MIRA
INFORM REPORT
|
Report Date : |
23.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
KOTHARI INDUSTRIAL CORPORATION LIMITED |
|
|
|
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Registered
Office : |
114/117, “Kothai Building”, 20 Nungambakkam High Road, Mahathma Gandhi
Road, Chennai-600035, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
01.07.1970 |
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|
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Com. Reg. No.: |
18-005865 |
|
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Capital
Investment / Paid-up Capital : |
Rs. 70.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24110TN1970PLC005865 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBK03341C |
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|
|
Legal Form : |
Public Limited Liability
Company. Company’s Shares are Listed on the stock Exchanges. |
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Line of Business
: |
Subject is engaged in the core business of manufacturing and trading
of Fertilizers and trading of Micro Nutrients including Straight Fertilizers. |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (21) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company is under pressure. There appears huge accumulated losses
recorded by the company. however, trade relations are reported as fair.
Business is active. Payments are reported to be slow. The company can be considered for business dealings on a secured 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Corporate Office : |
114/117, “Kothai Building”, 20 Nungambakkam High Road, Mahathma Gandhi
Road, Chennai-600035, Tamilnadu, India |
|
Tel. No.: |
91-44-28334565 |
|
Fax No.: |
91-44-28334581 |
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|
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|
Factory : |
Super Phosphate Factory, Ennore, Chennai-600057, |
|
Tel. No.: |
91-44-25751157 |
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|
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|
Area Offices : |
Tamilnadu Area
Office New No, 37, Old No. 7A, Andhra Pradesh
Area Office 2D.No.7-150/1, Second Floor, Nagendra Nagar, Street No. 1/ Habsiguda, Karnataka Area
Office 214, 4th Main Road, Chamarajpet, Kerala Area
Office XIV/105, Municipal Industrial Area, Kodimatha, Kottayam - 686 039, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Pradip D. Kothari |
|
Designation : |
Chairman and Managing Director |
|
|
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|
Name : |
Mr. K. Santhanam |
|
Designation : |
Director |
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|
Name : |
Mr. Chetan Vijay Pagariya |
|
Designation : |
Director |
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|
Name : |
Dr. Easo John |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G. Mohan Das |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
No. of Shares |
a % of No. of
Shares |
|
|
(1) Indian |
|
|
|
|
Individuals / Hindu Undivided Family |
2,370,603 |
18.99 |
|
|
Bodies Corporate |
513,412 |
4.11 |
|
|
Any Others
(Specify) |
457,413 |
3.66 |
|
|
Any Other |
457,413 |
3.66 |
|
|
Sub Total |
3,341,428 |
26.77 |
|
|
|
|
|
|
|
Individuals (Non-Residents Individuals /
Foreign Individuals) |
103,890 |
0.83 |
|
|
Bodies Corporate |
360,000 |
2.88 |
|
|
Sub Total |
463,890 |
3.72 |
|
|
Total shareholding
of Promoter and Promoter Group (A) |
3,805,318 |
30.48 |
|
|
|
|
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|
|
|
|
|
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|
Mutual Funds / UTI |
162,556 |
1.3 |
|
|
Financial Institutions / Banks |
2,625,505 |
21.03 |
|
|
Sub Total |
2,788,061 |
22.33 |
|
|
|
|
|
|
|
|
922,443 |
|
|
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Individuals |
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|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
4,968,063 |
39.8 |
|
|
Sub Total |
5,890,506 |
47.18 |
|
|
Total Public
shareholding (B) |
8,678,567 |
69.52 |
|
|
|
12,483,885 |
100 |
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|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
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|
(1) Promoter and Promoter Group |
- |
- |
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|
(2) Public |
- |
- |
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Sub Total |
- |
- |
|
|
Total
(A)+(B)+(C) |
12,483,885 |
- |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the core business of manufacturing and trading
of Fertilizers and trading of Micro Nutrients including Straight Fertilizers. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Actual
Production |
|
Superphosphate |
Tonnes |
66000 |
42019.000 |
|
Mixtures |
Tones |
-- |
44542.385 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Not Available |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
B. B. Naidu and Company Chartered Accountants |
|
Address : |
Chennai, |
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Associates : |
Kothari ( |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
15899052 |
Equity Shares |
Rs.10/- each |
Rs. 158.991
Millions |
|
|
|
|
|
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15619052 |
Equity Shares |
Rs.10/- each |
Rs. 156.191
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12483885 |
Equity Shares |
Rs.5/- each |
Rs. 62.419
Millions |
|
Less |
Calls in arrears due by persons other than
directors |
|
Rs. 0.057
Million |
|
|
Total |
|
Rs. 62.362 Millions |
|
|
|
|
|
|
3135167 |
Equity Shares |
Rs. 2.50/-
each |
Rs. 7.838
Millions |
|
|
Total |
|
Rs. 70.200 Millions |
Note:
The Hon’ble High
Court of Judicature at
Out of the Paid-up
Capital
(i)
22,25,850 Equity Shares of Rs.10/- each were
allotted as fully paid on amalgamation in February 1972 for consideration other
than cash.
