MIRA
INFORM REPORT
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Report Date : |
18.08.2007 |
IDENTIFICATION DETAILS
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Name : |
DIL LIMITED |
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Formerly Known As : |
DUPHAR INTERFRAN LIMITED |
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Registered Office : |
DIL Complex, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.05.1951 |
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Com. Reg. No.: |
008485 |
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CIN No.: [Company
Identification No.] |
L99999MH1951PLC008485 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNED04811C |
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PAN No.: [Permanent
Account No.] |
AAACD0525E |
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Legal Form : |
Private Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and Selling of Pharmaceuticals, Drugs and Bulk Drugs. |
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 2702400 |
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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 and reputed company having fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. 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 : |
DIL Complex, |
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Tel. No.: |
91-22-67980888 / 24964570 - 75 |
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Fax No.: |
91-22-67980999 / 24936040 |
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E-Mail : |
contact@dil.net / info@duphor-interfran.com /irfan@dil.net zchabr@volny.cz/ srikant.sharma@dil.net |
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Website: |
http:// www.duphar-interfran.com / http://www.dil.net |
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Administrative Office : |
Plot No. D-8, 1st Floor, MIDC, Road No. 16,
Marol, Andheri (East), Mumbai – 400 093, |
DIRECTORS
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Name : |
Mr.Kunal Kashyap |
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Designation : |
Director |
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Name : |
Mr.Albrecht Laufer |
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Designation : |
Director |
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Name : |
Mr.Ramesh Venkat |
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Designation : |
Director |
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Name : |
Mr. V. D. Narkar |
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Designation : |
Director |
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Name : |
Mr. G G Desai |
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Designation : |
Director |
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Name : |
Mr.Rajeshwari Datla |
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Designation : |
Director |
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Name : |
Mr.Krishna Datla |
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Designation : |
Managing Director |
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Name : |
Mr. D. Vasant Kumar |
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Designation : |
Chairman and
Managing Director |
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Date of Birth/Age : |
55
years |
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Qualification : |
B.Com. |
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Experience : |
27 years |
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Date of Appointment : |
15.04.1987 |
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Name : |
Mr.Sanjay Buch |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr.G G Desai |
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Designation : |
Chairman |
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Name : |
Mr.Srikant |
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Designation : |
Company Secretary |
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Name : |
Mr.Satish Varma |
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Designation : |
Executive Director |
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Name : |
Mr. K. H. Kashid |
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Designation : |
Executive Director |
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Name : |
Mr. D. Vasant Kumar |
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Designation : |
Chairman and Chief Executive Officer |
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Date of Birth/Age : |
55
years |
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Qualification : |
B.Com. |
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Experience : |
27 years |
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Date of Appointment : |
15.04.1987 |
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Name : |
Mr. Vinay B. Lavannis |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacture and Selling of Pharmaceuticals, Drugs and Bulk Drugs. |
PRODUCTION STATUS
31st March, 2002 as follows:-
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Class of Goods |
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Unit |
Installed
Capacity |
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Drugs and
Pharmaceuticals : |
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Tablets and Capsules |
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Nos. / Millions |
5581 |
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Catchets |
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Nos. / Millions |
120 |
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Orals, topicals and parenterals |
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Kilolitres |
645 |
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Solids including granules, ointments / pastes / creams and
powders |
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Tonnes |
199 |
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Bulk Drugs: |
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Solids |
