MIRA INFORM REPORT

 

 

Report Date :

20.09.2011

 

IDENTIFICATION DETAILS

 

Name :

VARDHMAN INDUSTRIES LIMITED

 

 

Registered Office :

2nd Floor, Jeevan Deep Building, Parliament Street, New Delhi – 110001

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

05.12.1984

 

 

Com. Reg. No.:

55-19492

 

 

Capital Investment / Paid-up Capital :

Rs.79.476 Millions

 

 

CIN No.:

[Company Identification No.]

L74899DL1984PLC019492

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELV04256A

 

 

Legal Form :

Public Limited Liability Company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

manufacturer and Exporter of all kinds of Galvanized Black Pipes, Steel Black Pipes and Colour Coated Products.

 

 

No. of Employees :

More than 500 [Approximately] 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (46)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2600000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track. Directors are reported to be experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments.

 

The Company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION PARTED BY

 

Name :

Mr. S P Singla

Designation :

Vice President in Marketing

Contact No.:

91-9873232578

Date :

08.09.2011

 

 

LOCATIONS

 

Registered Office :

2nd Floor, Jeevan Deep Building, Parliament Street, New Delhi – 110001, India 

Tel No. :

91-11-23742401

Fax No. :

91-11-23742403

E-Mail :

cs.vil@vallabhgroup.com

singla512@gmail.com 

Website :

www.vardhman-industries.com

Area :

2000 Sq. Ft

Location :

Rented

 

 

Marketing Office :

GH – 6/223, Meera Bagh, Paschim Vihar, New Delhi – 110087, Delhi, India

Tel. No.:

91-11-32568055

Mobile No.:

91-9313904878/9873232578 (Mr. S. P. Singla)

Fax No.:

91-11-25274665

E-Mail:

singla512@gmail.com

singla_ndl@yahoo.co.in

Area :

1000 Sq. Fts

Location :

Owned

 

 

Branch Office:

G. T. Road, Pawa, Sahnewal, Ludhiana-141 120,  Punjab, India

Tel. No.:

91-161-2511412/13

Fax No.:

91-161-2511414

 

 

Factory  :

Iron and Steel Units

 

  • G.T. Road, Village Pawa, Sahnewal Ludhiana - 141 120,  Punjab, India

Tel No. : 91-161-2511412/2511413

 

  • G. T. Road, Village Bapror, Tehsil Rajpura, District Patiala, Punjab, India

           Tel No. : 91-1762-265700 / 657781

           Fax No. : 91-1762-265710

            Area : 70 Acres

            Location : Owned

 

  • G.T. Road, Village Nandpur, Sahnewal, Ludhiana-141 120, Punjab, India

            Tel No. : 91-161-2844499

 

  • Village Dugdha Ghamaria(*), District Saraikela, Jharkhand, India

Tel No. : 91-657-3290209

 

Power Units (*)

 

  • Village Dugdha Ghamaria(*), District Saraikela , Jharkhand, India

Tel No. : 91-657-3290209

 

(*) Petition for approval of Scheme of Arrangement under section 394 for hiving off of these units is pending with Hon'ble Delhi High Court at New Delhi

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Kapil Kumar Jain

Designation :

Managing Director

 

 

Name :

Mr. Rahul Jain

Designation :

Director

 

 

Name :

Mr. Vikram Jain

Designation :

Whole Time Director

 

 

Name :

Mr. Suresh Gupta

Designation :

Director

 

 

Name :

Mr. Ashok Kumar Jain

Designation :

Director

 

 

Name :

Mr. Ashwani Kumar

Designation :

Director

 

 

Name :

Mr. S.K. Vig

Designation :

Director

 

 

Name :

Mr. Rahul Gupta

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S P Singla

Designation :

Vice President in Marketing

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

2,965,200

37.56

Bodies Corporate

2,189,800

27.74

Sub Total

5,155,000

65.29

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

5,155,000

65.29

(B) Public Shareholding

 

 

(1) Institutions

 

 

(2) Non-Institutions

 

 

Bodies Corporate

131,192

1.66

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

1,781,349

22.56

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

758,559

9.61

Any Others (Specify)

69,100

0.88

Clearing Members

27,209

0.34

NRIs/OCBs

41,891

0.53

Sub Total

2,740,200

34.71

Total Public shareholding (B)

2,740,200

34.71

Total (A)+(B)

7,895,200

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

7,895,200

-

 

 

BUSINESS DETAILS

 

Line of Business :

manufacturer and Exporter of all kinds of Galvanized Black Pipes, Steel Black Pipes and Colour Coated Products.

