MIRA
INFORM REPORT
|
Report Date : |
16.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
RAMARAJU SURGICAL COTTON MILLS LIMITED SUDARSHAN SPINNING MILLS DIVISION Of RAMARAJU SURGICAL COTTON MILLS
LIMITED |
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Registered
Office : |
119, PAC Ramasamy Raja Salai, Rajapalayam - 626 117, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
20.02.1939 |
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Com. Reg. No.: |
18-002302 |
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Capital
Investment/ Paid-up Capital: |
Rs.19.733 Millions |
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CIN No.: [Company Identification
No.] |
L17111TN1939PLC002302 |
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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 Absorbent Cotton Wool Gauze Bandages and Plaster of
Paris. |
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No. of
Employees: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (31) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 755000 |
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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. Even though the
company has achieved some growth in its sales turnover during 2012, it has
incurred heavy loss form its operations. There appear huge external borrowings recorded by the company which
can acts as a threat to the company liquidity. Business is active. Payments are reported to be low. The company can be considered for business dealings with great
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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
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Rating |
B1+ (Long Term Rating) |
|
Rating Explanation |
High Risk of Default |
|
Date |
October 2012 |
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Rating Agency Name |
ICRA |
|
Rating |
A4 (Short Term Rating) |
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Rating Explanation |
Minimal degree of safety and very high
credit risk |
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Date |
October 2012 |
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.
LOCATIONS
|
Registered Office/Factory : |
119, PAC Ramasamy Raja Salai, Rajapalayam - 626 117, |
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Tel. No.: |
91-4563-235904 / 236628 |
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Fax No.: |
91-4563-235714 |
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E-Mail : |
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Website : |
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Factory : |
Surgical
Division Perumalpatti – 627 753, Tamilnadu Spinning
Division Sudarsanam Spinning Mills 118, P.A.C, Ramasamy Raja Salai, Rajapalaiyam – 626 117, Tamilnadu |
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Sales Depot : |
v
1/18, Tel No: 91-44-24711051 Fax No: 91-44-24713068 v
11-24-78/E, Tel No: 91-866-2424374 Fax No: 91-866-4226321 |
DIRECTORS
As on.31.03.2012
|
Name : |
Mr. P.R. Ramasubrahmaneya Rajha |
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Designation : |
Chairman |
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Qualification : |
B.Sc |
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Name : |
Mrs. Nalina Ramalakshmi |
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Designation : |
Managing Director |
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Qualification : |
B.Sc., M.S.C.S., |
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Name : |
S.U. Mohammed Masood (Nominee of Govt. of Tamilnadu) |
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Designation : |
Director |
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Name : |
P.R. Venketrama Raja |
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Designation : |
Director |
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Qualification : |
B.Tech., M.B.A., |
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Name : |
R. Sudarsanam |
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Designation : |
Director |
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Name : |
N.R.K. Ramkumar Raja |
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Designation : |
Director |
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Address : |
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Name : |
N.K. Shrikantan Raja |
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Designation : |
Director |
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Qualification : |
B.Com., |
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Name : |
P.J. Alaga Raja |
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Designation : |
Director |
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Name : |
S. Kanthimathinathan |
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Designation : |
Director |
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Name : |
S.N. Rama Raju |
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Designation : |
Director |
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Qualification : |
B.E |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Absorbent Cotton Wool Gauze Bandages and Plaster of
Paris. |
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GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
· Canara Bank · IDBI Bank Limited · Indian Bank · Karur Vysya Bank Limited · Punjab National Bank ·
State Bank of ·
Tamilnad Mercantile Bank Limited |
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Facilities : |
LONG TERM
BORROWINGS a) Term Loan from
Banks are secured by pari-passu charge on the fixed assets of the Company and
a second charge on the current assets of the Company. b) The Term Loans
from Banks are repayable in quarterly installments. The year wise repayment
of Term Loans are as follows:
SHORT TERM
BORROWINGS * Loan Repayable on Demand from Banks are secured by pari-passu
charge on the current assets of the Company and a second charge on the fixed
assets of the Company. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M.S. Jagannathan and N. Krishnaswami Chartered Accountant |
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Address : |
Unit 5, Ground Floor, Abirami Apartments, 14, |
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Enterprises over
which the above persons exercise significant influence and with which the
company had transactions during the year. |
· Madras Cements Limited · Sri Vishnu Shankar Mill Limited · Ramco Industries Limited · Sandhya Spinning Mill Limited · Ramco Systems Limited · Sri Harini Textiles Limited · Rajapalayam Mills Limited · Rajapalayam Spinners Limited ·
Thanjavur Spinning Mill Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
30,00,000 |
Equity Shares |
Rs.10/- each |
Rs.30.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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19,73,280 |
Equity Shares |
Rs.10/- each |
Rs.19.733
Millions |
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a. Issued,
Subscribed and fully paid-up Shares includes 9,86,640 Shares of Rs. 10/- each were
allotted as fully paid Bonus Shares by Capitalisation of Reserves.
