MIRA INFORM REPORT
|
Report Date : |
20.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
VIVEK
LIMITED |
|
|
|
|
Registered Office : |
133,
Royapettan High Road, Mylapore, Chennai – 600004, Tamilnadu |
|
|
|
|
Country : |
India
|
|
|
|
|
Financials (as on) : |
31.03.2005 |
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|
|
|
Date of Incorporation : |
31.08.
1994 |
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|
|
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Com. Reg. No.: |
18-28470 |
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|
|
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CIN No.: [Company Identification No.] |
U51909TN1994PLC028470 |
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|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
CHEV02035F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV1186B |
|
|
|
|
Legal Form : |
Closely
Held Public Limited Liability Company |
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|
|
|
Line of Business : |
Traders
in consumer durables of leading brands. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 250000 |
|
|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The
company has made steady progress in retail business but profit margin is very
limited. Directors are reported as experienced, respectable and having
satisfactory means. Their payments are reported as usually correct and as per
commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
133,
Royapettan High Road, Mylapore, Chennai – 600004, Tamilnadu |
|
Tel. No.: |
91-44-24989439 |
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|
|
|
Corporate Office: |
New.
No. 171, Old No. 74, LUZ Church Road, 2nd Street, Mylapore,
Chennai - 600004, Tamilnadu, India |
|
Tel. No.: |
91-44-262021166/62169495/62169330/ 24992015/24996783 |
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Fax No.: |
91-44-24996783 |
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E-Mail : |
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Website : |
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Branches : |
Located at:
Tel. No. 91-44-22316970
Tel. No. 91-44-26422462/26422486
Tel. No. 91-44-28140062/28144129
Tel. No. 91-44-28232020/28233005
Tel. No. 91-44-24845454/24845444
Tel. No. 91-44-26261841/26212107
Tel. No. 91-44-28524247/28524248
Tel. No. 91-44-22261470
Tel. No. 91-80-26532338
Tel. No. 91-80-2125437/23121772
Tel. No. 91-80-25286240/25286241
Tel. No. 91-80-3337868/3337869
Tel. No. 91-80-22247122/22247123
Tel. No. 91-80-22206546/22206547
Tel. No. 91-452-2750476/2750477
Tel. No. 91-422-2200329/2200330
Tel. No. 91-427-2334343/2334344
Tel. No. 91-462-2578983 |
DIRECTORS
|
Name : |
Mr. Kodandarama Setty B. A. |
|
Designation : |
Chairman and Managing Director |
|
Address : |
64, Luz Church Road, Mylapore, Chennai - 600014,
Tamilnadu |
|
Date of Birth/Age : |
07.02.1939 |
|
Date of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr.
B. A. Chandrasekara Setty |
|
Designation : |
Director |
|
Address : |
2 Taylors Road, Kilpauk, Chennai - 600010,
Tamilnadu |
|
Date of Birth/Age : |
09.06.1946 |
|
Date of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr.
B. A. Srinivasa |
|
Designation : |
Joint Managing Director |
|
Address : |
23, 1B, Sterling First Cross Street,Sterling
Road, Nugambakkam, Chennai - 600034,
Tamilnadu |
|
Date of Birth/Age : |
19.05.1957 |
|
Date of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr.
