MIRA INFORM REPORT
|
Report Date : |
14.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
PCS TECHNOLOGY LIMITED |
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Former Name : |
PCS INDUSTRIES LIMITED |
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Registered Office : |
Plot No. 148 / 151, Alandi
Markaal Road, Village Dhanore, Alandi – 412 106, District Pune – 412 106,
Maharashtra, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
22.04.1981 |
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Com. Reg. No.: |
11-24279 |
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CIN No.: [Company Identification No.] |
U74200MH1981PLC024279 |
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TAN No.: [Tax Deduction & Collection Account No.] |
PNEP08887E |
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PAN No.: [Permanent Account No.] |
AABCP0316J |
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Legal Form : |
Public
Limited Liability Company. The
company's shares are listed on the Stock Exchanges |
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Line of Business : |
Computer System design and
development and also undertaking turnkey projects comprising of Computer
Hardware Installation, Commissioning, Complete System Integration and
assembling computer CPUs with suitable peripherals. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2750000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established
and reputed company in the Information Technology Sector. Its major products
are Mini/Micro Computer Systems and Glan Epoxy Copper and Laminates. It is
also in the business of providing software and / or IT enabled services. The company’s performance
during the financial year 2003-2004 was better as compared to the previous
period. Directors are well-experienced and very resourceful businessmen.
Their trade relations are reported as fair. Payments are currently slow, but
correct. It can be considered normal
for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot No. 148 / 151, Alandi
Markaal Road, Village Dhanore, Alandi – 412 106, District Pune – 412 106,
Maharashtra, India |
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Tel. No.: |
91-22-28521177 / 2635 /
28591795 / 28502312 |
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Fax No.: |
91-22-28520193 |
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E-Mail : |
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Website : |
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Head Office : |
Plot
No.4, PCS House, Sakinaka, Saki Vihar Road, Andheri (E), Mumbai - 400 072,
Maharashtra, India |
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Tel. No.: |
91-22-28521177/2635/2636/6271/6273 |
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Fax No.: |
91-22-28520193 |
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E-Mail : |
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Corporate Office : |
302 / 304, Regent Chambers,
Nariman Point, Mumbai - 400 021, Maharashtra |
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Tel. No.: |
91-22-22875526 / 22875527 /
22875529 |
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Fax No.: |
91-22-22873984 |
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Factory : |
Ø
Plot No. 148/151,
Alandi Markaal Road, Village Dhanore, Alandi, District Pune – 412 106,
Maharashtra Ø
Plot No. 110/1/111,
Himalaya Industrial Estate, Village Amli, Silvassa – 396 230, Union Territory Ø
44/45, Mapusa
Industrial Estate, Mapusa, Goa – 403 507 |
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Overseas Office : |
UAE |
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Branches : |
Located at: Ahmedabad,
Bangalore, Baroda, Bhopal, Bhubaneswar, Chennai, Cochin, Kolkata, Chandigarh,
Delhi, Guwahati, Hyderabad, Jaipur, Lucknow, Mumbai, Patna, Pune, Silvassa
and Visakhapatnam |
DIRECTORS
|
Name : |
Mr. Gajendra Kumar Patni |
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Designation : |
Joint
Managing Director |
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Name : |
Mr. Ashok Kumar Patni |
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Designation : |
Joint
Managing Director |
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Name : |
Mr. D. B. Engineer |
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Designation : |
Director |
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Name : |
Mr. Satish B. Ajmera |
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Designation : |
Director |
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Name : |
Mr. P. V. Mehta |
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Designation : |
Director |
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Name : |
Mr. Girish M. Dave |
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Designation : |
Director |
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Name : |
Mr. K. K. Barjatya |
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Designation : |
Director |
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Name : |
Mr. N. K. Patni |
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Designation : |
Director |
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Name : |
Mr. Amit Kumar Patni |
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Designation : |
Director |
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Name : |
Mr. M. Y. Kulkarni |
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Designation : |
Director |
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Name : |
Mr. H. C. Tandon |