b.
Reconciliation of the number of shares outstanding
|
|
31.03.2012 |
31.03.2011 |
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Number of shares
at the beginning |
986640 |
986640 |
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Issued during the
Year - Bonus Issue |
986640 |
- |
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Number of Shares
at the end |
19,73,280 |
986640 |
c. Rights
attached to Equity Shares
There are no
special rights attached to equity shares other than those specified under
provisions of various Acts.
d. Details of Shareholders
holding more than 5 percent in the Company.
|
|
31.03.2012 |
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No. of shares |
% of holding |
|
Smt. R. Nalina
Ramalakshmi |
6,72,700 |
34.09 |
e. Aggregate number
of Equity Shares allotted as fully paid up by way of bonus shares during
the last 5 years :
9,86,640
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
19.733 |
9.866 |
9.866 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
169.036 |
280.664 |
155.436 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
188.769 |
290.530 |
165.302 |
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LOAN FUNDS |
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1] Secured Loans |
1581.242 |
1634.356 |
1804.927 |
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2] Unsecured Loans |
365.974 |
731.705 |
495.293 |
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TOTAL BORROWING |
1947.216 |
2366.061 |
2300.22 |
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DEFERRED TAX LIABILITIES |
96.174 |
145.672 |
64.895 |
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TOTAL |
2232.159 |
2802.263 |
2530.417 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2018.310 |
2111.329 |
2124.607 |
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Capital work-in-progress |
6.255 |
2.401 |
1.136 |
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INVESTMENT |
22.071 |
22.100 |
21.303 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
267.507
|
648.398 |
274.741
|
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Sundry Debtors |
211.334
|
268.679 |
84.890
|
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Cash & Bank Balances |
18.783
|
19.505 |
10.626
|
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Other Current Assets |
60.781
|
86.837 |
0.000
|
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Loans & Advances |
89.370
|
113.536 |
119.623
|
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Total
Current Assets |
647.775
|
1136.955 |
489.880 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Sundry Creditors |
30.640
|
18.919 |
82.451
|
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Other Current Liabilities |
334.486
|
348.142 |
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Provisions |
97.126
|
103.461 |
24.123 |
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Total
Current Liabilities |
462.252
|
470.522 |
106.574 |
|
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Net Current Assets |
185.523
|
666.433 |
383.306 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.065 |
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TOTAL |
2232.159 |
2802.263 |
2530.417 |
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PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
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SALES |
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Income |
2019.421 |
2091.839 |
1139.152 |
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Other Income |
26.347 |
9.206 |
96.377 |
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TOTAL (A) |
2045.768 |
2101.045 |
1235.529 |
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Less |
EXPENSES |
|
|
|
|
|
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Cost of Materials Consumed |
1104.045 |
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Employee Benefit Expense |
152.186 |
143.322 |
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Other Expenses |
431.979 |
482.072 |
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|
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|
1621.830 |
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Changes in Inventories of Finished Goods and Work-in-Progress |
121.240 |
(115.536) |
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TOTAL (B) |
1809.450 |
1506.294 |
1051.564 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
236.318 |
594.751 |
183.965 |
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Less |
FINANCIAL
EXPENSES (D) |
