MIRA
INFORM REPORT
|
Report Date : |
28.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
MODERN STEEL LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
19.11.1973 |
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Com. Reg. No.: |
16-003358 |
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Capital
Investment / Paid-up Capital : |
Rs. 132.300 Millions |
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CIN No.: [Company Identification
No.] |
L27109PB1973PLC003358 |
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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
: |
Manufacturing Critical Grades of Alloy Steels for the relatively
stable two-wheeler Industry. |
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No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. The company has incurred a loss from its corporations during 2014. However, trade relations are fair. Business is active. Payment terms
are reported to be slow but correct. The company can be considered for business dealing with some 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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund manager
Jim Chanos has been keenly following the political and economic development in
the dragon economy and has figured out something that is quite worrying. He is
of the view that the Chinese economy could be heading toward trouble on account
of new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating = B |
|
Rating Explanation |
Have high risk of default |
|
Date |
April 03, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating = A4 |
|
Rating Explanation |
Have minimal degree of safety and carry very
high credit risk. |
|
Date |
April 03, 2014 |
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
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
[CONTACT NO.: 91-172-2609001]
LOCATIONS
|
Registered Office/ Factory : |
G.T. Road, Mandi Gobindgarh - 147301, Punjab, India |
|
Tel. No.: |
91-1765-257991/92/93 |
|
Fax No.: |
91-1765-257994/95 |
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E-Mail : |
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Corporate Office : |
Sco No. 98-99, Sub City Centre Sector -34-A, Chandigarh, India |
|
Tel. No.: |
91-172-2609001/02/03 |
|
Fax No.: |
91-172-2609000 |
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E-Mail : |
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Branch Office : |
Located at: · New Delhi · Gurgaon · Faridabad · Chandigarh ·
Ludhiana |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Amarjit Goyal |
|
Designation : |
Chairman and Whole Time Director |
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|
Name : |
Mr. Krishan Kumar Goyal |
|
Designation : |
Managing Director and Chief Executive Officer |
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|
Name : |
Prof. Triloki Nath Kapoor |
|
Designation : |
Director |
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|
Name : |
Mr. D. S. Gill |
|
Designation : |
Director |
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|
Name : |
Mr. Ramesh C. Jain |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Aditya Goyal |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. P. L. Talwar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ashish Sharma |
|
Designation : |
GM (Secretarial) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON: 30.06.2014
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding
as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6885859 |
50.03 |
|
|
2133077 |
15.50 |
|
|
9018936 |
65.53 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
9018936 |
65.53 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
6000 |
0.04 |
|
|
1000 |
0.01 |
|
|
7000 |
0.05 |
|
|
|
|
|
|
353195 |
2.57 |
|
|
|
|
|
|
2541364 |
18.47 |
|
|
1800706 |
13.08 |
|
|
41158 |
0.30 |
|
|
41158 |
0.30 |
|
|
4736423 |
34.42 |
|
Total Public
shareholding (B) |
4743423 |
34.47 |
|
Total (A)+(B) |
13762359 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
13762359 |
0.00 |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturing Critical Grades of Alloy Steels for the relatively
stable two-wheeler Industry. |
GENERAL INFORMATION
|
Customers: |
· HONDA CAR · MARUTI SUZUKI · GENERAL MOTORS · VOLKSWAGEN · MAHINDRA and MAHINDRA · MUSASHI AUTOPARTS · FIAT · TATA MOTORS · KIA MOTORS ·
SONA OKEGAWA |
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No. of Employees : |
Information declined by the management |
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Bankers : |
· State Bank of India · Punjab National Bank · State Bank of Patiala ·
Canara Bank |
||||||||||||||||||||
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||||||||||||||||||||
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
A. Goel and Associates Chartered Accountants |
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Associates : |
· Modern Automotives Limited |
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Related Party: |
· Chandigarh Finance Private limited · Mala Builders Private limited · Modern Dairies Limited · PHi Business Solutions Limited · Nabha Commerce Private limited · Modern Automotives Limited |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital : Not Available
Issued, Subscribed & Paid-up Capital : 132.300
Millions
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2490000 |
Equity Shares |
Rs.10/- each |
Rs. 24.900 Millions |
|
1000 |
9.5% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs. 0.100 Millions |
|
|
Total |
|
Rs. 25.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1259235 |
Equity Shares |
Rs.10/- each |
Rs. 125.900
Millions |
|
|
Forfeited Shares |
|
Rs. 0.100
Million |
|
|
Forfeited Warrants |
|
Rs. 6.300
Millions |
|
|
Total |
|
Rs. 132.300 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
132.300 |
132.300 |
132.300 |
|
(b) Reserves & Surplus |
