MIRA
INFORM REPORT
|
Report Date : |
31.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
EVEREST INDUSTRIES LIMITED |
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Registered
Office : |
Gat No. 152, Lakhmapur, Taluka Dindori, Nashik - 422 202, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
03.04.1934 |
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Com. Reg. No.: |
11-2093 |
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Capital
Investment / Paid-up Capital : |
Rs.150.841 millions |
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CIN No.: [Company Identification
No.] |
L74999MH1934PLC002093 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
PNEE01437C |
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PAN No.: [Permanent Account No.] |
AAACE7550N |
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Legal Form : |
Public Limited Liability Company. Company's Shares are Listed on Stock
Exchange. |
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Line of Business
: |
Providing of Building Solution Services like Roofing, Ceiling, Wall,
Flooring, Cladding, Door and Pre-engineered steel building for the
industrial, commercial and residential sectors. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 8300000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal 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 – September 30, 2011
|
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 |
LOCATIONS
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Registered Office /Factory: |
Gat No. 152, Lakhmapur, Taluka Dindori, Nashik - 422 202, |
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Tel. No.: |
91-2557-250375 / 462 |
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Fax No.: |
91-2557-250376 |
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E-Mail : |
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Head Office : |
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Tel. No.: |
91-11-41731951 / 52 |
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Fax No.: |
91-11-46566370 |
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E-Mail : |
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Factories : |
Kymore Works Everest Nagar,
P.O.Kymore, Distt. Katni - 438 880 Madhya Pradesh, Kolkata Works ‘Everest House’
1, Podanur Works Podanur P O., Bhagwanpur Works Khasra Nos.158
and 159, Village Lakesari, Pargana Bhagwanpur, Tehsil Roorkee, District
Haridwar – 247661, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. A. V. Somani |
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Designation : |
Chairman |
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Name : |
Mr. Sandeep Junnarkar |
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Designation : |
Director |
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Name : |
Mr. M. L. Narula |
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Designation : |
Director |
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Name : |
Mr. Amitabh Das Mundhra |
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Designation : |
Director |
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Name : |
Mr. M. L. Gupta |
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Designation : |
Vice Chairman |
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Name : |
Mr. Manish Sanghi |
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Designation : |
Managing Director |
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Name : |
Mr. Mohanlal Bhandari |
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Designation : |
Director |
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Name : |
Mr. Y. Srinivasa Rao |
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Designation : |
Executive Director (Operations) |
KEY EXECUTIVES
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Name : |
Mr. Neeraj Kohli |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No. of Shares |
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(A) Shareholding
of Promoter and Promoter Group |
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7,520,470 |
49.83 |
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7,520,470 |
49.83 |
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Total shareholding
of Promoter and Promoter Group (A) |
7,520,470 |
49.83 |
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(B) Public
Shareholding |
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1,022,046 |
6.77 |
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|
775 |
0.01 |
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200 |
- |
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742 |
- |
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316,275 |
2.10 |
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1,340,038 |
8.88 |
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1,173,704 |
7.78 |
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3,438,614 |
22.79 |
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917,510 |
6.08 |
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700,531 |
4.64 |
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207,821 |
1.38 |
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492,710 |
3.26 |
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6,230,359 |
41.29 |
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Total Public
shareholding (B) |
7,570,397 |
50.17 |
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Total (A)+(B) |
15,090,867 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total
(A)+(B)+(C) |
15,090,867 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Providing of Building Solution Services like Roofing, Ceiling, Wall,
Flooring, Cladding, Door and Pre-engineered steel building for the
industrial, commercial and residential sectors. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Buildings Products |
Tonnes |
710000 |
710000 |
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Steel Buildings (certified by the management, being a technical matter) |
Tonnes |
30000 |
30000 |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of ·
State Bank of ·
ICICI Bank Limited ·
Axis Bank Limited ·
HDFC Bank Limited |
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Facilities : |
Rs. In Millions
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
Gurgaon |
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Holding Company: |
Everest Finvest ( |
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Subsidiary Company: |
Everest Building Solutions Limited (till 13 April, 2010) |
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Associates Company: |
Everest Building Solutions Limited (with effect from 14 April, 2010) |
CAPITAL STRUCTURE
AS ON 22.07.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 millions |
Issued Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15090867 |
Equity Shares |
Rs.10/- each |
Rs.150.909 millions |
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17000000 |
Equity Shares |
Rs.10/- each |
Rs.170.000 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15084174 |
Equity Shares |
Rs.10/- each |
Rs.150.841 millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15084174 |
Equity Shares |
Rs.10/- each |
Rs.150.841 millions |
Of the above:
a. 15,000 equity
shares are allotted as fully paid up pursuant to a contract without payment
being received in cash
b. 13,350,020
equity shares are allotted as fully paid up by way of bonus shares by
capitalization of general reserve
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
150.841 |
148.156 |
148.000 |
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2] Share Application Money |
0.390 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1934.187 |
1588.785 |
1365.315 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2085.418 |
1736.941 |
1513.315 |
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LOAN FUNDS |
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1] Secured Loans |
1057.887 |
1198.867 |
1497.321 |
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2] Unsecured Loans |
50.000 |
0.000 |
200.000 |
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TOTAL BORROWING |
1107.887 |
1198.867 |
1697.321 |
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DEFERRED TAX LIABILITIES |
240.845 |
247.940 |
180.265 |
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STOCKISTS DEPOSITS (UNSECURED) |
118.974 |
82.974 |
45.728 |
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TOTAL |
3553.124 |
3266.722 |
3436.629 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2149.382 |
2202.747 |
2345.827 |
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Capital work-in-progress |
79.401 |
63.285 |
69.418 |
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INVESTMENT |
0.245 |
0.500 |
0.500 |
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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 |
1535.453
|
1233.232 |
1295.652 |
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Sundry Debtors |
321.402
|
231.858 |
238.435 |
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Cash & Bank Balances |
186.638
|
192.069 |
225.811 |
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Other Current Assets |
0.375
|
0.273 |
0.259 |
|
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Loans & Advances |
515.403
|
447.578 |
354.001 |
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Total
Current Assets |
2559.271
|
2105.010 |
2114.158 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Sundry Creditors |
666.410
|
613.350 |
707.105 |
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Other Current Liabilities |
419.951
|
350.315 |
291.154 |
|
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Provisions |
148.814
|
144.568 |
101.842 |
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Total
Current Liabilities |
1235.175
|
1108.233 |
1100.101 |
|
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Net Current Assets |
1324.096
|
996.777 |
1014.057 |
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MISCELLANEOUS EXPENSES |
0.000 |
3.413 |
6.827 |
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TOTAL |
3553.124 |
3266.722 |
3436.629 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
|
|
|
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|
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Sales |
7215.877 |
6525.342 |
5294.516 |
|
|
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Other Income |
131.559 |
96.273 |
47.925 |
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TOTAL (A) |
7347.436 |
6621.615 |
5342.441 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing Expenses |
6712.612 |
6000.374 |
4891.749 |
|
|
|
