MIRA INFORM REPORT
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Report
Date : |
17.08.2007 |
IDENTIFICATION DETAILS
|
Name : |
PIX
TRANSMISSIONS LIMITED |
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Registered
Office : |
J-7, MIDC, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
22.07.1981 |
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Com.
Reg. No.: |
11-24837 |
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CIN
No.: [Company
Identification No.] |
L25192MH1981PLC024837 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMP16300E |
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PAN
No.: [Permanent
Account No.] |
AAACP6016C |
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Legal
Form : |
It is a public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Manufacturer of “V” Belts, Raw Edge, Poly
V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil
& Heat Resistant Belts, Dry Cover Belts, etc. |
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
1250000 |
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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 an established company having satisfactory
track. Trade relations are fair. Financial position is satisfactory. Payments
are reported as slow but correct. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered
Office : |
J-7, MIDC, Hingna Road, Nagpur Via Mumbai,
Nagpur – 440 016, Maharashtra, India |
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Tel.
No.: |
91-7104-236501 (5 Lines) –236503/504/ 237051 / 237729 |
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Fax
No.: |
91-7104-236505 / 236506 / 235753 |
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E-Mail
: |
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Website
: |
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Factory : |
Ø
(Unit no. 1) J-7, MIDC
Hingna, Nagpur - 440 016 Ø
(Unit no. 2) K-36,
K-37, k-38, MIDC Hingna, Nagpur - 440 016 Ø
(Unit no. 3) Bazargaon, Amravati Road,
Nagpur-440 023 |
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Branches
: |
Pals Building, 1st Road, TPS iv, Bandra - [West]
Mumbai - 400 050 |
DIRECTORS
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Name : |
Mr. Pratipal Singh Sethi |
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Designation
: |
Chairman |
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Name : |
Mr. Amarpal Sethi |
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Designation
: |
Managing Director |
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Name : |
Mr. Sukhpal Singh Sethi |
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Designation
: |
Director |
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Name : |
Mr. Sonepal Singh Sethi |
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Designation
: |
Director |
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Name : |
Mr. Haresh Eidnani |
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Designation
: |
Director |
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Name : |
Mr. Krishna K. Bhat |
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Designation
: |
Director |
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Name : |
Mr. Jose Jacob |
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Designation
: |
Director |
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Name : |
Mr. Joe Paul |
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Designation
: |
Director |
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Name : |
Mr. L. N. Gupta |
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Designation
: |
Director |
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Name : |
Shri Darshan Singh Chadha |
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Designation
: |
Director |
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Name : |
Shri Rishipal Sethi |
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Designation
: |
Director |
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Name : |
Shri Narindar Kumar |
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Designation
: |
Director |
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Name : |
Shri Pradeep Havnur |
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Designation
: |
Director |
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Name : |
Mr. Aqueel A Mulla |
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Designation
: |
Director |
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Name : |
Mr. Shybu Varghese |
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Designation
: |
Company secretary |
MAJOR
SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters (Indian
Promoters including directors and their relatives) |
5049979 |
51.53 |
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Mutual Funds, UTI |
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Banks, Financial Institutions, Insurance companies (Central/State Government Institutions/Non Government
Institutions) |
3000 |
0.03 |
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Private/ Bodies corporate |
633064 |
6.46 |
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Indian Public |
4079275 |
41.63 |
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NRI / OCB’s |
19763 |
0.20 |
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Clearing Members |
14919 |
0.15 |
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Total |
9800000 |
100.000 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of “V” Belts, Raw Edge, Poly
V-Belts, Variable Speed Belts, Fire Resistant Belts, Antistatic Belts, Oil
& Heat Resistant Belts, Dry Cover Belts, etc. |
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Products
: |
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PRODUCTION STATUS
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Particulars |
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Installed Capacity |
Actual Production |
J-7, Hingna
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V Belts in Nos. |
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10.000 millions |
6190535 |
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Bazargaon
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V Belts in Nos. |
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6.000 millions |
2261566 |
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High Pressure Hoses in Meters |
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6.000 millions |
4495713.25 |
GENERAL
INFORMATION
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Suppliers
: |
1.