(ii)
8,29,760 Equity Shares of Rs.10/- each fully paid
were allotted for consideration other than cash to certain financial
institutions on conversion of part of secured loans, in the year 1981.
(iii)
20,00,000 Equity Shares of Rs.10/- each fully paid
were allotted for consideration other than cash on 01.10.1983 as per the terms
of issue to the holders of 13.5% Convertible Secured Debentures issued to the
Public.
(iv)
45,68,200 Equity Shares of Rs.10/- each were
allotted on 25.08.93 as fully paid on part conversion of 16% Secured Partly
convertible Redeemable Debentures allotted on 25.02.93.
(v)
24,74,569 Equity Shares of Rs.10/- each were
allotted on 16.05.95 to the Promoters group of which Rs.2.50 per share being
the amount payable on application and allotment amount to Rs. 6.186 Millions
was paid up. The resolution passed by the shareholders authorizing the issue of
above shares has been set aside by the City Civil Court on 14.12.2000 and upon
compliance of the necessary formalities including an order from the High Court,
if so required, appropriate adjustments would be made in the accounts.
(vi)
6,60,598 Equity Shares of Rs.10/- each were
allotted on 20.06.95 to a Overseas Bodies Corporate of which Rs.2.50 per share
being amount payable on application and allotment amounting to Rs.1.652
Millions was paid up. The resolution passed by the shareholders authorizing the
issue of above shares has been set aside by the City Civil Court on 14.12.2000
and upon compliance of the necessary formalities, including an order from the
High Court, if so required, appropriate adjustments would be made in the
accounts.
(vii)
The consent terms filed on 05.03.2000 with the
Supreme Court and decreed by the said Court in the matter of share allotment
and sale of 5.33 grounds of land effects of the decree has not been considered
in the books of accounts of the company, since the consent decree terms are yet
to be implemented. A suit has since been filed in Madras High Court for
implementation of the scheme.
(viii)
The Hon’ble High Court of Judicature at
The Board is
authorized by the shareholders to issue of Equity Shares on preferential basis
to promoters / promoters’ group / associates and others immediately after the
approval for Reduction of Capital has been obtained from the Hon’ble High Court
of Judicature at
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 |
70.200 |
132.620 |
132.620 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
131.939 |
239.966 |
263.944 |
|
|
4] (Accumulated Losses) |
(230.148) |
(347.416) |
(315.294) |
|
|
NETWORTH |
(28.009) |
25.170 |
81.270 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
202.258 |
307.431 |
245.320 |
|
|
2] Unsecured Loans |
32.785 |
34.563 |
60.992 |
|
|
TOTAL BORROWING |
235.043 |
341.994 |
306.312 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
207.034 |
367.164 |
387.582 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
216.825 |
233.305 |
246.452 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.009 |
0.009 |
0.011 |
|
|
DEFERREX TAX ASSETS |
77.803 |
77.803 |
98.977 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
56.802
|
97.627 |
26.823 |
|
|
Sundry Debtors |
51.253
|
66.112 |
21.411 |
|
|
Cash & Bank Balances |
27.095
|
32.773 |
10.573 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
75.554
|
77.401 |
59.926 |
|
Total
Current Assets |
210.704
|
273.913 |
118.733 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
110.058
|
148.702 |
10.168 |
|
|
Other Current Liabilities |
182.659
|
71.029 |
63.755 |
|
|
Provisions |
7.533
|
2.668 |
2.668 |
|
Total
Current Liabilities |
300.250
|
222.399 |
76.591 |
|
|
Net Current Assets |
(89.546)
|
51.514 |
42.142 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
1.943 |
4.533 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
207.034 |
367.164 |
387.582 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
|
959.198 |
521.400 |
245.057 |
|
|
|
Profit on |
33.766 |
12.484 |
0.000 |
|
|
|
Profit on |
66.355 |
0.000 |
19.139 |
|
|
|
Other Income |
18.384 |
28.626 |
33.010 |
|
|
|
TOTAL (A) |
1077.703 |
562.510 |
297.206 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase of finished goods |
405.061 |
249.551 |
21.412 |
|
|
|
Manufacturing and other expenses |
500.995 |
321.155 |
216.509 |
|
|
|
Salaries, Wages
and other Employee Benefits |
58.914 |
35.981 |
16.345 |
|
|
|
Exceptional Items |
103.386 |
3.997 |
8.121 |
|
|
|
Increase/(Decrease)
in closing stock of finished goods and Work-in-process |
19.202 |
(45.605) |
(0.909) |
|
|
|
TOTAL (B) |
1087.558 |
565.079 |
261.478 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(9.855) |
(2.569) |
35.728 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
18.156 |
6.787 |
0.506 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(28.011) |
(9.356) |
35.222 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3.593 |
1.592 |
1.471 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(31.604) |
(10.948) |
33.751 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
21.174 |
(98.634) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(31.604) |
(32.122) |
132.385 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(347.416) |
