MIRA
INFORM REPORT
|
Report Date : |
19th
May, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
INDIA
WINDPOWER LIMITED |
|
|
|
|
Registered Office : |
A-801,
Nirman Complex, Opp. Havmor Restaurant, Nr. Stadium, Circle,
Ahmedabad-380009, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2005 |
|
|
|
|
Date of Incorporation : |
27.09.1999 |
|
|
|
|
Com. Reg. No.: |
04-36635 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U363999GJ1999PLC036635 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMI00162B |
|
|
|
|
Legal Form : |
A
Closely held public limited liability company |
|
|
|
|
Line of Business : |
Trading
in Wind Mill, Sale of Steel & Spares |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
|
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow
but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established trading company having satisfactory track. Financial
position is moderate. Profit margin is low. Payments are reported as slow but
correct. The
company can be considered for small to mediocre business dealings at usual
trade terms and conditions |
LOCATIONS
|
Registered Office/ Head Office: |
A-801,
Nirman Complex, Opp. Havmor Restaurant, Nr. Stadium, Circle,
Ahmedabad-380009, Gujarat |
|
Tel. No.: |
91-79-226441564/26443656 |
|
Fax No.: |
91-79-26561318 |
|
E-mail: |
|
|
Website: |
|
|
|
|
DIRECTORS
|
Name : |
Mr.
Morarjibhai Rajani |
|
Designation : |
Whole
Time Director |
|
Address : |
14,
Vasupujya Raw House, Satellite Road, Ahmedabad-380015, Gujarat |
|
Date of Birth/Age : |
10.02.1967 |
|
Date of Appointment : |
27.09.1999 |
|
|
|
|
Name : |
Mr.
Sanjaybhai Rajani |
|
Designation : |
Director |
|
Address : |
14,
Vasupujya Raw House, Satellite Road, Ahmedabad-380015, Gujarat |
|
Date of Birth/Age : |
09.10.1968 |
|
Date of Appointment : |
16.01.2001 |
|
|
|
|
Name : |
Mr.
Govindbhai Gandhi |
|
Designation : |
Director |
|
Address : |
102,
Plesant Apartments, Tailors Road Kilpauk, Chennai, Tamilnadu |
|
Date of Birth/Age : |
22.09.1965 |
|
Date of Appointment : |
16.01.2001 |
|
|
|
|
Name : |
Mr.
Rakeshbhai M Rajani |
|
Designation : |
Director |
|
Address : |
C-22,
CC Colony, Opp. RR Baugh, New Delhi- 110007 |
|
Date of Birth/Age : |
21.04.1962 |
|
Date of Appointment : |
18.10.2004 |
|
|
|
|
Name : |
Mr.
Meenuben Rajani |
|
Designation : |
Director |
|
Address : |
C-22,
CC Colony, Opp. RR Baugh, New Delhi- 110007 |
|
Date of Birth/Age : |
29.03.1961 |
|
Date of Appointment : |
18.10.2004 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
|
|
|
Shri.
Sanjay M Rajani |
239180 |
|
Smt.
Rekha S. Rajani |
409167 |
|
Smt.
Parwati M Rajani |
61667 |
|
Shri.
R. Kumarvel |
13 |
|
Shri.
R. P. Kanagraj |
13 |
|
Shri.
R. Gopalsamy |
13 |
|
Shri.
V. R. Chinnathamdi |
13 |
|
Shri.
V. P. Hancavel |
13 |
|
Shri.
V. N. Sakthivel |
13 |
|
Eswind
Green Power Limited |
93500 |
|
Shri.
Jamnadag M Amlani |
34000 |
|
M/s.
Weizmann Limited |
200000 |
|
|
|
|
Total |
1037592 |
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Trading
in Wind Mill, Sale of Steel & Spares |
|
|
|
|
Products : |
Generation
of Power, Wind Mill, Steel & Spares |
PRODUCTION
STATUS
|
Particulars |
|
|
Installed Capacity |
Actual Production |
|
|
|
|
|
|
|
|
|
|
750 kw |
1546380 units |
|
Particulars |
Opening Stock |
Purchases |
Sales |
Closing Stock |
||||
|
|
Qty (nos.) |
Value (Rs. millions) |
Qty (nos.) |
Value (Rs. millions) |
Qty (nos.) |
Value (Rs. millions) |
Qty (nos.) |
Value (Rs. millions) |
|
|
|
|
|
|
|
|
|
|
|
Labour Services |
- |
- |
- |
- |
- |
0.233 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Steel (in mt.) |
279.21 |
8.400 |
142.44 |
5.547 |
242.86 |
6.500 |
178.80 |
6.459 |
|
|
|
|
|
|
|
|
|
|
|
Spare parts |
40 |
0.064 |
- |
1.822 |
- |
2.492 |
249 |
1.452 |
|
|
|
|
|
|
|
|
|
|
|
Annual Maintainance Contract (in No.) |
- |
- |
- |
- |
2 |
0.497 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Wind Mill (in No.) |
- |
- |
1 |
1.409 |
1 |
6.500 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Contract for Generation of power |
- |
- |
- |
- |
1471647 |
5.107 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Tools |
- |
- |
- |
0.021 |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
Foundation (F.G.) |
- |
2.000 |
- |
- |
- |
- |
- |
2.000 |
GENERAL
INFORMATION
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
150 |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
The
Jain Sahakari Bank Hira
Bank C P
Tank Mumbai-400004 |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
B-705,
7th Floor, Nirman Complex, Opp. Havmor Restaurant, Navrangpura,
Ahmedabad-380009 |
|
Tel. No.: |
91-79-26563949 |
|
Fax No.: |
91-79-26569093 |
|
E-Mail : |
|
|
|
|
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,500,000 |
Equity
Shares |
Rs. 10 each |
Rs. 15.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,037,592 |
Equity
Shares |
Rs. 10 each |
Rs. 10.376 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
10.376 |
10.376 |
4.501 |
|
2] Share Application Money |
- |
- |
2.235 |
|
3] Reserves & Surplus |
8.882 |
8.672 |
1.818 |
|
NETWORTH |
19.258 |
19.048 |
8.554 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
3.641 |
3.150 |
4.193 |
|
2] Unsecured Loans |
2.391 |
0.315 |
1.820 |
|
TOTAL BORROWING |
6.032 |
3.465 |
6.013 |
|
DEFERRED TAX LIABILITIES |
2.578 |
1.437 |
1.118 |
|
|
|
|
|
|
TOTAL |
27.868 |
23.950 |
15.685 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17.305 |
6.685 |
6.901 |
|
Work in progress Furniture & Fixture |
- |
- |
0.121 |
|
|
|
|
|
|
INVESTMENT |
0.112 |
0.112 |
0.112 |
|
DEFERREX TAX ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
32.225 |
27.734 |
25.560 |
|
Total Current Assets |
32.225
|
27.734 |
25.560 |
|
|
|
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
21.776
|
10.582 |
17.018 |
|
Total Current Liabilities |
21.776
|
10.582 |
17.018 |
|
|
|
|
|
|
Net Current Assets |
10.450
|
17.152 |
8.542 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
- |
- |
0.009 |
|
|
|
|
|
|
TOTAL |
27.868 |
23.950 |
15.685 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
24.560 |
15.181 |
8.687 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
2.345 |
1.482 |
2.737 |
|
Provision
for Taxation |
1.313 |
0.511 |
1.237 |
|
Profit/(Loss)
After Tax |
1.032 |
0.971 |
1.500 |
|
|
|
|
|
|
Export
Value |
0.030 |
0.64 |
NA |
|
|
|
|
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
4.20
|
6.40 |
17.26 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
10.99
|
9.88 |
31.32 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
4.73
|
4.30 |
8.40 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.08 |
0.32 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
1.44
|
0.74 |
2.69 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
1.48
|
0.38 |
1.50 |
LOCAL AGENCY
FURTHER INFORMATION
India Wind Power Ltd. is a company with a clear focus and long term
vision for setting up wind farm projects in various states for generating power
with profitable track record. The core business of the Company is wind farm
development for generation of power from wind.
Overview:
It offer solutions
for a lively environment where business and expertise strategies converge. It’s
approach focuses on new traditions of industry combining modernization and
implementation while also leveraging an organization's existing resources. It
work with great global corporations and new creation technology companies - to
erect new products or services and to realize prudent business and technology
strategies in today's self-motivated digital environment
It’s core business comprises the development, manufacture, sale, marketing and
maintenance of wind power systems that use wind energy to generate electricity.
Services:
It is offering 100%
turnkey services, right from acquisition of land to complete commissioning of
the wind power project and also operate and maintain the whole wind farm .
Each and every
activity undertaken from necessities for quality and care. This of course
applies to product deliveries - but the services linked with the pre-sale
phase, project organization and formation, as well as ensuing examine and
safeguarding, are also carried out in accordance with a set of permanent
in-house measures.
Profile:
India
Wind Power Ltd. was incorporated during 1999 in Ahmedabad in the state of
Gujarat for the purpose of setting up wind farm projects for clients and
providing various services in the filed of wind energy industry.
We work towards :
# creating energy sources to supplement existing ones and
# generating electricity through cost effective and eco friendly methods.
HISTORY
Mr. SANJAY RAJANI, the promoter Director of the Company is having wide
experience and profound knowledge in implementing wind farm projects for the
past Fifteen years
Earlier
IWPL was associated with Tacke Wind Energy India Private Limited which was
later taken over by Enron Limited and again later on Enron Limited was taken
over by GE Wind Energy Limited.
We procured equipments from Tacke Wind Energy and executed the project for our
clients including all kind of services like marketing, acquisition of land,
manufacturing of tower, civil and electrical work and complete commissioning
and post commissioning services etc.
We have also executed the projects with CWEL and NEG Micon as developer on
turnkey basis in the state of Maharashtra
As the Wind Energy industry was in infancy and our corporate as well as high
net worth clients had apprehensions about the return on equity, payback etc we started
our own consultancy services for all of our clients requirements in this wind
energy industry. We have worked with number of OEMs like Suzlon Energy Limited,
NEPC India Limited, NEG Micon (India) Limited etc for our clients and have
provided they all kind of turnkey services from Concept till complete
commissioning of the project as well as post commissioning services.
Aim:
Customer satisfaction through all aspects of quality: product quality,
on-time delivery, correct quantities through highly qualified and professional
workforce and all other services including after sales service is the main aim
of IWPL
The
Philosophy:
Social
responsibility and code of ethics are a natural part of IWPLS' management
philosophy and value set, and IWPL exercises its social responsibility both
internally within the Group and externally with reference to the surrounding
community .
Having traveled across Europe, Mr. Sanjay Rajani, the promoter and managing
director of the company has truly experienced the power of wind energy when
channeled. It is this experience that drives his vision.
IWPL’s strategy is to supply customised wind power solutions based on standard
wind turbines and standardised options that can generate electricity of the
optimal quality at the most competitive price. .
IWPL’s core values are trustworthiness, care, the power to act and
development
IWPL
has established a range of follow-up systems. A entire project group consisting
of technical personnel from different departments actively carries out
"product follow-up procedures" on new turbines and evaluates the need
for improvements on the basis of feedback from commissioned products
The
People:
IWPL
has a formidable reputation based on quality and customer satisfaction - ask
some of our 100 plus clients.
IWPL today is a well known, well established and thriving company backed by
institutional Peoples. With the head office in Gujarat, Ahmedabad and
additional offices in Tamilnadu & Maharashtra, the company has 45
professional and dedicated employees.
IWPL's staff comprises a wide range of talents, qualifications and technical
expertise as well as extensive experience in the specific market areas served
by the company. They include recent graduates in computer science recruited as
trainees, holders of post-graduate qualifications and many technical
specialists with expertise in a wide range of disciplines.
Together
they represent many man-years of experience in their specific disciplines - an
invaluable asset for IWPL's customers.
Turnkey
Under Project Management we take turnkey projects and thus free our client from
the task of managing the project and take full responsibility of monitoring and
managing the projects so as to be able to anticipate possible incidences and to
carry out the contractual work under previously agreed upon terms.
The 100% turnkey execution of wind farms includes each and every core of
services starting from Identification of Land, Micrositing of Wind Turbines,
Civil, Electrical, Assembly and Erection Activities, Approvals and follow-ups
with Statutory Agencies till complete testing and commissioning of the project
The manufacturing of equipment, contracting of building services, the control,
co-ordination and management of transport, updating and modifying engineering,
assembly and
those tasks which
must be performed and controlled before starting up, make a Wind Farm project
in which accumulated experience plays a vital role in avoiding errors.
Operation & Maintenance
It undertake
Operation & Maintenance of wind farms on contract basis. The benefits of
trusting us with the operation and maintenance of your wind farm project are
multifold.
You enjoy the benefits of substantial cost reduction by turning to us for the
management and running of your project. Periodic checking and repairs are
carried out during low wind seasons to minimize malfunctioning and ensure 95%
machine availability during high wind seasons. This guarantees an increased
life span of the machines deployed.
It’s immediate access to spare parts gives us an edge in the department of
repairs and maintenance that are undertaken whenever necessary.We pride
ourselves on the ability to promise round-the-clock project supervision and
immediate action in case of malfunctioning.
Infrastructure Development
It’s excellent track record in the area of infrastructure development
and setting up of wind farm projects in states such as Gujarat, Maharashtra and
Tamil Nadu will leave you in no doubt of our abilities.
Works include complete erection and commissioning of Foundation and Civil Works
such as Foundation Inserts, Foundation Completion, Tower Supply,Tower Assembly,
Blade Supply and Assembly, Nacelle Supply and Assembly, Panel Supply,
Transformer Supply , DP/OH Line/ Cabling and HT Electrical Installation etc. of
the project. during the warranty and post warranty period.
O&M:
Kulkarni Power Tools Limited, Kolhapur – 416103 having 0.750 MW Wind
Farm Project at Patan, Dist.Satara, Maharashtra.
- Sagareshwar Sahakari Soot Girni Limited, Kadegaon, Sangli – 415304 having its
1 MW Wind Farm at Patan, Dist. Satara, Maharashtra.
Consultancy
- M/s.Saurashtra Fuels Private Limited,Mumbai for their 6.250 MW Project in
Gujarat and 3.750 MW Wind farm project in Tamilnadu.
- Real Strips
Limited, Ahmedabad for their 1.650 MW Wind Farm Project in Gujarat
- Biotech Vision Care Private.Ltd, Ahmedbad for 1.125 MW Wind Farm Project is
Gujarat and 1.125 MW project in Tamilnadu.
- Shree Bajrang Metallics Private Limited, Chattisgarh for their 2.250 MW WindPower
Project in Tamilnadu
Turnkey Projects
- Ghatge Patil Consultancy services Private Limited, Kolhapur for 0.250 MW Wind
Power Project in Tamilnadu
- Real Strips Limited , Ahmedabad for 0.250 MW WindPower Project in
Gujarat
|
|||||||||||||||
|
|
|
|
|||||||||||||
|
|||||||||||
|
|
|
|
|||||||||
Operations:
The
total sales of the company increased from Rs.14.999 millions to Rs. 21.331
millions showing an increase of 42.22%. The Net Profit After Tax increased form
Rs. 0.741 millions to Rs. 1.430 millions showing an increase of Rs. 93%. The
profit would have been still higher but for the hidher provisions of lease
expenses in accounts. The company has debited Rs. 5.460 millions in the
accounts as lease expenses. The company is following the Accounting
Standared-19 issued by The Institute of Chartered Accountants of India. The
actual lease payments obligations by the company is Rs. 4.581 millions. Thus
Rs. 0.879 millions which have not been paid are still debited to P&L A/c
and therefore profit have been decreased.
During
the year the company has entered into an MOU with a Danish Company WELCON A/S.
Formerly known as Nordex A/S, having office at SVINDBAEK. 7323 give Denmark and
has acquired all the design, technology, manufacturing and marketing rights for
N29/250 KW Wind Turbine, for India. With this agreement and the goodwill which
the Danish company enjoys the company is targeting sale of 20 Wind Mill
Turbines in one year. This will increase the top line by about Rs. 200.000
millions
During
the year under report the company continued to work under various areas
pertaining to the field of generated of power by windmill. The company has
three windmills. The power generated by these windmills is a major source of
revenue. The company is also trading in windmills. It is also taking up the
work pertaining to annua maintenance contracts. The company has got skilled
manpower to take up any work pertaining to power generation and distribution of
windmills
Fixed
Assets:
Ä
Land
Ä
Wind
mill
Ä
Computer
Ä
Vehicle
Ä
Office
Equipments
Ä
Furniture
& Fixtures
Ä
Office
Buildings
Name of the Company: M/s. India Wind Power limited
Presented by: M/s. India Wind Power limited
|
29.10.2001 Hypothecation Deed |
|
Rs. 4.500 millions |
|
Stock and book debts |
|
Hypothecation of stock Margin 40%. Interest @ 16 %p.a. |
|
The Jain Sahakari Bank Ltd Hira Baug C P Tank Mumbai-400004 |
|
NA |
|
NA |
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 records 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 records 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.45.30 |
|
UK
Pound |
1 |
Rs.78.45 |
|
Euro |
1 |
Rs.54.88 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
38 |
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |