Hira Stocks Credit Rating Improvement Presentation - April 2015

1. HIRA STOCKS SOLUTION PVT. LTD.
Credit Rating Consultants
CREDIT RATING
www.hirastocks.com

2. Hira Stocks Solution Pvt. Ltd.
Hira Stocks Solution Pvt. Ltd. is a
Delhi based multi-dimensional
consulting firm, offering end-to-
end solution to our clients; not only
for all their financial needs (be
that bringing in private equity or
debt) but also helping them spread
their business in India through
Franchise Model and expanding
their business in the Middle East,
Gulf Regions & African Nations.
Group Companies:
 Rayon HR Solutions Pvt. Ltd.
www.rayonhrsolutions.com
 Hira & Company
www.hiracompany.in
 Gladrags Party Solutions
www.gladragspartysolutions.com
 FFF Finger Food Factory Pvt. Ltd.
www.fingerfoodfactory.in
www.hirastocks.com

3. Services:
Investment Banking
Private Equity Syndication
Mergers & Acquitions
Business Re-Structuring
Corporate Finance
Project Finance
Strategic Solutions
Venture Capital
Credit Rating Consultancy Services
Interest Rate Reduction Advisory
Trade Facilitation Services
Franchise Solutions
Hira Stocks arranges private
placements of debt and equity
securities for companies seeking
broad range of financing
alternatives.
This includes:
 Syndication of domestic & foreign short
or long term Loans, as well as
working capital required by the
firm.
 Private Equity Investments
 Global Depository Receipts (GDR)
 Foreign Currency Convertible Bonds
(FCCB)
 Qualified Institutional Placements (QIP)
 IPO’s and follow-on public offerings.
www.hirastocks.com

4. Credit Rating Consultancy
www.hirastocks.com
Hira Stocks assist the company to
optimize their Credit Rating.
We work closely with our client to
understand their industry and
company to present a holistic and
complete picture to rating agency,
which helps them in taking a fair
view on the financial strength and
credit worthiness of our client.

5. Why Hira Stocks Credit Rating Advisory:
Why Company should not give mandate directly to Credit Rating Agency ?
Many companies does not know which Credit Rating Agency will assign best rating to it. Company
can’t shop freely with every rating agency because rating agency will ask for fees first and then
will assign rating to company. In this scenario if company does not get desired rating then money
gets wasted.
If company appoints us as their Credit Rating Consultant, we collect all relevant information to
analyze it first at our end and then share a summary on all aspects with rating analyst for their
opinion without charging any fees from company. After this we advise company as to which
Rating Agency we must assign mandate. We prepare Project Report for company covering all the
relevant information / data to get desired rating by emphasizing strength and opportunities
available to company. We also do window dressing for weakness and threat, if any. We develop
strategy for corrective action, in case of undesirable event.
Credit Rating Agency does not advise company on presentation of information and they do not take
pain as they get fee in advance but in our case, fees depend upon our performance and on
achievement of our commitment.
www.hirastocks.com

6. Significance of Rating Scales
www.hirastocks.com

7. Rating Methodology
www.hirastocks.com
Business
Risk
Management
Risk
Financial
Risk
Standalone
Credit Risk
Project Risk
Parent / Group
Govt Support
Overall
Credit
Rating
Industry
Risk
Market
Position
Operating
Efficiency
Competence
Integrity
Risk
Appetite
Cash Flow &
Fin Flexibility
Fin Position
Existing & Future
Accounting
Quality

8. Hira Stocks Roles:
STEPS
1. Advice & Support when seeking a first
time Rating.
2. Support for preparation and review of
data / information and presentation to
Rating Agency.
3. Develop Credit Rating defense or
upgrade strategy.
4. Prepare senior management for Rating
Agency presentation.
5. Achieve timely upgrades / forestall
downgrades.
www.hirastocks.com

9. STEP 1: Credit Rating Agency Selection
Based on Hira Stocks analysis of data and discussion with the
Management on their expectations, we advise on the
selection of Credit Rating Agency.
It is important because:
 Knowledge & future prospects of a particular industry / sector
is not same across agencies.
 Level of open mindedness differ from agency to agency.
Right Credit Agency = Higher probability
of getting optimal
Rating.
www.hirastocks.com

10. STEP 2: Data Gathering / Analysis
Preparation & review of data / information and presentation for Credit Rating
Agency by covering following areas:
1. Industry & its attractiveness
2. Company’s product & its competitive position in the market
3. Operating Efficiency
4. Accounting Quality
5. Earnings & Financial Flexibility
6. Management Evaluation
7. Notes on associated and parent company
Appropriate Packaging of Optimal
right & timely data along = Credit
with commentary Rating
www.hirastocks.com

11. STEP 3: Management Meeting & Discussion with Analysts
Assist / Guide Management of Company by:
1. Preparation of key departments presentations for meeting
with the help of concerned persons.
2. Rehearsal of presentation
3. Prepare notes & replies on expected questions to be asked by
analyst of Credit Rating Agency
Concerned person knowledge & appropriate replies will help to:
1. Address the doubt of analyst.
2. Create a sense that concerned person is aware about market &
company and his vision is aligning to the vision of the company
www.hirastocks.com

12. STEP 4: Preparation of Report & Assignment of Credit Rating
We ensure desired report writing about company’s business and future
prospects by:
1. Active follow up.
2. Meeting with senior Analyst.
3. Providing relevant information / data.
4. Re – Packaging of data by adding some extra information to support
previous standing.
5. Prepare timely strategy for getting optimal Credit Rating.
Right perception & Optimal
conclusion of = Credit
Rating Agency Rating
www.hirastocks.com

13. STEP 5: Publication of Assigned Rating
Vetting of Contents to be Published
It is important to get relevant and right information published in rating publication
so that concerned parties can view correct picture of the company in terms of:
1. Credit worthiness
2. Market Position
3. Future Prospects
Company use published rating documents for marketing,
negotiation with suppliers, raising funds with Bankers and
Investors & for attracting talent pools, etc.
www.hirastocks.com

14. Framework of Bank Loan Rating
Weightage
20%
A. BUSINESS PROFILE
i. Attractiveness of Industry and Industry Characteristics
ii. Range of Product
iii. Geographical Presence & Customers Concentration
iv. Bargaining Power of Buyers & Suppliers
v. Inter – Industry Revelry & Availability of Substitute Goods
vi. Production Flexibility
vii. Access to RM, Technology, Human Resources & Other Resources
viii. Policy on Change in RM & Currency
www.hirastocks.com

15. Framework of Bank Loan Rating
Weightage
50%
B. FINANCIAL PROFILE
i. Accounting Quality
ii. Financial Flexibility – Support from Bank or Access to Alternative
Source
iii. Profitability
iv. Accruals in Relation to Debts
v. Gearing
vi. Interest Coverage
vii. Receivables, Inventory and Creditor’s Period
www.hirastocks.com

16. Framework of Bank Loan Rating
Weightage
15%
C. MANAGEMENT PROFILE & CORPORATE CULTURE
i. Past Experience, Achievements and Track Record
ii. Philosophy Towards Debt Servicing
iii. Adequacy of Planning & Controlling System
iv. Succession Plan & Team Work or One Man Show
v. Corporate Governance Policy & Principals
www.hirastocks.com

17. Framework of Bank Loan Rating
Weightage
10%
D. GROUP’S SUPPORT
i. Forward or Backward Integration
ii. Financial Strengths of Associated Companies or Parent Companies
www.hirastocks.com

18. Framework of Bank Loan Rating
Weightage
5%
E. OTHER
i. Scale
ii. Goodwill of Promoters / Directors
iii. Brand
iv. Utilization of Sanctioned Bank’s Load Facility
www.hirastocks.com

19. Hira Stocks Solution Private Limited
Registered Office:
J – 200, Apartment No. 5, Behind Federal Bank,
Near Metro Pillar No. 416, Rajouri Garden,
New Delhi – 110 027. INDIA.
E-mail: info@hirastocks.com Web: www.hirastocks.com
Contact: Jasbir Singh Batra – Managing Director
Mobile: +91 98100 88148 ; 98100 88158
E-mail: jasbir@hirastocks.com
Contact us:
www.hirastocks.com

20. THANKS
www.hirastocks.com