MIRA
INFORM REPORT
|
Report Date : |
02.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Registered Office : |
7, Devakaran Mansion, Vithaldas Road,
Mumbai - 400 002, Maharashtra, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
28.06.1973 |
|
|
|
|
Com. Reg. No.: |
11-16635 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U99999MH1973PTC016635 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
NSKJ00078B |
|
|
|
|
Legal Form : |
Private
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturing
of Ceramic Insulator, Ceramic Grinding Media and Ceramic Seal Face, Ceramic
Micro and Macro Grinding Media in Aluminium Oxide, Zirconium Oxide and
Steatite Materials in a wide range of sizes from 4.60 mm dia. Aluminium Oxide
and Steatite Ball Mill Lining Blocks with Standard and Pre-engineered for
Dish, Flat End, Conical and Tubular Ball Mills, production and custom
designed Ceramic Components in Aluminium Oxide, Zirconia, Mullite Cordierite
Steatite and Hard Porcelain Materials for wide variety of applications such
as Insulators for Fuse Switchgear, Electrical Heater, Thermostat Component
Pump Seal Rings, Water Faucet Parts, etc., Ceramic Wear Resisting, Coating
Materials in form and tiles for Surface Linings for various industrial wear
and corrosion resistant application. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
2750000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is an established company having fine track. Directors are reported as
experienced, respectable and resourceful businessmen. Their trade relations
are reported as fair. Financial
position is good. Payments are correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions |
LOCATIONS
|
Registered Office : |
7, Devakaran Mansion, Vithaldas Road,
Mumbai - 400 002, Maharashtra, India |
|
Tel. No.: |
91-22-2066623 |
|
Mobile No.: |
91-22-2066447 |
|
Fax No.: |
|
|
Website : |
|
|
|
|
|
Head
Office : |
119,
Arun Chambers, Tardeo Road, Tardeo, Mumbai – 400034 |
|
Tel.
No.: |
91-253-2350120 |
|
Fax
No.: |
91-253-2350023 |
|
E-Mail
: |
|
|
|
|
|
Factory
1 : |
C-21,
Nice, Satpur, Nashik - 422 007 |
|
Tel.
No.: |
91-253- 2350120/338/729, 2351251 |
|
Fax
No.: |
91-253-
2350023, 2351208 |
|
E-Mail
: |
|
|
Website : |
|
|
|
|
|
Overseas
Sales Offices |
Germany Jyoti Ceramic Industries Fax: 5445 99732 U.S.A Techno Ceramic Inc. Fax: 215 369 2906 Europe Fürther Strasse 27, D 90429 Fax: 911 28 70 70 35 |
DIRECTORS
|
Name : |
Mr. Shyam Aildas Merani |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Jyoti
Farm 463/2, Satpur – Ambad Link Road, Satpur, Nasik – 422007 |
|
Date of Birth/Age : |
09.12.1937 |
|
Qualification : |
S.S.C. |
|
Experience : |
48 Years |
|
Date of Appointment : |
01.07.1980 |
|
Previous
Employment |
Jyoti Ceramic Industries (Partner) |
|
|
|
|
Name : |
Mr. Deepak Aildas Merani |
|
Designation : |
Whole Time Director |
|
Address : |
C –
20, Nice Satpur, Nasik – 422007 |
|
Date of Birth/Age : |
19.12.1954 |
|
Qualification : |
Inter Science |
|
Experience : |
27 Years |
|
Date of Appointment : |
01.07.1980 |
|
Previous
Employment |
Jyoti Ceramic Industries (Partner) |
|
|
|
|
Name : |
Mr. Raju Shyam Merani |
|
Designation : |
Whole Time Director |
|
Address : |
C –
21, Nice Satpur, Nasik – 422007 |
|
Date of Birth/Age : |
05.06.1963 |
|
Qualification : |
Ceramic
Engineer |
|
Experience : |
13
Years |
|
Date of Appointment : |
30.09.1990 |
|
|
|
|
Name : |
Mr.
Rajan R. Vora |
|
Designation : |
Director
|
|
Address : |
301,
Marine Apartment, 45 Juhu, Tara Road, Mumbai – 400049 |
|
Date of Appointment : |
30.09.1990 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Mr. Shyam Aildas Merani |
12000 |
|
Ms.
Kamala Shyam Merani |
3600 |
|
Mr. Deepak Aildas Merani |
4000 |
|
Mr. Shyam Aildas Merani (HUF) |
2000 |
|
Mr. Deepak Aildas Merani (HUF) |
2000 |
|
Ms.
Mona Deepak Merani |
2000 |
|
Mr. Raju Shyam Merani |
1600 |
|
Merani
Investment & Trading Company Private Limited |
12000 |
|
Alcera
Ceramics Private Limited |
8800 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Ceramic Insulator, Ceramic Grinding Media and Ceramic Seal Face, Ceramic
Micro and Macro Grinding Media in Aluminium Oxide, Zirconium Oxide and
Steatite Materials in a wide range of sizes from 4.60 mm dia. Aluminium Oxide
and Steatite Ball Mill Lining Blocks with Standard and Pre-engineered for
Dish, Flat End, Conical and Tubular Ball Mills, production and custom
designed Ceramic Components in Aluminium Oxide, Zirconia, Mullite Cordierite
Steatite and Hard Porcelain Materials for wide variety of applications such
as Insulators for Fuse Switchgear, Electrical Heater, Thermostat Component
Pump Seal Rings, Water Faucet Parts, etc., Ceramic Wear Resisting, Coating
Materials in form and tiles for Surface Linings for various industrial wear
and corrosion resistant application. |
|
|
|
|
Products : |
v
Zirconox
v
Duralox
92W v
Zircoat v
Igniters v
Ceramic
Electrical Heater Parts v
Re-crystallised
alumina & mullite v
H.R.C.
fuse bodies v
Water
faucet & tap parts v
Aluma
coat v
Jyalucem Its’
products range include :- v
Soapstone
Powder (Talc Powder) v
China
Clay v
Calcined
Allumina v
Zirconium
Oxide v
Cerium
Oxide |
|
|
|
|
Exports to : |
USA,
Canada, South America, South Africa, Africa, Europe, Japan, China, South
Korea, Taiwan, Australia and other countries |
|
|
|
|
Imports from : |
Germany |
|
|
|
|
Terms : |
|
|
Purchasing : |
L/C
and D/P terms |
GENERAL
INFORMATION
|
Customers : |
v
Maharashtra
State Electricity Board, Mumbai, Maharashtra v
Maharashtra Electronics Corporation, Mumbai,
Maharashtra v
Tata
Keltron Limited, Trivandrum, Kerala v
BPL
India Limited, Bangalore, Karnataka |
|
|
|
|
No. of Employees : |
55 |
|
|
|
|
Bankers : |
v
Bank
of Baroda, Nashik City Branch, Gaurishankar, Tilak Path, Nashik – 422001 v
State
Industrial & Investment Corporation |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
