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Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHODHANA LABORATORIES LIMITED |
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Registered Office : |
No. 705, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
22.09.2000 |
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Com. Reg. No.: |
01-35348 |
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CIN No.: [Company
Identification No.] |
U24230AP2000PLC035348 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS03886B |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturer, Exporter, and
Supplier of Bulk Drugs |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 690000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is well established pharmaceutical company having satisfactory
track record. Trade relations are fair. Financial position is good. Payments are
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office/Factory : |
No. 705, |
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Tel. No.: |
91-40-66844664 / 66848676 |
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Fax No.: |
91-40-66848998 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mrs. Shobha Thota |
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Designation : |
Director |
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Address : |
G-113, Madhuranagar, S R Nagar, |
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Date of Birth/Age : |
05.11.1963 |
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Date of Appointment : |
01.11.2000 |
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Name : |
Mr. Rahul Thota |
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Designation : |
Director |
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Address : |
G-113, Madhuranagar, S R Nagar, |
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Date of Birth/Age : |
25.08.1986 |
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Date of Appointment : |
17.02.2005 |
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Name : |
Mr. Dayakar Thota |
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Designation : |
Director |
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Address : |
A-34, Ved Vihar, Subhash Nagar, Secunderabad, |
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Date of Birth/Age : |
13.09.1944 |
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Date of Appointment : |
01.04.2006 |
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Name : |
Mr. Sudhakar Thota |
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Designation : |
Director |
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Address : |
R and D, Plot No. 6, |
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Date of Birth/Age : |
26.09.1938 |
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Date of Ceasing : |
01.10.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 28.09.2007)
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Names of Shareholders |
No. of Shares |
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Dr. Giridhar Thota |
1093456 |
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Ramadevi Chittela |
312000 |
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Shobha Thota |
114344 |
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Sri J Jaganmohan Reddy |
31200 |
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Dayakar Thota |
7800 |
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416 |
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Total |
1559216 |
Equity share
breakup (percentage of total equity)
(As on
30.09.2007)
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Category |
Percentage |
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Directors or relatives of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter, and
Supplier of Bulk Drugs |
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Products : |
Products under Saleup ·
Ranolazine ·
Rosiglitazone Maleate ·
Terbinafine Hydrochloride ·
Topiramate ·
Voriconazole Products under Development ·
Ibuprofen Piconol ·
Nebivolol ·
Olmisarten ·
Pramipexole Dihydrochloride Monohydrate ·
Prasugrel ·
Repaglinide ·
Ropinirole ·
Sitagliptin ·
Tolterodine Tartrate ·
Vildagliptin |
GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
State Bank of Shapurnagar, Jeedimetla, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V Chartered Accountant |
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Address : |
Shriven Towers, 8-3-222/1/A/1, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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4000000 |
Equity Shares |
Rs.10/- each |
Rs.40.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2960000 |
Equity Shares |
Rs.10/- each |
Rs.29.600
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
29.600 |
15.600 |
15.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
108.461 |
71.331 |
51.394 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
138.061 |
86.931 |
66.994 |
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LOAN FUNDS |
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1] Secured Loans |
68.709 |
58.470 |
42.550 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
68.709 |
58.470 |
42.550 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
206.770 |
145.401 |
109.544 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
67.816 |
69.646 |
60.366 |
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Capital work-in-progress |
0.858 |
8.778 |
6.349 |
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INVESTMENT |
0.270 |
0.270 |
0.270 |
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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 |
61.283
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57.649 |
35.796 |
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Sundry Debtors |
156.033
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95.581 |
60.407 |
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Cash & Bank Balances |
63.098
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4.782 |
