MIRA
INFORM REPORT
|
Report Date : |
03.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ABHEDYA INDUSTRIES LIMITED |
|
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Registered Office : |
Survey
No. 160, Kothur Industrial Estate, Kothur, Hyderabad,
Andhra Pradesh |
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|
Country : |
India |
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|
Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.10.2002 |
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Com. Reg. No.: |
01-39757 |
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CIN No.: [Company
Identification No.] |
U24134AP2002PLC039757 |
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|
Legal Form : |
Closely held public limited liability company |
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|
Line of Business : |
Manufacturer of BOPP film and other Polymer films |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
200000 |
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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
|
Registered Office : |
Survey
No. 160, Kothur Industrial Estate, Kothur, Hyderabad,
Andhra Pradesh, India |
|
Tel. No.: |
91-8548-256112
/ 2257924 / 35 |
|
Fax No.: |
91-8548-256113 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Ravinder Kumar Agarwal |
|
Designation : |
Director |
|
Address : |
10-5-17,
Masabtank, Hyderabad – 500028 |
|
Date of Birth/Age : |
09.04.1964 |
|
Date of Appointment : |
11.10.2002 |
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|
|
|
Name : |
Mr. Ramesh Kumar Agarwal |
|
Designation : |
Director |
|
Address : |
59,
Sri Sai Nagar Co-operative Society, Road 13, Banjara Hills, 500034 |
|
Date of Birth/Age : |
12.06.1953 |
|
Date of Appointment : |
11.10.2002 |
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|
|
|
Name : |
Mr. Rajendra Kumar Agarwal |
|
Designation : |
Director |
|
Address : |
Plot #
874, Road # 45, Jubilee Hills – 500033 |
|
Date of Birth/Age : |
10.10.1959 |
|
Date of Appointment : |
11.10.2002 |
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|
|
|
Name : |
Mr. Kedarnath Agarwal |
|
Designation : |
Director |
|
Address : |
Plot #
779, Road # 39, Jubilee Hills – 500033 |
|
Date of Birth/Age : |
04.03.1950 |
|
Date of Appointment : |
11.10.2002 |
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|
|
|
Name : |
Mr. Mohanlal Agarwal |
|
Designation : |
Director |
|
Address : |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date of Birth/Age : |
01.06.1944 |
|
Date of Appointment : |
11.10.2002 |
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|
|
|
Name
: |
Mr. Anil Kumar Agarwal |
|
Designation
: |
Director |
|
Address
: |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date
of Birth/Age : |
15.03.1964 |
|
Date
of Appointment : |
11.10.2002 |
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|
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|
Name
: |
Mr. Ravinder Kumar Agarwal |
|
Designation
: |
Director |
|
Address
: |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date
of Birth/Age : |
15.03.1964 |
|
Date
of Appointment : |
11.10.2002 |
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|
|
|
Name
: |
Mr. Sushil Kumar Agarwal |
|
Designation
: |
Director |
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Address
: |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date
of Birth/Age : |
24.09.1975 |
|
Date
of Appointment : |
11.10.2002 |
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|
|
|
Name
: |
Mr. Adarsh Kumar Agarwal |
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Designation
: |
Director
|
|
Address
: |
59,
Sri Sai Nagar Co-operative Society, Road 13, Banjara Hills, 500034 |
|
Date
of Birth/Age : |
10.12.1977 |
|
Date
of Appointment : |
08.01.2004 |
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|
|
|
Name
: |
Mr. Kapil Kumar Agarwal |
|
Designation
: |
Director |
|
Address
: |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date
of Birth/Age : |
11.06.1983 |
|
Date
of Appointment : |
15.04.2003 |
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|
|
|
Name
: |
G M K
Venkat Rao |
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Designation
: |
Director
|
|
Address
: |
# 44-25/6,
Tirumalanagar Moulali, Hyderabad – 500040 |
|
Date
of Birth/Age : |
01.06.1977 |
|
Date
of Appointment : |
01.04.2003 |
|
Date
of Ceasing : |
05.02.2004 |
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|
|
|
Name
: |
Mr.
Vimal Agarwal |
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Designation
: |
Director
|
|
Address
: |
Plot No.
779, Road No. 39, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India |
|
Date
of Appointment : |
29.09.2006 |
|
|
|
|
Name
: |
Mr.
Gourav Kumar Agarwal |
|
Designation
: |
Director |
|
Address
: |
6-3-1186/A/1,
Begumpet, Hyderabad – 500016 |
|
Date
of Appointment : |
29.09.2006 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Mr. Anil Kumar Agarwal |
|
14,000 |
|
Mr. Mohanlal Agarwal |
|
100,000 |
|
Mr. Kedarnath Agarwal |
|
290,000 |
|
Mr. Ramesh Kumar Agarwal |
|
180,000 |
|
Mr. Rajendra Kumar Agarwal |
|
225,000 |
|
Mr. Ravinder Kumar Agarwal |
|
460,000 |
|
Mr. Ravinder Kumar Agarwal |
|
4,000 |
|
Mr. Sushil Kumar Agarwal |
|
20,000 |
|
Leo Laminates
Private Limited |
|
550,000 |
|
Meenakshi
Paper Mills Private Limited |
|
320,000 |
|
Padmavati
Ply Private Limited |
|
250,000 |
|
Premalatha
Agarwal |
|
120,000 |
|
Kapil Kumar Agarwal |
|
36,000 |
|
Gaurav Agarwal |
|
5,000 |
|
Nirmala Agarwal |
|
160,000 |
|
Adarsh Kumar Agarwal |
|
13,500 |
|
Vimal Kumar Agarwal |
|
10,000 |
|
Vikas Kumar Agarwal |
|
40,000 |
|
Mohanlal Agarwal – HUF |
|
35,000 |
|
Ravindra Kumar Agarwal – HUF |
|
41,000 |
|
Sheetal Agarwal |
|
5,000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of BOPP film and other Polymer films |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
BOPP Film |
Tones |
1200 |
1200 |
-- |
GENERAL
INFORMATION
|
No. of Employees : |
30 |
|
|
|
|
Bankers : |
State Bank of India, Mid Corporate Group, Saifabad Branch, HACA Bhawan, Hyderabad – 500002, Andhra Pradesh, India |
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|
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Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Avis
Associates Chartered
Accountants 1-2-597/1,
Lower Tank Bund Road, Domalguda, Hyderabad – 500029 |
|
Tel. No.: |
91-40-23227037 |
|
Fax No.: |
91-40-23227451 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
6,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
4,500,000 |
Equity Shares |
Rs. 10/- each |
Rs. 45.000 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
45.000 |
30.000 |
30.000 |
|
|
2] Share Application Money |
0.000 |
6.000 |
0.000 |
|
|
3] Reserves & Surplus |
9.418 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
54.418 |
36.000 |
30.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
56.576 |
64.166 |
59.352 |
|
|
2] Unsecured Loans |
22.311 |
18.167 |
18.747 |
|
|
TOTAL BORROWING |
78.887 |
82.333 |
78.099 |
|
|
DEFERRED TAX LIABILITIES |
9.169 |
7.525 |
2.864 |
|
|
|
|
|
|
|
|
TOTAL |
142.474 |
125.858 |
110.963 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
76.815 |
78.845 |
75.502 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
37.855
|
32.280 |
19.518 |
|
|
Sundry Debtors |
18.479
|
12.910 |
8.387 |
|
|
Cash & Bank Balances |
0.066
|
0.178 |
0.468 |
|
|
Other Current Assets |
2.580
|
1.708 |
0.501 |
|
|
Loans & Advances |
17.756
|
10.378 |
11.727 |
|
Total Current Assets |
76.736
|
57.454 |
40.601 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11.237
|
13.387 |
5.411 |
|
|
Provisions |
|
|
0.210 |
|
Total Current Liabilities |
11.237
|
13.387 |
5.621 |
|
|
Net Current Assets |
65.499
|
44.067 |
34.980 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.160 |
2.946 |
0.481 |
|
|
|
|
|
|
|
|
TOTAL |
142.474 |
125.858 |
110.963 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other
income] |
266.633 |
136.718 |
15.402 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
15.231 |
2.375 |
2.798 |
|
Provision
for Taxation |
3.051 |
4.862 |
3.073 |
|
Profit/(Loss)
After Tax |
12.180 |
[2.487] |
[0.275] |
|
|
|
|
|
|
Total
Expenditure |
251.402 |
134.344 |
12.605 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
4.57
|
[1.82] |
[1.79] |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
5.71
|
1.74 |
18.17 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
9.92
|
1.75 |
2.41 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.07 |
0.09 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
1.66
|
2.66 |
2.79 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
6.83
|
4.29 |
7.22 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Plant and Machinery
- Electrical Equipments
- Vehicles
- Furniture
Business
To carry
on the Business of Manufacturers, Importers, Exporters and Dealers in all kinds
an classed of BIAXIMALLY ORIENTED POLY PROPYLENE [B.O.P.P.] FILM and other
POLYMER FILMS and all kinds of articles in the manufacture of which in any form
of B.O.P.P. Film and other POLYMER Film are used and to deal in or manufacture
any other articles or things of character similar or analogous to the foregoing
or any of them or connected therewith.
Sanction of Credit facilities
Credit Limits :
[Rs in Millions]
|
|
Existing |
Proposed |
Change |
|||||||
|
Limits |
SBI |
% |
CONS |
SBI |
% |
CONS |
SBI |
CONS |
||
|
Fund
Based |
27.500 |
100 |
Nil |
42.500 |
100 |
Nil |
15.000 |
Nil |
||
|
|
|
|
|
|
|
|
|
|
||
|
Total
FBWC |
27.500 |
100 |
Nil |
42.500 |
100 |
Nil |
15.000 |
Nil |
||
|
Term
Loan I |
28.500 |
100 |
Nil |
28.500* |
100 |
Nil |
Nil |
Nil |
||
|
Term
Loan II |
-- |
-- |
|
88.500 |
100 |
Nil |
88.500 |
Nil |
||
|
Total
FB |
56.000 |
100 |
Nil |
159.500 |
100 |
Nil |
103.500 |
Nil |
||
|
LCs |
2.500 |
-- |
Nil |
5.000 |
100 |
Nil |
2.500 |
Nil |
||
|
FLC
[as a sub limit under TL] |
-- |
-- |
-- |
[67.000] |
100 |
Nil |
Nil |
Nil |
||
|
BGs |
2.500 |
-- |
Nil |
Nil |
100 |
Nil |
[2.500] |
Nil |
||
|
Ttoal
NFB |
5.000 |
-- |
Nil |
5.000 |
100 |
Nil |
Nil |
Nil |
||
|
Stand
by line of credit |
2.500 |
-- |
-- |
0.000 |
100 |
Nil |
[2.500] |
Nil |
||
|
Total
[FB + NFB] |
63.500 |
100 |
Nil |
164.500 |
100 |
Nil |
101.000 |
Nil |
||
- Existing term loan present
outstanding.
The WC
limits have been assessed based on the income estimates for the current year and
projections for the next year as under
[Rs In Millions]
|
|
Estimates
[2005-06] |
Projections
[2006-07] |
|
Net
Sales |
213.000 |
276.100 |
|
[Exports] |
|
|
|
Op.
Profits |
8.900 |
08.300 |
|
PBT |
14.800 |
14.300 |
|
PBT /
Net Sales |
69.400 |
51.800 |
|
PAT |
13.100 |
12.700 |
|
Cash
Accruals |
16.700 |
22.100 |
|
PBDIT |
27.200 |
40.100 |
|
PUC |
59.000 |
59.000 |
|
TNW |
53.700 |
89.700 |
|
Adjusted
TNW |
53.700 |
89.700 |
|
Total
/ TNW |
20.900 |
24.400 |
|
Total
/ Adj. TNW |
20.900 |
24.400 |
|
Current
Ratio |
14.500 |
12.400 |
|
NWC |
27.500 |
20.800 |
The
purpose, Cost of Project and Means of finance for the term loan are as under :
Purpose : To add Metalizing section as a part of
forward integration.