M. H.
Joshi & Company Chartered
Accountants |
|
Address: |
13/14,
1st Floor, Chitco Center, Vakilwadi, Nashik – 422001, Maharashtra |
|
|
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
48000 |
Equity Shares |
Rs.10/- each |
Rs.4.800 millions |
|
2000 |
Preference Shares |
Rs.10/- each |
Rs.0.200 millions |
|
|
Total |
|
Rs.5.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
48000 |
Equity Shares |
Rs.10/- each |
Rs.4.800 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
4.800 |
4.800 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
713.203 |
563.122 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
718.003 |
567.922 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
40.229 |
0.000 |
|
|
2] Unsecured Loans |
|
11.648 |
24.345 |
|
|
TOTAL BORROWING |
|
51.877 |
24.345 |
|
|
DEFERRED TAX LIABILITIES |
|
12.768 |
12.245 |
|
|
|
|
|
|
|
|
TOTAL |
|
782.648 |
604.512 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
157.040 |
135.362 |
|
|
Capital work-in-progress |
|
9.996 |
0.926 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
478.287 |
255.935 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
50.683 |
36.330 |
|
|
Sundry Debtors |
|
95.260 |
63.707 |
|
|
Cash & Bank Balances |
|
15.289 |
121.798 |
|
|
Other Current Assets |
|
2.020 |
1.708 |
|
|
Loans & Advances |
|
26.735 |
37.415 |
|
Total Current Assets |
|
189.987 |
260.958 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
33.322 |
42.011 |
|
|
Provisions |
|
19.340 |
6.658 |
|
Total Current Liabilities |
|
52.662 |
48.669 |
|
|
Net Current Assets |
|
137.325 |
212.289 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
782.648 |
604.512 |
|
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
NA |
NA |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
NA |
NA |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
NA |
NA |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
NA |
NA |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.14 |
0.13 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
3.61 |
5.36 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
Subject
is engaged in manufacturing of Ceramic Insulator, Ceramic Grinding Media and
Ceramic Seal Face, Ceramic Micro and Macro Grinding Media in Aluminium Oxide,
Zirconium Oxide and Steatite Materials in a wide range of sizes from 4.60 mm
dia. Aluminium Oxide and Steatite Ball Mill Lining Blocks with Standard and
Pre-engineered for Dish, Flat End, Conical and Tubular Ball Mills, production
and custom designed Ceramic Components in Aluminium Oxide, Zirconia, Mullite
Cordierite Steatite and Hard Porcelain Materials for wide variety of
applications such as Insulators for Fuse Switchgear, Electrical Heater, Thermostat
Component Pump Seal Rings, Water Faucet Parts, etc., Ceramic Wear Resisting,
Coating Materials in form and tiles for Surface Linings for various industrial
wear and corrosion resistant application.
The
company has developed high Density Micro-Macro Ceramic grinding media for
Microfine Milling and dispension of Parts, Colours, Printing Inka, Ceramics,
Cements, Refractories, Mangetic Cooling Materials, etc, Ball Mill Linings,
Abrassive wear resistant tiles coating etc
For
Macro Grinding Media & Ball Mill Linings :
Felber,
Gabi Sonnenberg Heinz Welte Ing, Mahltechnik Gmbh, Kunftstable, 4, D 51103,
Kolon (Kalk) Germany.
Tel.
221-853085 / 853086
Fax. 221
- 8285373
The
company’s fixed assets of important value includes leasehold land, freehold
land, building, R & D block, plant & machinery, R & D machinery,
electric installation, material handling equipment, furniture & fixtures, R
& D furniture & fixtures, office appliances, office appliances R &
D and vehicles.