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Designation : |
Whole-time
Director |
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Name : |
Mr. B. N. Agrawal |
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Designation : |
Whole-time
Director |
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Other Personnel |
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Name : |
Mr. C. D. Sakaria |
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Designation : |
Company Secretary cum Financial Controller |
KEY EXECUTIVES
|
Name |
Mr. Gajendra Kumar Patni |
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Designation |
Joint Managing Director |
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Date of Birth |
24.03.1941 |
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Qualification |
B.Chem. |
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Date of Joining |
22.04.1981 |
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Other Directorship |
Patni Computer Systems
Limited PCS International Limited |
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Name |
Mr. Ashok Kumar Patni |
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Designation |
Joint Managing Director |
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Date of Birth |
01.08.1951 |
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Qualification |
B.Tech. |
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Date of Joining |
22.04.1981 |
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Other Directorship |
Patni Computer Systems
Limited PCS International Limited PCS Finance Limited |
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Name |
Mr. H. C. Tandon |
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Designation |
Whole-time Director |
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Age |
48 years |
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Qualification |
B.E. (Electronics) |
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Experience |
24 years |
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Date of Joining |
01.01.1991 |
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Previous Employment |
Patni Computer System
Limited (Senior General Manager) |
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Name |
Mr. B. N. Agrawal |
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Designation |
Whole-time Director |
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Age |
55 years |
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Qualification |
B.E. (Hons. Electrical
Engineer) |
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Experience |
33 years |
|
Date of Joining |
31.12.1982 |
|
Previous Employment |
Computer Maintenance
Corporation Limited - (Consultant) |
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|
Name |
Mr. Amit Kumar Patni |
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Designation |
Director |
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Date of Birth |
26.03.1966 |
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Qualification |
B.Com, M.B.A. |
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Experience |
14 years |
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Date of Joining |
28.04.1986 |
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Other Directorship |
PCS International Limited PCS Finance Limited |
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|
Name |
Mr. M. Y. Kulkarni |
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Designation |
Director |
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Date of Birth |
10.06.1957 |
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Qualification |
Chartered Accountant |
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Date of Joining |
29.03.2001 |
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|
Name |
Mr. Girish Dave |
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Designation |
Director |
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Date of Birth |
12.07.1938 |
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Qualification |
M.Com., LLB, C.A.I.I.B. |
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Date of Joining |
29.09.1995 |
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Other Directorship |
Birla Global Finance
Limited Vinati Organics Limited Kesar Petro Products
Limited J. P. Morgan Chase Bank GIC Asset Management
Company Limited Tata Infotech Limited Mangalore Refinery &
Petrochemicals Limited |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters' holdings |
14709582 |
70.21 |
|
Mutual Funds and UTI |
124993 |
0.60 |
|
Banks, Financial
Institutions and Insurance Companies |
522256 |
2.49 |
|
FIIs |
800 |
0.00 |
|
Private/ Bodies Corporate |
199323 |
0.95 |
|
Indian Public |
5277171 |
25.20 |
|
NRIs/OCBs |
115197 |
0.55 |
|
Total |
20950677 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Computer System design and
development and also undertaking turnkey projects comprising of Computer
Hardware Installation, Commissioning, Complete System Integration and
assembling computer CPUs with suitable peripherals. |
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Products : |
Mini
/ Micro Computer Systems, Glass Epoxy Copper Clad Laminates, R & T
Services |
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Brand Names : |
“Avion”,
“Clarion” and “AST”. |
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Exports to : |
Australia,
Japan, UK and USA |
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Imports from : |
Europe
and Far East |
