MIRA
INFORM REPORT
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Report Date : |
17.08.2007 |
IDENTIFICATION DETAILS
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Name : |
RASANDIK ENGINEERING INDUSTRIAL INDIA LIMITED |
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Registered Office : |
13/14, Roz Ka Meo Industrial Area, Shna District, Gurgaon
– 122103, Haryana |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.01.1984 |
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Com. Reg. No.: |
32293 |
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CIN No.: [Company
Identification No.] |
L74210HR1984PLC032293 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKR01676D |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
Manufacturers of Steel Fabrication and
components and spares. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 870000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
13/14, Roz Ka Meo Industrial Area, Shna District, Gurgaon
– 122103, |
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Tel. No.: |
91-1272-2362646 / 2362647 / 2363245-46 |
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Mobile No.: |
91 - 98100 48099 |
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Fax No.: |
91-1272-2362107 |
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E-Mail : |
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Website : |
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Corporate
Office / REIL Engineering Solutions (
Engineering Design and Training Division) : |
4 & 5, 1st
Floor, C |
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E-Mail : |
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Factory : |
A-1/2-2 &
A-1/2-3, Site B, Surajpur Industrial Area, District Gautambudh Nagar, Uttar
Pradesh - 201 306, |
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Factory : |
E 82 & 83, Ranjangaon industrial
Area, Ranjangaon, District Pune, |
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Factory : |
Plot No. 45 & 48(Part-II),
Kiadb Industrial Area, Nanjangud, District |
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Tel. No.: |
91-8221-224255 / 321441 / 320430 |
DIRECTORS
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Name : |
Mr. S C Kapoor |
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Designation : |
Chairman |
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Name : |
Mr. Rajiv Kapoor |
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Designation : |
Managing Director |
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Name : |
Ms. Deepika Kapoor |
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Designation : |
Director |
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Name : |
Mr. K S V S Manian |
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Designation : |
Director |
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Name : |
Mr. Shyam S Sethi |
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Designation : |
Director |
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Name : |
Mr. A R Halasyam |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Gorav Arora |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Steel Fabrication and
components and spares. |
GENERAL INFORMATION
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Customers : |
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No. of Employees : |
786 |
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Awatar and Company Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,730,000 |
Equity Shares |
Rs. 10/- each |
Rs. 47.300
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 |
47.300 |
47.300 |
47.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
171.000 |
129.400 |
82.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
218.300 |
176.700 |
129.600 |
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LOAN FUNDS |
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1] Secured Loans |
375.200 |
169.900 |
208.900 |
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2] Unsecured Loans |
184.500 |
172.600 |
143.300 |
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TOTAL BORROWING |
559.700 |
342.500 |
352.200 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
778.000 |
519.200 |
481.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
702.600 |
457.700 |
452.100 |
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Capital work-in-progress |
60.400 |
37.400 |
60.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
123.400
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129.400 |
87.800 |
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Sundry Debtors |
208.800
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137.300 |
147.700 |
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Cash & Bank Balances |
31.100
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39.400 |
10.900 |
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Loans & Advances |
125.400
|
55.000 |
32.800 |
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Total
Current Assets |
488.700
|
361.100 |
279.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
445.000
|
298.000 |
296.700 |
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Provisions |
28.700
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39.000 |
12.800 |
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Total
Current Liabilities |
473.700
|
337.000 |
309.500 |
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Net Current Assets |
15.000
|
24.100 |
[30.300] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
778.000 |
519.200 |
481.800 |
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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 |
1776.000
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1695.700 |
1242.100
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Other Income |
16.200
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04.000
|
07.100
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Stock Adjustments |
[0.800] |
12.300
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-00.100
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Total Income |
1791.400 |
1712.000 |
1249.100 |
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Profit/(Loss) Before Tax |
78.700
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82.200
|
40.100
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Provision for Taxation |
29.000
|
27.600
|
14.900
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Profit/(Loss) After Tax |
49.700
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54.600
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25.200
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Expenditures : |
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Raw Materials |
980.900
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836.200
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537.600
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Excise Duty |
297.700
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290.000
|
247.600
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Power & Fuel Cost |
39.100
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34.200
|
27.500
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Other Manufacturing Expenses |
81.000
|
82.500
|
44.400
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Employee Cost |
77.200
|
60.700
|
44.600
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Selling and Administration
Expenses |
139.800
|
227.000
|
220.300
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Miscellaneous Expenses |
21.400
|
17.800
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15.500
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Interest & Financial Charges
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28.700
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25.700
|
30.500
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Depreciation |
46.900
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55.700
|
41.000
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Total Expenditure |
1712.700 |
1629.800 |
1209.000 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full
Year |
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Sales Turnover |
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1583.400 |
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Other Income |
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12.500 |
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Total Income |
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1595.900 |
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Total Expenditure |
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1435.400 |
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Operating Profit |
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|
160.500 |
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Interest |
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|
43.500 |
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Gross Profit |
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|
117.000 |
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Depreciation |
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|
55.800 |
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Tax |
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|
14.900 |
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Reported PAT |
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|
36.800 |
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Dividend (%) |
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|
100.000 |
QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 |
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Type |
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1st
Qtr |
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Sales Turnover |
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394.300 |
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Other Income |
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6.600 |
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Total Income |
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400.900 |
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Total Expenditure |
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364.200 |
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Operating Profit |
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|
36.700 |
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Interest |
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|
17.200 |
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Gross Profit |
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|
19.500 |
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Depreciation |
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|
14.300 |
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Tax |
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|
1.000 |
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Reported PAT |
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|
2.000 |
Notes
200706
Quarter 1 –
Expenditure Includes (Increase)/Decrease in Stock in Trade
Rs (7.79)million Consumption of Raw Materials Rs 298.40 million Staff Cost Rs
27.86 million Lease Rent Rs 0.05 million Other Expenditure Rs 45.63 million Tax
Includes Provision for Current Tax (Including Wealth tax) Rs 0.68 million
Deferred Tax Rs 2.26 million Fringe Benefit Tax Rs 0.30 million EPS is Basic
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 02 Complaints disposed off during the quarter 02 Complaints unresolved
at the end of the quarter Nil 1. The above financial results for the quarter
ended June 30, 2007 were reviewed by the Audit Committee and were approved by the
Board of Directors in their meeting held on July 31, 2007. 2. The figures of
the previous periods /year have been regrouped/rearranged/recast wherever
necessary to conform to this year/quarter's classification. 3. The effect of AS
15 (Revised) issued by the Institute of Chartered Accountants of India w.e.f
April 01, 07 will be considered at year end. 4. The Company has continued to
adjust the foreign currency exchange differences on amounts borrowed for
acquisition of fixed assets, to the carrying cost of fixed assets in compliance
with Schedule VI to the Companies Act, 1956 as per legal advice received, which
is at variance to the treatment prescribed in Accounting Standard (AS11) on
'Effects of Changes in Foreign Exchange Rates' notified in the Companies
(Accounting Standards) Rules 2006 dated December 07, 2006. Had the treatment as
per AS 11 been followed, the net profit after tax for the quarter would have
been higher by Rs 21.47 Millions (US$ 0.52 million).
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
2.28 |
2.27 |
2.89 |
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Long Term Debt-Equity Ratio |
1.87 |
1.87 |
2.25 |
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Current Ratio |
0.87 |
0.83 |
0.75 |
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TURNOVER RATIOS |
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Fixed Assets |
2.14 |
2.59 |
2.24 |
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Inventory |
14.05 |
15.61 |
14.77 |
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Debtors |
10.26 |
11.90 |
9.35 |
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Interest Cover Ratio |
3.74 |
4.20 |
2.31 |
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Operating Profit Margin(%) |
8.69 |
9.65 |
8.98 |
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Profit Before Interest And Tax
Margin(%) |
6.05 |
6.36 |
5.68 |
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Cash Profit Margin(%) |
5.44 |
6.50 |
5.33 |
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Adjusted Net Profit Margin(%) |
2.80 |
3.22 |
2.03 |
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Return On Capital Employed(%) |
16.56 |
21.56 |
15.09 |
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Return On Net Worth(%) |
25.16 |
35.65 |
20.97 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
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High |
Rs.76.00/- |
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Low |
Rs.76.00/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in the year 1984 the company is mainly engaged
in Steel Fabrication and components and spares. The Company is headed by Chairman
S C Kapoor. Due to prevailing market conditions the company's growth rate was
just 23% over the previous year.
To supply several components the company has received letter of intent from
Maruti Udyog Limited The company has diversified into manufacturing of Press
Tools & Dies and offering a 'One Stop Shop' to customers and has also
received orders from Fiat India Limited, The company made a preferential issue
of 7,50,000 equity shares of Rs.10/- each to promoters and associates of the
company.
FINANCIAL
AND OPERATIONAL PERFORMANCE
During the year under review, the overall performance of the Company showed an
improvement as compared to the previous year. The total revenue of the company
for the year ended 31st March, 2006 was Rs.1792.19 millions as compared to Rs.
1699.66 millions in the previous year. The profit before depreciation,
interest, taxation is down to Rs.154.31 millions from Rs.163.60 millions in the
previous year. The net profit after depreciation and interest is Rs.78.69
millions as compared to Rs. 82.18 millions in the previous year. The profit
after tax is Rs. 49.70 millions in comparison to Rs. 54.61 millions in previous
year.
DIVERSIFICATION/EXPANSION
Tailor Welded Blanks (TWB) System:
The Company has setup the very first Tailor Welded Blanks (TWB) system in
The world over 38% of sheet metal has been converted from conventional sheet
metal stampings to TWB stampings and in
OEM in
The Company has already got an order for Supply of TWB's for
Swift, the 1st car in
MOU with Yarema Die &
Engineering:
The company has signed a Memorandum of Understanding (MoU) with Yarema Die
& Engineering, a
Pune Project:
In view of catering to the business of the company from the Western Region, the
company has proposed to set up a Press line, Weld shop and Assembly unit for
Sheet Metal Components for Automobile Industry in Pune, for which approximately
50,000 square mts of land has been allocated to the company in Ranjangaon
Industrial Area. In the first stage, the company proposes to take up the
construction of Design Room, Tool Room and Press Shop. The construction work is
in full swing and the
In view of catering to the growing demand of auto components and tools and dies
from the Southern Region, the Company has proposed to set up an Engineering
Centre for software application and State-of-the-Art Tool Shop for design and
manufacture of Press Tools & Dies, Welding and Checking fixtures, Press
Shop and Weld Shop at
PROSPECTS FOR THE CURRENT YEAR
The company is expecting a growth of at least 20% for the coming financial year
2006-07. The prospect for the current year seems very bright as the company has
received new orders in the areas of Tool Manufacturing, Component Manufacturing
and is an active participant in the World Wide Bidding Process.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS
Globalisation which was the buzz word few years ago has now become a reality.
The cost pressures are forcing the global OEMs and Tier One suppliers to seek
out lower production bases to maintain their profitability and
DOMESTIC
MARKET PERFORMANCE
On the canvas of the Indian Economy, Auto Industry occupies a prominent place.
Due to its deep forward and backward linkages with several key segments of the
economy, automotive industry has a strong multiplier effect and is capable of
being the driver of economic growth. A sound transportation system plays a
pivotal role in the country's rapid economic and industrial development. The
well-developed Indian automotive industry ably fulfils this catalytic role by
producing a wide variety of vehicles: passenger cars, light, medium and heavy
commercial vehicles, multi-utility vehicles such as jeeps, scooters,
motorcycles, mopeds, three wheelers, tractors etc.
Surge in automobile industry since the nineties has led to robust growth of the
auto component sector in the country. Responding to emerging scenario, Indian
auto component sector has shown great advances in recent years in terms of
growth, spread, absorption of newer technologies and flexibility, despite
multiplicity of technology platforms and low volumes. India's reasonably priced
skilled work force, large population of technology workers coupled with
strengths gained by the country in IT and electronics all build up an
environment for significant leap in component industry.
According to ACMA report the Indian Auto Industry
The Indian auto parts industry has grown at a 16% CAGR over 1998-2006 (US$ 10bn
in FY2006) while exports have grown at 24% CAGR (US$ 1.8bn in FY2006). As per
ACMA estimates, exports may cross the US$-5 bn mark by 2010 given India's
competitiveness in manufacturing labour intensive parts, growing number of auto
OEMs using India as an export hub, and global venders stepped up purchases even
from Tier-II and Tier-III venders.
The basic underlying growth drivers of the sector continue to be driven
by:
* Export thrust
* Acquisition of key target markets to acquire ready clientele
* Scaling up capacities, products and processes
*
* Improving productivity levels through rising automation
The Future Growth Drivers of the Indian Auto Industry is:
* India's huge geographic spread - Mass Transport System a necessity* Cheaper
(declining interest rates) & easier finance schemes* Replacement of aging
four wheelers* Increasing Road Development, Golden Quadrilateral* Increasing
dispensable income of rural agri sector* Higher GDP growth* Increasing
disposable income with the service sector* Graduating from Two wheeler to Four
wheeler* Growing Concept of Second Vehicle in Urban Areas* Two Wheeler story
could be repeated in the Cars Segment
Challenges:
Free Trade Agreement: This agreement has led to domestic OEMs seriously
outsourcing some components from ASEAN markets, especially
Infrastructure:
Cost pressure: Steel prices have moved up, putting cost pressure on venders.
Cost management will be the key to valuations going ahead as OEMs fear that the
price hikes which came after Euro norms could impact demand.
Despite rising input costs and quality improvements, the stiff competition
amongst the OEMs and their focus on cost rationalisation is putting pressures
to reduce the component prices. Pricing pressure is an industry norm globally
and the same trend is continued in
EXPORT PERFORMANCE
The company has identified products and potential customers for export. The
company has obtained export orders and by product development is under process.
The increase in production capacity in coming years and global sourcing of
MNC's becoming active will set the company's export rising.
PRODUCT DEVELOPMENT
The company is pursuing a strategy to expand it's presence in the international
market; efforts are underway to increase the competitiveness benchmarked to
international standards. The company is confident of sustained growth through a
series, of initiatives in the areas of product development, technological
up-gradation, and strengthening of distribution network.
CUSTOMER AND QUALITY FOCUS
The company is committed to continuous improvement in quality for the entire
range of its products with an objective to meet the customer requirements and satisfaction.
Long term relationships with the customers and vendors also help the company to
enhance performance, aim at better quality, and have efficient delivery
systems. The company strives to achieve this through continuous process
improvements and quality accreditations. The Company's operations are ISO
certified. The Company's has been certified as an ISO/TS 16949 Quality System
Company by AIB Vincotte Inter
SWOT
ANALYSIS
Strengths
* Technology, Distribution network to meet replacement demand* State-of
-the-art equipment * Lean manufacturing system * Price competitiveness*
State-of-the-art Tool room (integration of production facilities)* Integrated
Product Development and Infrastructure* Application Engineering* High
Quality-Low Cost
Opportunities: * Massive growth in white goods sector *
Weakness:
* Highly competitive area
Threats:
* Shortage of Trained man-power in the Tool Room Segment* Competition
from Asian rivals to put pricing and competitive pressures going ahead
OUTLOOK
The Company believes that the current trends in Auto Sector both in domestic
and international market present unprecedented opportunity for growth. The
automobile industry is expected to maintain its strong growth momentum. They
believe this trend is likely to continue due to:
(1) rising economies of scale-higher volumes in the domestic market have
translated into lower cost structures and competitive prices for the global
market;
(2) the availability of a low-cost and skilled labor force, resulting in low
designing costs; and
(3) government incentives, which include declining import duties and the
liberalization of norms for foreign investment. The government's emphasis on
infrastructure i.e., roads in particular, should provide an added thrust for
the sector.
The Company is making investment in enhancing capacity in lines with the growth
of the industry. The outlook of Rasandik is based on the assessment of the
current business environment; it may vary due to future economic and other
developments, both in
Finance
Charges:
The Finance Charges were Rs. 28.67 millions in the year 2005-06 increased
marginally against Rs. 25.71 millions in the year 2004-05; although the loan
amount increased but interest on that was increase to the same extent; the
reasons may be attributable to reduction of interest on previous loans.
All great things begin as an idea in the mind of
man. It is from that idea, that seed, that reality is fashioned. And so it has
been with Rasandik; the idea was realised in 1986 with the establishment of
their company as a manufacturer of Fuel Tanks and Sheet Metal Components. The
seed took root as they advanced their technical know - how. Ever since, their
business growth has been steady and directed on their philosophy of ‘Quality,
Cost and Service’.
Rasandik was quick to realise that suppliers
will need to shift their perception from using low technology to
state-of-the-art. The use of high level of automation in Press Shop and
Robotics in welding would result in product quality consistency of enhancement
of productivity levels. To realize this goal, the company has invested heavily
in advanced equipment and technology including CATIA, Unigraphics &
Hyperform software being used in designing and development of Components, Tools
and Dies, Welding and Checking Fixtures. The
AS PER WEBSITE
Vision for 2010... is to provide complete
solution to the Customer from Engineering, Design, Manufacturing to delivery of
Sheet Metal Components & Assemblies and manufacturing of BIW.
And to their customers, they invite them to
join with them and share in this reality that they have created.
Mile Stones
Rasandik
is a respectively young (established in 1986), dynamic and forward thinking
auto sheet metal component manufacturer. Total committed to quality throughout
its manufacturing processes, Rasandik is TS 16949 and ISO 14001 accredited
company.
From
its inception in 1986, Rasandik's growth has been impressive and it now supply
fuel tanks and other steel metal components including Sub Assemblies, Engine
Mounting, Suspension Parts, Rear Axle, Pedal Assembly and other parts to many
of India's leading OEMs'A tier 1supplier, Rasandik's customers include Maruti,
Honda, and Fiat India, amongst others.
1986
commenced manufacturing of Fuel Tanks dies and regular production of Omni Fuel Tanks.
1994 Major
expansion of capacity. Set up 400T / 200T Mechanical Presses, Hydraulic Presses
and Fuel Tank Assembly Line.
1995
1996
Enhanced capacity by adding 630T and 200T Mechanical Presses to the Press Line.
Rasandik was the first ancilliary to introduce Moving Bolster concept.
1998
Introduced Robot for Mig Welding Member Engine Mounting
1999
Surajpur plant consisting of Press Shop with Lead Press of Line. Introduced
Robot for Spot Welding operation and integral Transformation Guns for spot
welding.
2000 CATIA
introduced at Raj-Ka-Meo to carry out product design, Surface Modelling and Die
Designing and
2001 Turnkey
solution for CAD/CAM/CME and Reverse Engineering Green Chain Management
certification.
2002 Set up State-of-the-art Tool Shop at Sohna. Obtained TS 16949 &
ISO 14001 Certification.
2003
Enhanced Press Line capacity by adding a 1200T Press & introduced
conveyorised spay pre-treatment paint line and Exhaust Muffler Line At
Surajpur.
2006 (12th June) Launch of the very first Tailor Welded Blanks system in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 |
|
|
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 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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. |
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 |
|