MIRA
INFORM REPORT
|
Report Date : |
16.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
GKN SINTER METALS PRIVATE LIMITED (w.e.f. 04.06.2009) |
|
|
|
|
Formerly Known
As : |
GKN SINTER METALS LIMITED |
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|
Registered
Office : |
146, Mumbai- Pune Road, Pimpri, Pune - 411018, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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|
Date of
Incorporation : |
06.05.1960 |
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Com. Reg. No.: |
11-018827 |
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Capital
Investment / Paid-up Capital : |
Rs. 22.558 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
U29130PN1960PLC018827 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PNEM00089F |
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PAN No.: [Permanent Account No.] |
AAACM4432H |
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|
Legal Form : |
Private Limited Liability Company |
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|
Line of Business
: |
Manufacturing
of Sintered Bearings and Parts. |
|
|
|
|
No. of Employees
: |
900 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5070000 |
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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 part of GKN Sinter Group. It is a well established and reputed company having fine track.
Financial position of the company is good. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed legislative
work. India's medium-term growth outlook is positive due to a young population
and corresponding low dependency ratio, healthy savings and investment rates,
and increasing integration into the global economy. India has many long-term
challenges that it has not yet fully addressed, including widespread poverty,
inadequate physical and social infrastructure, limited non-agricultural
employment opportunities, scarce access to quality basic and higher education,
and accommodating rural-to-urban migration.
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ 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 PARTED BY
|
Name : |
Mr. Dilip Rathi |
|
Designation : |
Finance Manager |
|
Contact No.: |
91-20-27426261 |
|
Date : |
12.11.2012 |
LOCATIONS
|
Registered Office / Factory / Sales and Administrative Office : |
146, |
|
Tel. No.: |
91-20-27426261/ 66145231 |
|
Fax No.: |
91-20-27426274 |
|
E-Mail : |
dilip.rathi@gknsintermetals.com
|
|
Website : |
|
|
Location : |
Owned |
|
|
|
|
Factory : |
C-18, MIDC, Industrial Area, Ahmednagar – 414111, |
DIRECTORS
As on 23.09.2011
|
Name : |
Mr. Dayasagar Gurudittaram Mrig |
|
Designation : |
Director |
|
Address : |
B-2, Devlink Apartment, Link
Road, Chinchwad, Pune – 411033, Maharashtra, India |
|
Date of Appointment : |
11.05.2007 |
|
DIN No.: |
01754388 |
|
|
|
|
Name : |
Mr. Hemant Charudatta Nighojkar |
|
Designation : |
Managing director |
|
Address : |
Flat - Pl/303, Oxford Premium, Oxford
Village, Wanowrie, Pune – 411040, Maharashtra, India |
|
Date of Appointment : |
05.05.2008 |
|
DIN No.: |
02252423 |
|
|
|
|
Name : |
Peter Moelgg |
|
Designation : |
Director |
|
Address : |
Via Peinten, Brunico Bruneck-39031, Italy |
|
Date of Birth/Age : |
08.09.1959 |
|
Date of Appointment : |
04.09.2009 |
|
DIN No.: |
02424929 |
|
|
|
|
Name : |
Douglas Mcildowie |
|
Designation : |
Director |
|
Address : |
The Majors, 21 Sigh Street,
Badsey, Evesham, WR 11 7EW United Kingdom |
|
Date of Appointment : |
19.09.2006 |
|
DIN No.: |
02592962 |
KEY EXECUTIVES
|
Name : |
Mr. Viswanathan Pichumani Ramaswamy |
|
Designation : |
Secretary |
|
Address : |
F/40, Shriram Nagar, D.P. Road, Aundh, Pune - 411 007, Maharashtra,
India |
|
Date of Appointment : |
05.05.2008 |
|
PAN No.: |
AAHPR7135E |
|
|
|
|
Name : |
Mr. Dilip Rathi |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 23.09.2011
|
Names of Shareholders |
|
No. of Shares |
|
GKN Sinter Metals Holdings Limited |
|
2255842 |
|
GKN Sinter Metals Holdings and GKN
International Trading (Holdings) Limited |
|
1 |
|
GKN Sinter Metals Holdings Limited and GKN United Kingdom PLC |
|
1 |
|
Total |
|
2255844 |
Equity Share Break up (Percentage of Total Equity)
As on 23.09.2011
|
Category |
Percentage |
|
Foreign holdings( Foreign institutional investor(s),
Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s)
or Overseas Corporate bodies or Others |
100.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Sintered Bearings and Parts. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Sintered
Bearings and Parts |
Pcs. |
NA |
10080 |
298290 |
|
Metal
Powders |
MT |
NA |
2424 |
905 |
|
Tools |
Pcs. |
NA |
NA |
9 |
GENERAL INFORMATION
|
Customers : |
Wholesalers and Retailers |
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No. of Employees : |
900 (Approximately) |
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Bankers : |
HSBC Bank, Pimpri Branch, Pune, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Price Waterhouse and Company Chartered Accountants |
|
Address : |
252, Veer Sawakar Marg, |
|
PAN No.: |
AADFP9359C |
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|
|
|
Fellow
Subsidiary: |
·
GKN Sinter Metals, Emporium USA ·
Hoeganaes Corporation, USA ·
GKN Group
Services Ltd., United Kingdom ·
Hoeganaes Europe S.A. ·
GKN Driveline (India) Limited, India PAN No.: AAACG4276B CIN No.: U74999HR1998PLC034079 ·
GKN Sinter Metals Engg., Redevormald, Germany ·
GKN Sinter Metals, Bad Bruckenau, Germany ·
GKN Sinter Metals, Bonn, ·
GKN Sinter Metals, Brazil |
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|
|
|
Related Parties: |
·
A.P. Newall and Company, United Kingdom ·
GKN Holdings Plc, United Kingdom |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3000000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2255844 |
Equity Shares |
Rs.10/- each |
Rs.22.558 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 |
22.558 |
22.558 |
22.558 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1245.035 |
993.025 |
850.303 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1267.593 |
1015.583 |
872.861 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
220.000 |
130.000 |
|
|
TOTAL BORROWING |
0.000 |
220.000 |
130.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1267.593 |
1235.583 |
1002.861 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
660.157 |
640.711 |
661.805 |
|
|
Capital work-in-progress |
60.443 |
54.621 |
104.855 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
421.602
|
382.089 |
221.085 |
|
|
Sundry Debtors |
482.664
|
406.003 |
395.460 |
|
|
Cash & Bank Balances |
135.115
|
153.503 |
119.845 |
|
|
Other Current Assets |
0.031
|
0.463 |
0.216 |
|
|
Loans & Advances |
208.543
|
222.541 |
140.994 |
|
Total
Current Assets |
1247.955
|
1164.599 |
877.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
604.980
|
514.076 |
468.818 |
|
|
Other Current Liabilities |
5.874
|
10.290 |
120.560 |
|
|
Provisions |
98.714
|
99.982 |
52.021 |
|
Total
Current Liabilities |
709.568
|
624.348 |
641.399 |
|
|
Net Current Assets |
538.387
|
540.251 |
236.201 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
OTHER ASSETS |
8.606 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1267.593 |
1235.583 |
1002.861 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3301.600 |
2413.600 |
2020.400 |
|
|
|
Other Income |
43.400 |
25.300 |
68.200 |
|
|
|
TOTAL |
3345.000 |
2438.900 |
2088.600 |
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
2023.900 |
|
|
|
Administrative Expenses |
|
|
|
|
|
|
Advertising Expenses |
|
|
|
|
|
|
TOTAL |
2812.000 |
2137.100 |
2023.900 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
533.000 |
301.800 |
64.700 |
|
|
|
|
|
|
|
|
|
|
FINANCIAL
EXPENSES |
14.100 |
31.600 |
44.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
518.900 |
270.100 |
20.300 |
|
|
|
|
|
|
|
|
|
|
DEPRECIATION/
AMORTISATION |
164.900 |
109.200 |
106.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE PRIOR
PERIOD EXPENSES AND TAX |
354.000 |
160.900 |
(86.600) |
|
|
|
|
|
|
|
|
|
|
PRIOR PERIOD
EXPENSES |
0.000 |
18.200 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
354.000 |
142.700 |
(86.600) |
|
|
|
|
|
|
|
|
|
|
TAX
|
102.000 |
0.000 |
30.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
252.000 |
142.700 |
(117.000) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
NA |
195.942 |
203.522 |
|
|
|
Contribution received from foreign customers towards development of
tools (on receipt basis) |
NA |
0.000 |
0.822 |
|
|
TOTAL EARNINGS |
NA |
195.942 |
204.344 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
133.480 |
104.209 |
|
|
|
Stores & Spares |
NA |
35.931 |
39.735 |
|
|
|
Capital Goods |
NA |
28.819 |
20.274 |
|
|
TOTAL IMPORTS |
NA |
198.230 |
164.218 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
111.71 |
63.27 |
(51.88) |
|
|
Particulars |
|
|
31.03.2012 |
|
|
|
|
|
|
Sales Turnover (Approximately) |
|
|
3800.000 |
|
|
|
|
|
Expected Sales (2012-2013): Rs. 4000.000 Millions
The above information has been parted by Mr. Dilip Rathi (Finance
Manager)
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.53
|
5.85 |
(5.60) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.72
|
5.91 |
(4.29) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.55
|
7.90 |
(5.63) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Net worth) |
|
0.28
|
0.14 |
(0.10) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Net worth) |
|
0.56
|
0.83 |
0.88 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
1.87 |
1.37 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
(Rs. In Millions) |
||
|
Creditors due small micro enterprises |
3.969 |
4.616 |
2.981 |
|
Creditors due others |
601.011 |
509.460 |
465.837 |
|
Total |
604.980 |
514.076 |
468.818 |
|
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 |
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
------ |
|
22] |
Litigations that the firm
/ promoter involved in |
------ |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
------ |
|
26] |
Buyer visit details |
------ |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
No |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
Results of
Operations:
This financial
year has been a record for GKN Sinter Metals in terms of highest ever sales, margins
and profits considering the fact that we were amidst worst global economic and
financial crisis. The key highlights of the results are :
Net sales and
operating income grew by 37% to Rs. 3301.600 Millions.
Operating PBIDT
grew by 77% to Rs. 533.000 Millions.
Operating PBT grew
by 148% to Rs. 354.000 Millions.
However, the
export turnover during the year ended March 31, 2011 was increased by 31% to
Rs. 256.200 Millions as against Rs. 195.900 Millions for the year ended March
31, 2010.
CONTINGENT
LIABILITY
i) Excise duty
claims against the Company not acknowledged as debts amounts to Rs. 38.294
Millions [Previous year Rs. 21.416
Millions], excluding penalties, if any, relating to penalty proceedings, since
the precedence indicate that the probability of levy is remote. The timing and
the amount of cash flows will be determined only on settlement of the
respective cases.
ii) The Company
regularly purchases EPCG licenses to avail customs duty benefits, the
obligation is to export eight times of duty saved. The full export obligation
for the open licenses as at March 31, 2011 was Rs. 260.737 Millions (previous
year Rs. 252.939 Millions). Contingent liability to the extent the obligation
has not been met as at March 31, 2011 was Rs. 3.706 Millions (previous year Rs.
89.077 Millions). The open export obligation as at March 31, 2011 has been
completed subsequent to the year-end.
b) The Company
discounts the receivables (bills discounting) with its bankers. As at March 31,
2011, the value of bills so discounted and subsequently settled by the
customers on the due date amounts to Rs. 19.058 Millions [Previous year Rs. 18.836 Millions].
FIXED ASSETS:
·
Tangible Assets
v Land
v Building
v Roadways
v Plant and
Machinery
v Electrical
Installations
v Computers and Laptops
v Laboratory
Equipment
v Furniture and
Fixtures
v Motor Vehicles
·
Intangible Assets
v Computer Software
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.54.96 |
|
|
1 |
Rs.87.10 |
|
Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.