX LIABILITIES |
3.218 |
5.566 |
0.000 |
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TOTAL |
599.041 |
322.885 |
457.852 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
474.286 |
30.310 |
24.134 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.579 |
0.564 |
0.564 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
18.082
|
0.000 |
0.000 |
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Sundry Debtors |
0.000
|
423.645 |
251.324 |
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Cash & Bank Balances |
83.855
|
75.891 |
36.410 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
32.065
|
310.717 |
156.349 |
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Total
Current Assets |
134.002
|
810.253 |
444.083 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
3.102
|
516.548 |
0.284 |
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Other Current Liabilities |
0.000
|
0.000 |
0.000 |
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Provisions |
6.724
|
1.694 |
10.645 |
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Total
Current Liabilities |
9.826
|
518.242 |
10.929 |
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Net Current Assets |
124.176
|
292.011 |
433.154 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
599.041 |
322.885 |
457.852 |
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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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Income |
1732.472 |
511.168 |
2433.649 |
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Other Income |
17.648 |
0.024 |
0.2074 |
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TOTAL (A) |
1750.120 |
511.192 |
2433.856 |
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Less |
EXPENSES |
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|
|
|
|
|
Cost of Goods Sold |
1667.879 |
496.973 |
2409.109 |
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|
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Employee Emoluments |
4.714 |
0.780 |
0.000 |
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|
|
Direct Expenses |
5.118 |
0.100 |
0.000 |
|
|
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Administrative and Selling Expenses |
21.788 |
0.502 |
2.628 |
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TOTAL (B) |
1699.499 |
498.355 |
2411.737 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
50.621 |
12.837 |
22.119 |
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Less |
FINANCIAL
EXPENSES (D) |
0.484 |
0.001 |
6.452 |
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
50.137 |
12.836 |
15.667 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
22.579 |
3.308 |
3.306 |
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PROFIT BEFORE
TAX (E-F) (G) |
27.558 |
9.528 |
12.361 |
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|
|
|
|
|
|
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Less |
TAX (H) |
2.865 |
(0.897) |
1.525 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
24.693 |
10.425 |
10.836 |
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
20.669 |
11.202 |
NA |
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
1.024 |
0.819 |
0.819 |
|
|
|
Tax on Dividend |
0.174 |
0.139 |
0.139 |
|
|
BALANCE CARRIED
TO THE B/S |
44.164 |
20.669 |
9.878 |
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IMPORTS |
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|
|
|
|
|
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Capital Goods |
35.300 |
0.000 |
0.000 |
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TOTAL IMPORTS |
35.300 |
0.000 |
0.000 |
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|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.09 |
0.43 |
0.48 |
|
|
Particulars |
|
|
31.03.2011 |
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Sales Turnover (Approximately) |
|
|
2200.000 |
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The above information has been parted by Mr. I. G. Memon.
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.41
|
2.04 |
0.45 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.59
|
1.86 |
0.51 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.53
|
1.13 |
2.64 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.03 |
0.04 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.61
|
1.63 |
0.52 |
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Current Ratio (Current Asset/Current Liability) |
|
13.64
|
1.56 |
40.63 |
LOCAL AGENCY FURTHER INFORMATION
Note :
The Registered address of the company has been shifted
from 401, Shriniwas Building, 382-384, Narshi Natha Street, Katha Bazar,
Mumbai- 400009, Maharashtra, India to present address w. e. f.08.10.2010.
YEAR :
During
the year the Company has earned a Gross Income of Rs.1750.120 Millions against
Rs.511.192 Millions in the Previous Year. After deducting all the
administrative expenses and depreciation, the Company has earned net profit
after tax of Rs.22.345 Millions (Previous year Rs.9.510 Millions)
SHIFTING OF REGISTERRED OFFICE :
During
the year the Registered Office of the company has been shifted from the Block
No 315, 316/ 1, 318, Kheda-Dholka Highway, Village Hariyala, Taluka- Matar,
Dist. Kheda in State of Gujarat to State of Maharastra 401, Shriniwas Building,
382-384, Narshi Natha Street, Katha Bazar, Mumbai- 400009 w.e.f. 23.03.2010.
FUTURE
PROSPECTS :
The
Board has also pleasure informing that the Company is also proposing to form
its foreign subsidiary company for entering into the contract farming, castor
oil and by products of castor oil or other derivatives related to castor oil,
Lubricants and other business activities in other countries in the near future.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Pursuant to Clause 49 of Listing Agreement, a Management
Discussion & Analysis report is given below :-
India’s economy for the past 5 fiscal years has managed to
sustain an average growth rate of 10%. The Industrial and service sectors have been
the major contributor of this growth, signifying the structural transformation
in the Indian economy from agricultural to industrial economy.
PRESENT BUSINESS :
At
present the company is engaged into trading of agro commodities like castor
oil, edible oils and non edible oils, Petroleum oils, lubricants and related
products. The company has made considerable progress in the new business
venture and has managed to develop relations and networking in the business
community to expand the business.
FUTURE OUTLOOK :
The
company mainly focuses to foray into the Agro business sector. It plans to
purchase land for corporate farming, agro farming and plantation of special
crops required in the manufacturing of biofuels. It will take up research and
development in the field of Agriculture and come up with a Agro complex further
extending into a Special Economic Zone. The company envisages setting up
manufacturing units for biofuels, bio diesel, ethanol and butanol. Government
of India has already permitted blending of ethanol with petrol and diesel. This
will increase the demand and future prospects of bio fuels in India.
