MIRA
INFORM REPORT
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Report Date : |
06.04.2012 |
IDENTIFICATION DETAILS
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Name : |
GMM PFAUDLER LIMITED (w.e.f. 09.09.1963) |
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Formerly Known As : |
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Registered Office : |
Vithal Udyog Nagar, Karmsad-388325, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
17.11.1962 |
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Com. Reg. No.: |
04-001171 |
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Capital Investment / Paid-up Capital : |
Rs. 29.235 Millions |
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CIN No.: [Company
Identification No.] |
L29199GJ1962PLC001171 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMG00528D |
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PAN No.: [Permanent
Account No.] |
AAACG6977D |
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Legal Form : |
A Public Limited Liability company. The company’s shares are listed on
Stock Exchange. |
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Line of Business : |
Manufacturers of Reactor Glass Line Reactors. |
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No. of Employees : |
400 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (61) |
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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 3926972 |
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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 a well established and reputed company having fine track.
Financial position of the company is good. 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 dealing 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
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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India |
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 : |
Vithal Udyog Nagar, Karmsad-388325, |
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Tel. No.: |
91-2692-230516/ 230367/661700/230416 |
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Fax No.: |
91-2692-236570 / 661888 / 661999 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office/ Mumbai Sales Office : |
1001, Penisula Towers, Pe ninsula Corporate Park, Ganpatrao Kadam
Marg, Lower Parel, Mumbai-400013, Maharashtra, India |
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Tel. No.: |
91-22-66503900 |
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Fax No.: |
91-22-66503939 |
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E-Mail : |
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Regional Sales Offices : |
Chennai Ahmedabad Hyderabad
Vadodara |
DIRECTORS
AS ON 31.03.2011
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Name : |
Mr. P Krishnamurthy |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Ashok J Patel |
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Designation : |
Managing Director |
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Name : |
Mr. Peter C Wallace |
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Designation : |
Director (President and Chief Executive Officer, Robbins and Myres Inc.) |
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Name : |
Mr. Kevin J Brown |
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Designation : |
Director (Controller and Principal Accounting Officer, Robbins and Myres Inc.) |
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Name : |
Dr. S Sivaram |
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Designation : |
Director (Director, National Chemical Laboratory, Pune) |
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Name : |
Mr. Darius C Shroff |
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Designation : |
Director |
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Name : |
Mr. Tarak A Patel |
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Designation : |
Executive Director – Sales and Marketing |
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Name : |
Mr. Christopher M. Hix |
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Designation : |
Alternate to Kelvin J Brown |
KEY EXECUTIVES
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Name : |
Mr. Ashok C Pillai |
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Designation : |
Chief Operating Officer |
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Name : |
Mr. Amar Nath Mohanty |
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Designation : |
Financial Controller |
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Name : |
Ms. Mittal Mehta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of promoter
and Promoter Group |
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1) Indian |
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a) Individuals / Hindu Undivided Family |
1310155 |
8.96 |
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b) Bodies corporate |
2036480 |
13.93 |
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Any Others (Specify) |
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Trusts |
253125 |
1.73 |
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2) Foreign |
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Bodies corporate |
7454400 |
51.00 |
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(B) Public Shareholdings |
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1) Institutions |
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a) Financial Institutions/Banks |
658 |
-- |
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b) Insurance Companies |
245366 |
1.68 |
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2) Non – Institution |
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a) Bodies corporate |
340565 |
2.33 |
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b) Individuals |
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
2432560 |
16.64 |
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ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
464879 |
3.18 |
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c) Any other |
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i) Clearing Member |
15924 |
0.11 |
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ii) NRI |
63388 |
0.43 |
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Total |
14617500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Reactor Glass Line Reactors. |
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Products : |
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Exports : |
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Products : |
Reactor Glass Line Reactors |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Litrs (in 000) |
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6000 |
4225 |
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·
Mild Steel equipments such as reaction vessels,
storage tanks, fractionation towers, driers, heat exchangers, condensers,
duting blenders and pressure vesslers ·
Stainless steel equipment such as reaction
vessels, storage tanks, evaporating pans, absorption towers, fractionation
towers,driers, heat exchangers, condensers, ducting blenders and pressure
vessles |
MT |
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* |
647 |
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Fusion seamed products and Isostatic moulded products consist of
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Mtr. Nos. |
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7500 750 |
-- 24 |
Notes:
- Licensed capacity is not applicable in terms of Government of India’s Notification No. S.O.477 (E) dated 25th July,1991.
- Installed capacities have been certified by the management of the Company and not verified by the auditors.
- Installed capacities in respect of products not currently manufactured have not been given.
- Production quantities in items 2 and 4 include job orders subcontracted to third parties and broad-banding of installed capacities.
- The installed capacity of Mild Steel equipments and Stainless steel equipment is not determined and therefore not included in the above table.
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
400 (In office 30 + In factory 370) |
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Bankers : |
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State Bank of India, Branch Anand, Gujarat, India
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Axis Bank ·
Citi Bank |
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Facilities : |
Notes: Secured Loans repayable within 1 year from the Balance Sheet date are Rs. 43.709 Millions (Previous Year ` Nil) The loan facilities from banks are secured by hypothecation of inventories and book debts and first charge over fixed assets situated at the Company’s factory at Karamsad. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kalyaniwalla and Mistry Chartered Accountant |
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Address : |
Mumbai |
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Alternate
Auditor Name : |
Kantilal Patel and Company Chartered Accountant |
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Address : |
Ahmedabad |
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Unlimited Holding Company : |
Robbins and Myers Inc. |
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Holding Company: |
Pfaudler Inc. |
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Subsidiary Companies : |
·
Karamsad Holdings Limited ·
Karamsad Investments Limited ·
GMM Mavag AG ·
Mavag AG |
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Fellow Subsidiaries : |
·
Pfaudler Werke GmBh ·
Pfaudler Balfour Limited ·
Edlon PSI Inc. ·
Chemineer Inc. ·
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Robbins and Myres Singapore Private Limited ·
Glass Steel Parts and Services |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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25,000,000 |
Equity Shares |
Rs. 2/- each |
Rs. 50.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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14,617,500 |
Equity Shares |
Rs. 2/- each |
Rs. 29.235 Millions |
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Notes
Of the above shares:
7,454,400 Equity shares are held by Pfaudler Inc. USA, the holding Company.
122,400 Equity Shares have been issued for consideration other than cash.
8,586,500 Equity shares have been issued as bonus shares, by capitalisation
of reserves and share premium account.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
29.235 |
29.235 |
29.235 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
952.508 |
890.216 |
827.525 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
981.743 |
919.451 |
856.760 |
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LOAN FUNDS |
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1] Secured Loans |
43.709 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
43.709 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
36.555 |
33.272 |
37.545 |
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TOTAL |
1062.007 |
952.723 |
894.305 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
286.136 |
280.522 |
295.455 |
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Capital work-in-progress |
59.957 |
7.732 |
4.189 |
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INVESTMENT |
283.244 |
119.477 |
111.981 |
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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 |
627.996
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404.172 |
464.588
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Sundry Debtors |
236.570
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281.868 |
247.774
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Cash & Bank Balances |
6.989
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30.435 |
29.132
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Other Current Assets |
0.000
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0.000 |
0.000
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Loans & Advances |
76.674
|
206.791 |
215.737
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Total
Current Assets |
948.229
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923.266 |
957.231 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
229.798
|
191.878 |
193.453
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Other Current Liabilities |
271.636
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167.189 |
262.266
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Provisions |
14.125
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19.207 |
18.832
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Total
Current Liabilities |
515.559
|
378.274 |
474.551
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Net Current Assets |
432.670
|
544.992 |
482.680
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1062.007 |
952.723 |
894.305 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
1440.207 |
1544.784 |
1466.810 |
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Other Income |
26.156 |
27.022 |
35.223 |
