|
Report Date : |
01.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
L AND T KOMATSU LIMITED |
|
|
|
|
Registered
Office : |
L and T House, Ballard Estate, Mumbai - 400 001, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
29.07.1997 |
|
|
|
|
Com. Reg. No.: |
11-109700 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1200.000 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29119MH1997PLC109700 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRL01259G |
|
|
|
|
Legal Form : |
A Closely Held Public Limited Liability Company |
|
|
|
|
Line of Business
: |
Manufacture and sale of construction equipment. |
|
|
|
|
No. of Employees
: |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Joint Venture between Larsen and Toubro Limited and
Komatsu Limited of 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA- / Stable (Cash Credit Rating) |
|
Rating Explanation |
Having high degree of safety requiring timely servicing of financial
obligation. It carry very low credit risk. |
|
Date |
06.07.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
AA- / Stable (Working Capital Demand Loan) |
|
Rating Explanation |
Having high degree of safety regarding timely requiring of financial
obligation. It carry very low credit risk. |
|
Date |
06.07.2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
Management non co-operative
LOCATIONS
|
Registered Office : |
L and T House, Ballard Estate, Mumbai - 400 001, |
|
Tel. No.: |
91-22-22618181/ 22685656/ 67525656/ 67525617 |
|
Fax No.: |
91-22-22618181/ 22620223/ 22685893/ 67525858 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
AS ON 30.09.2011
|
Name : |
Mr. Jagdish Pandurang Nayak |
|
Designation : |
Director |
|
Address : |
Gilder House, 67-F, |
|
Date of Birth/Age : |
13.11.1943 |
|
Date of Appointment : |
29.07.1997 |
|
DIN No.: |
00001644 |
|
|
|
|
Name : |
Mr. Raghavan Sadagopan |
|
Designation : |
Director |
|
Address : |
Flat No.302, Emerald Green Apartments, 108, 6th Main, 8th
Cross, Malleswaram, |
|
Date of Birth/Age : |
25.03.1946 |
|
Date of Appointment : |
12.05.2006 |
|
DIN No.: |
00002647 |
|
|
|
|
Name : |
Mr. Sunil Kumar Mittra |
|
Designation : |
Director |
|
Address : |
A003/A004, Victorian Haven, 139/27, Patel Rama Reddy Road, Domlur
Layout, |
|
Date of Birth/Age : |
01.10.1949 |
|
Date of Appointment : |
30.03.2009 |
|
DIN No.: |
02347945 |
|
|
|
|
Name : |
Tetsuji Ohashi |
|
Designation : |
Director |
|
Address : |
2-9-5 Akazutsumi Setagaya- KU, |
|
Date of Birth/Age : |
23.03.1954 |
|
Date of Appointment : |
28.03.2008 |
|
DIN No.: |
02104881 |
|
|
|
|
Name : |
Koji Yamada |
|
Designation : |
Director |
|
Address : |
4-6-8-3304 Konan, Minato-Ku, |
|
Date of Birth/Age : |
21.06.1954 |
|
Date of Appointment : |
16.08.2010 |
|
DIN No.: |
02555994 |
|
|
|
|
Name : |
Noboru Sato |
|
Designation : |
Director |
|
Address : |
5-26-40, Kamiasou Asou Ku, |
|
Date of Birth/Age : |
09.06.1954 |
|
Date of Appointment : |
02.04.2010 |
|
DIN No.: |
02885133 |
KEY EXECUTIVES
|
Name : |
Mr. Gopal Subramaniam |
|
Designation : |
Manager |
|
Address : |
B1, 202 Terra Green Leaf Apartment, 13th Cross, 6th
Main, Malleshwaram, |
|
Date of Birth/Age : |
02.11.1955 |
|
Date of Appointment : |
01.01.2011 |
|
PAN No.: |
ABPPG1406L |
|
|
|
|
Name : |
Naveenan Ramamurthy |
|
Designation : |
Secretary |
|
Address : |
798E, |
|
Date of Birth/Age : |
22.12.1955 |
|
Date of Appointment : |
29.09.2008 |
|
PAN No.: |
AABPN1192K |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Larsen and Toubro
Limited, |
59999699 |
49.9997492 |
|
Komatsu Asia and
Pacific Pte Limited, |
59999700 |
49.99975 |
|
Ohashi Tetsuji and
Komatsu Asia and Pacific Pte Limited, |
100 |
0.0000833 |
|
Noboru Sato and
Komatsu Asia and Pacific Pte Limited, |
100 |
0.0000833 |
|
Yamada Koji and
Komatsu Asia and Pacific Pte Limited, |
100 |
0.0000833 |
|
Nayak Pandurang
Jagdish and Larsen and Toubro Limited, |
100 |
0.0000833 |
|
K. Venkataramanan
and Larsen and Toubro Limited, |
1 |
0.0000008 |
|
Mittra Sunil
Kumar and Larsen and Toubro Limited, |
100 |
0.0000833 |
|
Sadagopan Raghavan
and Larsen and Toubro Limited, |
100 |
0.0000833 |
|
Total |
120000000 |
100.00 |
AS ON 30.09.2011
|
