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MIRA
INFORM REPORT
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Report Date : |
11.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
BANCO PRODUCTS
(INDIA) LIMITED |
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Registered Office : |
Bil, Near Bhaili Railway Station, Padra Road, District Baroda – 391 410, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.03.1961 |
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Com. Reg. No.: |
04-1039 |
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CIN No.: [Company
Identification No.] |
U51100GJ1961PTC001039 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDB00588A |
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PAN No.: [Permanent
Account No.] |
AAACB8630L |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturers and Sellers of Auto Ancillaries such as Gaskets and Radiators. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having satisfactory track. Available information indicates high financial responsibility of the company. Their trade relations are reported as fair. Financial position of the company is good. Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Bil, Near Bhaili Railway Station, Padra Road, District Baroda – 391 410, Gujarat, India |
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Tel. No.: |
91-265-2330220-22/2343183/84 |
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Fax No.: |
91-265-2332433 |
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E-Mail : |
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Website : |
http://www.bancoindia.com |
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Factory: |
· Bil, Near Bhaili Railway Station, Padra Road, District Vadodara – 391 410, Gujarat ·
At Ankhi, Taluka Jambusar, District Bharuch, Gujarat |
DIRECTORS
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Name : |
Mr. V. K. Patel |
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Designation : |
Chairman |
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Name : |
Mr. A. G. Shroff |
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Designation : |
Director |
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Name : |
Mr. S. K. Patel |
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Designation : |
Director |
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Name : |
Mr. M. K. Patel |
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Designation : |
Director |
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Name : |
Mr. P. M. Kadakia |
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Designation : |
Director (upto 07.06.2004) |
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Name : |
Mr. Ram Devidayal |
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Designation : |
Director |
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Name : |
Mr. R. R. Biswas |
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Designation : |
Executive Director |
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Name : |
Mr. Mukesh Khanna |
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Designation : |
Company Secretary |
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Name : |
Mr. Sudhir Munjal |
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Designation : |
Director (From
24.11.2004) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Promoters' Holdings
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4777717 |
70.67 |
non promoter's holdings
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Banks, Financial Institutions |
200 |
0.01 |
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Bodies Corporate |
182888 |
2.71 |
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Non
residents Indians |
385498 |
5.71 |
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Mutual Funds and UTI |
820 |
0.01 |
Public
|
1413773 |
20.91 |
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TOTAL |
6760896 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Sellers of Auto Ancillaries such as Gaskets and Radiators. |
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Products : |
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Brand Names : |
Banco Royal (gaskets) and Banco (radiators) |
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Imports : |
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Countries : |
Europe, Japan and Far East countries |
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Terms : |
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Purchasing : |
L/C, D/A and D/P |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Gaskets |
Nos. in millions |
80.000 |
80.000 |
50.276 |
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Radiators |
Nos. |
375000 |
375000 |
287007 |
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C F J S |
MT |
4000 |
4000 |
886.89 |
GENERAL
INFORMATION
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Customers : |
The company' major customers include Original Equipment Manufacturers v Tata Engineering and Locomotive Company Limited v TVS Suzuki Limited v Ashok Leyland Limited v Mahindra & Mahindra Limited v Maruti Udhyog Limited v Railways |
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No. of Employees : |
500 |
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Bankers : |
v Bank of Baroda, Baroda, Gujarat v State Bank of India, Madame Cama Road, Mumbai – 400021, Maharashtra, India v
HDFC Bank, Baroda, Gujarat |
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Facilities : |
Note:
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Shah & Company Chartered Accountants |
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Address : |
Mumbai |
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Associates/Subsidiaries : |
Banco Aluminium Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6760896 |
Equity Shares |
Rs. 10/- each |
Rs. 67.608 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
67.600 |
67.600 |
67.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
678.900 |
610.171 |
562.629 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
746.500 |
677.771 |
630.229 |
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LOAN FUNDS |
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1] Secured Loans |
296.800 |
84.409 |
14.608 |
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2] Unsecured Loans |
61.000 |
77.056 |
26.274 |
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TOTAL BORROWING |
357.800 |
161.465 |
40.882 |
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DEFERRED TAX LIABILITIES |
0.000 |
38.788 |
30.031 |
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TOTAL |
1104.300 |
878.024 |
701.142 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
465.900 |
267.082 |
216.596 |
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Capital work-in-progress |
8.500 |
0.108 |
0.503 |
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INVESTMENT |
12.800 |
14.771 |
103.149 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
311.400
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388.995
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229.978 |
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Sundry Debtors |
433.400
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317.905
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274.836 |
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Cash & Bank Balances |
70.600
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25.422
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23.486 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
77.800
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91.503
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41.435 |
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Total Current Assets |
893.200
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823.825
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569.735 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
218.300
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168.061
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135.190 |
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Provisions |
57.800
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59.701
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60.282 |
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Total Current Liabilities |
276.100
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227.762
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195.472 |
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Net Current Assets |
617.100
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596.063
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374.263 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
6.631 |
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TOTAL |
1104.300 |
878.024 |
701.142 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
1904.300 |
1429.532 |
1207.711 |
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Profit/(Loss)
Before Tax |
184.700 |
171.872 |
166.650 |
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Provision for
Taxation |
57.600 |
66.486 |
48.956 |
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Profit/(Loss)
After Tax |
127.100 |
105.386 |
117.694 |
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Export Value |
NA |
390.400 |
293.560 |
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Import Value |
NA |
297.392 |
128.193 |
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Total Expenditure |
1658.700 |
1257.659 |
1041.000 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
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Sales
Turnover |
537.300 |
657.900 |
663.400 |
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Other
Income |
18.200 |
18.400 |
10.000 |
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Total
Income |
555.500 |
676.300 |
673.400 |
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Total
Expenditure |
467.800 |
562.500 |
570.400 |
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Operating
Profit |
87.700 |
113.800 |
103.000 |
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Interest |
06.800 |
09.800 |
12.500 |
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Gross
Profit |
80.900 |
104.000 |
90.500 |
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Depreciation |
13.500 |
15.000 |
15.800 |
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Tax |
08.000 |
12.600 |
9.200 |
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Reported
PAT |
61.300 |
66.900 |
62.300 |
Notes
200606
Quarter 1 –
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (20.051)million Consumption of Raw Materials Rs 362.817 million Staff Cost Rs
24.243 million Other Expenditure Rs 100.804 million Tax Includes Provision for
Current Tax Rs 7.681 million Deferred Tax Rs (1.923) million Fringe Benefit Tax
Rs 0.260 million EPS is Basic Status of Investor Complaints for the quarter
ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 07 Complaints disposed off during the
quarter 07 Complaints unresolved at the end of the quarter Nil 1. Previous year
figures are regrouped wherever necessary to confirm to the current year's
groupings. 2. The Company is engaged in Automobile Ancillary business only, and
therefore reporting under AS 17 is not required. 3. The revised Accounting
Standard AS-15 on Employees Benefits has become mandatory w.e.f. April 1, 2006.
Any additional obligation of the Company on account of above Accounting
Standard will be recognised at the year end and adjusted against the General
Reserve. 4. The Statutory Auditors have carried out a Limited Review of the
results for the Quarter ended June 30, 2006. 5. The above results were reviewed
by the Audit Committee have been approved and taken on record by the Board of
Directors in their meeting held on July 29, 2006.
200609
Quarter 2 –
1.Previous year figures are regrouped/recast wherever
necessary to conform to the current years groupings. 2.Provision of FBT during
the previous quarter/half year ended 30.09.2005 was made at the year end. 3.The
company is engaged in Automobile Ancillary business only and therefore
reporting under AS-17 is not required. 4.The revised Accounting Standard AS-15
on Employees Benefits has become mandatory w.e.f 01.04.2006. Any additional
obligation of the company on account of above Accounting Standard will be
recognised at the year end and adjusted against the General Reserve. 5.There
was no investors complaints pending at the beginning and at the end of the
quarter. The company has received one investors complaint during the quarter
and has been resolved. 6.The statutory auditors have carried out a limited
review of the results for the quarter ending 30.09.2006. 7.The above results
have been reviewed by the audit committee and taken on record by the board of
directors of the company at their respective meetings held on 30.10.2006.
200612
Quarter 3 –
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (41.519)million Consumption of Raw Materials Rs 453.997 million Staff Cost
Rs 26.349 million Other Expenditure Rs 131.505 million Tax Includes Provision
for Current Tax Rs 8.800 million Deferred Tax Rs 3.192 million Fringe Benefit
Tax Rs 0.446 million EPS is Basic Status of Investor Complaints for the quarter
ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 01 Complaints disposed off during the
quarter 01 Complaints unresolved at the end of the quarter Nil 1. Previous year
figures are regrouped / recast wherever necessary to confirm to the current
year's groupings. 2. Provision of FBT during previous quarter / nine months
ended December 31, 2005 was made at the year end. 3. The Company is engaged in
Automobile Ancillary business only, and therefore reporting under AS 17 is not
required. 4. The revised Accounting Standard AS-15 on Employees Benefits has
become mandatory w.e.f. April 01, 2006. Any additional obligation of the
Company on account of above Accounting Standard will be recognised at the year
end and adjusted against the General Reserve. 5. The Statutory Auditors have
carried out a Limited Review of the results for the Quarter ended December 31,
2006. 6. The above results were reviewed by the Audit Committee have been
approved and taken on record by the Board of Directors in their meeting held on
January 27, 2007.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
0.37 |
0.16 |
0.09 |
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Long Term Debt
Equity Ratio |
0.12 |
0.01 |
0.01 |
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Current Ratio |
1.93 |
2.06 |
2.08 |
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TURNOVER RATIOS |
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Fixed Assets |
3.10 |
2.90 |
2.70 |
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Inventory |
5.44 |
4.40 |
5.06 |
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Debtors |
5.07 |
4.59 |
4.21 |
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Interest Cover
Ratio |
9.80 |
23.62 |
29.25 |
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Operating Profit
Margin (%) |
12.90 |
15.37 |
17.48 |
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Profit Before
Interest and Tax Margin (%) |
10.80 |
13.19 |
15.05 |
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Cash Profit Margin
(%) |
8.77 |
9.93 |
12.69 |
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Adjusted Net
Profit Margin (%) |
6.67 |
7.74 |
10.26 |
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Return on Capital
Employed (%) |
21.25 |
24.00 |
27.17 |
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Return on Net
Worth (%) |
17.94 |
16.22 |
19.89 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.297.20/- |
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Low |
Rs.272.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 16th March, 1961 at Vadodara in Gujarat having Company Registration Number 148.