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TOTAL (A) |
1466.363 |
1571.806 |
1502.033 |
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Less |
EXPENSES |
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Cost of Production |
1015.759 |
1100.494 |
1087.490 |
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Operating Expenses |
161.982 |
146.081 |
118.149 |
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Selling, General and Administrative Expenses |
82.782 |
118.074 |
93.216 |
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TOTAL (B) |
1260.523 |
1364.649 |
1298.855 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
205.840 |
207.157 |
203.178 |
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Less |
FINANCIAL
EXPENSES (D) |
8.808 |
6.562 |
13.050 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
197.032 |
200.595 |
190.128 |
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
34.742 |
33.342 |
32.606 |
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PROFIT BEFORE
TAX (E-F) (G) |
162.290 |
167.253 |
157.522 |
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Less |
TAX (I) |
52.113 |
56.677 |
55.248 |
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PROFIT AFTER TAX
(G-I) (J) |
110.177 |
110.576 |
102.274 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
590.470 |
538.837 |
494.675 |
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Less |
APPROPRIATIONS |
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Transfer to General Reserve |
11.017 |
11.058 |
10.227 |
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Tax on distributed Dividend |
6.956 |
6.956 |
6.956 |
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Interim
Dividend |
40.929 |
40.929 |
40.929 |
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BALANCE CARRIED
TO THE B/S |
641.745 |
590.470 |
538.837 |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
---- |
60.736 |
122.984 |
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Commission Earnings |
--- |
7.235 |
0.000 |
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TOTAL EARNINGS |
--- |
67.971 |
122.984 |
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IMPORTS |
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Raw Materials |
55.348 |
76.203 |
74.784 |
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Stores & Spares |
0.887 |
11.030 |
2.412 |
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TOTAL IMPORTS |
56.235 |
87.233 |
77.196 |
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Earnings Per
Share (Rs.) |
7.54 |
7.56 |
7.00 |
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QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2011 (Rs. In
Millions) |
30.09.2011 (Rs. In
Millions) |
31.12.2011 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd Quarter |
3rd
Quarter |
|
Net Sales |
427.700 |
430.860 |
541.160 |
|
Total Expenditure |
389.360 |
390.610 |
507.380 |
|
PBIDT (Excl OI) |
38.340 |
40.250 |
33.780 |
|
Other Income |
8.830 |
5.030 |
5.700 |
|
Operating Profit |
47.170 |
45.280 |
39.480 |
|
Interest |
2.150 |
3.590 |
3.210 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
45.020 |
41.690 |
36.270 |
|
Depreciation |
9.220 |
13.080 |
12.700 |
|
Profit Before Tax |
35.800 |
28.610 |
23.570 |
|
Tax |
9.390 |
11.420 |
7.390 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
26.410 |
17.190 |
16.180 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
26.410 |
17.190 |
16.180 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.51
|
7.03
|
6.81 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.26
|
10.83
|
10.77 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.14
|
13.89
|
12.57 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.18
|
0.18 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.56
|
0.41
|
0.55 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.83
|
2.44
|
2.01 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL REVIEW:
Sales and Other Income for the year at Rs.1,466.36 million reflected a decrease of 6.7% over the previous year.
Sales of glasslined products increased by 14% compared to previous year but sales of non-glasslined products declined by 35% on account of low opening order backlog of Rs. 190 million. During the second half of the year non-glassline orders showed significant improvement with ending backlog of` 515 million. The Company’s total backlog of unexecuted orders at the end of the year including glassline products, was a healthy Rs. 1,035 million, an increase of 77% over previous year backlog of Rs. 585 million.
Profit before tax marginally decreased by 2.9% to Rs. 162.29 million from Rs. 167.25 million in the previous year. Profit after tax nearly equaled Rs.110 million of the previous year resulting in earnings per share of Rs. 7.54 as compared to Rs. 7.56 of the previous year.
During the first half of the year prices of basic raw materials and other inputs increased due to inflationary trend in the economy which significantly impacted the profitability for the year. Cost control and lower Selling, General and
Administrative expenses helped in maintaining the overall profitability at previous year’s level.
Sales Income of the Company’s Swiss subsidiary, Mavag AG, improved by 27% from Rs. 416.61 million to Rs. 526.14 million. However, profitability during the year remained lower than expected due to pricing pressure in the European market. Mavag AG made a profit before tax of Rs. 7.91 million compared to a loss of Rs. 13.13 million in the previous year.
