MIRA
INFORM REPORT
|
Report Date : |
17.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
SIYARAM SILK MILLS LIMITED |
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Registered
Office : |
H-3/2, MIDC, A-Road, Tarapur, Boisar, District Thane - 401 506, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
29.06.1978 |
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Com. Reg. No.: |
11-020451 |
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Capital
Investment / Paid-up Capital : |
Rs.93.738
millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L17116MH1978PLC020451 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS37269B |
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PAN No.: [Permanent Account No.] |
AAACS6995 |
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Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Woven Fabrics, Texturising Yarn and Readymade Garments. |
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No. of Employees
: |
3000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 8795000 |
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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 appears to be sound. 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 dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 : |
H-3/2, MIDC,
A-Road, Tarapur, Boisar, District Thane - 401 506, |
|
Tel. No.: |
91-22-23071180/ 23082917/ 3119/ 23097963 91-2525-329910/ 11 |
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Fax No.: |
91-22-23073922/ 23073602 91-2525-272475 |
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E-Mail : |
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Website : |
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Corporate Office : |
B-5, Trade World, |
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Tel. No.: |
91-22-30400500 |
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Fax No.: |
91-22-30400599 |
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E-Mail : |
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WEAVING DIVISION |
|
Factory 2 : |
D-23/1, MIDC, Tarapur, Boisar, District Thane - 401 506, |
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Factory 3 : |
E/125, MIDC, Tarapur, Boisar, District Thane – 401 506, |
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Factory 4 : |
Survey No.367, P.O. Sailly, Silvassa – 396 230, U.T. of Dadra and |
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YARN DIVISION |
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Factory 5 : |
G-1/1, MIDC, Tarapur, Boisar, District Thane - 401 506, |
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READYMADE GARMENTS DIVISION |
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Factory 6 : |
481/1-2, Dabhel, Daman, Daman and
Diu (U.T.) - 396 210, |
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Factory 7 : |
Plot No.722, Dabhel, Daman, Daman and Diu (U.T) – 396 210, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Dharaprasad R. Poddar |
|
Designation : |
Chairman |
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|
Name : |
Mr. Ramesh D. Poddar |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Brijmohan L. Sarda |
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Designation : |
Director |
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Name : |
Prof. (Dr.) Mangesh D. Teli |
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Designation : |
Director |
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|
Name : |
Mr. Ketan P. Gupte |
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Designation : |
Director |
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Mr. Shailesh S. Vaidya |
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Name : |
Director |
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Designation : |
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Mr. Ashok N. Garodia |
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Name : |
Director |
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Designation : |
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Mr. Dileep H. Shinde |
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Name : |
Director |
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Designation : |
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Mr. Pramod S. Jalan |
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Name : |
Director |
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Designation : |
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Mr. Harish N. Motiwalla |
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Director (w.e.f. 21.05.2011) |
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Name : |
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Designation : |
Mr. Arvind M. Poddar |
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Director |
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Name : |
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Designation : |
Mr. Pawan D. Poddar |
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Joint Managing Director |
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Name : |
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Designation : |
Vijaylaxmi A. Poddar |
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Executive Director |
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Name : |
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Designation : |
Mr. Shrikishan D. Poddar |
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Executive Director |
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Name : |
Mr. Ashok M. Jalan |
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Designation : |
Senior President cum Director |
KEY EXECUTIVES
|
Name : |
Mr. William V. Fernandes |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
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4,040,347 |
43.11 |
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2,244,588 |
23.95 |
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6,284,935 |
67.06 |
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Total shareholding of Promoter and Promoter Group (A) |
6,284,935 |
67.06 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
612,216 |
6.53 |
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|
1,140 |
0.01 |
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|
7,000 |
0.07 |
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|
620,356 |
6.62 |
|
|
|
|
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|
307,371 |
3.28 |
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|
|
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1,805,500 |
19.26 |
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|
353,886 |
3.78 |
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|
2,466,757 |
26.32 |
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Total Public shareholding (B) |
3,087,113 |
32.94 |
|
Total (A)+(B) |
9,372,048 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
9,372,048 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Woven Fabrics, Texturising Yarn and Readymade Garments. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Licensed
Capacity |
Installed
Capacity |
|
Looms (Nos.) |
N.A. |
494 |
|
Stitching Machine (Nos.) |
N.A. |
746 |
|
Yarn Dyeing Capacity (Tons) Per Annum |
N.A. |
6000 |
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|
|
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(Figures
in Lacs)
|
Particulars |
Unit |
Actual
Production |
|
i) Cloth @ |
Mtrs |
663.18 |
|
ii) Yarn * |
Kgs |
33.93 |
|
iii) Readymade Garments |
Nos. |
19.53 |
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|
@ Including captive consumption 0.20 Lacs mtrs. and Jobwork Production
of 10.91 Lacs mtrs.