The
company also plans to enter into the other sectors of Bio-technology and adopt
the latest technologies in the field. The company will set up overseas branches
to develop its trading business at the global level. The Board has pleasure in
informing that the company has formed following subsidiary company for the
following plans and formed these subsidiaries for following purpose.
KGN BIOTECH LIMITED has incorporated w.e.f. –
06.04.10
Company
with a view of tapping the development of various derivatives manufactured out
of the main raw material viz castor oil and the derivatives of castor oil will
be manufactured by making value additions at different stages, Since the
promoters have wide experience in the field of castor and castor oil industry,
the timely availability of raw materials, technically sound manpower and
effective use of the technology are the key factors which will contribute to
the successful and faster implementation of the project.
As regards marketing aspect is concerned the marketing or
sale is not a limiting factor for the project since the final products i.e.
derivatives find applications in various industial application like cosmetics,
auyurvedic, medical, paint industry etc. since India is the major producer of
the castor sees, the competition is in the international market is not
challenging or tough. In fact the unit will get its market in the international
market since the use of the derivatives in the international market by the
manufacturers in the world market has the positive advantage from the marketing
point of view.
This
is one of the main reasons why the promoters have decided to set up the unit as
a100% EOU. Since the main focus is on the international market, setting up a
unit as a 100% EOU will help reduce the transaction cost and will also help in
cutting down the cost in terms of speedy movement of the exort goods due to the
unit’s EOU status. This will further reduce the transaction cost for the unit
to be able to achieve higher levels of efficiencies and economy of scales.
India,
today, holds a small share of the global biotech market, but has all the
capabilities to become a dominant player. The consumption of biotech products
in India is expected to quadruple in the next decade. Therefore company has a
vision to envisage in biotechnology field also. Company has a vision to emerge
in Medical Biotech segment as well as in Agri Biotech segment. Company is into
process of developing pharmaceutical plant as well as into derivatives. Company
with its rich resources, expertise and manpower will try to achieve its goal.
Common
Advantage: As government is into encouraging organic farming, green technology
as well as biotechnology will add up to companies advantage in terms of
monetary as well as non-monetary gains.
KGN
GREEN LIMITED has incorporated w.e.f – 22.06.2010
Company
with a view of tapping the upcoming opportunity in organic products has a vision
to expertise in the sector of organic farming as well as will also focus on
backward integration to lower the cost of castor seeds production to give value
proposition to its customer base. Organic products stand out as having higher
levels of secondary plant compounds and vitamin C, having more nutritional
value containing flavonoids, an important antioxidant. Organic products having
such features has immense growth in India as well as in international market as
people are becoming health conscious and thus company can take the advantage of
the same. As organic farming is strongest in international markets like North
America, Europe, Africa, Australia, Latin America, Argentina, China, Brazil,
Spain, Germany and UK company will envisage to go for land acquisition as well
as farming in international markets. The decreased cost synthetic fertilizer
and pesticides inputs in organic farming will increase profitability
KGN PROTEIN LIMITED has incorporated w.e.f –
02.08.2010
Looking
at the dynamic industry scenario, KGN enterprises holds a vision to diversify
its portfolio of products by establishing various plants for the production of
soya oil, palm oil and edible oil. As the market outlook for this products is
expanding and having a great opportunity in the future, company has the vision
to explore market for these products and wants to be market leader in the same.
COMPANY’S ACTION PLAN :
The
company will tap its existing resources. It will utilize the benefits and
subsidy available to the Agro and bio technology sector by the government. The
company will make acquisitions and tie ups with existing companies and also set
up new manufacturing facilities. It will also bring in foreign partners for
technologies know how.
OUTLOOK ON OPPORTUNITIES THREATS, RISKS AND CONCERNS :
As
far as the future outlook is concerned, the company is expected to increase the
scope of business in the future, considering the fact that industrial growth
picks up. The company is developing business activities for manufacturing the
better products or by products for industrial use which over a period of time
shall have potential to be profitable.
The company is also exploring the much thrust area of
Exports.
FINANCIAL REVIEW :
Company’s
sales for the financial year 2009-2010 is Rs.511.192 Millions. The net profit
for the financial year is Rs.9.467 Millions. The sales and profitability has
been less compared to sales and profitability of previous year due to trend in
the recessionary economy worldwide. However, due to efficient and powerful
business strategies, the company would survive the global recession and retain
its market share.
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
Yes |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
-- |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
No |
|
13) Reasons for variation <> 20% |
No |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
Yes |
|
19) Payments terms |
Yes |
|
20) Export / Import details (if applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
No |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
No |
|
28) Incorporation details, if applicable |
-- |
|
29) Last accounts filed at ROC |
-- |
|
30) Major Shareholders, if available |
-- |
TRADE REFERENCES
·
Asian Paints
FIXED ASSETS
·
NX418 Decanter
·
Air Condition
·
Computers and Printers
·
Electric Fittings
·
Freehold Land and Building
·
Building
·
Furniture and Fixturs
·
Ikon Car
·
Misc. Equipment
·
Plant and Machinary
·
Mixture Machine
·
Tractor
·
Mobile Phone
·
Opel Car A/c.
·
Printer
·
Refrigrator
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.50.28 |
|
|
1 |
Rs.80.08 |
|
Euro |
1 |
Rs.68.45 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
29 |
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.