INVESTMENTS:
In 2008 the Company formed a wholly owned subsidiary Company GMM Mavag AG, Switzerland for the purpose
of acquiring Mavag AG, Switzerland. GMM Mavag AG was formed with CHF 1.5 million in equity and CHF 3.5 million as loan from the Company. The Board of Directors of both the Companies had taken a decision to convert this loan and accrued interest of CHF 264,729 into equity of GMM Mavag AG with effect from July 01, 2010. Approval was obtained from Reserve Bank of India. Application made to Swiss Authorities in this regard is pending. This has been explained in Note 5, Schedule 17 of this report.
The Company and its investment subsidiaries held 589,823 shares of Nile Limited at the beginning of the year. During the year the Company and its subsidiaries sold 61,527 shares at a net gain of Rs. 3.93 million.
At the end of the year the Company had an investment in marketable securities of Rs. 49.3 million. There was a diminution of Rs. 0.89 million in the market value of these investments which has been provided for in the accounts during the year
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
COMPANY OVERVIEW:
The Company which was established in the year 1962, has a state of the art manufacturing facility spread over a 20 acre plot of land located at Karamsad in Gujarat State, about 45 km from Vadodara. The Company enjoys the leadership position in design, manufacture and marketing of glass-lined reactor vessels, storage tanks, valves and pipe & fittings. The Company also undertakes design and fabrication of specialized chemical process equipment in Alloy steel. It has created for itself a niche position in the chemical process equipment market for proprietary products manufactured by it such as Agitated Nutsche Filters & Filter Dryers, Wiped Film Evaporators, EconoMix Mixing Systems, Thermal Control Units and PTFE lined pipes & fittings. Its access to the Mavag’s high end technology for top driven Spherical Dryers, Agitated Nutsche Filters & Filter Dryers for sterile applications and Magnetic Drive Agitators has complemented the Company’s position as a complete process solution provider for pharmaceuticals, bio pharmaceuticals, chemicals and allied segments.
INDUSTRY STRUCTURE
AND DEVELOPMENT:
While the chemical industry in India grew as a whole at more than 11% in 2011, the Pharmaceutical industry grew by over 18% during the year and it is expected to grow at a CAGR of 15% till 2015.The continued focus on India as a base for bulk drugs, both of a generic nature and increasingly for specialty patent protected drugs and chemicals, the industry is expected to continue its growth momentum in the near term.
With investments by established Companies, both Indian and multi nationals, as well as from new Companies, the Company expects to see broadening of its customer base as well as increasing revenues from its existing customers.
OPPORTUNITIES &
THREATS:
New markets due to migration of chemical business into India from the western world continue to be an opportunity for the Company’s products. In addition to the inclusion of Mavag products your Company has potential for greater share of the customer spend. In addition to the growth in the chemical industry, the capital spend in fertilizer, petrochemical, power, bio technology is expected to offer opportunities for growth.
With multiple code accreditations that allows our products to be sold overseas in markets in USA, Europe and China, the Company is poised to exploit the export markets as well.
Commodities price fluctuations, especially in steel, high rate of inflation and interest rates could hamper the industry growth.
FINANCIAL
PERFORMANCE:
The market environment had picked up during the year. Rise in raw material input cost, increased cost of out sourcing due to inflationary pressure and increase in borrowing cost have impacted profitability.
Sales of the Company increased by 35% in the second half of the year. Lower sales in first half of the year, however, had an adverse impact upon the overall performance of the Company. The growth witnessed by the Pharmaceutical and Specialty Chemicals during the year helped the Company in sustaining the strong build up of order backlog which is expected to show better performance in the next year
Fixed Assets:
·
·
·
Leasehold Improvement
·
Buildings
·
Plant and Machinery
·
Furniture and Fixtures
·
Vehicles
|
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 |
No |
|
10) Designation of contact
person |
No |
|
11) Turnover of firm for last
three years |
Yes |
|
12) Profitability for last
three years |
Yes |
|
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 involved in |
---------------------- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking
account |
---------------------- |
|
26) Buyer visit details |
---------------------- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if
applicable |
Yes |
|
29) Last accounts filed at ROC |
---------------------- |
|
30) Major Shareholders, if
available |
Yes |
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.04 |
|
|
1 |
Rs.81.08 |
|
Euro |
1 |
Rs.67.39 |
SCORE and 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 |
6 |
|
--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 |
|
61 |
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.