MIRA INFORM REPORT

 

 

Report Date :

10.09.2013

 

IDENTIFICATION DETAILS

 

Name :

GODREJ TYSON FOODS LIMITED (w.e.f. 14.10.2008)

 

 

Formerly Known As :

GODREJ FOODS LIMITED

 

 

Registered Office :

Pirojshanagar, Eastern Express Highway, Vikhroli, Mumbai – 400 079, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

11.01.2008

 

 

Com. Reg. No.:

11-177741

 

 

Capital Investment / Paid-up Capital :

Rs. 1.989 Millions

 

 

CIN No.:

[Company Identification No.]

U15122MH2008PLC177741

 

 

IEC No.:

0308025342

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMG13319F

 

 

PAN No.:

[Permanent Account No.]

AADCG1614N

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Subject is engaged in the business of manufacturing and distribution of Processed Chicken and Value Added Products.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (35)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 4800000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Exist

 

 

Comments :

Subject is a joint venture between “Godrej Holdings Limited”. It is an established company having moderate track record.

 

The company has incurred a loss from its operations during 2013. However, financial and liquidity position appears to be sound and strong.

 

Trade relations are fair. Business is active. Payment terms are reported as slow but correct.

 

In view of strong holdings, the company can be considered normal for 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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

 

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

 

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

 

 

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 :

Pirojshanagar, Eastern Express Highway, Vikhroli, Mumbai – 400 079, Maharashtra, India

Tel. No.:

91-22-25194416 / 25188010 / 25188020 / 25188030

Fax No.:

91-22-25188485

E-Mail :

Gp.shelar@godrejagrovet.com

gavlgroupcompanies@godrejagrovet.com

upendra.pathak@godrejagrovet.com

Website :

http://www.godrejagrovet.com

Location :

Rented

 

 

DIRECTORS

 

As on: 13.06.2013

 

Name :

Mr. Nadir Burjorji Godrej

Designation :

Chairman

Address :

40-D, B G Kher Marg, Malabar Hill, Mumbai – 400 006, Maharashtra, India.

Date of Birth/Age :

26.08.1951

Qualification :

BSC – Chemical Eng (MIT USA), MS – Chemical Eng (Stanford-USA), MBA

Date of Appointment :

24.06.2008

Voter ID No.:

MT/04/024/099721

DIN No.:

00066195

 

 

Name :

Mr. Balaram Singh Yadav

Designation :

Managing Director

Address :

Bunglow No. G-9/1, Godrej Hillside Colony, L B S Marg, Vikhroli (West), Mumbai – 400 006, Maharashtra, India.

Date of Birth/Age :

15.07.1964

Qualification :

BSC (Hon) Agri-Science, PGDM (A) IIM-Ahmedabad

Date of Appointment :

11.01.2008

Voter ID No.:

UUP1213859

DIN No.:

00294803

 

 

Name :

Mr. Rick Allen Thomason

Designation :

Additional Director

Address :

4052 Pasofino Loop, Springdale 727641772

Date of Birth/Age :

17.03.1963

Date of Appointment :

06.09.2010

DIN No.:

03157764

 

 

Name :

Mr. James Victor Lochner

Designation :

Director

Address :

4921, Clear Creek, Blvd Fayettville, Arkansas – 72704

Date of Birth/Age :

11.08.1952

Date of Appointment :

16.03.2013

DIN No.:

06514164

 

 

Name :

Mr. James Stanley Young

Designation :

Director

Address :

6311, Wells Circle, Springdale, Arkansas – 72762

Date of Birth/Age :

08.08.1966

Date of Appointment :

16.03.2013

DIN No.:

06514170

 

 

KEY EXECUTIVES

 

Name :

Mr. Upendra Ramniranjan Pathak

Designation :

Secretary

Address :

4792, N, Maple Grove Drive, Springdals, Arkansas – 72764

Date of Birth/Age :

11.12.1967

Date of Appointment :

13.01.2012

Voter ID No.:

MP07/049/09676/83

PAN No.:

ADKPP9644A

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on: 13.06.2013

 

Names of Shareholders

 

No. of Shares

Godrej Agrovet Limited, India

 

97455

Godrej Agrovet Limited joint with Balram Singh Yadav

 

1

Godrej Agrovet Limited joint with Subramanian Varadaraj

 

1

Godrej Agrovet Limited joint with Pitambar Narayan Narkhede

 

1

Godrej Agrovet Limited joint with Govindan Ramakrishna Rishinaradamangalam

 

1

Godrej Agrovet Limited joint with Yashasvi Harshvadan Mehta

 

1

Godrej Agrovet Limited joint with Prafulla Bhat

 

1

Tyson India Holdings Limited, Mauritius

 

101439

 

 

 

Total

 

198900

 

Equity Share Break up (Percentage of Total Equity)

 

As on: 13.06.2013

 

Category

 

Percentage

 

 

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

 

51.00

Bodies corporate

 

49.00

 

 

 

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the business of manufacturing and distribution of Processed Chicken and Value Added Products.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

ICICI Bank Limited, Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Short term borrowings

 

 

Loans repayable on demand

155.000

0.000

 

 

 

Total

155.000

0.000

 

 

 

Banking Relations :

--

 

 

Financial Institutions :

3i Infotech Trusteeship Services Limited

6th Floor, Akruti Center Point, MIDC Central Road, Next to Marol Telephone Exchange, Andheri, East, Mumbai – 400 093, Maharashtra, India

 

 

Auditors :

 

Name :

Kalyaniwala And Mistry

Chartered Accountants

Address :

Kalpataru Heritage, 127 Mahatma Gandhi Road, Mumbai – 400 001, Maharashtra, India

Tel. No.:

91-22-66348020

Fax No.:

91-22-22673964

PAN No.:

AAAFK7554R

 

 

Holding Company :

  • Tyson India Holdings Limited

 

 

Joint Ventured :

  • Godrej Agrovet Limited

CIN No.: U15410MH1991PLC135359

 

 

Other related parties:

  • Godrej Industries Limited

CIN No.: L24241MH1988PLC097781

  • ACI Godrej Agrovet Private Limited, Bangladesh
  • Poultry Processors Association of India
  • Jiangsu Tyson Foods Limited.
  • Haimen Tyson Poultry Development Limited.
  • Changyi Tyson Foods Company Limited.
  • Changyi Tyson Poultry Company Limited.
  • Changyi Tyson Xinsheng Foods Company Limited.
  • Rizhao Tyson Poultry Company Limited.
  • Shandong Tyson Foods Company Limited
  • Shandong Tyson Shengde Foods Company Limited
  • Shandong Tyson Yuansheng Duck Company Limited

 

 

CAPITAL STRUCTURE

 

As on: 13.06.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

300000

Equity Shares

Rs.10/- each

Rs. 3.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

198900

Equity Shares

Rs.10/- each

Rs. 1.989 Millions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2013

31.03.2012

31.03.2011

  1. EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

1.989

1.989

1.753

(b) Reserves & Surplus

1204.922

1386.768

1017.578

(c) Money received against share warrants

0.000

0.000

0.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

213.770

Total Shareholders’ Funds (1) + (2)

1206.911

1388.757

1233.101

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

0.000

0.000

0.000

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

5.973

4.055

4.512

Total Non-current Liabilities (3)

5.973

4.055

4.512

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

305.000

0.000

0.000

(b) Trade payables

181.996

73.262

193.509

(c) Other current liabilities

113.378

87.315

90.308

(d) Short-term provisions

0.675

0.461

2.105

Total Current Liabilities (4)

601.049

161.038

285.922

 

 

 

 

TOTAL

1813.933

1553.850

1523.535

 

 

 

 

  1. ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

907.355

649.368

463.601

(ii) Intangible Assets

260.032

310.698

360.092

(iii) Capital work-in-progress

0.096

30.277

148.694

(iv) Intangible assets under development

0.000

0.000

0.409

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

5.767

5.286

4.502

(d)  Long-term Loan and Advances

60.339

120.801

20.047

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1233.589

1116.430

997.345

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

381.074

268.894

235.351

(c) Trade receivables

153.655

106.305

114.611

(d) Cash and cash equivalents

38.678

44.909

159.055

(e) Short-term loans and advances

6.816

17.227

17.117

(f) Other current assets

0.121

0.085

0.056

Total Current Assets

580.344

437.420

526.190

 

 

 

 

TOTAL

1813.933

1553.850

1523.535

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

3192.438

2661.323

2290.437

 

 

Other Income

2.030

4.809

2.768

 

 

TOTAL                                     (A)

3194.468

2666.132

2293.205

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

2196.525

1385.545

1029.016

 

 

Purchases of stock-in-trade

125.087

126.332

358.113

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

(82.288)

(25.686)

(17.482)

 

 

Employee benefit expense

183.730

206.373

202.703

 

 

Other expenses

807.464

707.683

492.028

 

 

Expenditure on production

0.000

0.000

(6.102)

 

 

TOTAL                                     (B)

3230.518

2400.247

2058.276

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

(36.050)

265.885

234.929

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

15.060

0.000

1.821

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(51.110)

265.885

233.108

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

131.217

115.478

91.287

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

(182.327)

150.407

141.821

 

 

 

 

 

Less

TAX                                                                  (H)

(0.481)

(5.246)

12.461

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

(181.846)

155.653

129.360

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

41.328

(114.325)

(243.685)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

140.518

41.328

(114.325)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(914.26)

782.57

738.08

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

(5.69)

5.83

5.64

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

(5.71)

5.65

6.19

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(10.09)

9.91

10.35

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.15)

0.11

0.11

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.25

0.00

0.00

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.97

2.71

1.85

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

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

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

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

 

 

UNSECURED LOAN

(Rs. In Millions)

Particulars

As on

31.03.2013

As on

31.03.2012

Short term borrowings

 

 

Loans repayable on demand

150.000

0.000

 

 

 

Total

150.000

0.000

 

CASE DETAILS

 

Stamp No.:-

CAWST/23689/2012

Filing Date:-

28.08.2012

Reg. No.:-

CAW/2260/2012

Reg. Date:-

28.08.2012

 

Stamp No.:-

WPST/20167/2012

Reg. Date:-

WP/7042/2012

 

Petitioner:-

The Member Secretary, Maharashtra

Respondent:-

Godrej Tyson Foods Limited

Petn. Adv.:-

Ms. Sharmila U. Deshmukh

 

District:-

Raigad

 

 

Bench:-

Division

 

Status:-

Pre-Admission

Category:-

For Direction

Last Date:-

02.09.2013

Stage:-

For admission - after notice [civil side matters]

Last Coram:-

Hon'ble The Chief Justice

 

Hon'ble Shri Justice M.S. Sanklecha

 

 

Act :-

Other Act

 

 

REVIEW OF OPERATIONS

 

The year was a year of turmoil for the Poultry Industry. The Poultry Industry had to bear the brunt of significant raw material price increases. The major price increase has happened in Soya meal price, average 55% increase and in Corn price, average 20% increase in 2012-13 over March 2012 price. As If this blow was not enough, the Poultry Industry witnessed significant drop in the output prices on account of excess supply and outbreak of bird flu in Southern part of India. The Company tried to salvage the situation by taking regular price increases in the Processed Chicken Segment and the Value Added Segment of Yummiez These increases in prices further resulted into muted growth in the processed chicken and value added? Yummiez Business resulting these business segments growing by 4% and 10% in top line over the previous year respectively. Since the growth in the processed chicken and Yummiez Business was muted, excess broilers was required to be sold in the live bird market at a much lower price (especially during the peak season when the live bird prices dropped significantly below the cost of production). This has resulted into 110% growth in Live Bird Sale over the previous year. The company was also able to salvage the situation by sale of hatching eggs and parent stock (Cull Birds) which was profitable during the year. Overall the Company has reported 20% growth in Turnover @ -5.71% Loss on this turnover (Previous year profit @ 5.65%).

 

During the Year the Company has invested heavily in 4 different Capital projects and successfully commissioned the same in this year. These projects include 2 Waste Water Treatment Plant (WWTP) projects, one at Taloja and another one at Hoskote factory and 2 Capacity Expansion Projects, one at Taloja (from 27000 BPD to 40000 BPD) and another one at Hoskote (from 27000 BPD to 48000 BPD).

 

During the year the Company has also got Capital sanction for purchase of new Freezers (725 freezers) and Chillers (300 Chillers) and the placement process has already started before end of this year.

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10389909

26/11/2012

200,000,000.00

ICICI BANK LIMITED

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

B63246458

 

Fixed Assets:

  • Land and Buildings
  • Plant and equipment
  • Furniture and fixtures
  • Office equipment
  • Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 65.96

UK Pound

1

Rs. 102.91

Euro

1

Rs. 86.58

 

 

INFORMATION DETAILS

 

Report Prepared by :

DPH

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

35

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.