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Kgs. |
53741 |
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Liquids |
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Litres |
17500 |
GENERAL INFORMATION
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No. of Employees : |
Around 862 Persons |
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Bankers : |
q Standard Chartered Grindlays Bank Limited q
Bank of q
State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chartered Accountant
Chartered Accountant |
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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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50,00,000 |
Equity |
Rs10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2293200 |
Equity |
Rs.10/- each |
Rs.22.932
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 |
22.900 |
25.200 |
25.200 |
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2] Reserves & Surplus |
652.700 |
727.000 |
681.100 |
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NETWORTH |
675.600 |
752.200 |
706.300 |
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LOAN FUNDS |
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1] Secured Loans |
2.600 |
3.200 |
NA |
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TOTAL BORROWING |
2.600 |
3.200 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
678.200 |
755.400 |
706.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
69.700 |
55.400 |
53.300 |
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Capital work-in-progress |
2.400 |
5.000 |
5.000 |
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INVESTMENT |
401.300 |
384.600 |
170.400 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
34.100 |
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Sundry Debtors |
18.600
|
25.500 |
43.100 |
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Cash & Bank Balances |
85.300
|
46.600 |
102.000 |
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Loans & Advances |
139.900
|
280.600 |
396.500 |
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Total
Current Assets |
243.800
|
352.700 |
575.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
31.000
|
29.200 |
45.200 |
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Provisions |
8.000
|
13.100 |
52.900 |
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Total
Current Liabilities |
39.000
|
42.300 |
98.100 |
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Net Current Assets |
204.800
|
310.400 |
477.600 |
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TOTAL |
678.200 |
755.400 |
706.300 |
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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 |
11.000 |
166.400 |
211.000 |
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Other Income |
39.500 |
64.600 |
178.200 |
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Total Income |
50.500 |
205.600 |
383.800 |
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Profit/(Loss) Before Tax |
(23.600) |
16.200 |
75.700 |
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Provision for Taxation |
(10.200) |
(37.000) |
6.600 |
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Profit/(Loss) After Tax |
(13.400) |
53.200 |
69.100 |
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Imports : |
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Raw Materials |
0.700 |
33.700 |
75.000 |
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Total Imports |
0.700 |
33.700 |
75.000 |
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Expenditures : |
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Interest |
2.600 |
1.800 |
0.400 |
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Power & Fuel |
1.000 |
3.900 |
7.400 |
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Depreciation & Amortization |
10.700 |
11.900 |
16.700 |
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Other Expenditure |
59.100 |
138.100 |
149.800 |
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Total Expenditure |
73.400 |
155.700 |
174.300 |
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SUMMARISED RESULTS
|
Year |
31.03.2007 |
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Type |
Full Year |
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Sales
Turnover |
85.900 |
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Other
Income |
28.200 |
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Total
Income |
114.100 |
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Total
Expenditure |
91.100 |
|
Operating
Profit |
23.000 |
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Interest |
00.400 |
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Gross
Profit |
22.600 |
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Depreciation |
8.400 |
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Tax |
-33.400 |
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Reported
PAT |
47.600 |
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Dividend(%) |
50.000 |
QUARTERLY RESULTS
|
Year |
30.06.2007 |
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Type |
1st Qtr |
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Sales
Turnover |
18.500 |
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Other
Income |
6.000 |
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Total
Income |
24.500 |
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Total
Expenditure |
11.000 |
|
Operating
Profit |
13.500 |
|
Interest |
0.000 |
|
Gross
Profit |
13.500 |
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Depreciation |
02.300 |
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Tax |
2.400 |
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Reported
PAT |
8.800 |
200706 Quarter 1 --------------- NOTES:
1.DIL Limited {the Company) is in the business of property development, motion
film production and distribution and in treasury operation. The Company also
has strategic investments in subsidiaries / joint venture which are engaged in
contract research services and manufacturing of bulk drugs and wheel chair.