Equity Shares
Break Up |
Percentage of
Holding |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
50.00 |
|
Bodies corporate |
50.00 |
|
TOTAL |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of construction equipment. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Licensed
/ Installed Capacity |
Actual
Production |
|
Earth Moving Machinery including Self Propelled Bull Dozers, Angle Dozers,
Graders Levellers, Scrappers, Mechanical Shovels, Excavators Shovel, Loaders
Tamping Machines and Road Rollers. |
Nos. |
5000 |
3232 |
|
Hydraulic and Pneumatic Equipment |
Nos. |
52100 |
7877 |
GENERAL INFORMATION
|
No. of Employees : |
600 (Approximately) |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
v Corporation Bank, Industrial Finance Branch, No.1, Indian Express Building, Queens Road, Bangalore - 560 001, Karnataka, India |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Sharp and Tannan Chartered
Accountants |
|
Address : |
103, Midford
House, 1, |
|
Tel. No.: |
91-80-25550987/ 25320173 |
|
Fax No.: |
91-80-25550989 |
|
E-Mail : |
|
|
PAN No.: |
AAAFS2512D |
|
|
|
|
Joint Venture : |
·
Larsen and Toubro Limited CIN No.:-
L99999MH1946PLC004768 ·
Komatsu Asia Pacific Pte. Limited |
|
|
|
|
Holding Company : |
·
KAP - Komatsu Limited, Japan |
|
|
|
|
Intermediaries
of the JV Partners : |
·
Tractor Engineers Limited CIN No.:-
U28920MH1952PLC008893 ·
Audco India Limited CIN No.:-
U74999MH1961PLC012188 ·
L and T-Infotech Limited CIN No.:-
U72900MH1996PLC104693 ·
L and T-Demag Plastics Machinery Limited CIN No.:-
U25209MH2000PLC127268 ·
L and T-Finance Limited CIN No.:-
U65990MH1994PLC083147 ·
Komatsu Engineering Corporation ·
L and T-Case Equipment Private Limited ·
Komatsu Logistics Corporation ·
Komatsu Shantui Construction Machinery Company
Limited ·
Komatsu Hanomag Aktiengesellschaft ·
PT Komatsu Indonesia Tbk ·
PT Hanken Indonesia |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs. 1200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs.10/- each |
Rs. 1200.000 Millions |
|
|
|
|
|
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 |
1200.000 |
1200.000 |
1200.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1936.658 |
1636.478 |
1316.866 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3136.658 |
2836.478 |
2516.866 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
65.675 |
131.350 |
1939.423 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
65.675 |
131.350 |
1939.423 |
|
|
DEFERRED TAX LIABILITIES |
68.654 |
69.635 |
66.588 |
|
|
|
|
|
|
|
|
TOTAL |
3270.987 |
3037.463 |
4522.877 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
978.345 |
968.793 |
996.945 |
|
|
Capital work-in-progress |
9.447 |
61.329 |
64.307 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
2.267 |
3.122 |
14.810 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2156.596
|
2450.297
|
2898.542
|
|
|
Sundry Debtors |
2523.946
|
1839.987
|
1273.173
|
|
|
Cash & Bank Balances |
254.098
|
313.102
|
1.513
|
|
|
Other Current Assets |
0.024
|
0.008
|
0.000
|
|
|
Loans & Advances |
817.842
|
736.114
|
621.868
|
|
Total
Current Assets |
5752.506
|
5339.508 |
4795.096 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2672.353
|
2497.456
|
1031.427 |
|
|
Other Current Liabilities |
118.919
|
99.087
|
68.110 |
|
|
Provisions |
680.306
|
738.746
|
248.744
|
|
Total
Current Liabilities |
3471.578
|
3335.289 |
1348.281 |
|
|
Net Current Assets |
2280.928
|
2004.219
|
3446.815
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3270.987 |
3037.463 |
4522.877 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13516.382 |
11101.413 |
10739.967 |
|
|
|
Other Income |
52.769 |
139.018 |
47.609 |
|
|
|
TOTAL (A) |
13569.151 |
11240.431 |
10787.576 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Consumption Materials Changes Inventories |
10127.624 |
8085.780 |
-- |
|
|
|
Manufacturing and operating Expenses |
228.668 |
221.631 |
7649.341 |
|
|
|
Employees Related Expenses |
431.760 |
367.101 |
378.573 |
|
|
|
Sales and Administration and Other Expenses |
1757.149 |
1378.157 |
2273.258 |
|
|
|
TOTAL (B) |
12545.201 |
10052.669 |
10301.172 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1023.950 |
1187.762 |
486.404 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
27.280 |
99.364 |
105.542 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
996.670 |
1088.398 |
380.862 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
75.652 |
74.143 |
79.577 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
921.018 |
1014.255 |
301.285 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
314.011 |
358.809 |
111.405 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
607.007 |
655.446 |
189.880 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1362.431 |
1108.363 |
1016.759 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transferred to General Reserve |
60.700 |
65.545 |
0.000 |
|
|
|
Proposed Dividend |
264.000 |
288.000 |
84.000 |
|
|
|
Additional Tax on Dividend |
42.827 |
47.833 |
14.276 |
|
|
BALANCE CARRIED
TO THE B/S |
1601.911 |
1362.431 |
1108.363 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
0.445 |
39.449 |
10.947 |
|
|
TOTAL EARNINGS |
0.445 |
39.449 |
10.947 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
245.426 |
90.294 |
211.325 |
|
|
|
Components |
5018.795 |
3954.875 |
3656.920 |
|
|
|
Spares |
29.180 |
25.286 |
23.928 |
|
|
|
Capital Goods |
11.571 |
0.751 |
63.715 |
|
|
TOTAL IMPORTS |
5304.972 |
4071.206 |
3955.888 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.06 |
5.46 |
1.58 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
4.47
|
5.83 |
1.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.81
|
9.14 |
2.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.68
|
16.07 |
5.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.36 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.15
|
1.25 |
1.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.66
|
1.60 |
3.56 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
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 |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
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% |
----- |
|
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 |
No |
|
19] |
Payments terms |
No |
|
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 |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
32] |
Passport No of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
SUNDRY CREDITORS
DETAILS
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
Sundry Creditors
|
|
|
|
|
Creditors due small micro enterprises |
156.479 |
239.916 |
132.070 |
|
Creditors due others |
2515.874 |
2257.540 |
899.357 |
|
|
|
|
|
|
TOTAL |
2672.353 |
2497.456 |
1031.427 |
PERFORMANCE
During the year
ended 31st March 2011, the company has achieved sales of 3242 units
Hydraulic Excavators against 2640 units sold in the previous year, recording growth
of 23%. This growth was in line with market growth, thus ensuring the company
maintain its market share at approximately 30% levels amidst fierce
competition. The company faced several challenges during the financial year, in
the area of material cost and price realization. Material cost has gone up due
to increase in the prices of commodities (steel) and stronger YEN. On the other
hand selling price remained under pressure with more options available to
customers from new competitors. However, due to excellent efforts by the
company’s Sole Selling Agents (L and T) the company is able to secure premium
in all product categories. The company focused on reduction of working capital
through Inventory rationalization, better credit terms etc., which resulted in
lower borrowing and lower interest cost. The company has mitigated risk of
volatile YEN through increased hedging and forward cover. In spite of adverse
factors as above the company is able to achieve Gross revenue of Rs. 14,907 Mn
and PAT of Rs. 607 Mn.
FIXED ASSETS
Tangible Assets
v Land
v Buildings
v Plant and Machinery
v Furniture and Fixtures
v Vehicles
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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 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. 55.80 |
|
|
1 |
Rs. 87.66 |
|
Euro |
1 |
Rs. 68.45 |
INFORMATION DETAILS
|
Information
Gathered by : |
SBA |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.