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Terms : |
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Purchasing : |
L/C
terms |
PRODUCTION STATUS
|
Particulars |
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Licensed Capacity |
Installed Capacity |
|
CCL Division |
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|
Glass Epoxy Copper Clad
Laminates |
|
0.300 million sq. mtrs. p.a. |
0.300 million sq. mtrs. p.a. |
|
Paper Phenolic &
Composite Copper Clad Laminates |
|
0.500 million sq. mtrs. p.a. |
0.500 million sq. mtrs. p.a. |
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Particulars |
Production |
|
Computer
Systems |
80349 Nos. |
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CCL Division |
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Glass
Epoxy Copper Clad Laminates |
-- |
GENERAL INFORMATION
|
No. of Employees : |
600 |
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Bankers : |
v
Canara Bank, District
Pune, Maharashtra v
Indian Bank, District
Pune, Maharashtra v
The United Western
Bank Limited, District Pune, Maharashtra v
Dena Bank, District
Pune, Maharashtra v
Standard Chartered
Grindlays Bank Limited, District Pune, Maharashtra v
Bharat Overseas Bank
Limited, District Pune, Maharashtra v
Union Bank of India v
Central Bank of India |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
S. C. Bandi & Company Chartered Accountants Mumbai |
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Associates : |
Patni
Computer Systems Private Limited |
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Subsidiaries : |
PCS International Limited, Mauritius |
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Membership : |
Manufacturers
Association for Information Technology |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/-each |
Rs. 250.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13098798 |
Equity
Shares |
Rs.10/-each |
Rs. 130.988 millions |
|
7851879 |
Equity
Shares |
Rs. 15/- each |
Rs. 78.519 millions |
|
|
Total |
|
Rs. 209.507 millions |
|
Add |
Forfeited of Shares
|
|
Rs. 0.733 million |
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TOTAL |
|
Rs. 210.240 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 |
210.240 |
210.240 |
131.721 |
|
2]
Reserves & Surplus |
474.597 |
525.505 |
407.428 |
NETWORTH
|
684.837 |
735.745 |
539.149 |
|
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LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
281.091 |
272.802 |
293.634 |
|
2]
Unsecured Loans |
55.000 |
55.000 |
55.000 |
|
TOTAL BORROWING |
336.091 |
327.802 |
348.634 |
|
|
|
|
|
|
DEFERRED
TAX LIABILITIES |
18.122 |
28.073 |
28.032 |
|
|
|
|
|
GRAND TOTAL
|
1039.050
|
1091.620
|
915.815
|
|
|
|
|
|
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APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
258.166 |
274.242 |
272.665 |
|
Capital
Work-in-Progress |
4.724 |
0.000 |
0.000 |
|
|
|
|
|
|
INVESTMENTS |
143.102 |
168.950 |
43.409 |
|
|
|
|
|
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CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
360.523 |
198.993 |
180.429 |
|
Sundry
Debtors |
1547.485 |
1021.094 |
1063.915 |
|
Cash
& Bank Balances |
142.192 |
161.500 |
163.455 |
|
Other
Current Assets |
25.188 |
2.052 |
1.377 |
|
Loans
& Advances |
133.452 |
95.135 |
63.439 |
|
Total Current Assets |
2208.840 |
1478.774 |
1472.615 |
|
Less
: |
|
|
|
|
Current
Liabilities |
1569.647 |
839.417 |
908.909 |
|
Provisions |
6.135 |
5.979 |
6.193 |
|
Total Current Liabilities |
1575.782 |
845.396 |
915.102 |
Net
Current Assets
|
633.058 |
633.378 |
557.513 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
15.050 |
42.228 |
|
|
|
|
|
GRAND TOTAL
|
1039.050
|
1091.620
|
915.815
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
3321.101 |
2776.725 |
2283.765 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
30.745 |
16.192 |
16.449 |
Provision for Taxation
|
|
4.040 |
4.398 |
Profit/(Loss) After Tax
|
32.217 |
12.152 |
12.051 |
|
|
|
|
|
Export Value
|
30.310 |
9.520 |
NA |
|
|
|
|
|
Import Value
|
385.584
|
334.212
|
NA
|
|
|
|
|
|
Total Expenditure
|
3318.185
|
2761.563
|
2257.192
|
SUMMARISED
|
PARTICULARS |
|
|
30.06.2006 Full Year |
|
Sales Turnover |
|
|
4180.100 |
|
Other Income |
|
|
121.500 |
|
Total Income |
|
|
4301.600 |
|
Total Expenditure |
|
|
4122.200 |
|
Operating Profit |
|
|
179.400 |
|
Interest |
|
|
103.500 |
|
Gross Profit |
|
|
75.900 |
|
Depreciation |
|
|
24.900 |
|
Tax |
|
|
13.200 |
|
Reported PAT |
|
|
26.200 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.09.2006 (1st Quarter) |
|
Sales Turnover |
|
|
863.000 |
|
Other Income |
|
|
4.600 |
|
Total Income |
|
|
867.600 |
|
Total Expenditure |
|
|
829.400 |
|
Operating Profit |
|
|
38.200 |
|
Interest |
|
|
21.900 |
|
Gross Profit |
|
|
16.300 |
|
Depreciation |
|
|
5.200 |
|
Tax |
|
|
4.900 |
|
Reported PAT |
|
|
6.000 |
200609 Quarter
1 - EPS is Basic and
Diluted Status of Investor Complaints for the quarter ended 30.09.2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 12 Complaints disposed off during the quarter 12 Complaints
unresolved at the end of the quarter Nil 1.The above un-audited financial
results were reviewed by the Audit committee and taken on record by the Board
of Directors in their meeting held on 28.10. 2006. 2.The limited review as
required under clause 41 of the listing agreement has been completed by the
Statutory Auditor for the period ended 30.09.2006. 3.The Production of CCL
division continued to be suspended due to adverse market conditions. 4.Figures
for the previous year have been regrouped wherever necessary.
KEY RATIOS
|
ARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
0.54 |
0.63 |
0.83 |
|
Long
Term Debt Equity Ratio |
0.11 |
0.27 |
0.37 |
|
Current
Ratio |
1.23 |
1.33 |
1.32 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
7.35 |
5.91 |
4.52 |
|
Inventory
|
11.49 |
14.84 |
13.44 |
|
Debtors |
2.50 |
2.70 |
2.46 |
|
Interest
Cover Ratio |
1.28 |
1.15 |
1.16 |
|
Operating
Profit Margin (%) |
4.24 |
5.47 |
6.33 |
|
Profit
Before Interest and Tax Margin (%) |
3.39 |
4.44 |
5.13 |
|
Cash
Profit Margin (%) |
1.86 |
1.45 |
1.71 |
|
Adjusted
Net Profit Margin (%) |
1.00 |
0.43 |
0.51 |
|
Return
on Capital Employed (%) |
11.63 |
14.80 |
16.29 |
|
Return
on Net Worth (%) |
5.26 |
2.23 |
2.82 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.21.95/- |
|
Low |
Rs.21.20/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject
was originally incorporated as a Private Limited Company and converted into a
Public Limited Liability Company on 19th June 1987. The company's
name was changed from "PCS Data Products Limited" to "PCS
Industries Limited" w.e.f. 25th March 1994. The name was again
changed to present later on.
The
company was promoted by Patni Computer Systems Private Limited.
In
January 1993, the company came out with a rights issue at a premium of Rs. 15/
aggregating Rs. 82.80 millions to part finance the expansion project to
manufacture the paper phenolic range of copper clad laminates.
On
1st April 1994, PCS Data General India Limited was amalgamated with
the company. The company is expanding
production capacity of its copper-clad laminate division by installing an
additional press boiler and other line equipment at a total cost of Rs. 15.000
millions.
During
the year 1995-1996, the company expanded the installed capacity of Copper Clad
Laminates (CCL) unit at Pune. The CCL plant at Pune was awarded by ISO 9002
certification for its entire product range of Copper Clad Laminates.
During
the year 1999-2000, the company launched advanced model of Pentium – III
computers, a latest version of product, which was well received in the market.
The
company is also manufacturing Copper Clad Laminates in technical collaboration
with AEG Isolier Und Kunststoff, Germany and providing software services to GE,
Bank of Boston, DW Smith, Otis and Other in the USA.
The
company also acts as distributors of Data General Corporation USA, AST Research
Inc., USA and Cabletron Systems, USA and SMC, USA
The
company has been accredited with ISO 9001 certification.
Promoted by Patni Computer Systems Private Limited, PCS
Industries was incorporated in Apr.'81 at Andheri, Mumbai. The company
manufactures computer hardware -- large custom-built computer systems and
peripherals -- and is involved in system designing and integration and
assembling computer CPUs with suitable peripherals. It also maintains, on a
long-term basis, computer systems provided by it. The company has an issue
house, and a registrar and transfer division, which manages post-issue
activities of many companies and acts as their registrar and transfer agent.
PCS also manufactures copper-clad laminates at Dhanore, Maharashtra, in
technical collaboration with AEG Isolier Und Kunststoff, Germany.
In January 1993, the company came out with a rights issue at a premium of
Rs 15, aggregating Rs 82.800 Millions, to part-finance the expansion project to
manufacture the paper-phenolic range of copper-clad laminates.
Meanwhile, PCS Data General India was amalgamated with PCS Industries on
1 April 1994. The company is expanding the production capacity of its
copper-clad laminate division by installing an additional press boiler and
other line equipment at a total cost of Rs 15.000 Millions
During the year 1995-96, the company has expanded the installed capacity
of CCL Unit at Pune. The CCL plant at Pune was awarded by ISO - 9002
certification for its entire product range of Copper Clad Laminates.
During the year 1999-2000, the company launched advanced model of Pentium
- III Computers, a latest version of product which was well received in the
market.
It is in trade terms with:
Ø
Reserve Bank of India
Ø
Andhra Bank
Ø
Punjab & Sind Bank
Ø
Vijaya Bank
Ø
Canara Bank
Ø
Bank of Baroda
Ø
Deutsche Bank
Ø
Indian Bank
Ø
Bank of India
Ø
Mysore Cement
Ø
Bhabha Atomic Research
Centre
Ø
Gujarat Ambuja
Ø
WIDA
Ø
Hindustan Aeronautics
Limited
Ø
Gas Turbine Research
Establishment
Ø
ISRO
Ø
Glaxo India Limited
Ø
Rashtriya Chemicals
& Fertilisers Limited
Ø
Tamilnadu Secretariat
Ø
Karnataka Housing Board
Ø
Administrative Training
Institute, Mysore
Ø
BMS College of
Engineering, Bangalore, Karnataka
Ø
United Insurance Company
Limited
Ø
GIC
Ø
Life Insurance Company
Ø
MICO
Ø
ABC Limited
Ø
Kirloskar Toyoda
Machinery
Ø
Jindal
Ø
Tata Iron & Steel
Company Limited
Ø
Titan Limited
Ø
Associated Cement
Companies Limited
Ø
Air India Limited
Ø
Times of India
Ø
DOT (CAL)
Ø
Pagepoint India Services
Limited
Ø
Apollo Tyres Limited
Ø
Blue Dart Limited
Ø
Indian Airlines Limited
Ø
Hero Honda
Ø
Symbol Technologies
Ø
Zee Telefilms Limited
The company has an issue
house and a registrar and transfer division, which manages post issue
activities of many companies and acts as their registrar and transfer agent.
The company is expanding the
production capacity of its cooper-clad laminate division by installing an
additional press boiler and other line equipments at a total cost of Rs. 15
millions.
The company imports raw
materials and computer accessories, capital goods, trading goods and spares.
The company's fixed assets of
important value include land, leasehold land, buildings, plant & machinery,
leased machineries, tools & testing equipments, electrical installations,
office equipments, furniture & fixtures and vehicles.
YEAR UNDER REVIEW
Computer Division of the Company has achieved turnover of Rs. 3290.000 Millions
as against Rs. 2900.000 Millions during the corresponding period in the
previous year showing growth of 14%. The additional production facilities set
up at Mapusa, Goa is fully operational during the year. Production activities
at the Copper Clad Laminate Division at Puna remain suspended during the year
under review.
A fire has occurred in stores Department at their Production Unit at
Silvassa in May 2004 and destroyed the Raw Materials. The loss of stocks is
fully covered by Insurance Policy and the Company has lodged a claim with the
Insurance Company and awaiting for settlement of the Insurance claim.
SOFTWARE & IT SERVICES AND NEW INITIATIVES
The Company has developed and launched new web based application software for
the courier industry. This application software provides tracing and logistics
support to small and medium sized courier, freight handling and linguistics
companies. The market response has been encouraging.
The Company has commenced building a team for providing, software
services and consultancy in the software security domain.
During the year under review the Company has invested in PCS technology Ins.,
USA, a Company incorporated in LISA which is 100% subsidiary of the
Company.
New Name
The
members of the Company has approved the change in name from PCS Industries
Limited to PCS Technology Limited at Twenty-third Annual General Meeting held
on 30.09.2004.The Registrar of Companies, Maharashtra, Pune has also accorded
its consent for change of name in the Company from PCS Industries Limited to
PCS Technology Limited with effect from 25.10.2004
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 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. 45.34 |
|
UK Pound |
1 |
Rs. 85.82 |
|
Euro |
1 |
Rs. 58.05 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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
|
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 |