Consequent to the amalgamation of the erstwhile White Stripes Entertainment
Limited ('WSEL') w.e.f April 1, 2006 (See Note 2 (a) below), the activities of
the Company have been segmented in to two business segments - Treasury &
others and Entertainment. Research Support International Limited, a subsidiary
of the Company has entered into a joint venture with Evotec (UK) Limited for
library synthesis research in July 2007. The above unaudited financial results
are presented on a stand alone basis as well as on a consolidated basis so as
to include the operations of the Company's subsidiaries and joint venture. 2
(a) During the previous year, WSEL, a wholly owned subsidiary of the Company,
engaged in the business of film production and distribution, has been
amalgamated with the Company with effect from April 1, 2006,in terms of the
scheme of amalgamation sanctioned by the Honourable High Court of Judicature at
Bombay vide order dated April 21, 2007. Consequently the entire business and
all assets and liabilities of erstwhile WSEL stood transferred and vested in
the Company. Accordingly the prior period amounts of the unaudited financial
results presented on a stand alone basis have been revised to give effect of
the amalgamation. (b) Consequent to the amalgamation of the erstwhile WSEL, the
Company took over the Inventory of Rs.40.667 millions as at April 1, 2006 in respect of a motion
film produced but not released. In September 2006, erstwhile WSEL released the
film and accordingly the cost of production has been charged to profit and loss
account in the previous year. 3 During the previous financial year, the Company
received a favourable order from the Income Tax Appellate Tribunal('ITAT'), in
respect of a matter relating to the year 1995-96 on taxability of the brand
sale consideration and non compete fees as capital receipts. Upon
implementation of the said order, the Company was entitled to a tax benefit of
Rs. 33.740 millions against the tax paid for the year 1995-96 and subsequent
years, which, in the previous year, has been recognised by the Company as write
back of excess tax provision for prior years. Further, the Company has also
recognised interest on income tax refunds of Rs.26.6 millions during the
previous year and Rs.5.789 millions
during the current quarter, based on the assessment orders giving effect to the
ITAT order, received by the Company in the respective period and included in
the treasury and other segment. 4 The auditors of the Company have qualified
their report on the consolidated financial statements for the year ended March
31, 2007 for uncertainties relating to the recoverability of certain debtors
balances aggregating Rs. 4.866 millions current assets aggregating Rs.0. 248
millions and outcome of two regulatory enquiries / proceedings against a
subsidiary company and fpr the joint venture consolidated based on unaudited
financial statements which are not in accordance with generally accepted
accounting principles in India. The management is taking necessary steps for
recovery of such balances, compliance with the enquiries / proceedings and to
ensure joint venture accounts conform to generally accepted accounting
principles in
KEY RATIOS
|
Year |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
7.34 |
6.61 |
4.54 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
0.08 |
1.35 |
1.81 |
|
Inventory |
0.00 |
9.76 |
5.60 |
|
Debtors |
0.50 |
4.85 |
6.74 |
|
Interest Cover Ratio |
-8.08 |
4.11 |
141.25 |
|
Operating Profit Margin(%) |
-93.64 |
11.60 |
34.69 |
|
Profit Before Interest And Tax Margin(%) |
-190.91 |
4.45 |
26.78 |
|
Cash Profit Margin(%) |
-24.55 |
34.19 |
32.18 |
|
Adjusted Net Profit Margin(%) |
-121.82 |
27.04 |
24.27 |
|
Return On Capital Employed(%) |
-2.93 |
1.01 |
8.31 |
|
Return On Net Worth(%) |
-1.88 |
6.17 |
7.53 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.303.00 |
|
Low |
Rs.300.00 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject is a public listed company delivering reliable services to the Pharmaceutical and Biotechnology Industries. Now 53 years old, it is a company that ‘thinks young’ and ‘moves with the times’. Endowed with the experience and wisdom of age, our company has the ability to not just recognize emerging global trends – but to meet today’s global demands.
Tucked away in a quiet and verdant niche in Thane, (32 km. away from Mumbai),
and spread over 28,000 sq mts of land, is where it all happens.
Established in 1951 by the Late Dr. D V K Raju (Ph D.,
1951 – 1963: Toll manufacturing for the pharmaceutical and cosmetics industries.
1963: The company established a JV with Philips
Duphar for the manufacture and marketing of pharmaceutical products in
1976: DIL Ltd. was listed on the Bombay Stock Exchange.
1980: Philips Duphar was taken over by Solvay Pharmaceuticals.
1986: Fermenta Biotech Ltd. was founded as a subsidiary company to complement and segregate DIL’s capabilities in biotechnology.
1987: Fundamental research was initiated as part of Solvay’s research efforts. A full-fledged laboratory was set up as per GLP requirements and accredited by the Department of Scientific & Industrial Research.
1995: ‘Crocin’, which went on to become the most
popular brand of paracetamol in
2000: The company realigned its business to focus sharply and exclusively on Custom Synthesis and Process R&D by de-merging its pharmaceutical formulation business in favour of Solvay.
BUSINESS
The company is engaged in manufacture and selling of Pharmaceuticals, Drugs and Bulk Drugs.
Promoted by a technocrat, D V K Raju, Duphar-Interfran (DIL)
was incorporated in May '51 as International Franchises Pvt Ltd. In the initial
years, the company manufactured and sold toothpaste, anti-septic lotion and
pharmaceutical specialities on a loan-licence basis. It entered into
collaborations with Philips-Duphar,
The company changed its name to Crookes Interfran on 19 Apr.'63. In 1964,
it entered into a collaboration with Solvay Duphar to manufacture vitamin D3.
To associate fully with its research-oriented collaborators, in May '71, it
changed its name to Duphar-Interfran. In 1976, it entered into another
collaboration with Solvay Duphar to manufacture isoxypurine hydrochloride -- a
vasodilator. In 1976, in compliance with the FERA, the foreign collaborators
reduced thier stake to 38.86%.
DIL came out with a rights issue in May '95 to augment long-term
resources and working capital requirements. The company also sold its popular
analgesic brand Crocin to Smithkline Beecham Pharmaceuticals. It also sold
another OTC brand, Lacto-Calamine lotion to Nicholas Piramal to concentrate on
the core business of ethical drugs.
As per the Scheme of Arrangement, the pharma business of the company has
been transferred to a new company called Duphar Pharma
The Company has made investments in unutilised premises at Thane to
create a commercial complex with modern facilities so that substantial portion
of it can be let out to earn income. The successful entry of Annual Contract
with Solvay Pharmaceuticals B V of Netherlands will definitely establish as a
reliable contract research organization for Duphar Interfran Ltd. As mutual
consent with Solvay Pharmaceuticals,
With the prior approval from Board the company has acquired 990,000
equity shares of Rs.10 each in Fermenta Biotech Ltd there by increase its
holding to 83.71% comprising 16,57,500 equity shares. Subsequent to this FBL
will henceforth be a subsidiary of Duphar Interfran Ltd.
DIRECTORS REPORT:
PERFORMANCE AND
MANAGEMENT DISCUSSION REPORT :
The Company's core operations are being actively pursued through its
subsidiaries, Fermenta Biotech Limited (FBL) which is in the business of
manufacturing and selling bulk drugs and enzymes and Research Support
International Limited (RSIL) which provides contract research and custom
synthesis services.
The total revenue posted in the year under review is Rs.50.472 millions
(stand alone) which is mainly from the treasury operations, interests,
royalties and rentals from its investments in its subsidiaries and other
investments. On a consolidated basis, the total income for the year under
review is Rs.348.522 millions as against Rs.308.610 millions in the
corresponding prior period. The consolidated profit after tax is Rs.23.803
millions (Rs.3.723 millions in the previous year 2004-05).
INDUSTRY
STRUCTURE AND DEVELOPMENTS :
The management perspective with regard to the operational performance of
the Company and its subsidiaries are covered hereunder:
The Indian pharmaceutical industry has registered an impressive
growth during the year 2005-06. This has been propelled by the government!s
pragmatic reforms encouraging growth and development in this sector as well as
towards innovative and research related activities. Amendments in the patent
regulations coupled with the increasing trend of pro-industry regulatory
measures have made available a whole range of new business opportunities.
Amongst other things, well established state-of-the-art manufacturing plants,
vast and rich scientific and technical talent, cost competitiveness, growing
exposure and adaptation of international operating standards have made
Manufacturing and marketing of Bulk drugs, intermediates and
biocatalysts, especially in novel enzymes used in antibiotic synthesis, and
optically active intermediates continue to be the main domain of FBL. FBL is
set to consolidate its existing position especially in the areas of active
pharmaceutical ingredients (API) as well as research and development.
RSIL is steadily positioning itself in the area of contract research and
custom synthesis services. The competition amongst contract research and custom
synthesis service companies is not only on cost, capacity, quality and timing,
but also on application of newer and innovative technologies and in providing
cutting edge solutions. In the wake of these dynamic challenges, RSIL is making
considerable investments in enhancing capabilities and developing a niche for
itself in innovative areas to move ahead of the emerging competition.
In addition to these activities, White Stripes Entertainment Limited!s
(WSEL) maiden venture in film production has been highly acclaimed at various
film festivals in
The Company's joint venture is exploring business opportunities in the
field of wheel chair with its innovative movement technology.
The Company's joint venture is exploring business opportunities in the
field of wheel chair with its innovative movement technology.
The Company's treasury operations constitute deployment of surplus funds,
keeping in mind investment parameters, such as safety, flexibility and
liquidity. Prudent utilization of resources has also added to the revenue of
the Company.
OPPORTUNITIES :
The implementation of new patent regulations has fuelled the growth
process of pharmaceutical and research related activities. The government's
initiative to ease out stringent regulatory controls and the continued
liberalization of the Indian economy have also attracted international
pharmaceutical corporations to invest and forge alliances with Indian
Companies, especially in the field of manufacturing and research activities.
The API and enzymes manufacturers in
As regards the opportunities in the Entertainment field, the Indian film
industry is considered as one of the largest film industries in the world.
Presently, the Indian entertainment industry is growing at a rate of 18% per
annum. Since 2001, the Government has allowed financial institutions and
organized sectors to fund films. This move of the government has not only
increased organized funding but has also enabled the industry to be a part of
the organized sector, thus help in improving its global presence and revenue
generation through marketing rights. These positive changes have given the
Indian film industry a much awaited boost to compete in the global arena.
RISKS AND
CONCERNS :
The primary concern in relation to the API industry is wafer-thin
profit margins, which are mainly attributable to severe competition and price
cuts. As the bulk drugs industry is a high technology and investment intense
business, price erosion is disastrous for the entire industry. Ambiguity in
Intellectual Property Right protections and uncertainty in realization of
export proceeds also remain a matter of concern for Indian players. In
addition, Indian players are also facing increased competition from
OUTLOOK :
Based on various studies and as envisaged in the National
Pharmaceutical Policy,
Presently, the Indian entertainment industry is growing at a brisk pace
and according to a FCCI - PWC report, it is expected to touch Rs. 45,0000.000
millions by 2009. This may be attributed to the fact that the number of films
financed through organized and institutionalized financing have increased
manifold and the trend is expected to continue. Newer avenues like internet and
digital media have increased distribution revenue worldwide. WSEL has planned
its strategy to capture its share in the entertainment industry.
FIXED ASSETS:
Buildings,
Plant And Machinery,
Furniture And Fixtures
and vehicles.
WEBSITE DETAILS:
Subject is an Indian public listed company located at
With the growing global need for newer drugs and for research, DIL, with its
capabilities, becomes a preferred partner for undertaking contract research
and custom synthesis. Today, the company has over 15 years experience
in providing Research Support Services to Global Pharmaceutical Companies
Specializing in synthesis of Fine Organic compounds, Chiral Building Blocks
and Intermediates, our expertise include developing small size, aromatic &
non-aromatic, functionalized heterocycles, enzyme mediated asymmetric synthesis
of hydroxyesters, protection of amino acids at amino and carboxyl
functionalities and synthesis of compounds having peptide linkage.
From it's fully-equipped and modern facilities, the multi-cultural team at DIL
strives to offer the best services in organic synthesis and industrial
biotechnology.
Qualified synthetic chemists develop and produce tailor-made compounds (gms to multi-kgs) for the Pharmaceutical and Biotechnology Industries. Our services cover both individual projects, as well as working
exclusively as permanent team members for clients.
Offering expertise on both short and long-term projects, DIL seamlessly blends
in as an extension of the client company, offering flexible and integrated services,
made to measure solutions, cost-effective and on-time service accelerating drug
discovery and development – backed by the assurance of confidentiality.
With all this, DIL enhances and adds value to the client’s research program
TRADE REFERENCE:
q Dupen Laboratories Private Limited
q
Roto Polymers
q S. Kant Healthcare Limited
q Sevak Pharma Private Limited
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 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
65 |
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 |
|