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 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

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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.

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Credit Rating Consultancy

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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.

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.

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Significance of Rating Scales

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Rating Methodology

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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

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.

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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.

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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:

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THANKS

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