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HIRA STOCKS SOLUTION PVT. LTD.
Credit Rating Consultants
CREDIT RATING
www.hirastocks.com
Hira Stocks Solution Pvt. Ltd.
Hira Stocks Solution Pvt. Ltd. is a
Delhi based multi-dimensional
consulting firm, offering...
Services:
Investment Banking
Private Equity Syndication
Mergers & Acquitions
Business Re-Structuring
Corporate Finance
Pro...
Credit Rating Consultancy
www.hirastocks.com
Hira Stocks assist the company to
optimize their Credit Rating.
We work close...
Why Hira Stocks Credit Rating Advisory:
Why Company should not give mandate directly to Credit Rating Agency ?
Many compan...
Significance of Rating Scales
www.hirastocks.com
Rating Methodology
www.hirastocks.com
Business
Risk
Management
Risk
Financial
Risk
Standalone
Credit Risk
Project Risk
Par...
Hira Stocks Roles:
STEPS
1. Advice & Support when seeking a first
time Rating.
2. Support for preparation and review of
da...
STEP 1: Credit Rating Agency Selection
Based on Hira Stocks analysis of data and discussion with the
Management on their e...
STEP 2: Data Gathering / Analysis
Preparation & review of data / information and presentation for Credit Rating
Agency by ...
STEP 3: Management Meeting & Discussion with Analysts
Assist / Guide Management of Company by:
1. Preparation of key depar...
STEP 4: Preparation of Report & Assignment of Credit Rating
We ensure desired report writing about company’s business and ...
STEP 5: Publication of Assigned Rating
Vetting of Contents to be Published
It is important to get relevant and right infor...
Framework of Bank Loan Rating
Weightage
20%
A. BUSINESS PROFILE
i. Attractiveness of Industry and Industry Characteristics...
Framework of Bank Loan Rating
Weightage
50%
B. FINANCIAL PROFILE
i. Accounting Quality
ii. Financial Flexibility – Support...
Framework of Bank Loan Rating
Weightage
15%
C. MANAGEMENT PROFILE & CORPORATE CULTURE
i. Past Experience, Achievements and...
Framework of Bank Loan Rating
Weightage
10%
D. GROUP’S SUPPORT
i. Forward or Backward Integration
ii. Financial Strengths ...
Framework of Bank Loan Rating
Weightage
5%
E. OTHER
i. Scale
ii. Goodwill of Promoters / Directors
iii. Brand
iv. Utilizat...
Hira Stocks Solution Private Limited
Registered Office:
J – 200, Apartment No. 5, Behind Federal Bank,
Near Metro Pillar N...
THANKS
www.hirastocks.com
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Hira stocks credit rating presentation april 2015

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Hira Stocks Credit Rating Improvement Presentation - April 2015

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Hira stocks credit rating presentation april 2015

  1. 1. HIRA STOCKS SOLUTION PVT. LTD. Credit Rating Consultants CREDIT RATING www.hirastocks.com
  2. 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. 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. 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. 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. 6. Significance of Rating Scales www.hirastocks.com
  7. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 20. THANKS www.hirastocks.com

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