0.682 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
13.787
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14.195 |
6.652 |
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Total
Current Assets |
294.201
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172.207 |
103.537 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
147.758
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96.346 |
56.481 |
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Provisions |
8.653
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9.208 |
4.569 |
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Total
Current Liabilities |
156.411
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105.554 |
61.050 |
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Net Current Assets |
137.790
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66.653 |
42.487 |
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MISCELLANEOUS EXPENSES |
0.036 |
0.054 |
0.072 |
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TOTAL |
206.770 |
145.401 |
109.544 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
946.091 |
654.224 |
328.967 |
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Other Income |
3.897 |
1.501 |
0.345 |
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Total Income |
949.988 |
655.725 |
329.312 |
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Profit/(Loss) Before Tax |
61.674 |
33.826 |
27.281 |
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Provision for Taxation |
22.813 |
13.000 |
10.306 |
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Profit/(Loss) After Tax |
38.861 |
20.826 |
16.975 |
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Earnings in Foreign Currency : |
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Export Earnings |
309.737 |
106.437 |
NA |
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Other Earnings |
0.000 |
0.000 |
NA |
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Total Earnings |
309.737 |
106.437 |
NA |
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Expenditures : |
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Manufacturing Expenses |
73.005 |
40.443 |
31.246 |
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Administrative Expenses |
56.269 |
42.607 |
31.389 |
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Raw Material Consumed |
693.235 |
512.566 |
213.161 |
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Increase/(Decrease) in Finished Goods |
4.087 |
(14.069) |
(2.059) |
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Salaries, Wages, Bonus, etc. |
40.419 |
27.564 |
17.304 |
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Interest |
6.474 |
4.892 |
4.446 |
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Depreciation & Amortization |
14.825 |
7.896 |
6.544 |
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Total Expenditure |
881.314 |
621.899 |
302.031 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
4.09
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3.18 |
5.15 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.52
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5.17 |
8.29 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
17.04
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13.99 |
16.64 |
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Return on Investment (ROI) (PBT/Networth) |
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0.45
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0.39 |
0.41 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.63
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1.89 |
1.55 |
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Current Ratio (Current Asset/Current Liability) |
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1.88
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1.63 |
1.70 |
LOCAL AGENCY FURTHER INFORMATION
Industry Overview :: Drugs and Pharmaceuticals
The Indian pharmaceutical industry is estimated to be worth of
US$ 6 billion, growing at over 13 per cent annually, Indian pharmaceutical
companies now supply almost all the country’s demand for formulations and
nearly 70 per cent of demand for bulk drugs.
The Indian pharmaceutical industry, which is a US $ 22 billion Industry, has been growing
at a faster pace in recent years. The industry produces bulk drugs which
include all major therapeutic groups requiring systematic and modern
manufacturing technologies. In
Some of the official estimates published by the government
shows that the exports of pharma constitute nearly 40 per cent of the
production with formulations contributing 55 per cent and bulk drugs 45 per
cent. The industry ranks 17th in terms of export value of bulk actives and
dosage. It comprises large, medium and small-scale operators out of which some
300 companies together account for nearly 90 per cent of the domestic market,
while the rest is accounted for by a large number of small companies which
total about 9000 units. The export import policy guidelines for Drugs and pharmaceuticals
stipulate that the Import of most of the bulk drugs, intermediates and
formulations under Chapters 29 and 30 is free. However, quite a few narcotic
drugs and psychotropic substances, that were restricted as per Exim Policy
2002-2007 at the instance of the Department of Revenue. On account of
structural similarities and non availability of specific codes for many
narcotic drugs & psychotropic substances, a large number of organic
chemicals including vital bulk drugs and intermediates required by the Pharma
industry were also put under restricted category by virtue of their coverage
under 9 residual categories of “Others”. Keeping in view the difficulties of a
large number of genuine actual users of these substances, the import
restrictions on the narcotic drugs and psychotropic substances including those
under “others” were lifted. At the same time a new regime for import of
narcotic drugs and psychotropic substances has been brought in by DGFT vide
Notification No.52 (RE-2005)2004 dated 9th March 2006.
Estimates show that the Pharma exports touched a level of
over Rs.249420 millions during 2006-07. Exports constitute a substantial part
of the total production of Pharmaceuticals in
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YEAR |
EXPORT (Rs. in
millions) |
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1998-1999 |
62560.600 |
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1999-2000 |
72301.600 |
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2000-2001 |
8574.700 |
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2001-2002 |
97512.000 |
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2002-2003 |
128261.000 |
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2003-2004 |
152132.400 |
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2004-2005 |
178578.000 |
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2005-2006 |
225789.800 |
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2006-2007 |
249420.000 |
According to IBEF, the domestic Indian pharmaceutical industry is likely to more
than triple to US$ 20 billion by 2015 from the current US$ 6 billion to become
one of the top ten pharmaceutical markets in the next decade. Ever since the
new patent regime is in force, the pharmaceutical market is witnessing
structural changes. Consequently, patented drugs are likely to see increased
sales in the domestic pharmaceutical market, growing from virtually nothing at
present to about US$ 2 billion in seven years.
According to a study done by Goldman Sachs, it is estimated
that
Contract research--including both drug discovery research and
clinical research has been growing at a phenomenal rate. While clinical trials
represent 65 per cent of this market and new drug discovery makes up the
remaining 35 per cent. Frost and Sullivan estimates outsourced contract
research in
Over 15 prominent contract research organizations (CROs) are
now operating in the country which includes names such as Novartis, Johnson and
Johnson, Pliva, Astra Zeneca, Bristol-Myers Squibb and Glaxo Smith Kline among
others.
Contract manufacturing is another new opportunity for the
Indian pharmaceutical industry. Already,
About 40-50 new plants (which are in addition to the plants
being set up by major Indian pharmaceutical companies) are likely to be
commissioned by these companies in the next two years conforming to the quality
standards suggested by the US FDA and the UK Medicines and Healthcare
Regulatory Agency (MHRA), making India one of the largest drug manufacturers in
the world.
Already, Indian drug companies account for over 25 per cent
of the total generic drug applications made to the FDA of US, which accounts
for over half of the US$ 60 billion market. Also,
Industrial Licensing for all bulk drugs cleared by Drug Controller General (
Foreign Direct Investment (FDI) in
Drugs and Pharmaceuticals:
• FDI upto
74% in the case of bulk drugs, their intermediate Pharmaceuticals and
formulations (except those produced by the use of recombinant DNA technology)
would be covered under automatic route.
• FDI above 74% for manufacture
of bulk drugs will be considered by the Government on case to case basis for
manufacture of bulk drugs from basic stages and their intermediates and bulk
drugs produced by the use of recombinant DNA technology as well as the specific
cell/tissue targeted formulations provided it involves manufacturing basic
drugs
Automatic approval for Foreign Technology Agreement (FTA) is
already available in the case of all the bulk drugs cleared by Drug Controller
General (India) , all their intermediates and formulations, except bulk drugs
produced by the use of recombinant DNA technology.
National
Pharmaceutical Pricing Authority (NPPA) attempts to streamline and simplify the
procedures with regard to drug price monitoring and bring about a greater
degree of transparency as well as objectivity to the whole exercise. Fixation
and notification of drug prices, both of bulk drugs as well as formulations, is
thus the most important function of the authority. The criteria for calculating
the fair price are drawn from the Drugs (Prices Control) Order, legislation
under the Essential Commodities Act. Set up in 1997, the authority has been
enforcing the provisions of the Drugs (Prices Control) Order, dealing with all
legal matters arising out of its decisions, undertaking and/or sponsoring
relevant studies in respect of pricing of drugs/pharmaceuticals and rendering
advice to the central government on changes/ revisions in the drug policy over
the years. NPPA is currently fixing prices on the basis of Drugs Price Control
Order (DPCO) 1995, which has separate methodology / procedure for price
fixation / revision of bulk drugs and formulations.
Form No. 8
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Name of the company |
SHODHANA LABORATORIES LIMITED |
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Presented By |
Dr. T Giridhar,
Managing Director and State Bank of |
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1) Date and description of instrument creating the change |
Hypothecation agreement dated 03.11.2001 ·
Medium
term Loan : Rs.10.000 millions ·
Cash
Credit Rs.5.000 millions ·
Letter
of Credit Rs.2.500 millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.17.500 millions MTL : 7.500, CC : 5.000, LC : 2.500 |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
Raw Materials, Stock, receivables, spares, machinery |
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4) Gist of the terms and conditions and extent and operation of the charge. |
·
Margin
: Stocks : 25% ·
Rate
of interest : MTL 15.50% p.a. ·
CC
16% |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Shapurnagar, Jeedimetla, |
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6) Date and brief description of instrument modifying the charge |
1. C-1A: Supplemental Agreement of loan for
increase in the overall limit dated 14.10.2003 2. C-2A : Supplemental Agreement of
Hypothecation of goods and assets for increase in the overall limit dated
14.10.2003 3. C-3A : Supplemental Agreement of Pledge of
goods and assets for increase in the overall limit dated 14.10.2003 4. C-4A : Supplemental Deed of Guarantee for increase
in overall limit dated 14.10.2003 5. Letter regarding the grant of individual
limits within the overall limit, dated 14.10.2003 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Total limits have
been enhanced from Rs.23.500 millions to Rs.38.000 millions
Security : Primary Hypothecation of raw
materials, stock in process, finished goods, consumable spares, book debts
and receivables. Equal Mortgage of
existing factory land and building situated at Plot No. 26, Sy No. 264 admeasuring
6073.54 sq. yards. At Phase – I, IDA, Jeedimetla, Qutbullapur Mandal, RR
District standing in the name of Company. Equitable
mortgage of the factory land situated plot no. 9, admeasuring 1850 sq. yards
Phase – I, IDA, Jeedimetla. Pledge of all the
Plant and Machinery of the company. |
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Corporate
identity number of the company |
U24230AP2000PLC035348 |
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Name of the
company |
SHODHANA LABORATORIES LIMITED |
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Address of the
registered office or of the principal place of business in |
No. 705, |
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This form is for |
Modification of charge |
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Type of charge |
·
Immovable
property ·
Book
debts ·
Movable
property (not being pledge) ·
Floating
charge |
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Particular of
charge holder |
State Bank of Shapurnagar, Jeedimetla, |
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Nature of
instrument creating charge |
·
Credit
Facilities – Sanction of Limits ·
Agreement
of Loan for over all limit ·
Agreement
of Hypothecation of Goods and Assets ·
Letter
regarding the grant of individual limits within the over all limit. |
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Date of
instrument Creating the charge |
16.07.2008 |
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Amount secured by
the charge |
Rs.195.000 millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate
on interest For term Loan and Corporate Loan : 11.5%
p.a. (1% Below PLR) For Cash Credit Hypothecation : 12.5% p.a.
(2% below PLR) ·
Terms
of repayment Working Capital is repayable on demand ·
Margin Raw Materials : 25% Stock in Process : 25% Finished Goods : 25% Book debts / Receivables : 25% ·
Extent
and operation of the charge First charge on both present and future current
assets and fixed assets of the company ·
Others
Nil
|
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Particulars of
the property charged |
First charge on both present and future current assets and fixed
assets of the company Extension of charge on the fixed assets of the company including EM of
Factory Land and Building |
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Particulars of
the present modification |
The Existing credit facilities of Rs.132.500 millions have been
enhanced to Rs.195.000 millions. |
Profitability
Profit is increased from Rs.20.825 to Rs.38.861 millions from earlier
years. The Profit percentage was good as there were couple of contact
manufacturing opportunities.
Fixed Assets
·
Land and Site
·
Buildings
·
Plant and Machinery
·
Furniture and Fixture
·
Vehicles
·
Computers
·
Office Equipments
·
M E Operator
Web Details
Profile
Established and headed by a Technocrat, a doctorate in chemistry, with
20 years rich industrial experience in various industries including Warner Hindustan,
Standard Organics Limited (1982-84)and Cheminor Drugs Limited (Dr.Reddy's wing,
from its inception in 1984 till September 2000, last tenure being Senior
Vice-President Technical and Bulk operations for 10years from 1990 to 2000)
along with one of his ex colleagues who worked as GM Manufacturing in Dr.
Reddy's having an experience of 15 years
Supported by well-experienced technical staff with 7 to 18 years of R and D and
manufacturing experiences.
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 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.54.40 |
|
|
1 |
Rs.81.56 |
|
Euro |
1 |
Rs.71.23 |
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 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.