(315.294) |
(447.679) |
|
|
|
|
|
|
|
|
|
Less |
Reduction of
Share Capital and Premium thereon |
148.872 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(230.148) |
(347.416) |
(315.294) |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(2.38) |
(2.42) |
3.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
258.370 |
334.760 |
|
Total Expenditure |
252.650 |
322.780 |
|
PBIDT (Excl OI) |
5.720 |
11.980 |
|
Other Income |
3.740 |
4.810 |
|
Operating Profit |
9.460 |
16.790 |
|
Interest |
4.330 |
10.690 |
|
Exceptional Items |
0.000 |
(1.940) |
|
PBDT |
5.130 |
4.160 |
|
Depreciation |
1.080 |
1.140 |
|
Profit Before Tax |
4.050 |
3.020 |
|
Tax |
0.440 |
0.280 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
3.610 |
2.740 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
3.610 |
2.740 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(2.93)
|
(5.71) |
44.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.29)
|
(2.10) |
13.77 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.25)
|
(1.87) |
7.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.13
|
(0.43) |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(19.11)
|
22.42 |
4.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.70
|
1.23 |
1.55 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The Turnover of Single
Super Phosphate, NPK mixtures, Straight fertilizers and trading in pesticides
was Rs.959.198 Millions as compared to Rs.521.400 Millions in the previous
year. The Company produced 42019 MT of Single Super Phosphate during the year
under review at its plant in Ennore near Chennai.
FUTURE PROSPECTS:
The Company has
signed a contract with a large manufacturer of Agro Chemicals for marketing a
range of herbicides, insecticides and fungicides under specific brand names and
by leveraging the “Kotharis” and “Horse Brand”. This would foray their entry
into the Agro Chemicals Industry arena.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Subject is engaged
in the core business of manufacturing and trading of Fertilizers and trading of
Micro Nutrients including Straight Fertilizers. The key issues relating to this
line of activity are discussed below:-
Indian Economy
which is primarily dependent on agriculture besides industrial sector, records
a substantial growth in the economy’s performance. The growth of the
agricultural sector is based on many factors including onset of the monsoon
over the Indian Sub-continent. A good monsoon raises the hopes of the farmers
and in turn the prospects of our business. They in turn continue to deliver
fertilizers for increased output of the agricultural sector.
Their Company’s
products being branded ones enjoy a market especially in the southern parts of
The Company
continues to exercise good control over all costs on direct or indirect with a
aim to register profits for the Company.
A team of Internal
Auditors continue to visit all the branches of the Company on regular basis to
ensure adherence to the established systems and procedures. The audit reports
are reviewed by the Senior Management Committee at the head office and Audit
Committee at its review meetings at frequent intervals.
OUTLOOK
The current year
looks promising with an above normal monsoon predicted and with limited
availability of competing products. The imports of DAP – Di Ammonium Phosphate
has been hampered in the first quarter of the year due to non finalization of
contracts. The higher prices of DAP and other sources of phosphate from complex
Fertilizers coupled with limited availability of these products will augur well
for the SSP Industry. This has been reflected in a substantial increase of over
30% in the overall consumption figures of SSP released by GOI.
The Company with
its strong Brand Presence and well established network of dealers hopes to take
full advantage of the above factors. They have also set in place a dealer re
engineering process which entails expansion of their dealer base in existing
and new markets.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Outstanding guarantees |
0.700 |
0.700 |
|
Disputed sales tax
demands under appeal including stay of recovery granted for Rs.85.465
Millions (Rs.2.050 Millions paid under protest included under advances)
(Based on another Supreme Court order and legal Opinion such demands may not
be sustainable) |
87.689 |
87.689 |
|
Claims against
the Company not acknowledged as debt (exclusive of interest) |
14.500 |
14.500 |
|
Differential
Customs Duty on Import machinery Availed under export obligation scheme |
8.407 |
8.407 |
|
Interest if any payable
on Mortgage Loan is under negotiation along with other connected issues and
the rate of interest and quantum thereof, if any, and is presently under
negotiation and pending resolution and quantification of the liability, if
any, has not recognized in the accounts |
45.000 |
45.000 |
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
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. 49.25 |
|
|
1 |
Rs. 76.75 |
|
Euro |
1 |
Rs. 65.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
-- |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
21 |
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.