245.225 |
207.149 |
141.886 |
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PROFIT
BEFORE/(LOSS) TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(8.907) |
387.602 |
42.079 |
|
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|
|
|
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|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
142.353 |
130.094 |
109.093 |
|
|
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|
|
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|
|
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|
PROFIT
/(LOSS)BEFORE TAX (E-F) (G) |
(151.260) |
257.508 |
(67.014) |
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|
|
|
|
|
|
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Less |
TAX (H) |
49.498 |
131.562 |
23.160 |
|
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|
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|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(101.762) |
125.946 |
(43.854) |
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|
EARNINGS IN
FOREIGN CURRENCY |
258.333 |
193.113 |
NA |
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
116.056 |
69.306 |
|
|
|
|
Components & Stores |
4.708 |
9.309 |
NA |
|
|
|
Capital Goods |
10.119 |
8.399 |
|
|
|
TOTAL IMPORTS |
130.883 |
87.014 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(52) |
(128) |
- |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
|
|
|
|
1st
Quarter |
|
Net sales |
|
|
525.700 |
|
Total Expenditure |
|
|
395.000 |
|
PBIDT (Excl OI) |
|
|
130.700 |
|
Other Income |
|
|
1.200 |
|
Operating Profit |
|
|
131.900 |
|
Interest |
|
|
64.100 |
|
Exceptional terms |
|
|
0.000 |
|
PBDT |
|
|
67.800 |
|
Depreciation |
|
|
34.800 |
|
PROFIT BEFORE TAX |
|
|
33.000 |
|
Tax |
|
|
12.500 |
|
Provision and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
20.500 |
|
Extra ordinary items |
|
|
0.000 |
|
Prior Period Expense |
|
|
0.000 |
|
Net Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
20.500 |
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(5.27) |
5.99 |
3.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.49) |
12.31 |
(5.88) |
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|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.67) |
7.93 |
(2.56) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.80) |
0.89 |
(0.41) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
12.76 |
9.76 |
14.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40 |
2.42 |
4.60 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
Yes |
|
No.
of Employees |
No |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
PAN
of Proprietor/Partner/Director, if available |
No |
|
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
External Agency
Rating, if available |
Yes |
FINANCIAL RESULTS
The financial results for the year ended 31st March, 2012, after
charging all expenses but before deducting interest and depreciation have
resulted in operating profit of Rs.236.318 Millions After deducting Rs.245.225 Millions towards
interest cost and providing Rs.142.353 Millions towards Depreciation, the Net
loss for the year is Rs. (-) 151.260 Millions Considering the Deferred Tax
Asset of Rs.49.498 Millions and the surplus of Rs.14.269 Millions brought
forward from the previous year, the sum of Rs.87.493 Millions has been adjusted
against the General Reserve.
BONUS SHARES
In view of the Birth Centenary of Founder Shri N.K. Ramaraju the
directors are glad to inform that Bonus Shares have been allotted on 20.07.2011
to the Shareholders of Equity Shares in the ratio of 1:1 by capitalisation of
Reserve of Rs.9.866 Millions after the due approval of the Members at the Extra
Ordinary General Meeting held on 27.06.2011.
SPINNING DIVISION
TRADE CONDITIONS
As reported in the Directors' Report in the previous year, Textile Industry
especially Spinning Mills across the country are facing unprecedented crisis on
account of inconsistent policies adopted by the Government of India with regard
to export of cotton and cotton yarn. The cotton prices have gone up too steeply
during the season 2010-11 due to unrealistic Government's decision to export
huge quantity of cotton during peak cotton season. The Mills were forced to buy
good quality cotton at abnormally higher prices during that season which was
consumed during the financial year 2011-12. There was no parity between cotton
cost and price of yarn sold. The Mills were forced to sell the yarn at very low
price, though the yarn was produced with the stock of high-cost cotton procured
during the season 2010-11.
The ban on cotton yarn exports for more than two months in the last
quarter of the financial year 2010-11 and the declining domestic demand has
resulted in piling up of huge stock of cotton yarn in the Mills. When export of
cotton yarn was allowed in April 2011, the accumulated stock caused a crash of
cotton yarn prices in the global and domestic markets. The mounting pressure of
inventory with Indian Mills and their eagerness to get rid of their inventory
before the arrival of new cotton, virtually pushed the global prices down by
more than 30 per cent within a month and the domestic cotton prices fell below
the international levels resulting in the present crisis. The crisis
in Europe had affected the exports from
The power cut in Tamilnadu has worsened during the year and severe power
cut measures were announced and the power availability was only 25% from March
2012 and is still continuing. The mismatch between increased demand for
electricity and shortage in the supply has affected the capacity utilization of
Mills in Tamilnadu. Timely decision taken by the Directors to install Windmills
in previous years and purchase of power from Third Party have helped the
Company to tide over the power crisis.
In order to contain the inflation in
The cumulative effect of the above factors have affected the performance
of the Company substantially.
EXPORTS
On the export front during the year, they have made direct export of
Cotton Yarn and Surgical Dressings for a value of Rs.258.300 Millions and
Merchant Export of Rs.101.800 Millions as against Rs.193.100 Millions and
Rs.95.900 Millions respectively of the previous year.
MODERNISATION
As a part of continuous intensive modernization programme, the company
has invested about Rs.2 Millions for investment in state-of-the-art textile
machinery and equipments like Savio Automatic Conewinder Machine, Uster Model
Tensorapid and Multimixer Machine etc.
PROSPECTS FOR THE
CURRENT YEAR
The cotton prices during cotton season 2011-12 are very volatile. The
cotton cost still has not come down as expected. The Central Government's
frequent interventions in the form of imposition and removal of quantitative
restrictions on export of raw cotton as well as cotton yarn without taking a
comprehensive view of demand and supply requirements of various segments of
textile industry has given rise to a complex situation.
The yarn prices are stagnant due to recessionary trend in both domestic
and global markets. The power cut imposed in Tamilnadu to the extent of 75% is
severely affecting the operations of the Company. The Government of Tamilnadu
has also announced the increase in power tariff by more than 30%.
The increase in wages, fuel prices and interest cost and the increase in
the power cuts in recent period definitely pose a challenge. While the cost of
major inputs are increasing steeply, the yarn price has not increased. The
Directors are therefore unable to predict the profitability of the Company in
the current year. However, the Company is maintaining high standards of Quality
Yarn, cost effective production and stringent waste control measures. These
measures strengthened the Company to face the challenges in the current
scenario.
WIND MILL
The Wind Mill Division with an installed capacity of 8.30 MW comprising
of 9 wind electric generators are working satisfactorily. The Division has
generated 155 Lakhs Kwh as compared to 127 Lakhs Kwh of the previous year. The
full benefit of windmills purchased during September, 2010 with the capacity of
2.40 MW has accrued during the year. The income during the year from the Wind
Mill Division was Rs.58.300 Millions as against Rs.52.600 Millions of previous
year.
SURGICAL DIVISION
The operation of the division has been satisfactory with good
contribution to the profit of the Company due to effective utilisation of
machineries. Even though Raw Material cost and other input cost had gone up,
the Company had effectively managed the situation by increasing the
productivity and other cost reduction measures. The Company expects to perform
better in the current year by increasing the capacity utilisation. Also, the
Company will have the benefit of increased production from its new products,
which will enable the Company to meet the increased market demand for surgical
products. The Company continues its endeavour for the sale of Absorbent Cotton
Wool. By concentrating on operational efficiencies and cost reduction measures
in all areas of production and distribution, the Company will strive to protect
and improve its profitability.
CONTINGENT
LIABILITY NOT PROVIDED FOR IN RESPECT OF:
(Rs. In Millions )
|
|
31.03.2012 |
31.03.2011 |
|
(i)Liability on letter of credit opened |
|
|
|
-Capital Goods |
- |
10.788 |
|
-Others |
18.165 |
31.405 |
|
(ii)Estimate amount of contract remaining to be executed on Capital account not provided |
- |
- |
|
(iii)Liability on guarantees given by the bankers |
12.371 |
12.929 |
|
|
|
|
FIXED ASSETS:
v Land
v Buildings
v General Machinery
v Electrical Machinery
v Office Equipments and Furniture
v Vehicle
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.86.96 |
|
Euro |
1 |
Rs.69.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
BYI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
31 |
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.