Increase/(Decrease) in Finished Goods |
(139.847) |
(79.076) |
(86.642) |
|
|
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TOTAL (B) |
6572.765 |
5921.298 |
4805.107 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
774.671 |
700.317 |
537.334 |
|
|
|
|
|
|
|
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|
Less |
FINANCIAL
EXPENSES (D) |
53.903 |
99.520 |
164.806 |
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|
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|
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
720.768 |
600.797 |
372.528 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
188.960 |
183.654 |
171.380 |
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PROFIT BEFORE
TAX (E-F) (G) |
531.808 |
417.143 |
201.148 |
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|
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|
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Less |
TAX (H) |
124.774 |
117.016 |
56.638 |
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PROFIT AFTER TAX
(G-H) (I) |
407.034 |
300.127 |
144.510 |
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|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
815.031 |
623.905 |
537.683 |
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|
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|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
41.000 |
31.000 |
15.000 |
|
|
|
Dividend |
68.694 |
66.670 |
37.000 |
|
|
|
Tax on Dividend |
10.890 |
11.331 |
6.288 |
|
|
BALANCE CARRIED
TO THE B/S |
1101.481 |
815.031 |
623.905 |
|
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|
EARNINGS IN
FOREIGN CURRENCY |
483.562 |
387.545 |
NA |
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IMPORTS |
|
|
|
|
|
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|
Raw Materials |
1600.994 |
1289.248 |
NA |
|
|
|
Stores & Spares |
6.268 |
1.638 |
NA |
|
|
|
Capital Goods |
52.985 |
21.854 |
NA |
|
|
|
Others |
34.584 |
23.736 |
NA |
|
|
TOTAL IMPORTS |
1694.831 |
1336.476 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
27.10 |
20.28 |
9.76 |
|
QUARTERLY RESULTS
|
Particulars (Rs in Millions) |
30.06.2011 |
|
|
1st Quarter |
|
Net Sales |
2443.600 |
|
Total Expenditure |
2154.900 |
|
PBIDT (Excl OI) |
288.700 |
|
Other Income |
121.600 |
|
Operating Profit |
410.300 |
|
Interest |
8.300 |
|
Exceptional Items |
0.000 |
|
PBDT |
402.000 |
|
Depreciation |
48.200 |
|
Profit Before Tax |
353.800 |
|
Tax |
91.600 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
262.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.53
|
4.53 |
2.70 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.36
|
6.39 |
3.79 |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.29
|
9.68 |
4.51 |
|
|
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|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.24 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.29
|
1.51 |
1.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.07
|
1.90 |
1.92 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS REVIEW
Net Sales Turnover
was Rs. 7215.900 millions as compared to Rs.6525.300 millions during the
previous year. The profit after tax for during the year at Rs. 407.000 millions
was higher as compared to the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
The Indian economy
has sustained its robust growth rate. The GDP grew by 8.60% this year as
compared with 8% in the previous year. The construction industry grew by 8% this
year accounting for 8% of
Subject caters to
the demands of the construction industry with a strong portfolio of products
for industrial and commercial applications and rural housing. This year, the
Company’s turnover grew by 10.60%. Sustained demand for Fibre Cement Roofing
Sheets comes primarily from rural areas all over the country. Everest serves
over 100,000 villages and 600 citiesthrough 37 sales depots and 6000 retail
counters. The Everest brand and its assurance of quality continues to command a
price premium in the markets it serves. Exposure to global aesthetics and modern
construction techniques has expanded markets for their fibre cement products,
Everest Boards and Solid Wall Panels. The market for modern ready-to-install
products like acoustic ceilings, access flooring and dry walling techniques is
growing. The Company understands the needs of the Indian construction market
and has introduced new products to cater to this growing demand. These emerging
segments provide many opportunities. Exports of fibre cement building material
to various countries all over the globe continued to grow and Everest has been
recognised as a Star Export House.
FINANCIAL RESULTS
The Company’s
turnover increased to 7215.900 millions from 6525.300 millions in FY 10-11, a
growth of 10.60%. This was a result of value growth of 6.20% in the Building
Products division and 29.30% in the Steel Buildings division. The corresponding
volume growth was 4.10% in Building Products division and 7.20% in the Steel
Buildings division. Profit before Depreciation and Interest rose from 700.300
millions (10.70% of sales) to 774.700 millions (10.7% of Sales). PBT stood at
531.800 millions, an increase of 27.50%. PAT for the year is 407.000 millions,
a 35.60% increase over last year. The return on Average Net Worth stood at
21.30% as compared with 18.50% in the previous year.
FINANCIAL PERFORMANCE
Net Worth of the
Company stood at 2085.4 millions as on March 31, 2011 as compared to 1736.900
millions a year before, a growth of 20% during the year. Company’s Borrowings
reduced from 1198.900 millions a year ago to 1107.900 millions this year. The
Debt Equity Ratio as on March 31, 2011 stood at 0.53 as compared with 0.69 on
March 31, 2010. Reduction in borrowing due to improved cash flows during the
year and optimisation of the sources of borrowing resulted in the reduction of
interest costs from 99.5 millions in the previous year to 53.900 millions in
the current year. During the year, the Company sold a part of its land situated
at Peenya Industrial Area, Bengaluru for 74.600 millions resulting in a capital
gain of 69.400 millions. The Company entered into a few 'Principal Only Swap'
(POS) derivative transactions in the year 2007, to restate a part of its
External Commercial Borrowing from US Dollars (USD) to low interest bearing
Japanese Yen (JPY) denomination. Due to unprecedented strengthening of JPY/USD,
the Company incurred a cost of 46.300 millions in 2010-11. The total cost
incurred over the life of all POS derivative transactions stands at 144.100
millions. All POS derivative contracts stand extinguished and there will be no
further cost on this account in future. During the year, Raw Material costs
(including changes in inventory) stood at 3862.100 millions (53.50% of sales)
as compared to 3579.700 millions (54.90% of sales) in the previous year.
Freight cost increased from 453.700 millions (6.90% of sales) in 2009-10 to
571.400 millions (7.90% of sales) in 2010-11 as a result of rising diesel
prices and supply constraints of trucks in certain regions.
OPERATION
The fibre cement
industry in
During the year,
the Company produced 508137 MT of roofing, an increase of 2.66% over last year.
The production of Roofing Sheet line at Bhagwanpur Works, Roorkee was disrupted
due to heavy rains for 28 days during September-October, 2010. Everest Fibre
Cement Boards are produced at Lakhmapur
Works, Nashik,
Cost of goods sold
increased on account of the increase in fibre prices (10%). Increase in raw
material costs was primarily on account of changes in product mix and input costs.
Manpower cost during the year was 693.600 millions (9.61% of sales) as compared
with 630.200 millions (9.66% of sales) in the previous year. Freight stood at
571.400 millions (7.92% of sales) as compared with 453.700 millions (6.95% of
sales) in the previous year.
All plants
undertook initiatives to improve productivity and reduce costs and rejections.
During the year, upgradation of Roofing Line was started at Kymore works. The
new Roofing Line will be commissioned by Dec, 2011 and will improve quality and
productivity of the Line. Continuous process improvement and training of the
workmen has resulted in an increase of production volume upto as high as 18% on
some production lines.
Overall the
building products division registered a revenue growth of 6.20%.
CONTINGENT
LIABILITIES
Claims against the
Company not acknowledged as liabilities in respect of:
|
Particulars |
As on 31.03.2011 Rs. in millions |
As on 31.03.2010 Rs. in millions |
|
Sales tax
matters |
424.418 |
417.611 |
|
Customs, excise
and service tax matters |
17.399 |
259.836 |
|
Income Tax
matters |
223.661 |
214.902 |
|
Total |
665.478 |
892.349 |
|
Advance paid
against above |
212.971 |
159.181 |
·
Guarantees issued by bank have been secured by a
first pari-passu charge on the entire current assets, present and future,
including receivables of the Company and second pari-passu charge on all fixed
assets, land and buildings present and future, except land and building
situated at Podanur (on which State Bank of India has exclusive charge) and at
Kolkata, to the extent of Rs.181.491 millions (previous year Rs.260.656
millions).
·
Estimated amount of contracts to be executed on
capital account – Rs.42.426 millions (net of advances – Rs.34.240 millions),
[previous year – Rs.32.635 millions (net of advances Rs.13.658 millions)].
FIXED ASSETS
·
Land
·
Building
·
Leasehold improvements
·
Railway Siding
·
Roads
·
Plant and Machinery
·
Furniture, Fixture and Office
Equipments
·
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.48.82 |
|
|
1 |
Rs.78.57 |
|
Euro |
1 |
Rs.69.29 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.