103.200 |
209.900 |
347.100 |
|
(c) Money received
against share warrants |
106.800 |
0.000 |
0.000 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
342.300 |
342.200 |
479.400 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term
borrowings |
914.000 |
642.100 |
170.000 |
|
(b) Deferred tax liabilities (Net) |
0.400 |
0.000 |
8.500 |
|
(c) Other long
term liabilities |
0.000 |
0.300 |
0.300 |
|
(d) long-term
provisions |
16.700 |
19.200 |
19.300 |
|
Total Non-current
Liabilities (3) |
931.100 |
661.600 |
198.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
671.100 |
488.500 |
893.300 |
|
(b)
Trade payables |
294.200 |
286.800 |
295.100 |
|
(c)
Other current liabilities |
85.100 |
45.000 |
120.400 |
|
(d) Short-term
provisions |
6.700 |
5.000 |
3.800 |
|
Total Current
Liabilities (4) |
1057.100 |
825.300 |
1312.600 |
|
|
|
|
|
|
TOTAL |
2330.500 |
1829.100 |
1990.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
724.800 |
527.500 |
501.900 |
|
(ii)
Intangible Assets |
0.000 |
2.200 |
4.300 |
|
(iii)
Capital work-in-progress |
0.000 |
13.100 |
36.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
70.300 |
70.300 |
70.300 |
|
(c) Deferred tax
assets (net) |
104.100 |
55.000 |
0.000 |
|
(d) Long-term Loan and Advances |
92.700 |
58.200 |
63.200 |
|
(e) Other
Non-current assets |
18.000 |
6.300 |
6.100 |
|
Total Non-Current
Assets |
1009.900 |
732.600 |
681.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
548.500 |
406.100 |
481.400 |
|
(c)
Trade receivables |
630.100 |
531.100 |
689.800 |
|
(d) Cash
and cash equivalents |
83.900 |
51.700 |
47.000 |
|
(e)
Short-term loans and advances |
53.100 |
52.400 |
86.500 |
|
(f)
Other current assets |
5.000 |
55.200 |
3.600 |
|
Total
Current Assets |
1320.600 |
1096.500 |
1308.300 |
|
|
|
|
|
|
TOTAL |
2330.500 |
1829.100 |
1990.100 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2631.400 |
2613.600 |
3379.600 |
|
|
|
Other Income |
36.200 |
46.100 |
34.100 |
|
|
|
TOTAL (A) |
2667.600 |
2659.700 |
3413.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1669.000 |
1692.900 |
2195.100 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(50.000) |
78.200 |
70.100 |
|
|
|
Employees benefits expense |
133.400 |
126.500 |
134.900 |
|
|
|
Other expenses |
826.000 |
748.700 |
918.700 |
|
|
|
Prior period items |
0.000 |
(0.400) |
1.200 |
|
|
|
TOTAL (B) |
2578.400 |
2645.900 |
3320.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
89.200 |
13.800 |
93.700 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
198.300 |
167.700 |
192.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(109.100) |
(153.900) |
(98.600) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
46.700 |
46.800 |
44.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(155.800) |
(200.700) |
(142.700) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(49.100) |
(63.500) |
(44.600) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(106.700) |
(137.200) |
(98.100) |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
576.709 |
456.523 |
|
|
|
Stores & Spares |
NA |
37.212 |
35.870 |
|
|
TOTAL IMPORTS |
NA |
613.921 |
492.393 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(8.47) |
(10.90) |
(7.79) |
|
Note:
As per Accounting Standard - 17 "Segment Reports" the Company is engaged in steel products only, hence no segment reporting is required.
The figures for the quarter ended March 31, 2014 are the balancing figures
between the audited figures in respect of the full financial year and published
year to date figures upto the third quarter of the financial year 2013-14.
Previous Year figures have been recasted/regrouped/restated wherever necessary.
The above results were taken on record at the Board Meeting held on June 26,
2014
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(4.00) |
(5.16) |
(2.87) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.92) |
(7.68) |
(4.22) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.23) |
(11.87) |
(7.58) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.46) |
(0.59) |
(0.30) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
4.63 |
3.30 |
2.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.25 |
1.33 |
1.00 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
132.300 |
132.300 |
132.300 |
|
Reserves & Surplus |
347.100 |
209.900 |
103.200 |
|
Money received against
share warrants |
0.000 |
0.000 |
106.800 |
|
Net worth |
479.400 |
342.200 |
342.300 |
|
|
|
|
|
|
long-term borrowings |
170.000 |
642.100 |
914.000 |
|
Short term borrowings |
893.300 |
488.500 |
671.100 |
|
Total borrowings |
1063.300 |
1130.600 |
1585.100 |
|
Debt/Equity ratio |
2.218 |
3.304 |
4.631 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3379.600 |
2613.600 |
2631.400 |
|
|
|
(22.665) |
0.681 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Sales |
3379.600 |
2613.600 |
2631.400 |
|
Profit |
(98.100) |
(137.200) |
(106.700) |
|
|
(2.90)% |
(5.25)% |
(4.05)% |
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 |
Yes |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
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 |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
Yes |
UNSECURED LOAN
|
Particulars |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
From Related Parties |
41.800 |
|
From Others |
2.300 |
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
Buyer's Credit |
108.800 |
|
|
|
|
Total |
152.900 |
FIXED ASSETS
· Land
· Buildings
· Plant & Machinery
· Office Equipment
· Furniture
· Vehicles
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. 60.47 |
|
|
1 |
Rs. 100.15 |
|
Euro |
1 |
Rs. 79.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
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 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
2 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
26 |
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.