|
Report Date : |
12.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
SERVALAKSHMI PAPER LIMITED |
|
|
|
|
Formerly Known
As : |
SRI SAI SHAKTHI RAAM PAPERS PRIVATE LIMITED |
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|
|
|
Registered
Office : |
31 (Old No. 10-Z), |
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|
Country : |
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Financials (as
on) : |
30.06.2011 (15th Months) |
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|
Date of
Incorporation : |
03.11.2005 |
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|
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|
Com. Reg. No.: |
012260 |
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|
Capital
Investment / Paid-up Capital : |
Rs.431.137 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U21021TZ2005PTC012260 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBS094669F |
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|
|
|
PAN No.: [Permanent Account No.] |
AAKCS2187H |
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|
|
Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business
: |
Manufacturers and Dealers in all kinds and Classes of Paper, Board, Pulp
including Pulp Board, Writing Paper, Printing Paper, Kraft Paper, Absorbent
Paper, Newsprint Paper, Wrapping Paper, Cover Paper, Xerox Paper etc. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2486456 |
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|
|
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow But Correct |
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|
Litigation : |
Clear |
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|
Comments : |
Subject is an established company having moderate track. There appears
some accumulated losses recorded by the company. Profitability of the company
is under pressure. However, trade relations are reported as fair. Business is
active. Payments are reported to be slow but correct. The company can be considered for business dealings with some
caution. |
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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
31 (Old No. 10-Z), Bharathi Park, VII Cross, Saibaba Colony,
Coimbatore – 641 011, Tamilnadu, India |
|
Tel. No.: |
91-422-4333344 |
|
Fax No.: |
91-422-4333355 |
|
E-Mail : |
natarajan@servall.co.in, ganesan@servall.co.in, natarajan@danalakshmi.in, finance@danalakshmi.in, ho@servall.co.in |
|
|
|
|
Factory: |
I.C.
Pettai, Vaduganpatti Post, Tirunelveli - 627 010 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Y. Shivaram Prasad |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. Sriramulu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Muthusamy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S.N. Inamdar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. G. P. Muniappan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Srinivasaragavan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.K. Lakshminarayanan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Praveena
Dhanagopal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
|
|
|
1) Indian |
|
|
|
a) Individuals / Hindu Undivided Family |
3951588 |
9.17 |
|
b) Bodies corporate |
18472412 |
42.85 |
|
2) Foreign |
|
|
|
|
|
|
|
(B) Public Shareholdings |
|
|
|
1) Institutions |
|
|
|
|
|
|
|
2) Non – Institution |
|
|
|
a) Bodies corporate |
6524551 |
15.13 |
|
|
|
|
|
b) Individuals |
|
|
|
i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
5052003 |
11.72 |
|
ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
6585242 |
15.27 |
|
|
|
|
|
c) Any other |
|
|
|
i) Clearing Member |
1647347 |
3.82 |
|
ii) Foreign Nationals |
880513 |
2.04 |
|
|
|
|
|
Total |
43113656 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Various grades of paper |
Tonnes |
90000 |
41265* |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||
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|||||||||||||||
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Bankers : |
· Indian Overseas Bank · State Bank of India ·
Bank of India |
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|||||||||||||||
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S.
Krishnamoorthy and Company Chartered
Accountants |
|
Address : |
Coimbatore |
|
|
|
|
Other Related Parties : |
·
Servalakshmi Paper &
Boards Private Limited ·
Danalakshmi Paper Mills
Private Limited ·
Servall Engineering Works
Private Limited ·
Techno Spin Private
Limited ·
Vijayalakshmi Paper Mills |
CAPITAL STRUCTURE
AS ON 30.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
43113656 |
Equity Shares |
Rs.10/- each |
Rs.431.137
Millions |
|
|
|
|
|
Of the above
a.
1,06,94,000 Equity Shares were issued as Bonus
shares in the ratio of 1:1 on 31.3.2010
b. 10,36,000 Shares of Rs. 10/- each issued at a Premium of Rs. 15/- per share on 24th April, 2010
c.
2,06,89,656 Shares issued for cash at a Premium of
Rs. 19/- per share on 7th May, 2011, thru Initial Public Offer
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
431.137 |
213.880 |
80.080 |
|
|
2] Share Application Money |
0.000 |
9.910 |
25.486 |
|
|
3] Reserves & Surplus |
729.063 |
320.420 |
319.920 |
|
|
4] (Accumulated Losses) |
(538.586) |
(2.057) |
(1.179) |
|
|
NETWORTH |
621.614 |
542.153 |
424.307 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2654.545 |
2305.144 |
1237.538 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
2654.545 |
2305.144 |
1237.538 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3276.159 |
2847.297 |
1661.845 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2597.397 |
36.766 |
31.214 |
|
|
Capital work-in-progress |
9.074 |
2564.943 |
1404.888 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
567.401
|
202.582 |
0.000 |
|
|
Sundry Debtors |
107.158
|
4.880 |
0.000 |
|
|
Cash & Bank Balances |
88.475
|
25.588 |
66.703 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
290.779
|
186.394 |
241.227 |
|
Total
Current Assets |
1053.813
|
419.444 |
307.930 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
336.316
|
168.367 |
78.646 |
|
|
Other Current Liabilities |
94.025
|
8.164 |
4.337 |
|
|
Provisions |
0.371
|
0.000 |
0.000 |
|
Total
Current Liabilities |
430.712
|
176.531 |
82.983 |
|
|
Net Current Assets |
623.101
|
242.913 |
224.947 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
46.587 |
2.675 |
0.796 |
|
|
|
|
|
|
|
|
TOTAL |
3276.159 |
2847.297 |
1661.845 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1330.844 |
0.000 |
0.000 |
|
|
|
Other Income |
43.710 |
0.173 |
1.137 |
|
|
|
TOTAL (A) |
1374.554 |
0.173 |
1.137 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials |
1176.596 |
0.000 |
0.000 |
|
|
|
Stores and Spares Consumed |
221.139 |
0.000 |
0.000 |
|
|
|
Power and Steam Consumed |
34.040 |
0.000 |
0.000 |
|
|
|
Salaries, Wages and Welfare Expenses
|
65.715 |
0.000 |
0.000 |
|
|
|
Repairs and Maintenance |
3.028 |
0.010 |
0.060 |
|
|
|
Selling and Distribution Expenses |
51.582 |
0.000 |
1.093 |
|
|
|
Increased / (Decreased) in Stock |
(178.750) |
0.000 |
0.000 |
|
|
|
Other Expenses |
40.661 |
0.236 |
0.000 |
|
|
|
TOTAL (B) |
1414.011 |
0.246 |
1.153 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(39.457) |
(0.073) |
(0.016) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
355.100 |
0.032 |
0.023 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(394.557) |
(0.105) |
(0.039) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
141.972 |
0.663 |
0.635 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(536.529) |
(0.768) |
(0.674) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
(0.110) |
0.175 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(536.529) |
(0.878) |
(0.849) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(2.057) |
(1.179) |
(0.330) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(538.586) |
(2.057) |
(1.179) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
271.448 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
271.448 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
590.212 |
25.556 |
NA |
|
|
|
Stores & Spares |
10.804 |
0.000 |
NA |
|
|
|
Capital Goods |
0.000 |
82.116 |
NA |
|
|
|
Coal |
186.551 |
0.000 |
NA |
|
|
TOTAL IMPORTS |
787.567 |
107.672 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(21.58) |
-- |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
92.620 |
145.610 |
305.630 |
|
Total Expenditure |
183.400 |
199.700 |
398.880 |
|
PBIDT (Excl
OI) |
(90.780) |
(54.090) |
(93.250) |
|
Other Income |
4.210 |
4.820 |
12.230 |
|
Operating
Profit |
(86.570) |
(49.250) |
(81.020) |
|
Interest |
95.110 |
102.510 |
105.910 |
|
Exceptional
Items |
0.000 |
0.000 |
17.240 |
|
PBDT |
(181.680) |
(151.760) |
(169.680) |
|
Depreciation |
8.320 |
33.460 |
34.910 |
|
Profit
Before Tax |
(190.000) |
(185.220) |
(204.590) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
(190.000) |
(185.220) |
(204.590) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(190.000) |
(185.220) |
(204.590) |
KEY RATIOS
|
PARTICULARS |
|
30.06.2011 (15 Months) |
31.03.2010 (12 Months) |
31.03.2009 (12 Months) |
|
PAT / Total Income |
(%) |
(39.03)
|
(507.51) |
(74.67) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(40.31)
|
NA |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(14.69)
|
(0.17) |
(0.20) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.86)
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.96
|
4.58 |
3.11 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.45
|
2.38 |
3.71 |
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
10)
Designation of contact person |
Yes |
|
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) |
-- |
|
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 |
-- |
COMMENCEMENT OF
COMMERCIAL PRODUCTION
The
Phase - I of the project at a total cost of Rs. 2800.000 Millions has started
commercial production from 1st April, 2010.
To
ensure consistent availability of power, a co-generation power plant with a
capacity of 15 MW has been commissioned. The power plant has started exporting
the surplus units of power generated by it with effect from 1st November 2010.
The
Company’s products are marketed under the brand name of “LAKSHMI”.
PERFORMANCE OF THE
COMPANY:
In
its 15 months period of operations ended 30th June 2011, the Company has
produced:
(Figures
in Tonnes)
|
S. No. |
Particulars |
Produced |
Sold |
|
a) |
Printing and Writing Paper |
12053 |
11709 |
|
b) |
Newsprint |
29212 |
29183 |
|
|
Total |
41265 |
40892 |
The
sales for the corresponding period is Rs.1330.844 Millions (including the power
sale of Rs.118.488 Millions) out of which Rs. 282.773 Millions came from export
sales of Paper products.
Out
of 86476433 units of electricity generated by the power plant, the Company has
exported 21301330 units and consumed 65175103 units captively.
The
performance of the Company for the period ended 30th June 2011 has been
adversely affected by the following factors:
1.
Frequent increase in the cost of raw materials namely waste paper
imported with a variation in the price to the extent of 9% between October 2010
and June 2011. The increase in the prevailing price of raw materials is about
30$ per ton over the price prevailing before October 2010.
2.
There was no corresponding increase in the selling price of the
finished product which is about 3%.
3.
The cost of other inputs like
hydros and other overheads went up due to inflationary conditions prevailing in
the economy.
4.
The cost of imported coal also went up after October 2010 affecting
the cost of production of electricity.
5.
The additional supply of wind
energy to the market and also the competition from other power producers have
adversely affected the pricing and export of energy to third parties. The price
offered by Tamil Nadu Electriciy Board (TNEB) is not matching the increased
cost of generation.
6.
The operating results of the Company has been affected by adverse
factors since October 2010 as apprehended in the prospectus.
The
Directors have already addressed these issues by putting in place adequate
safeguards for improvement in the quality of the products after ascertaining
the requirements of our customers and also impressing the customers to absorb
the additional cost in our price.
Since
the close of the accounting period, a major break down has occurred in the
turbine of the power plant, affecting the production of paper and power. The
suppliers have been contacted for setting right the fault and it is expected
that the power plant will be back in operations shortly.
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.55.24 |
|
|
1 |
Rs.85.93 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.