Cost of Project
and Means of finance
[Rs In Millions]
|
Cost |
|
Means |
|
|
Land
and Building |
1.500 |
Equity
|
23.000 |
|
Plant
and Machinery |
118.200 |
Unsecured
Loans |
21.300 |
|
Other
Assets |
1.600 |
Debt :
|
88.500 |
|
WC
Margin |
11.500 |
|
|
|
Total |
132.800 |
Total |
132.800 |
The
projected profitability and DSCR during the repayment period of he term loan is
as follows :
|
Capacity
Utilisation % |
|
|
|
|
|
|
|
|
|
|
|
31.03 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Cash
Accruals |
1.67 |
2.21 |
3.07 |
3.48 |
3.53 |
3.32 |
3.24 |
3.22 |
3.20 |
3.20 |
|
Interest
|
0.88 |
0.27 |
1.83 |
0.70 |
0.58 |
0.47 |
0.37 |
0.26 |
0.16 |
0.05 |
|
Total |
2.55 |
2.48 |
3.90 |
4.18 |
4.11 |
3.79 |
3.61 |
3.48 |
3.36 |
3.25 |
|
TL
Repayments |
1.77 |
1.16 |
2.55 |
2.05 |
1.69 |
1.58 |
1.48 |
1.37 |
1.27 |
1.13 |
|
Gross
DSCR |
1.44 |
2.14 |
1.53 |
2.03 |
2.43 |
2.39 |
2.44 |
2.54 |
2.65 |
2.87 |
|
Avg
Gross DSCR |
2.03 |
|
|
|
|
|
|
|
|
|
|
Net
DSCR |
2.48 |
|
|
|
|
|
|
|
|
|
The
limits will come into force after execution of the documents.
The
company should not induct a person who is a director of the Board of company
which has been identified as a wilful defaulter, and in case such a person is found
to be on the Board of the borrower company, it would take expeditious and
effective steps for removal of the person from its Board.
|
Corporate
identity number of the company |
U24134AP2002PLC039757 |
|
Name
of the company |
ABHEDYA INDUSTRIES LIMITED |
|
Address
of the registered office or of the principal place of business in India of the company |
Survey
No. 160, Kothur Industrial Estate, Kothur, Hyderabad,
Andhra Pradesh |
|
This
form is for |
Modification
of charge |
|
Type
of charge |
Hypothecation
|
|
Particular
of charge holder |
State Bank of India, Mid Corporate Group, Saifabad Branch, HACA Bhawan, Hyderabad – 500002, Andhra Pradesh, India |
|
Amount
secured by the charge |
Rs.
72.000 Millions |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
Rate
of Interest Term
Loan 13.35 % Cash
Credit 12.35 % |
|
Description
of the property charged indicating whether it is a charged on |
|
|
Particulars
of the property charged |
Hypothecation
of pledge of goods and movable and other assets, present and future book debts,
outstanding monies, bills all machinery, present and future and existing
immovable properties of the company. |
|
Charge
identification number of the charge to be modified |
90128430 |
|
Brief
Description of the instrument modifying the charge under section 135 |
|
|
Particulars
of the present modification |
Increase
in the limits from Rs. 75.000 Millions to Rs. 164.500 Millions |
|
Name of the company |
ABHEDYA
INDUSTRIES LIMITED |
|
Presented By |
RAVINDER
KUMAR AGARWAL, DIRECTOR |
|
1) Date and description of instrument creating the change |
Dated 08.09.2003 Form
–C-2, Agreement of hypothecation of goods and assets Form
C-3, Agreement of pledge of goods and assets Form C
-1, Agreement of loan for overall limit Form –
C – 5, Letter regarding the grant of individual limits within the overall
limits Memorandum
of deposit for creation charge for overall limit |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 72
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 |
Land
and Building, Plant and Machinery, Stocks and Book Debts |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rs.
44.500 Millions Term Loan having first charge on land and buildings, plant
and machinery Rs.
27.500 Millions Cash credit having second charge on land and buildings, plant
and machinery and hypothecation of book debts and stocks Rate
of interest Term
loan 13.35 % Cash
Credit 12.35% |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India, Mid Corporate Group, Saifabad Branch, HACA Bhawan, Hyderabad – 500002, Andhra Pradesh, India |
|
6) Date and brief description of instrument modifying the charge |
All
agreement dated 30.12.2004
|
|
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. |
There
is no change in term loan Limits
have been increase from Rs. 72 Millions to Rs. 75 Millions Additional
facilities obtained Stand
by line of credit : Rs. 2.500 Millions LC Rs.
2.500 Millions BG Rs.
2.500 Millions No
change in terms and conditions rate of interest : CC
Hypothecation : 2.00 % above SBAR at 12.25 % at monthly rests Term
loan 2.50 % above SBAR at 2.75 % at monthly rests FCNR
TL : 6 months LIBOR + 450 Basis Points. |
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |
|