Form 8 Particular for creation or modification of
charges
|
Name of the company |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
Presented By |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
1) Date and description of instrument creating the change |
Composite hypothecation agreement dated 25.10.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit (Hypothecations of stock & book debts) Rs. 20.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the borrower’s raw materials, stock in process finished goods and all the book – debts, moveable, plant & machinery, vehicles, crafts, consumable stores and spares, both presents and future and or monies payable and due to bank and more particularly described in attached agreement |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest @ BPLR presently 10.50% with monthly rests & 0.25% more on BPLR for parked limits Margin – 25% |
|
5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda, Nashik City Branch, Gaurishankar, Tilak Path, Nashik – 422001 |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
|
|
|
Name of the company |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
Presented By |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
1) Date and description of instrument creating the change |
Composite hypothecation agreement dated 25.10.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit (Hypothecations of stock & book debts) Rs. 10.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the borrower’s raw materials, stock in process finished goods and all the book – debts, moveable, plant & machinery, vehicles, crafts, consumable stores and spares, both presents and future and or monies payable and due to bank and more particularly described in attached agreement |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest @ BPLR presently 10.50% with monthly rests & 0.25% more on BPLR for parked limits Margin – 25% |
|
5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda, Nashik City Branch, Gaurishankar, Tilak Path, Nashik – 422001 |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
Name of the company |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
Presented By |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
1) Date and description of instrument creating the change |
Composite hypothecation agreement dated 25.10.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Packing Credit Rs. 10.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the borrower’s raw materials, stock in process finished goods and all the book – debts, moveable, plant & machinery, vehicles, crafts, consumable stores and spares, both presents and future and or monies payable and due to bank and more particularly described in attached agreement |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest : As per RBI norms at present 6.50% p.a. for 180 days with monthly rests. Margin – 25% |
|
5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda, Nashik City Branch, Gaurishankar, Tilak Path, Nashik – 422001 |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
|
|
|
Name of the company |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
Presented By |
JYOTI
CERAMIC INDUSTRIES PRIVATE LIMITED |
|
1) Date and description of instrument creating the change |
Composite hypothecation agreement dated 25.10.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Cash Credit (Hypothecations of stock & book debts) Rs. 20.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the borrower’s raw materials, stock in process finished goods and all the book – debts, moveable, plant & machinery, vehicles, crafts, consumable stores and spares, both presents and future and or monies payable and due to bank and more particularly described in attached agreement |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest @ BPLR presently 10.50% with monthly rests & 0.25% more on BPLR for parked limits Margin – 25% |
|
5) Name and Address and description of the person entitled to the charge. |
Bank of Baroda, Nashik City Branch, Gaurishankar, Tilak Path, Nashik – 422001 |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
As Per Website Details
Subject has been
manufacturing technical ceramics in wide variety of oxide and silicate ceramic
materials, catering to the demands of domestic and overseas markets for over 33
years, currently exporting their products to over 40 global countries including
USA, Canada, South America, South Africa, Africa, Europe, Japan, China,
South Korea, Taiwan, Australia and
other countries.
Subject has
established a high reputation for quality of its products and transparent
business dealings. Currently over 65% of their production share is scooped up
by overseas buyers. Hope by the year 2005 this may zoom to 85% +
During the period of
33 years Subject has set up 2 close by most modern technical ceramic
manufacturing plants, each plant occupying over 5000 m2 (50,000
Sq. ft.) built up factory buildings of modern construction on 4 acre open land
surrounded by lush green gardens.
Plants are supported by the
state-of-the-art R&D lab and tool room cum engineering workshop equipped
with the latest Swiss and German C.N.C. wire cut, E.D.M. machining centres and
other machine tools, their manufacturing plants even outclass any Western
manufacturing facilities. To provide faster and efficient services to the
customer, tungsten carbide, alloy steel moulding tools, jigs-fixtures and
special purpose machines are CAD-CAM designed and fabricated in-house.
Products
Zirconox
Rare Earth Stabilized Zirconia
The
wonder ceramic micro-macro milling media of the 21st century.
Zircosil
The one-up Zirconium Silicate Micro Milling Beads.
Steatite
Ceramic Mill Lining Blocks And Grinding Media.
Duralox 92q
High Alumina Wear Resistant Ceramic Tiles, Mill Lining Blocks And Grinding Media. The ultimate solution for optimum milling.
Ceramic Electrical Heater Parts
Standard-Custom Electrical Heater Parts In Steatite, Cordierite and Aluminium Oxide Ceramic
Zircoat
The versatile refractory coating compound with a many faceted role.
Igniters
Jyalox - High Tension Igniting Electrodes.
Aluma Coat
Kit
Converts Soft Surfaces to Sapphire Hard.
Ceramic Cements :
Re – Crystallized Alumina & Mullite
Pyrometery Sheaths & Single-Multibore Tubes.
H.R.C. Fuse Bodies
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.44.17 |
|
UK
Pound |
1 |
Rs.86.66 |
|
Euro |
1 |
Rs.57.25 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
70 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong) capability
for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|