Exclusive Diamond Products 2. Gujrat
Polymers 3. Ideal
Enterprises 4. John
Steel Tech. Private Limited 5.
Kailash Timber Corp. 6.
Merchem Limited 7. Noble
Catalyst 8. N. C.
Corporation 9. Om Tex
Chem. Private Limited 10.
Plasto Pack (I) Private Limited 11. Paper
Combines 12.
Progressive Products 13.
Roshan Industries 14. SOS
Enterprises 15.
Shrjnath Packers 16.
Unipack 17. Uttkarsh Packers Private
Limited |
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No. of
Employees : |
1200 |
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Bankers
: |
v
State Bank of India v
Andhra Bank v
ING Vysya Bank Limited v State
Bank of Hyderabad |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
S. C.
Bandi and Company Chartered Accountants Mumbai, Maharashtra |
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Associates/Subsidiaries
: |
Pix South America Importacao E Exportacao De Correias E Mangueiras Limited |
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Joint
Venture : |
Pix Europe Limited |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
10,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 105.000 millions |
|
450000 |
Non – Convertible 6% cumulative |
Rs. 100/- Each |
Rs. 45.000 Millions |
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Total |
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Rs. 150.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
9,800,000 |
Equity Shares |
Rs. 10/- each |
Rs. 98.000 millions |
|
435000 |
Non – Convertible 6% cumulative |
Rs. 100/- Each |
Rs. 43.500 Millions |
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Less: |
Allotment Money in arrears from Public other than directors |
|
Rs. 0.011 millions |
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Total
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Rs.
141.489 millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
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 |
141.489 |
97.989 |
97.989 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
190.688 |
172.643 |
162.853 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
332.177 |
270.632 |
260.842 |
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LOAN
FUNDS |
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1]
Secured Loans |
401.905 |
390.048 |
246.108 |
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2]
Unsecured Loans |
284.927 |
256.206 |
206.235 |
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TOTAL
BORROWING
|
686.832 |
646.254 |
452.343 |
|
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DEFERRED
TAX LIABILITIES |
58.098 |
63.919 |
59.100 |
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TOTAL
|
1077.107 |
980.805 |
772.285 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
673.772 |
648.234 |
471.043 |
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Capital work-in-progress
|
34.717 |
3.025 |
0.000 |
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INVESTMENT
|
11.295 |
11.296 |
11.295 |
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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
|
191.838
|
173.187
|
142.044 |
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Sundry Debtors
|
219.550
|
207.699
|
152.437 |
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Cash & Bank Balances
|
41.269
|
22.526
|
15.353 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
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Loans & Advances
|
75.084
|
54.763
|
65.480 |
Total Current Assets
|
527.741 |
458.175 |
375.314 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
142.506
|
124.538
|
85.523 |
|
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Provisions
|
28.271
|
15.504
|
0.000 |
Total Current Liabilities
|
170.777 |
140.042 |
85.523 |
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Net
Current Assets
|
356.964 |
318.133 |
289.791 |
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MISCELLANEOUS EXPENSES
|
0.359 |
0.117 |
0.156 |
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TOTAL
|
1077.107 |
980.805 |
772.285 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
1211.319 |
1000.612 |
794.971 |
|
|
|
|
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Profit/(Loss) Before Tax