J. Ramanan |
|
Designation : |
Director |
|
Address : |
5, Thiruveedi Amman Koil Street, Raja Annamalai
Puram, Chennai - 600028, Tamilnadu |
|
Date of Birth/Age : |
02.07.1946 |
|
Date of Appointment : |
22.07.1998 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No of Shares |
|
Mr. B. L. Aswathanarayana
Setty |
120,100 |
|
Mr. B. A. Vasanthalakshmi |
198,600 |
|
Mr. B. K. Nalini Jayanthi |
191,100 |
|
Mr. B. C. Padmavathi |
113,600 |
|
Mr. B. A. Kodandarama Setty |
795,774 |
|
Mr. B. A. Chandrasekara
Setty |
789,263 |
|
Mr. B. A. Srinivasa |
1,480,263 |
|
Mr. J. Ramanan |
500 |
|
Mr. B K Shanker |
18000 |
|
MR. B K Anand |
52500 |
|
Mr. B K Sridhar |
42500 |
|
Mr. B A Kodandarama Setty |
34500 |
|
Mr. B A Koodandarama Setty |
22500 |
|
Mrs. B A Nanda Srinivas |
97000 |
|
Mr. S D Gopinath |
20000 |
|
Mrs. G Priya |
7500 |
|
Mrs. D Kalanithi |
10000 |
|
Mrs. M Sheela Devi |
10000 |
|
Mrs. A Selvi |
5000 |
|
Ms. S Shagunthlal |
7500 |
|
Mr. S S Rameshwarnath |
5000 |
|
Mrs. Shanthi Kannan |
5000 |
|
Mr. B V Ramachandran |
5000 |
|
Mrs. B R Devendrakumar |
5000 |
|
Mr. K Saravanan |
5000 |
|
Mr. R D Badrinath |
10000 |
|
Mrs. R B Rajeshwari |
5000 |
|
Ms. S Lakshmi |
5000 |
|
Mrs. B A Mahalakshmi |
12500 |
|
Ms. G Priya |
7500 |
|
Mr. R Nageshwaran |
17100 |
|
Mr. Pani N Chakrapani |
11700 |
|
Mrs. Rajeshwari Chakrapani |
11700 |
|
Mr. Arun C Swaminath |
11700 |
|
Mr. R Srinivasan |
10000 |
|
Mr. Vinay Goyal |
5000 |
|
Mr. Vikas Goyal |
5000 |
|
Mr. Vardhman Jain |
5000 |
|
Ms. C Sita |
10000 |
|
Mr. B R Veerabhadar Guptha |
5000 |
BUSINESS DETAILS
|
Line of Business : |
Traders
in consumer durables of leading brands. |
GENERAL INFORMATION
|
Customers : |
Retailers and End users |
|
|
|
|
No. of Employees : |
200 |
|
|
|
|
Bankers : |
v
South Indian Bank,
Mylapore, Chennai - 600034, Tamilnadu v
Canara Bank, Mylapore
Branch, Royapettah High Road, Mylapore. Chennai - 600004 |
|
|
|
|
Facilities : |
Secured Loan From
Bankers Working
Capital Facilities – Rs. 194.995 From
Financial Institutions Term
Loan – 88.091 Millions From
Others On
Hire Purchased – 1.973 Millions |
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|
|
|
Banking Relations : |
Satisfactory
|
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|
|
|
Auditors : |
Frazer and Ross Chartered
Accountants |
|
Address : |
2nd Floor,
Temple Towers, 672 Anna Salai, Nandanam, Chennai - 600035, Tamilnadu |
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|
|
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Associates/Subsidiaries
: |
Vivek Hire Purchase and
Leasing Limited Vivek Hire Purchase and
Leasing Limited Vivek & Company Profile: Subject
is mainly engaged in the business of extending hire purchase finance for
consumer durables and home applicances at all the above 38 retail outlets of
Viveks, Jainsons and Premier. The
company also extends hire purchase finance at few other dealer retail outlets
in Chennai, Bangalore and Uttar Pradesh towns of Tamilnadu for a variety of
products like consumer durables, cell phones, office equipments like Xerox machines,
EPABX Machines and Fax Machines, Household Furniture, Computers, Air
Conditioners, Electronic Weighing Machines and Two & Three Wheeler
Vehicles. The
company is a pioneer in consumer finance and enjoys a significant and sizable
market share in the hire purchase business among the consumer finance
companies, which operate at Viveks, Jainsons and Premier Showrooms. The
company also offers corporate finance (Loans and Bills Discounting) and
Personal Loans to Individuals to a limited extent. The
company also had attractive Fixed Deposit Schemes for the public. The fixed
deposit schemes are rated by Credit Analysis and Research Limited (CARE) |
|
|
|
|
Subsidiaries |
v
Jainsons Corporation
Limited v
Premier Consumer
Electronic Limited v
Bysani Consumer
Electronic Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity
Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,822,150 |
Equity
Shares |
Rs.10/- each |
Rs. 48.221 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 |
48.221 |
48.200 |
48.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11.546 |
9.500 |
7.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
59.767 |
57.700 |
55.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
285.060 |
268.300 |
247.200 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
285.060 |
268.300 |
247.200 |
|
|
DEFERRED TAX LIABILITIES |
12.139 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
356.966 |
326.000 |
303.000 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
60.106 |
54.700 |
67.300 |
|
Capital work-in-progress
|
2.127 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
29.600 |
29.500 |
29.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
146.334
|
183.200
|
153.900 |
|
|
Sundry Debtors
|
77.573
|
54.900
|
44.700 |
|
|
Cash & Bank Balances
|
12.038
|
9.400
|
12.300 |
|
|
Loans & Advances
|
55.751
|
63.000
|
56.600 |
Total Current Assets
|
291.696
|
310.500
|
267.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
25.344
|
49.200
|
45.900 |
|
|
Provisions
|
1.219
|
19.500
|
15.400 |
Total Current Liabilities
|
26.563
|
68.700
|
61.300 |
|
Net Current
Assets
|
265.133
|
241.800
|
206.200 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
356.966 |
326.000 |
303.000 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
1660.796 |
1566.200 |
1382.900 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
2.094 |
8.400 |
3.700 |
Provision for Taxation
|
0.046 |
3.800 |
1.300 |
Profit/(Loss) After Tax
|
2.048 |
4.600 |
2.400 |
|
|
|
|
|
Import Vale
|
NA |
8.988 |
NA |
|
|
|
|
|
Total Expenditure
|
1658.701 |
1557.800 |
1379.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
0.12
|
0.29 |
0.17 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
0.12
|
0.53 |
0.26 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
0.59
|
2.30 |
0.26 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.14 |
0.06 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
5.21
|
5.84 |
5.52 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
10.98
|
4.51 |
4.36 |
LOCAL AGENCY FURTHER INFORMATION
Operation
The company continued to drive the advantage of new products like Cell Phones and Air Conditioners which have seen increased in demand and future the rationalization of prices by manufacturer have also helped in the growing market. Despite difficult market conditions and falling prices in all the product the company has grown more than 25% in turnover. However due to aggressive pricing adopted by the company, the profit from operation has declined for the year under review
Future
Prospects
The company has plans to continuously expand the network of showroom both in existing locations and all new locations. The company is on course to becoming a leading national leval player in the consumer Durables Retail segment. Future the company plans to file necessary paper with the High Court of Madras for the merger of the subsidiaries jainsons corporation Limited and Bysani Consumer Electronics Limited with Self
Subsidiary Companies
The
subsidiaries Jainsons Corporation Limited and Bysani Consumer Limited have
posted turnover of Rs. 777.100 Millions and Rs. 233.300 Millions respectively
and loss/profit after tax of Rs. 26.228 Millions and Rs. 1.065 Millions
respectively. The balance sheet as at 31.03.2005 for the subsidiaries as per
the provisions of section 212 is attached
Fixed
Assets
v
Showroom Equipment
v
Electrical Installation
v
Office Equipment
v
Computer
v
Vehicles
v
Furniture & Fixture
v
Building
Business:
Subject is engaged in as
traders in consumer durables of leading brands.
The company deal with the
following brand companies:
- BPL
- Sanyo
- Sony
- Philips
- Akai
- Kelvinator
- Allwyn
- Cromptor Greaves
- Electrolux
- TVS
- Whirlpool
- LG
- Sharp
- Videocon
- Godrej
- Onkyo
- Carrier
- Voltas
- Usha
- Samsung
Generic Names of Principal
Products/Services are:
- Television and Audio Products
- Refrigerators and Washing Machines
The company's group as on date had a total of 38 showrooms out of which 19 showrooms are under the brand name of "VIVEKS" and 17 showrooms are under the brand name of "JAINSONS" and 2 showrooms are under the brand name of "PREMIER". Out of the 19 Viveks showrooms, 9 are in Chennai, 6 are in Bangalore and 4 are in the Up-Country tows of Tamilnadu. Out of the 17 Jainsons showrooms, 8 are in Chennai and 9 are in the Up-Country tows of Tamilnadu. The 2 showrooms of Premier are in Salem. Thus the group had 17 showrooms in Chennai, 6 showrooms in Bangalore and 15 showrooms in the Up-Country towns of Tamilnadu viz. Salem, Erode, Trichy, Madurai, Tirunelveli, Nagerkoil and Hosur.
|
Name
of the company |
VIVEK LIMITED |
|
1)
Date and description of instrument creating the change |
19.03.2002
Hypothecation
of movable machinery Agreement
of hypothecation of book debts Agreement
for Cash Credit Security
for advance and loans |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
57.500 millions |
|
3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
Stocks Book
Debts All
movable and other assets |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Hypothecation
of stocks, book debts and all movables and other assets in the premises and
godown Rate
of Inertest – 13.5% |
|
5)
Name and Address and description of the person entitled to the charge. |
Andhr
Bank, North Mada Street, Mylapore, Chennai – 600004 |
|
6)
Date and brief description of
instrument modifying the charge |
21.02.2005 |
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
The
total limits has been enhanced from Rs. 77.500 Millions to 127.500 Millions OCC
– Existing – Rs. 77.500 Millions, Enhanced – Rs. 89.000 Millions Working
Capital Demand Loan - Enhanced – Rs. 38.500 Millions Besides
the securities so far offered hypothecation by way of first charge in favour
of Bank on all the borrower goods produced and merchandise and vehicles
existing and or by way of cash monies under the cash incentives to secure the
above enhanced limit of Rs. 127.500 Millions |
|
|
|
|
Name
of the company |
VIVEK LIMITED |
|
1)
Date and description of instrument creating the change |
05.11.2004
Letter of hypothecation Letter
of undertaking by company not to created to any future charge over their
property and assets including uncalled capital |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
20.000 Millions |
|
3)
Short particular of the property charged. If the property acquired is subject
to charge, date of the acquired of the property should be given |
Hypothecation
of all types of stock of consumable durables, book debts in their premises.
Godown and fixed assets of the company |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Rate
of Interest, Margin and other conditions as per agreement |
|
5)
Name and Address and description of the person entitled to the charge. |
The
Lakshmi Vilas Bank Limited, Cathedral Branch, Chennai – 600086 |
|
6)
Date and brief description of
instrument modifying the charge |
Not
Applicable |
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Not
Applicable |
Form 8 Particular for creation or modification of
charges
|
Corporation
identity number or foreign company registrations number of the company |
U51909TN1994PLC028470 |
|
Name
of the company |
VIVEK LIMITED |
|
Address |
133,
Royapettan High Road, Mylapore |
|
This
Form is for |
Modification
Charge |
|
Particular
of the charge holder |
Canara
Bank, Mylapore Branch, Royapettah High Road, Mylapore. Chennai - 600004 |
|
Name
or description of the instrument creating charge |
Supplemental
Agreement Cash
Credit Agreement Agreement
Collateral Security – Machinery Supplemental
Collateral Security Agreement Hypothecation
Agreement of Goods and Book Debts |
|
Date
of the instrument creating charge |
19.10.2006 |
|
Amount
Secure by the charge |
Rs.
120.000 Millions |
|
Rate
of Interest |
3.50%
over and above on going PLR with a minimum of 15% with monthly rests on cash
credit |
|
Property
Charged |
Hypothecation
in favour of Bank on Show Room equipments, fixed assets and movable assets
like office furniture fixture etc. The goods receivable under the said credit
facilities to secure the limit to Rs. 120.000 Millions |
|
Date
of instrument modifying the charge |
11.07.2006 |
|
Particulars
of the present modification |
The
total credit facilities by the bank to the company has been enhanced to Rs.
120.000 Millions Cash
Credit – Rs. 70.000 Millions Cash
Credit – Rs. 30.000 Millions FLC
– Rs. 20.000 Millions Total
– Rs. 120.000 Millions |
Press
Release:
Vivek plans to raise funds thru equity
Chennai
, Sept. 6
WITH
major expansion plans on the anvil Vivek Limited plans to raise fresh capital
through private equity or an initial public offering.
Mr.
B.A. Kodandarama Setty, Chairman and Managing Director, Viveks, said that the
company would divest about 25 per cent in the next four to six months.
Mr.
Setty said that the expansion plan involves setting up another 50 retail
outlets in the South, mainly Tamil Nadu and Karnataka, before venturing into
markets in the northern and western region. The Rs 3500.000 Millions Viveks currently has a chain of 52 outlets
in Tamil Nadu and Karnataka.
He
said that the retail sector in India is going into a boom period and potential
investors are keen to participate in retail ventures. The only way to survive
in this market is to grow and gear up to face the challenges when the
Government opens up foreign direct investment in retail, he said.
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. 44.70 |
|
UK
Pound |
1 |
Rs. 85.57 |
|
Euro |
1 |
Rs. 57.82 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
41 |
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 |