* Including captive consumption 8.23 Lacs Kgs. and Jobwork Production of
6.63 Lacs Kgs.
GENERAL INFORMATION
|
No. of Employees : |
3000 (Approximately) |
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Bankers : |
v
Bank of v
Central Bank of v
Corporation Bank |
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Facilities : |
Notes:- (1) Working
capital loans from Banks are secured by hypothecation of Stocks, Book Debts
and second charge over entire fixed assets of the Company. (2) The Term Loans
from banks are secured by first charge by way of mortgage, hypothecation
created on entire fixed assets of the Company and second charge over stocks
and book debts of the Company.
$ After
adjusting repayment of Rs.1.492 millions (Previous Year Rs.1.005 millions)
and Rs. Nil (Previous Year Rs.1.398 millions) received during the year in respect
of earlier years claim. * Personally guaranteed by two directors |
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Banking
Relations : |
-- |
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Statutory Auditors : |
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Name : |
Jayantilal Thakkar and Company Chartered Accountants |
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Cost Auditors : |
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Name : |
Tholiya and Associates Cost Accountants |
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Internal Auditors : |
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Name : |
K.M. Garg and Company Chartered Accountants |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9750000 |
Equity Shares |
Rs.10/- each |
Rs.97.500 millions |
|
25000 |
11% Redeemable Cumulative preference Shares |
Rs.100/- each |
Rs.2.500 millions |
|
|
Total |
|
Rs.100.000
millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9374016 |
Equity shares |
Rs.10/- each |
Rs.93.740
millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9372048 |
Equity shares |
Rs.10/- each |
Rs.93.720
millions |
|
|
Add : Forfeited Equity shares (amount paid up) |
|
Rs.0.018
million |
|
|
Total |
|
Rs.93.738 millions |
Note: Of the
above:
(1) 4644652 Equity Shares have been allotted as fully paid up Bonus
Shares by capitalisation of General Reserve and Share Premium Account.
(2) 1467724 Equity Shares of Rs.10/- each were allotted on conversion of
Convertible Debentures.
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 |
93.738 |
93.738 |
93.738 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2105.091 |
1604.909 |
1329.464 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2198.829 |
1698.647 |
1423.202 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1676.405 |
1545.549 |
1819.811 |
|
|
2] Unsecured Loans |
1178.969 |
351.909 |
507.375 |
|
|
TOTAL BORROWING |
2855.374 |
1897.458 |
2327.186 |
|
|
DEFERRED TAX LIABILITIES |
170.047 |
182.914 |
179.514 |
|
|
|
|
|
|
|
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TOTAL |
5224.250 |
3779.019 |
3929.902 |
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2307.102 |
2001.246 |
2050.101 |
|
|
Capital work-in-progress |
11.379 |
4.559 |
18.020 |
|
|
|
|
|
|
|
|
INVESTMENT |
181.193 |
281.648 |
0.005 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1491.879
|
893.355 |
971.606
|
|
|
Sundry Debtors |
1847.900
|
1167.863 |
1137.892
|
|
|
Cash & Bank Balances |
28.705
|
29.430 |
21.275
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
710.910
|
423.373 |
344.997
|
|
Total
Current Assets |
4079.394
|
2514.021 |
2475.770 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
935.720
|
710.724 |
447.855
|
|
|
Other Current Liabilities |
3.236
|
2.720 |
5.165
|
|
|
Provisions |
415.862
|
309.011 |
160.974
|
|
Total Current Liabilities |
1354.818
|
1022.455 |
613.994 |
|
|
Net Current Assets |
2724.576
|
1491.566 |
1861.776
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5224.250 |
3779.019 |
3929.902 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8547.968 |
6597.272 |
5301.157 |
|
|
|
Other Income |
136.465 |
92.962 |
71.504 |
|
|
|
TOTAL (A) |
8684.433 |
6690.234 |
5372.661 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
7499.285 |
5894.900 |
4878.205 |
|
|
|
Exceptional Item – On Settlement of Electricity Liabilities |
0.000 |
(18.817) |
(12.037) |
|
|
|
Sales Tax Incentive Refunded |
0.000 |
2.556 |
0.000 |
|
|
|
TOTAL (B) |
7499.285 |
5878.639 |
4866.168 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1185.148 |
811.595 |
506.493 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
147.439 |
119.677 |
168.278 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1037.709 |
691.918 |
338.215 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
209.319 |
201.933 |
191.793 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
828.390 |
489.985 |
146.422 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
253.133 |
153.400 |
32.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
575.257 |
336.585 |
114.422 |
|
|
|
|
|
|
|
|
|
|
Add : Adjustments relating to earlier years |
|
|
|
|
|
|
Excess provision of Depreciation written back |
0.000 |
0.248 |
0.000 |
|
|
|
Short Provision of Income Tax (Net) |
0.000 |
0.000 |
(2.516) |
|
|
|
Excess Provision of Expenses (Net) |
1.172 |
0.401 |
2.473 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
118.440 |
58.242 |
48.687 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
65.604 |
0.000 |
46.860 |
|
|
|
Interim Dividend |
0.000 |
56.232 |
0.000 |
|
|
|
Tax on Dividend |
10.643 |
9.557 |
7.964 |
|
|
|
Transferred to General Reserve |
100.000 |
211.247 |
50.000 |
|
|
BALANCE CARRIED
TO THE B/S |
518.622 |
118.440 |
58.242 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
407.416 |
386.367 |
458.610 |
|
|
|
Recovery towards freight and Insurance |
3.301 |
2.928 |
7.309 |
|
|
TOTAL EARNINGS |
410.717 |
389.295 |
465.919 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
15.027 |
17.815 |
22.729 |
|
|
|
Stores & Spares |
40.478 |
37.543 |
28.877 |
|
|
|
Capital Goods |
42.348 |
56.005 |
74.304 |
|
|
|
Packing Materials/Finished Goods |
1.347 |
0.000 |
0.252 |
|
|
TOTAL IMPORTS |
99.200 |
111.363 |
126.162 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
61.51 |
35.98 |
12.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1812.100 |
2444.400 |
2219.600 |
|
Total Expenditure |
1593.800 |
2116.800 |
1927.200 |
|
PBIDT (Excl OI) |
218.300 |
327.600 |
292.400 |
|
Other Income |
15.800 |
39.700 |
26.500 |
|
Operating Profit |
234.100 |
367.300 |
318.900 |
|
Interest |
45.100 |
60.600 |
69.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
189.000 |
306.700 |
249.600 |
|
Depreciation |
50.700 |
51.400 |
63.200 |
|
Profit Before Tax |
138.300 |
255.300 |
186.400 |
|
Tax |
43.000 |
85.500 |
54.400 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
95.300 |
169.800 |
132.000 |
|
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 |
95.300 |
169.800 |
132.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.62
|
5.03 |
2.13
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.69
|
7.43 |
2.76
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.97
|
10.85 |
3.24
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.38
|
0.29 |
0.10
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.91
|
1.72 |
2.07
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.01
|
2.46 |
4.03
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
During the year,
the total Income of the Company was Rs.8684.400 millions against Rs.6690.200
millions in the previous year, registering a growth of 29.81%. The net profit
after tax was at Rs.576.400 millions against Rs.337.200 millions in the
previous year, registering a growth of 70.94%.
The increase was
due to all round growth in all the business verticals of the Company-Fabrics,
Yarn, Dyeing, Readymade Garments and Furnishing. Improved capacity utilization
and operating efficiency enabled the Company to post better results despite of
surging raw material prices and inflation rising to dizzy heights.
EXPANSION:
The Company plans
to increase the production capacity of fabrics and readymade garment divisions
by 20 lakh meters and 75000 pieces per month respectively. The envisaged
capital expenditure towards plant and machinery is around Rs.1500.000 millions.
This will be financed by way of Term Loan (under the TUF Scheme of Government
of India) and internal accruals of the Company and same will be incurred in a
phased manner in the next 2 to 3 years.
MANAGEMENT
DISCUSSION AND ANALYSIS:
The year presented a strong growth story for the Company. Sales grew 30%
on year-on-year basis. Strong and buoyant demand, increasing purchasing power
in the hands of younger population and overall structural and inclusive growth
on the macro-economic front acted as external impetus’ contributing to this
growth. Innovative offerings and efforts to leverage its strong distribution
network were the internal factors that enabled
the Company to
remain on the forefront in the dynamic fashion industry.
Economic front,
however, put forth a rather mixed scenario. For developed economies,
uncertainty about pace of global recovery, limited private spending, dependence
on the fiscal and monetary stimuli and weaker rate of recoveries persisted
throughout the year. Developing economies like
Sustained growth
story of the Indian economy promises to augur well for the businesses in
general. The Company is well-poised to explore opportunities which may arise
due to all-round growth. Its strong expertise in core areas, strength of its
well-positioned brands, continued application of state-of-art technology, wider
and deeper penetration in the growing markets in tier II and tier III cities
are the strengths which are expected to enable the Company to continue to move
ahead on its growth trajectory.
But rising
inflationary pressures, weak global recovery, volatility in raw material
prices, tighter fiscal and monetary policies and possibility of slower growth
rate of Indian economy are the key concerns on the macroeconomic fronts which
may have an impact on the Company’s operations in the ensuing year.
The Company,
however, is well-placed to mitigate the risks. It’s strong presence in the
domestic market, well-established brands and resilient distribution network,
are expected to stand tests of time. On the strengths of these, the Company,
therefore, expects good growth in the ensuing year.
CONTINGENT
LIABILITIES IN RESPECT OF:
|
Particulars |
31.03.2011 (Rs.
in Millions) |
|
a) Guarantees given by the Company’s bankers on behalf of the Company |
69.613 |
|
b) Disputed claims for excise and sales tax |
12.886 |
|
c) Custom Duty which may arise if obligation for export is not
fulfilled. |
7.500 |
|
d) Income tax Demand, interest & penalty under dispute |
41.519 |
FIXED ASSETS:
Tangible Assets
v
v
v Building
v Factory Road
v Plant and Machinery
v Electrical Installation
v Furniture and Equipments
v Vehicles
Intangible Assets
v Computer Software
v Trade Mark
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.50.31 |
|
|
1 |
Rs.79.05 |
|
Euro |
1 |
Rs.65.83 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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.