|
23.741 |
22.800 |
17.942 |
Provision for Taxation
|
5.680 |
6.469 |
6.234 |
Profit/(Loss) After Tax
|
18.061 |
16.331 |
11.708 |
|
|
|
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Export Value
|
704.691 |
593.406 |
465.699 |
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Import Value
|
256.067 |
213.701 |
166.793 |
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|
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Total Expenditure
|
1111.104 |
919.385 |
726.818 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2007 [Full Year] |
|
Sales Turnover |
|
|
1429.300 |
|
Other Income |
|
|
1.800 |
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Total Income |
|
|
1431.100 |
|
Total Expenditure |
|
|
1230.100 |
|
Operating Profit |
|
|
201.000 |
|
Interest |
|
|
71.800 |
|
Gross Profit |
|
|
129.200 |
|
Depreciation |
|
|
85.400 |
|
Tax |
|
|
20.000 |
|
Reported PAT |
|
|
14.100 |
|
Dividend (%) |
|
|
0.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st Qtr |
|
Sales Turnover |
|
|
368.600 |
|
Other Income |
|
|
0.100 |
|
Total Income |
|
|
368.700 |
|
Total Expenditure |
|
|
307.100 |
|
Operating Profit |
|
|
61.600 |
|
Interest |
|
|
22.600 |
|
Gross Profit |
|
|
39.000 |
|
Depreciation |
|
|
28.000 |
|
Tax |
|
|
4.400 |
|
Reported PAT |
|
|
4.000 |
Notes
200706
Quarter 1 –
Expenditure Includes (Increase) / Decrease in
Stock in Trade (Finished Goods) Rs (10.200) million Consumption of Raw Materials
Rs 195.300 million Staff Cost Rs 39.200 million Other Expenditure Rs 82.800
million Tax Includes Provision for Current Tax Rs 4.000 million Fringe Benefit
Tax Rs 0.400 million Deferred Tax Rs 2.600 million Status of Investor
Complaints for the quarter ended June 30, 2007 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 21
Complaints disposed off during the quarter 21 Complaints unresolved at the end
of the quarter Nil 1. Above result is subject to a limited review by the
auditor of the company as per Listing Agreement with the Stock Exchange and has
been taken on record by the Board of Directors at their meeting held on July
30, 2007. 2. The company is engaged in the business of Rubber Products and there
is no reportable Segment as per Accounting Standard (AS 17) Segment Reporting.
3. Previous period figure have been re-grouped where ever considered necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
2.21 |
2.07 |
1.72 |
|
Long Term Debt Equity Ratio |
1.63 |
1.54 |
1.26 |
|
Current Ratio |
1.25 |
1.33 |
1.41 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.20 |
1.20 |
1.16 |
|
Inventory |
6.62 |
6.34 |
5.80 |
|
Debtors |
5.65 |
5.55 |
5.62 |
|
Interest Cover Ratio |
1.29 |
1.27 |
1.30 |
|
Operating Profit Margin (%) |
15.02 |
16.44 |
16.05 |
|
Profit Before Interest and Tax Margin (%) |
8.69 |
10.60 |
9.73 |
|
Cash Profit Margin (%) |
7.83 |
7.48 |
7.80 |
|
Adjusted Net Profit Margin (%) |
1.50 |
1.63 |
1.47 |
|
Return on Capital Employed (%) |
10.84 |
13.00 |
11.14 |
|
Return on Net Worth (%) |
6.47 |
6.13 |
4.59 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 34.15/- |
|
Low |
Rs. 33.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Sales / Business
Performance / Finance
The company's performance has been satisfactory, sales turnover has increased
by over 21% in the current year.
In recognition of its
outstanding export performance the company has received from Capexil export award
in 'Vee Belt segment' for the year 2004-2005. The company has the distinction
of bagging this award continuously for last several years. The Company is
planning for further expansion in the Belts & Hoses segments in the current
year.
Industry structure and developments
The Company is a manufacturer of Belts and Hoses. The Belts are used in various
Industries, both Industrial, Agricultural and Automobiles. High Pressure Wire
Braided Hoses will be ideally suited for dumpers, cranes, coal cutters, loaders,
shovels, excavators, tractors, harvesters, hydraulic roof supporters, equipment
used in surface and underground mining, steel and cement industry, aviation,
earth moving equipments, oil exploration, agricultural, engineering and several
other industries where safety and performance norms are of utmost
importance.
Opportunities and Threats
The Products manufactured are
Belts
Hoses
The Company's products are well accepted in the market both in Domestic as well
as Export market because of its superior quality. The Company's products are
sold to various original equipment manufacturers as well as in the replacement
market. The Company is gradually increasing its share in the domestic
market.
Outlook
The Company expects to utilize maximum production capacity in the Belting
section as well as in the Hose section. The economy is now picking up both in
the domestic market as well as in the international market, and the Company
expects to do much higher turnover of sales in the current year compared to the
year ending March, 2006.
Risks and concerns
There is acceptability of the products both in the local and export markets due
to their superior quality and competitive prices.
The company is in continues process of cost control and has undertaken various
cost reduction measures and steps to optimize productivity by improving the
production processes and controlling wastage. This is expected to result in
significant saving in costs.
Internal control systems and their adequacy
The company holds an IS09002 & QS9000 Certification and all procedures
relating to the operating functions of the company have been documented and are
followed. The management is of the opinion that there are adequate internal
control systems in the company commensurate with its size and the nature of
business.
Discussion on financial performance with respect to operational performance
Sale of manufactured products during the period 2005-2006 was Rs.1207.838
Millions compared to Rs.999.100 Millions
during 2004-2005, an increase of 21% in terms of value.
The company is engaged in the business as
manufacture of “V” belts, raw edge, poly V-belts, variable speed belts, fire
resistant belts, antistatic belts, oil &
heat resistant belts, dry cover belts, etc.
The company is in trade terms with :
Ø
Jurgyan Industries
Ø
P. K. Enterprises
Ø
Prabhu Packaging
Ø
R. K. Engineering Works
Ø
Shree Mahabir & Company
Ø
Technomech Structural
Ø
Vision Textiles
Ø
Reena Enterprises
The company’s fixed assets of important value
include plot, factory premises, plant and machinery, furniture and fixture,
office equipment and vehicles.
The
company has also established process for production of high pressure braided
hoses.
Website details attached
Company profile
Subject is the fastest upcoming
Global Leader in Power Transmissions Business. Established in 1982 at Nagpur in
India. It is engaged into the manufacturing of a wide range of world-class quality
V-Belts and Hoses to suit various Power Drive needs, such as Wrap
Construction V-Belts, Cut Edge Belts, Ribbed Belts, Synchronous Belts, Hoses
and Hose Assemblies.
The company offers most advanced and complete
range of high quality products not only at competitive price but also provides
an in-depth technical advice on various Power Transmission needs.
CERTIFICATIONS AND ACHIEVEMENTS
The
company has distinguished itself in the industry by having number of approvals
from various Global Certifying Authorities.
• It is an ISO/TS 16949:2002 registered company
• It is the recipient of ATEX certification from Germany for its Fire Resistant
Antistatic Belts (FRAS), the belts being guaranteed for explosion
protection, ATEX certificate is a mandatory requirement in Europe for the
belts involved in applications using explosive material
• It has achieved prestigious approval for Hoses from U. S. Dept. of Labor i.e.
MSHA (Mines Safety and Health Administration), it is a governing body for
any mechanical products which is to be used in Mining application, which
certifies the Flame Resistant properties of the Hose outer cover by carrying
out stringent tests at their laboratories.
• Its product conforms to all major international standards such as DIN, SAE,
BCS and EN.
MARKETING & DISTRIBUTION NETWORK
Its
extensive Marketing and Distribution network is spread over more than 45
countries globally, ensures that it can respond rapidly to the changing
customer needs. The company has established overseas offices in UK, Brasil and
Germany, in order to serve its customers better. Its products are exported to
over 65 countries across the world
CUSTOMER SATISFACTION
PIX's
stress on consistency in quality has qualified it as a trusted and reliable
manufacturer of V-Belts and Hoses and it also counts some of the largest OEM's
to its account. The company is committed to the up-gradation and continuous
improvement of technology and processes to maximize customer satisfaction.
PRODUCT RANGE
At
present the company produces an extensive range of products in terms of V-Belts
and Hoses. It manufactures entire range of Belts and Hoses used in Industrial
and Automotive application, which includes
-
• Wrapped Construction Belts
• Cut Edge Cogged/Plain Belts
• Ribbed V-Belts
• Synchronous Belts
• Lawn and Garden Belts
• Variable Speed Belts
• Antistatic Belts
• FRAS (Fire Resistant Antistatic) Belts
• Oil and Heat Resistant V-Belts
• Agriculture Belts
• Hoses and Hose Assemblies
Logical development and adoption of new
techniques in material and production handling gives its product a qualitative
edge over its competitors. With such a
wide range of products PIX caters to all the Power Transmission Needs of a
customer. Thus, thinking globally under
the present fast changing scenario, PIX's acceptance is based on the firm
belief which says -
Subject is a manufacturer, exporter
of Belts and Hoses with plants situated at Nagpur in Maharashtra is proud to
announce the acquisition of Flexequip
Hydaulics of U.K. by its European subsidiary PIX Europe Limited.
This acquisition establishes PIX, who is already one of the most dynamic forces
in the European Power Transmission industry, as a major participant in the
global Fluid Power industry. Thus, PIX Transmissions Limited India, which was
established in 1982, is emerging fast as the global contender in the Power and
Fluid transmissions business, supplying its products to customers in over 45
countries.
Flexequip needs no introduction to those in the Hydraulics industry. An
innovator for many years as an End- Fittings manufacturer; it remains a leading
supplier of quality End-fittings, Adapters, Hose-Assemblies, Accessories, and
other industry-related products.
Established in 1971, Flexequip provides its services to domestic and export
market through an established distribution network, and caters to the OEMs
directly. Prior to the acquisition, Flexequip was the exclusive distributor of
PIX hose products, for UK and Ireland. Now, as a manufacturer, PIX-Flexequip
will have a competitive edge, and can offer better flexibility to cater to the
markets and customer’s requirement.
There is a strong synergy between the two companies, and their joining together
will open up new opportunities for growth; with vertical market integration,
and product range expansion, driving the alliance forward. More importantly,
this new venture, christened PIX-Flexequip Hydraulics Ltd, can now offer their
customers total satisfaction by providing a completely qualified,
fully-compatible Hose-Assembly solutions.
The combined distribution network, established in 45 countries, has a
significant opportunity to sell the complete range of PIX’s hydraulic hose and
fittings, providing end-to-end solution for all hydraulic needs.
Speaking to the CMD Mr. Amarpal Sethi, PIX Transmissions Limited, India, he
commented “We are indeed proud of this acquisition, this is our first
international acquisition. This acquisition gives us an edge over several other
manufacturers by opening new avenues. Our customers would now have a higher
level of technical support for all their hydraulic solutions related to Hose
and Assemblies".
Commenting on the acquisition, Rishipal Sethi, Joint Managing Director of PIX
Europe said, “We are very excited about the opportunities this acquisition
brings, in terms of operational synergies, expansion of our product range, and
increasing our customer base; as well as providing expertise in end-fittings,
and fluid power in general. It is a defining moment in the history of PIX and
heralds our emergence as a global power in the field of hydraulics”.
Flexequip’s second location, a sales office and
warehouse in Barry, South Wales, will continue to effectively service the UK.
Of Flexequip’s total turnover, 30% of their products were exported to over 30
countries, and now they effectively double their additional network of
distributors around the world.
Ian Hunter, the Managing Director of Flexequip commented, “We are delighted to
join this highly dynamic and successful organisation. This is a great
opportunity for us to secure and expand new markets with the emphasis on added
value for our customers”.
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. 41.57 |
|
UK Pound |
1 |
Rs. 82.14 |
|
Euro |
1 |
Rs. 55.74 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |