MIRA
INFORM REPORT
|
Report Date : |
15.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
MELSS
AUTOMATION LIMITED |
|
|
|
|
Registered Office : |
173
Developed Plots Estate, Perungudi, Chennai – 600096, Tamil Nadu, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
29.08.2002 |
|
|
|
|
Com. Reg. No.: |
18-049505 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U29193TN2002PLC049505 |
|
|
|
|
Legal Form : |
Closely
held public limited liability company. |
|
|
|
|
Line of Business : |
Subject is involved in System Design, Procurement, Manufacturing and Installation and Maintenance of Systems in Process Control and factory automation on a Turn-Key Basis with specialization in the field of weighing application. |
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
50000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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 / Factory: |
173
Developed Plots Estate, Perungudi, Chennai – 600096, Tamil Nadu, India |
|
Tel. No.: |
91-44-24961903
/ 24961911 |
|
Fax No.: |
91-44-24960488 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Sales
and Support Offices : |
|
|
E-Mail
: |
|
|
Website : |
DIRECTORS
|
Name : |
Mr N
Ramachandran |
|
Designation : |
Director |
|
Address : |
Flat
No 3-A, Coral Sands, No 54-B, Beach Road, Kalakshetra Colony. Besant Nagar,
Chennai – 600090, Tamil Nadu, India |
|
Date of Birth/Age : |
17.06.1950 |
|
Date of Appointment : |
16.09.2002 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Name : |
Mr T
Srinivasan |
|
Designation : |
Director |
|
Address : |
Flat
No D-4, Satyasrya Apartments, No 120, L B Road, Thiruvanmiyur, Chennai –
600041, Tamil Nadu, India |
|
Date of Birth/Age : |
12.11.1949 |
|
Date of Appointment : |
16.09.2002 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Name : |
Mr E
Easwaran |
|
Designation : |
Director |
|
Address : |
Flat
No 3-D, Gayatri Apartments, no 32, Second Main Road, R A Puram, Chennai –
600028, Tamil Nadu, India |
|
Date of Birth/Age : |
29.08.1941 |
|
Date of Appointment : |
10.07.2002 |
|
|
|
|
Name : |
Mr R V
Srinivasn |
|
Designation : |
Director |
|
Address : |
New No
11, Old No 10, Anandam Colony, South Canal Bank Road, Mandaveli, Chennai –
600028, Tamil Nadu, India |
|
Date of Birth/Age : |
05.07.1946 |
|
Date of Appointment : |
06.12.2003 |
KEY EXECUTIVES
|
Name
: |
Mr V
Jayakumar |
|
Designation
: |
Head
Operations |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr T R
Balasubramanian |
|
Designation
: |
Manager
(Marketing) |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr G
Pichaipillai |
|
Designation
: |
Manager
(Mechanical Systems) |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr
Anup Raj Gauni |
|
Designation
: |
Manager
Projects |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr V
Thandayuthapani |
|
Designation
: |
Manager
Engineering |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr M
Srikumar |
|
Designation
: |
Manager
Software |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Name
: |
Mr S
Ajantha |
|
Designation
: |
Product
Division |
|
E-Mail
: |
|
|
Website
: |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Mr
Anup Raj Gauni |
|
11490 |
|
Mr R
Eswaran |
|
2 |
|
Mr V
Jayakumar |
|
39000 |
|
MEL
Systems and Services Limited |
|
76518 |
|
Mr N
Ramchandran |
|
4 |
|
Mr T
Srinivasan |
|
4 |
|
Mr G
Pichai Pillai |
|
11490 |
|
Mr T R
Balasubramanian |
|
11492 |
|
|
|
|
|
|
|
|
|
Category
of Shareholders |
|
Percentage of Holding |
|
Bodies
corporate |
|
51.00 |
|
Other
top 50 shareholders |
|
49.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is involved in System Design,
Procurement, Manufacturing and Installation and Maintenance of Systems in
Process Control and factory automation on a Turn-Key Basis with
specialization in the field of weighing application. |
||||||
|
|
|
||||||
|
Products : |
|
GENERAL
INFORMATION
|
Suppliers : |
MEL
Systems and Services Limited |
|
|
|
|
No. of Employees : |
About
25 |
|
|
|
|
Bankers : |
State
Bank of India, Commercial Branch, Guindy, Chennai - 600032 |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Shanker
Giri and Prabhakar Chartered
Accountants |
|
Address : |
“GUHALAYA”
Flat B-7, No 262 (Old 179), Royapettah High Road, Mylapore, Chennai – 600004 |
|
Tel. No.: |
91-44-24992982
/ 24991345 |
|
Fax No.: |
91-44-24997317 |
|
E-Mail : |
|
|
|
|
|
Holding Company : |
MEL
Systems and Services Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30,000 |
Equity
Shares |
Rs 100/- each |
Rs 3.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30,000 |
Equity
Shares |
Rs 100/- each |
Rs 3.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
|
SOURCES OF FUNDS |
31.03.2006 [12 months] |
31.03.2005 [12 months] |
30.09.2003 [15 months] |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
3.000 |
1.500 |
1.500 |
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
3] Reserves & Surplus |
10.093 |
4.066 |
1.367 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH |
13.093 |
5.566 |
2.867 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
2.380 |
0.000 |
0.353 |
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL BORROWING |
2.380 |
0.000 |
0.353 |
|
DEFERRED TAX LIABILITIES |
0.404 |
0.257 |
0.000 |
|
|
|
|
|
|
TOTAL |
15.877 |
5.823 |
3.220 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3.729 |
3.036 |
1.093 |
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
2.923
|
3.281 |
0.433 |
|
Sundry Debtors |
22.750
|
13.218 |
6.367 |
|
Cash & Bank Balances |
4.458
|
3.004 |
0.927 |
|
Other Current Assets |
0.070
|
0.021 |
0.000 |
|
Loans & Advances |
1.672
|
3.027 |
0.718 |
|
Interest Accrued |
0.000
|
0.000 |
0.009 |
|
Total Current Assets |
31.873
|
22.551 |
8.454 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
18.061
|
|
6.406 |
|
Provisions |
1.664
|
3.185 |
|
|
Total Current Liabilities |
19.725
|
19.764 |
6.406 |
|
Net Current Assets |
12.148
|
2.787 |
2.048 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.079 |
|
|
|
|
|
|
TOTAL |
15.877 |
5.823 |
3.220 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 [12 months] |
31.03.2005 [12 months] |
30.09.2003 [15 months] |
|
Sales Turnover [including other income] |
69.989 |
54.125 |
17.948 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
10.320 |
5.165 |
2.436 |
|
Provision
for Taxation |
3.767 |
2.557 |
0.900 |
|
Profit/(Loss)
After Tax |
6.553 |
2.608 |
1.536 |
|
|
|
|
|
|
Export
Value |
NA |
0.931 |
NA |
|
|
|
|
|
|
Import
Value |
NA |
1.119 |
NA |
|
|
|
|
|
|
Total
Expenditure |
59.669 |
48.960 |
15.512 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 [12 months] |
31.03.2005 [12 months] |
30.09.2003 [15 months] |
|
PAT / Total Income |
(%) |
9.36
|
4.81 |
8.55 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
14.74
|
9.54 |
13.57 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
28.98 |
20.19 |
25.51 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.78
|
0.92 |
0.84 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
1.68
|
3.55 |
2.35 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
1.61 |
1.14 |
1.32 |
LOCAL AGENCY
FURTHER INFORMATION
MELSS Automation Limited is a subsidiary of MEL Systems and Services Limited an associate of Rs.50000 Millions Murugappa Group. Some of the constituents of Murugappa Group are well known companies like Tube Investment India Limited, Coromandel Fertilizers, Carborundum Universal Limited, EID Parry India Limited, Parry Agro India Limited, and Cholamandalam Finance Corporation etc.
MELSS Automation Limited is involved in System Design, Procurement, Manufacturing and Installation and Maintenance of Systems in Process Control and factory automation on a Turn-Key Basis with specialization in the field of weighing application.
The Factory and Head Office of MELSS Automation Limited is located at Perungudi in Chennai. MAL offers quality support to their customers through company’s Branches at Delhi, Bombay, Calcutta, Hyderabad, Bangalore and Coimbatore. More than 90% of MAL employees have technical background. Their technical background spans different disciplines like Electronics, Instrumentation, Software and Mechanical Engineering. Through this committed multi disciplinary team, company has been able to offer products and systems using State-of-Art technology and provide effective post sale support.
Experience
MAL undertakes projects related to weighing, material handling, data acquisition using PLC’s to control and automate processes along with weigh processors developed in house.
MAL's areas of activity covers Batching, Material handling, Furnace and kiln Controls, Process automation, SCADA Applications, customized weigh applications, Software solutions Fully Electronic Weigh bridges etc. MAL's products are of international standards and are approved by the Weight and Measures Department of the Government of India.
- Foundries
- Refractories
- Animal/Poultry Feeds
- Automobile Ancillaries
- Confectionery
- Chemicals
- Tyre, Rubber, Brake shoes
- Pumping Automation / Water treatment systems
MAL's projects are software intensive and help their customer not only to control or monitor but also have access to on line information. Company has also executed a large number of Weigh bridges and Tank weighing applications including special weighing applications (Weighing under Vibration).
MAL has gathered wealth of experience during the last 18 years, in order to provide the customers with the latest in technology, company has back up of International leaders in their respective areas of working such as :
- Hardy Instruments USA
- Leon Engineering co., Greece (A Subsidiary of Scale Company, Netherlands)
- Flintec Load cells Europe
- Allen Bradley (Rockwell Automation)
- GE Fanuc India
- Seimens India
- Sensortonics India
Customer Support
The strength of MAL is the ability to offer total support to their customers. Company has well trained Engineers based both at Head Office and in their projects to take care of the needs of their customers.
Summary
In summary MAL can offer the following projects and services.
- Automatic Material handling and Batching Systems.
- Electronic Weigh Bridge and other customized weighing solutions.
- Furnace Control Automation
- Kiln Control automation
- Automatic Batching Systems for Animal Feed, Poultry Feed, pharmaceuticals etc.
- Process control Automation in confectionery, Ceramics.
- Custom built Tank weighing systems
- Total Factory Automation of Tea Industry, Refractories
- Online moisture measuring system
- Total software for the Sugar plant – for both control and MIS
- Sand Plant Automation systems for Foundries
- Pumping Station automation
- Water Treatment system / Sewage Treatment system
History
MELSS Automation Limited was formed as the Industrial Products Group of Murugappa Electronics Limited in 1983 in the Murugappa Group. On restructuring the organization this was merged to the EID Parry and functioned under its umbrella from 1993 to 1995.
The Murugappa Group exited from the electronics region in 1995 creating a new company in the name of MEL Systems and Services Limited in 1995 with Mr. M M Murugappan as chairman of the company. The company is managed by Mr. N Ramachandran and Mr. T Srinivasan, who have more than 35 years of business experience in Industrial automation Business.
To give more focus to the Automation Business in the IT Era MELSS Automation Limited was created in October 2002 as a Subsidiary of MEL Systems and Services Limited
- MELSS Automation Limited (2002 October) – Subsidiary of MEL Systems and Services Limited Industrial Products Group of Murugappa Electronics Limited (1983-1993)
- Industrial Products Group of Murugappa Electronics Division of EID Parry (I) Limited (1993-1995)
- MEL Systems and Services Limited (1995 – 2002)
- Restructured as Separate company – MELSS Automation Limited
Customer
Support
The strength of MAL is the ability to offer total support to their customers. Company has well trained Engineers based both at Head Office and in our projects to take care of the needs of our customers.
- Company’s total support includes
- Understanding Customer Requirements
- Configuring Suitable Systems/Solutions
- Installation, Commissioning and Training
- Application Support
- Software Support
- Maintenance Support
v Online Customer Enquiry Form
v Online Customer Feedback Form
Change in Financial Year
The directors have changed the financial year
of the company from October-September to April-March with effect from this
financial year with the approval of the registrar of companies and accordingly
this financial year under review consists of 18 months from 01.10.2003 to
31.03.2005 and henceforth all future accounting years will be from 1st
April to 31st March
Banking Facilities
The
company has during the year 2004-2005, completely repaid the term loan of Rs
0.600 Millions obtained from State Bank of India commercial branch Guindy,
cheenai. The company vails non funded facility of Rs 9.8 Million from bank
guarantee and letter of credit from state bank of India commercial branch Guindy,
Chennai on the security of stocks and receivables.
Operations
During
the year 2004-2005, the company’s performance was outstanding. The turnover
grew on an annualized basis by 120%. The profit before tax (PBT) grew by 80%.
The company made a break through in supplying a large number of weigh bridges
to the Bajaj group for their Sugar Factories in Uttar Pradesh. The company also
made a good beginning in the Automobile sector by delivering Automobile
Batching systems for the Brake Shoe Industry.
During
the year 2004-2005, the company also entered into new areas like control
system, sewage treatment, water management etc.
During
the year 2004-2005, the company was highly successful in completing development
of a mini ERP package for sugar and Automobile industries. The company hopes to
increase the software revenue based on these packages.
Exports
The
company also made efforts to export some of the Systems especially Tea
Automation Systems and Weigh Bridges to Sri Lanka and Kenya. The company also
making efforts to diversify the export markets by aiming for markets in the
Middle East and the US
Fixed Assets
- Office Equipment
- Air Conditioner
- Electrical Installations and
Fittings
- Lab Equipments
- Furniture and Fittings
- Plant and Machinery
- Vehicles
|
SECURED
LOANS |
31.03.2005 |
30.09.2003 |
|
|
Rs in Millions |
|
|
From
Bank |
|
|
|
Term
Loan (Secured
by Hypothecation of fixed Assets, extension of EM over Land and Buildings
belonging to Holding company and corporate guarantee of Holding company ) |
--- |
0.353 |
|
|
-- |
0.353 |
|
Contingent
Liability not Provided for : |
|
|
|
|
31.03.2005 |
30.09.2003 |
|
|
Rs in Millions |
|
|
Guarantee |
2.397 |
0.452 |
|
Letters
of Credit |
0.706 |
0.8874 |
|
Name of the company |
MELSS AUTOMATION LIMITED |
||||||||
|
Presented By |
STATE BANK OF INDIA, GUINDY, CHENNAI –
600032 |
||||||||
|
1) Date and description of instrument creating the change |
Dated
24.01.2003 1.
General agreement for the grant of small industrial advances and
hypothecation of movables, book debts and other assets (working capital
finance) 2.
Agreement for the grant of small industrial advances (working capital
finance) to the general agreement (working capital finance) Regarding Letters
of credit, guarantees and Indemnities – Ancillary agreement No 6 3.
Creation of Equitable Mortgage by way of deposit of title deeds belonging to
MEL Systems and Services Limited All
dated 24.01.2003 and relate to one and the same charge. |
||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs
5.000 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 |
Hypothecation
of machinery, stocks of raw materials, consumables, stock ion process, book
debts, finished goods, movables and receivables. Creation
of Equitable mortgage of the property belonging to MEL Systems and Services
Limited of all that land and buildings measuring 0.508 acres of land with
constructed buildings thereon of 864 Sq. meters (more fully described in the
letter evidencing deposit of title deed) |
||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Margin
Rate of Interest, other terms and conditions : As stipulated in the agreement
and sanction letter. |
||||||||
|
5) Name and Address and description of the person entitled to the charge. |
State
Bank of India Guindy,
Chennai – 600032 |
||||||||
|
6) Date and brief description of instrument modifying the charge |
Nil |
||||||||
|
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. |
Nil |
|
Name of the company |
MELSS AUTOMATION LIMITED |
||||||||||||||||||
|
Presented By |
STATE BANK OF INDIA, COMMERCIAL BRANCH,
GUINDY, CHENNAI – 600032 |
||||||||||||||||||
|
1) Date and description of instrument creating the change |
Dated
26.10.2005
Both the above documents were made on
26.10.2005 and relate to one and single charge. |
||||||||||||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs
15.000 Millions
Together
with interest, costs, charges and all other expenses which may be debited to
the said account from time to time. |
||||||||||||||||||
|
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 |
Primary Security Hypothecation
of stocks of Raw materials, semi finished goods, finished goods, stores,
spares and other current assets. Collateral Security Extension
of equitable mortgage by deposit of title deeds of the company’s premises
located at Plot No 173, situated at Industrial Estate, Perungudi, Chennai –
600096, admeasuring 0.508 acres comprised in Serial Number 141/1 As
collateral security. All
the above securities, were hypothecated / mortgage with state bank of India,
commercial branch, guidny, Chennai by way of first charge and now they shall
continue to secure the present enhanced overall limit of rs 15.000 Millions
together with interest, costs, charges and all other expenses which may be
debited to the said account from time to time. |
||||||||||||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest
: interest at the rate of 1% above SBAR with
a minimum of 11.25% with monthly rest. Margin
|
||||||||||||||||||
|
5) Name and Address and description of the person entitled to the charge. |
State
Bank of India Commercial
Branch, Guindy, Chennai – 600032 |
||||||||||||||||||
|
6) Date and brief description of instrument modifying the charge |
Nil |
||||||||||||||||||
|
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. |
Nil |
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.44.07 |
|
UK
Pound |
1 |
Rs.86.17 |
|
Euro |
1 |
Rs.57.97 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING 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 |
|