The company was incorporated on 16th March, 1961 as Gaskets and Oilseals, the company, with manufacturing facilities at Bhaili, Baroda (Gujarat), is one of the players in the gaskets and radiator segments.
It has a capacity to manufacture 52 millions gaskets and 0.14 millions radiators.
Since its public issue in September 1986, the company has been recording a steady growth, except for a setback in 1992-93. It issued bonus shares in 1994-95.
BUSINESS
Subject is engaged in the business as manufacturers and sellers of Auto Ancillaries such as Gaskets and Radiators.
Subject is one of the leading players in the gasket and radiator segments. Its products find wide applications in automobiles, oil engines, compressors, locomotives, machinery, etc.
Its products find wide applications in automobiles, oil engines, compressors, locomotives, machinery, etc. The company’s OEM customers includes TELCO, TVS Suzuki, Ashok Leyland, Mahindra & Mahindra, Maruti Udyog and the Railways. The company also enjoys a presence in the replacement market.
It’s products are sold under the brand names Banco Royal (gaskets) and Banco (radiators).
The company signed an agreement with Japan Metal Gaskets Company, Japan to get the know how of Multi Layer Steel Gaskets (MLS), which is considered one of the advanced gasketing technology. For design support Elring Klinger, Germany is providing consultancy for non-retorque Cylinder Head Gasket manufacturing.
The company’s quality system is certified with TS16949 by
UL, USA.
The company's products such as gaskets are sold under the
brand name "Banco Royal" and radiators are sold under the brand name
"Banco".
operatons
During the year under report, the company has registered good results on attaining turnover of Rs. 1200.000 millions against Rs. 940.000 millions of previous year, Gross profit before tax of Rs. 166.000 millions against Rs. 109.000 millions of previous year and net profit of Rs. 118.000 millions against Rs. 76.000 millions of previous year with Net Foreign Exchange Earnings of Rs. 104.000 millions.
The company’s new product group viz Aluminium Heat Exchanger has stabilised very well and has won sizable OEM contracts, domestically. Export sales of these products had been excellent and the company expects this to continue.
The Indian automobile industry has recorded impressive performance especially in motorcycle, cars, and commercial vehicles. The company hopes to participate in growth and to register impressive results during the current year.
The quality system of company has been certified as conforming to TS 16949 by UL, USA.
industry structure and development
Indian Auto Industry during the year 2003-2004 registered a growth of above 20% in nos. over the last year. Downward trend in Cu-brass radiator production is continuing since last six years and as expected the trend will continue with cu-brass radiators being replaced by aluminium radiators in majority of the OEM applications for all range of vehicles in Auto industry. Gaskets production has shown a negligible growth over that of last year. Needless to mention that growth in Radiator and Gasket segment will substantially depend on the growth in Auto production as well as speed at which indigenisation is implemented by the vehicle manufactures across the country. Overall all growth in Indian auto industry has definitely given a boost to auto component manufacturing sector.
operations
During
the financial year ended at 31.03.2006, Sales and Other Income rose to Rs. 1752
Millions as against Rs. 1399.000 Millions of the previous year, registering an
increase of 20%. Gross Profit before Tax reached to Rs. 184 Millions as against
Rs. 171 Millions of the previous year whereas Net Profit reached to Rs. 127
Millions as against Rs.107 Millions of the previous year. Export sales of
Company has shown remarkable growth during the year at Rs.650 Millions against
Rs. 400 Millions of Previous Year.
The Company has successfully commissioned the 100% Export Oriented Unit
(EOU) during the year under review and has secured substantial number of OEM
orders, till the date, the favorable contribution thereof, could be seen in
coming years.
MANAGEMENT DISCUSSION & ANALYSIS
Introduction:
Banco Products (India) Limited is in the business of manufacturing Gaskets and
Radiators - both of which are considered important components in sealing and
cooling applications in Automotive and industrial engines. Entry into these
market by MNCs will create new competitive pressures in the Market. The Company
is continuously upgrading competencies in product and process design. faster
product development, quality system maintenance of manufacturing ,delivery
performance and response time. The Company is highly focused on the continuous
improvement in order to render high degree of customer satisfaction.
technology
The company’s agreement with Japan Metal Gaskets Company, Japan on peed base technical know how was in force. In addition to that the company was getting designed support from Elring Klinger, Germany for non-retorque Cylinder Heat Gasket manufacturing.
internal control and its adequacy
The Company has
successfully obtained renewal of TS-16949 certification and now started working
on Lean 6-sigma implementation. Software for inter and intra department communication
and follow up has been upgraded to latest version. For data security
specifically in design section suitable software has been installed.
The system of internal control designed to provide reasonable maintenance of
proper accounting records and the reliability of operational and financial
information complying with statues, safeguarding assets from unauthorized used
or losses executing transaction with proper authorization ensuring compliance
of corporate policies used with a view to running business. The Company has
clearly defined organisation structure and lines of authority. Sufficient
control is exercised through monthly, quarterly and annual business review by
the management Review Committee and application of Corporate Governance. An
internal audit system is in place. Normal foreseeable risks to the Company's
assets are adequately covered by comprehensive insurance.
The Company has appointed M/s. K.C. Mehta & Co., the Chartered Accountants
to carry out Internal Audit of the Company's activities.
In line with well accepted practices and objectives, the planning and internal
audit is oriented towards the review of operational controls in the management
risk strengths and opportunities.
The Company has an Audit Committee, which reviews the Reports of Internal
and External Auditors, make suggestions for improvementation, follow upon the
implementation of correctives actions and keeps informed the Board of its major
observation from time to time.
DIVIDEND:
The Directors are pleased to recommend payment of dividend @ 75% (Rs.
7.50 per Share) for the year 2005-2006. The Dividend, if approved by the
Shareholders at the ensuing Annual General Meeting, will absorb Rs. 57.819
Millions, including tax and surcharge levied on dividend amount.
It is in trade terms with :-
v Snehal Printing Bureau
v Marigold Paints Private Limited
v Aashirvad Engineering Works
v Kanam Printery
v Arihant Packaging
v Desai Engineering Works
Fixed Assets:
Goodwill, Freehold Land, Buildings, Plant & Machinery, Furniture, Fixture & Office Equipments, Vehicles and Other Assets.
AS PER WEBSITE:
The company started in
1962 with the goal of supplying quality products and services for maximum
client satisfaction to clients throughout the world.
They have four modern
manufacturing plants based at Baroda (Vadodara), approximately 400 kilometers
north from Bombay (Mumbai), with state-of-the-art facilities for Production,
Design & Development and Quality Assurance. They have a dedicated and
professional team working on innovative programs using advanced technology to
meet tough challenges. Their quality systems are certified to ISO/TS
16949:2002.
They are working in
collaboration with Elring Klinger, Germany and Japan Metal Gaskets, Japan for
the Indian market.
With a personnel strength of 600 plus dedicated to produce a better product,
combined with constant investments in Design and Development, Banco Products
(India) Limited is at the forefront of its field.
Products:
Banco
Products is a leading manufacturer of Gaskets in M.L.S., Graphite, Fibre Steel
and Copper designs for Automotive, Agricultural vehicles, Diesel Commercial
vehicles as well as for Automotive vehicles.
For details about the technical specification and
application of gaskets.
Banco Products
is a leading radiator manufacturer and radiator exporter in India. Banco
Products manufactures high performance radiators for cars and pickups. They
also manufacture Industrial radiators, air to air intercoolers, custom designed
intercoolers and intercoolers cores for various Commercial vehicles and off
road Industrial applications. They are also suppliers of radiators and
intercoolers to all major OEMs within India and in Europe.
For details about the technical specification and
application of Radiators.
Compressed Fibre Jointing Sheets
(CFJS)
Banco Products manufactures high
quality compressed jointing sheets using non asbestos raw materials which are
environmentally friendly. Banco Products exports all varieties of compressed
fiber jointing sheets which cover a complete range of Automotive and Industrial
applications world wide.
View Compressed Fibre Jointing
Sheet Catalogue
For details about the technical
specification and application of Compressed Fibre Jointing Sheets.
View Industrial Cooling System
(ICS) Catalogue
For details about the technical
specification and application of Industrial Cooling System.
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.42.87 |
|
UK Pound |
1 |
Rs.84.79 |
|
Euro |
1 |
Rs.57.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|