 

 

Products :

ITC Code No.

Product Description

72061010

Steel Ingots

72104900

Galvanized Plain / Galvanized Corrugated Sheets / Coils

72109090

Galvanized Colour Coated Coils / Sheets

 

 

Exports :

 

Products :

Galvanized Black Pipes, Steel Black Pipes and Colour Coated Products.

Countries :
  • USA
  • United Kingdom
  • Bangladesh
  • Singapore
  • Switzerland
  • New Zealand
  • Dubai
  • Japan
  • Europe

 

 

Imports :

 

Products :

Raw Material

Countries :
  • Russian
  • China

Korea

Japan

 

 

Terms :

 

Selling :

L/C / Cash and Credit (30 days)

 

 

Purchasing :

L/C / Cash and Credit (30 days)

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Steel Ingots

MT

16500

8340

GP Coils

MT

45000

47222

CR Coils

MT

36000

32798

Colour Coated Coil / Sheet*

MT

41250

14640

 

Note: * Production has been generated out of raw material partly transferred from production of GP Coils.

 

GENERAL INFORMATION

 

Customers :

Wholesalers, Retailers and End Users

 

 

No. of Employees :

More than 500 [Approximately] 

 

 

Bankers :
  • Punjab National Bank, Large Corporate Branch, Bhagwati Tower, R.K. Road, Ludhiana-141 003, Punjab, India
  • State Bank of India, Specialised Commercial Branch, Miller Ganj, Pahwa Hospital Complex, Ludhiana-141 003, Punjab, India

 

 

Facilities :

Secured Loan

As on 31.03.2011

[Rs. in Millions]

As on 31.03.2010

[Rs. in Millions]

Working Capital Borrowings

 

 

From Banks

506.054

476.347

Term Loans

0

0

IDBI Bank Limited

32.584

12.500

State Bank of India

225.017

175.071

Allahabad Bank

37.326

0.000

Total

800.981

663.918

 

 

 

Unsecured Loan

 

 

From Shareholders, Directors and their relatives

19.411

19.505

Total

19.411

19.505

 

Note:

 

a) Working Capital borrowings from State Bank of India are secured by hypothecation of entire present and future tangible current assets of the GP/GC Unit of the Company and personally guaranteed by three of the directors. The said borrowings are also secured by way of second charge on block assets of the GP/GC Unit of the Company.

 

b) Working Capital borrowings from Punjab National Bank are secured by hypothecation of entire present and future current assets of the Steel Unit of the Company and personally guaranteed by three of the directors. The said borrowings are also secured by way of first charge on block assets of the steel unit of the Company.

 

c) Term Loans from IDBI and SBI are secured on pari passu basis by way of equitable mortgage created by deposit of title deeds in respect of immovable properties of GP/GC Sheet Unit and by way of hypothecation of all movable properties of the said unit (save and  except book debts) including movable machinery, machinery spares, tools and accessories, present and future, subject to the prior charge(s) created and/or to be created by the Company in favour of SBI on Stock of Raw Material, Semi Finished and Finished Goods, Consumable Stores and such other material in the ordinary course of business.

 

d) Terms loan from Allahabad Bank is secured by tangible fixed assets of the CR unit at Rajpura and also guaranteed by three of the directors.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Raj Gupta and Company

Chartered Accountants

Address :

Miller Ganj, Ludhiana -141 003, Punjab, India

 

 

CAPITAL STRUCTURE

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

8000000

Equity Shares

Rs.10/- each

Rs.80.000 Millions

 

Issued & Subscribed Capital :

No. of Shares

Type

Value

Amount

8000000

Equity Shares

Rs.10/- each

Rs.80.000 Millions

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

7895200

Equity Shares

Rs.10/- each

Rs.78.952 Millions

 

Add: Shares Forfeited

 

Rs.0.524 Million

 

 

 

Rs.79.476 Millions

 

Note: Out of above 5,00,000 Equity Shares of Rs. 10/- each 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

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

79.476

79.476

79.476

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

587.897

488.230

439.501

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

667.373

567.706

518.977

LOAN FUNDS

 

 

 

1] Secured Loans

800.981

663.918

595.185

2] Unsecured Loans

19.411

19.505

13.627

TOTAL BORROWING

820.392

683.423

608.812

DEFERRED TAX LIABILITIES

89.539

77.430

67.445

DEFERRED CREDITS

12.598

12.619

13.372

 

 

 

 

TOTAL

1589.902

1341.178

1208.606

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

669.052

512.435

453.068

Capital work-in-progress

6.344

4.495

6.696

 

 

 

 

INVESTMENT

93.461

46.338

46.338

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
411.731
356.136

258.195

 

Sundry Debtors
522.700
449.346

397.951

 

Cash & Bank Balances
18.944
22.554

22.795

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
152.619
184.425

211.173

Total Current Assets
1105.994
1012.461

890.114

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
228.545
151.394

124.508

 

Other Current Liabilities
47.229
52.251

54.452

 

Provisions
9.175
30.906

8.650

Total Current Liabilities
284.949
234.551

187.610

Net Current Assets
821.045
777.910

702.504

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

1589.902

1341.178

1208.606

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

3368.783

2838.146

2967.674

 

 

Other Income

0.000

0.000

0.000

 

 

TOTAL                                     (A)

3368.783

2838.146

2967.674

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material

2763.914

2346.284

2544.513

 

 

Manufacturing Expenses 

142.035

155.125

159.236

 

 

Personnel Expenses

52.814

40.539

36.058

 

 

Administrative and Other Expenses

28.621

21.783

16.504

 

 

Selling and Distribution Expenses

114.423

87.545

94.952

 

 

TOTAL                                     (B)

3101.807

2651.276

2851.263

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

266.976

186.870

116.411

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

66.740

63.336

51.528

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

200.236

123.534

64.883

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

43.283

33.913

32.523

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

156.953

89.621

32.360

 

 

 

 

 

Less

TAX                                                                  (H)

48.109

31.686

11.585

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

108.844

57.935

20.775

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

422.008

375.779

358.844

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

2.500

2.500

2.500

 

 

Provision for Proposed Dividend

7.895

7.895

0.000

 

 

Provision for Gratuity

0.000

0.000

1.340

 

 

Tax on proposed dividend

1.281

1.311

0.000

 

BALANCE CARRIED TO THE B/S

519.176

422.008

375.779

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

759.973

517.264

592.100

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

105.651

201.378

37.511

 

 

Capital Goods

6.997

2.605

0.372

 

TOTAL IMPORTS

112.648

203.983

37.883

 

 

 

 

 

 

Earnings Per Share (Rs.)

13.79

7.34

2.63

 

The above information has been parted by Mr. S P Singla.

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2011

Type

 

 

1st Quarter

Net Sales

 

 

856.780

Total Expenditure

 

 

767.920

PBIDT (Excl OI)

 

 

88.860

Operating Profit

 

 

88.8600

Interest

 

 

28.350

PBDT

 

 

60.510

Depreciation

 

 

12.950

Profit Before Tax

 

 

47.560

Tax

 

 

6.500

Profit After Tax

 

 

41.060

Net Profit

 

 

41.060

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
3.23

2.04

0.70

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.66

3.16

1.09

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
13.36

5.88

2.41

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.23

0.16

0.06

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.66

1.62

1.53

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
3.88

4.32

4.74

 

 

LOCAL AGENCY FURTHER INFORMATION

 

OPERATIONS:

 

Even though the Iron and Steel Industry in general has shown divergent trends, the Company has performed well on account of its diversified product mix and economies of scale. Accordingly the Company has recorded a sharp jump of about 87 % in profit after tax which has risen from Rs. 57.935 millions in previous year to Rs. 108.844 millions. The Company has registered a higher turnover of Rs.3395.498 millions as compared to Rs. 2844.296 millions of previous year recording an increase of over 19 %. This has been made possible mainly due to better sales realisation particularly in value added products such as GP/GC Sheets, Colour Coated Sheets and Puff Panels etc.

 

EXPORTS:

 

During the year the Company laid more emphasis on Exports by exploring new markets for its products in various countries such as South Africa, Tajikistan, Malawi, Bangkok, Thailand, Dubai and Australia. The Company has been able to register a healthy growth of about 47% in exports which has increased from Rs. 517.264 millions to Rs. 759.753 millions. The company has been able to make major dent in export markets despite stiff competition and the management is quite hopeful that in future it will be able to achieve still better results on Export Front.

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

INDUSTRY STRUCTURE AND DEVELOPMENT:

 

The Company is engaged in the manufacturing and marketing of Steel Ingots and G.P/G.C Sheets and coils which fall within the single segment of "Iron and Steel Industry." The Indian Steel Industry has witnessed divergent trends in the financial year 2010-11. During the year the Industry in general and Iron and Steel Industry in particular has been adversely affected by the increase in diesel prices. However, due to diversified product mix and economies of scale the company has withstood this adverse scenario and has preformed better as compared to last year. In 2010-11, steel consumption grew at a healthy 10 % from 59 MnT in 2009-10 to 66 MnT, owing to strong demand from the infrastructure, construction, automobile and industrial sectors. Rising production capacities has reduced India's import dependency from 13 % in 2009-10 to about 10 % in 2010-11.

 

OUTLOOK FOR 2011-12:

 

With the strong underlying growth momentum of the Indian Economy, the outlook remains positive though concerns remain on account of rising inflation coupled with tightening liquidity resulting in higher rate of interest on

Bank borrowings. Economic activity is expected to take a step forward with GDP expected to grow at around 8- 9 % in the current financial year 2011-12.

 

OUTLOOK:

 

The Iron and Steel Industry as a whole continues to witness erratic trends. The diversified product mix, expected economies of scale, highly responsive market conditions both in domestic and overseas markets, give the management surety for having optimistic outlook for substantial growth in the operating performance of the company in near future.

 

1. Any adverse conditions of user sector to which it caters, thus adversely affecting the demand.

2. Quantitative restrictions and/or additional tariffs of exports from India by importing countries.

3. Cheap imports to India may exert pressure on domestic demand and prices.

4. Unpredictable and sharp cyclical movements in the raw material and other input prices.

5. Any change in Govt. policies pertaining to steel industry may af fect the profitability of the company

 

 

fixed assets:-

 

·         Land

·         Building

·         Furniture and Fixture

·         Plant and Machinery

·         Technical known – how

 

 

Business Description:

 

Subject is an India-based company. The Company is engaged in manufacturing and marketing of steel ingots and galvanized plain/galvanized corrugated (GP/GC) sheets and coils. During the fiscal year ended March 31, 2010 (fiscal 2010), it produced 7,615 million tons of steel ingots; 43,449 million tons of GP coils, and 16,003 million tons of color coated coil/sheet. During fiscal 2010, the Company had an installed capacity of 16,500 million tons of steel ingots; 45,000 million tons of GP coils, and 41,250 million tons of color coated coil/sheet. During fiscal 2010, it exported its products to Angola, Australia, Congo, Iran, Somalia, South Africa, Tanzania, Malawi and United Arab Emirates. The Company’s plants are located in Ludhiana and Patiala. For the nine months ended 31 December 2010, Subject revenues increased 25% to RS2.54B. Net income increased 90% to RS98.7M. Revenues reflect an increase in income form operations. Net income benefited from an increase in gross operating profit margin. The Company is engaged in manufacturing and marketing of steel ingots and galvanized plain (GP) sheets, galvanized corrugated (GC) sheets and coils.

 

New Release:

 

Accord Fintech (India): 23 August 2011

 

India, Aug. 23 -- Vardhman Industries has informed that a meeting of the board of directors of the company will be held on September 03, 2011, to consider, the audited annual accounts for the financial year ended March 31, 2011 and to recommend dividend, if any, for the financial year 2010-11.The above information is part of the company's filing submitted to the BSE. Published by HT Syndication with permission from Accord Fintech. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.47.79

UK Pound

1

Rs.75.05

Euro

1

Rs.65.35

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

No

--LISTED

YES/NO

Yes

--OTHER MERIT FACTORS

YES/NO

Yes

TOTAL

 

46

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.