MIRA INFORM REPORT
|
Report Date : |
17.02.2007 |
IDENTIFICATION DETAILS
|
Name : |
USV LIMITED |
|
|
|
|
Registered Office : |
B. S. Devshi Marg, Govandi
Station Road, Govandi, Mumbai – 400 088, Maharashtra, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
25.04.1961 |
|
|
|
|
Com. Reg. No.: |
11-12098 |
|
|
|
|
CIN No.: [Company Identification No.] |
U24239MH1961PLC012098 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
MUMU00007A |
|
|
|
|
Legal Form : |
Subject is a closely held public limited liability
company. Subject is a Subsidiary of American Products Company
Limited. |
|
|
|
|
Line of Business : |
Manufacturers of Tablets and Capsules, Liquids, Creams,
Powders and Bulk Drugs/Drug Intermediates. |
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 22000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established closely held public limited company engaged in manufacturing and
marketing of pharmaceuticals in the form of tablets, capsules, liquid,
creams, etc. The company’s track
record is fine. It is progressing
well in terms of turnover and profit.
Directors are experienced
and resourceful businessmen. Their
trade relations are reported fair.
Payments are correct and as per commitments. The company can be considered good for business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
B. S. Devshi Marg, Govandi
Station Road, Govandi, Mumbai – 400 088, Maharashtra, India |
|
Tel. No.: |
91-22-25564048/4049/4050/4051/25562225/ 25559915/25581118 |
|
Fax No.: |
91-22-25515608/25584025 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
B. S. Devashi Marg, Govandi,
Mumbai – 400 088, Maharashtra |
|
|
|
|
Factory 1 : |
OIDC, Dhabhel, Daman |
|
|
|
|
Factory 2 : |
Plot No. B-1 / 8, M.I.D.C.
Lote Industrial Area, Taluka Khed, Ratnagiri, Maharashtra, India |
|
Tel. No.: |
91-2356-272242 |
|
Fax No.: |
91-2356-272402 |
DIRECTORS
|
Name |
Mr. Prashant Tewari |
|
Designation |
Managing Director |
|
Age |
45 years |
|
Qualification |
M.S., Cornell University,
USA B. Tech, Indian Institute
of Technology, Kanpur, Uttar Pradesh |
|
Experience |
23 years |
|
Date of Joining |
01.05.1993 |
|
Previous Employment |
Vital Pharmacal Private
Limited |
|
Name |
Mrs. Leena Tewari |
|
Designation |
Chairperson |
|
Qualification |
MBA, Boston University, USA B.Com., Sydneyham College, University
of Bombay, India. |
|
|
|
|
Name |
Mr. Krishna K. Maheshwari |
|
Designation |
Technical Director |
|
Qualification |
PhD, Indiana University,
USA |
|
Age |
63 years |
|
Date of Joining |
09.10.1998 |
|
Experience |
40 years |
|
Previous Employment |
Searle India Limited |
|
|
|
|
Name |
Mr. Debabrata Bhaduri |
|
Designation |
Director (Technical) |
KEY EXECUTIVES
|
Name |
Mr.
Vikas Vinod Kapoor |
|
Designation |
Company
Secretary |
|
Address : |
Orchid,
501, Vardhman Gardens, Opposite Color Chem, Balkum, Bhivandi Road, Thane
(West), Thane-400601, Maharashtra, India |
|
Date of Ceasing : |
01.08.2006 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
Percentage of Holding |
|
Corporate
Bodies |
0.24% |
|
Directors
and Relatives |
99.76% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Tablets and Capsules, Liquids,
Creams, Powders and Bulk Drugs/Drug Intermediates. |
|
|
|
|
Products : |
Medicaments (including)
Veterinary Medicaments) |
|
|
Other Organic Compounds |
|
|
|
|
Brands : |
v
Pioz (Insulin
Sensitizer) v
Arbitace v
Clopigrel
(anti-platelet) v
Ecosmin (enteric
coated aspirin) v
Nizer D (Nimesulide
with Pseudo ephedrine – an anti-cold preparation) v
Quicktest – U (Urine strip
for Glucose analysis) |
|
|
|
|
ITC Codes with Products |
30.03 :- Medicaments (including) Veterinary Medicaments) |
|
|
29.42 :- Other Organic Compounds |
GENERAL INFORMATION
|
Trade Terms : |
v
Modepro India Private
Limited v
Nikava Pharmaceuticals
Industries v
Remidex Pharma Private
Limited v
Ishaan Labs Private
Limited v
Sidmak Laboratories
India Private Limited v
Savita Pharmaceuticals
Private Limited v
Aviat Chemicals
Private Limited v
Promed Laboratories v
Killitch Drugs v
Mepro Labs v
Tablets India |
|
|
|
|
No. of Employees : |
1370 |
|
|
|
|
Bankers : |
v
State Bank of India,
Shiv Sagar Estate, Dr. A. B. Road, Worli, Mumbai - 400001, Maharashtra, India v
Standard Chartered Grindlays
Bank Limited, Dr. D. N. Road, Mumbai-400 001, Maharashtra, India v
The Saraswat
Co-operative Bank Limited, Mumbai, Maharashtra, India v
Canara Bank |
|
|
|
|
Facilities : |
Nil |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
Deloitte Haskins &
Sells Chartered Accountants 12, Dr. A. B. Road, Worli,
Mumbai-400018, Maharashtra, India Tel. No.: 91-22-66679000 Fax No.: 91-22-66679025 |
|
|
|
|
Parent Company |
American Products Company
Limited B.S.D. Marg, Govandi, Mumbai
– 400088, Maharashtra, India |
|
|
|
|
Associates : |
v
Treva Health Care
Private Limited v
Vipal Health Care
Private Limited v
Tender Remedies v
Business Link
Automation (India) Limited v
Vital Pharmacal
Private Limited v
Neo Pharma Industries
Private Limited v
Chronomed Health Care
Private Limited |
|
|
|
|
Subsidiaries : |
v
USV (Nigeria) Limited v
USV North America Inc. v
Indicus Pharma LLC |
|
|
|
|
Membership : |
Organisation of
Pharmaceutical Products of India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
125000000 |
Equity Shares |
Rs.10/- each |
Rs. 1250.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
99966957 |
Equity Shares |
Rs. 10/- each |
Rs. 999.669 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 |
999.670 |
107.590 |
107.600 |
|
2] Reserves & Surplus |
4587.978 |
4183.758 |
3184.400 |
|
NETWORTH |
5587.648 |
4291.348 |
3292.000 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
2] Unsecured Loans |
55.761 |
55.789 |
61.000 |
|
TOTAL
BORROWING |
55.761 |
55.789 |
61.000 |
|
Deferred Tax Liabilities |
217.778 |
128.958 |
0.000 |
|
|
|
|
|
GRAND
TOTAL
|
5861.187 |
4476.095 |
3353.000 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1840.995 |
1453.448 |
1174.900 |
|
Capital work-in-progress |
215.014 |
146.386 |
0.000 |
|
|
|
|
|
|
INVESTMENTS |
2641.159 |
1828.723 |
1096.500 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Interest accrued on investments |
0.000 |
0.000 |
0.000 |
|
Inventories |
816.266 |
630.815 |
525.000 |
|
Sundry Debtors |
513.560 |
444.806 |
552.400 |
|
Cash & Bank Balances |
65.851 |
127.197 |
182.900 |
|
Other Current Assets |
0.002 |
0.024 |
0.000 |
|
Loans & Advances |
394.599 |
390.305 |
328.000 |
|
Total
Current Assets |
1790.278 |
1609.300 |
1588.300 |
|
Less : |
|
|
|
|
Current Liabilities |
570.394 |
537.119 |
494.500 |
|
Provisions |
55.865 |
8.490 |
12.200 |
|
Total Current
Liabilities |
626.259 |
690.800 |
506.700 |
|
|
|
|
|
|
Net Current
Assets |
1164.019 |
1047.538 |
1081.600 |
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
GRAND
TOTAL
|
5861.187 |
4476.095 |
3353.000 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover (including other income] |
5730.784 |
4993.864 |
5885.000 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1605.458 |
1486.583 |
1952.500 |
|
Provision for Taxation |
233.420 |
370.548 |
474.800 |
|
Profit/(Loss) After Tax |
1372.038 |
1116.035 |
1477.700 |
|
|
|
|
|
|
Total Exports |
1750.580 |
NA |
618.000 |
|
|
|
|
|
Total
Imports
|
NA |
NA |
341.300 |
|
|
|
|
|
Total
Expenditures
|
4125.326 |
3507.281 |
3932.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
23.94
|
22.35 |
25.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
28.01
|
29.77 |
33.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
44.21
|
48.54 |
70.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.35 |
0.59 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.12
|
0.17 |
0.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current
Liability) |
|
2.86
|
2.33 |
3.13 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 25th August,
1961 at Mumbai in Maharashtra having Company Registration Number 12098.
The company was founded in 1921 by Dr. V. B. Gandhi, a
leading economist and a Member of the Indian Parliament. In 1961, his son Mr.
Arvind Gandhi incorporated USV as a joint venture with US Vitamin and
Pharmaceutical Corporation, USA, a subsidiary of Revlon. When Revlon divested
its pharmaceutical business worldwide, in 1986, USV became an independent 100%
Indian company.
Subject is the only Indian Company that provides a
complete range of therapeutic solutions to the diabetic population in India.
The oral anti-diabetic segment has been further strengthened by the launch of
an insulin sensitizer –PIOZ (Pioglitazone).
It is currently ranked 3rd in the
cardiovascular segment. The successful launches in March 2001 of LIPICARD
(Fenofibrate – a cholesterol lowering drug) and CLOPIGREL (Clopidogrel – an
anti platelet agent) will strengthen this leadership position.
During the year, brands Derobin and Anovate were
acquired from Glaxo (India) Limited. Derobin ointment used in the treatment of
psoriasis, whereas Anovate ointment is used for treating piles. Both these
products will strengthen the company’s presence in the dermatological segment.
Subject is a leading health care company ranked 18th
in the Indian pharmaceutical industry, with leadership positions in the fast
growing areas of diabetes and cardiovascular diseases. A strong R&D focus
is a part of its corporate strategy with emphasis on Biotechnology. Its branded
generics and APIs are marketed globally and supported by a US FDA approved
manufacturing facility. Over the years The company had built an excellent
reputation in the 35 countries in which it operate. The company provide a
supportive and learning environment where personal growth is encouraged and
nurtured.
The company was founded in 1921 by Dr. V. B. Gandhi, a
leading economist and a member of the Indian Parliament. In 1961, he and his
son Arvind Gandhi incorporated USV as a joint venture with US Vitamin and
Pharmaceutical Corporation. USA, a subsidiary of Revlon. In 1986 Revlon
divested its pharmaceutical business worldwide. The company became an
independent company, USV.
Over the past 40 years the company had posted
uninterrupted and consistent growth, emerging today as the 18th
largest Pharma company in India by value and the 10th largest
company by volume. The company holds leadership positions in its chosen
segments were if competes successfully with large multi-nationals.
Retrospective
1927 American Products Company Limited founded by Dr. V. B.
Gandhi.
1950 USV & P Corporation, USA, products introduced in
India.
1962 Incorporation of USV Limited Commissioning of plant
and Manufacturing
1969 Timed release preparations launched.
1975 Forbes Street in Bombay re-named Dr. V. B. Gandhi
Marg’.
1976 Launch of Glynase- New oral hypoglycemic therapy drug.
1986 USV Limited becomes 100% Indian.
1988 R & D Labs recognised by the Government of India.
1989 Chiplun plant commissioned.
1996 US Process Patent granted for Glipizide.
1998 Molecular Medicine Research Laboratory inaugurated.
1999 Acquisition of Lyka Lab brands Angispan and Amlopine. Acquisition
of Neo Pharma Private Limited.
2000 Glipizide plant approved by US FDA.
Launch of Human, Porcine and Bovine Insulin.
Acquisition of Glaxo brands Anovate and
Deborin.
2002
Agreement with B Braun
for distribution of Quicktest.
A
Metformin plant inaugurated and approved by the US FDA, TGA, Australia and
other agencies.
2003
The new dosage facility
at Daman inaugurated.
Designed
to meed US and European requirements.
Merger of the Subsidiary :
Life on Paediatrics Limited, a wholly owned
subsidiary of the Company, has been progressing well in the paediatrics market
with a launch of a number of pharmaceutical specialties. Although Paediatrics
business was launched under a separate entity with a view to create a distinct
identity, it has been felt that combining the paediatrics business structures
with those of the business of the Company would lead to a number of synergies
in terms of marketing, distribution and sharing of common resources. Therefore,
the Board of Directors discussed and decided at their meeting held on 29th
April, 2002 to merge the Life on Paediatrics Limited with the Company by
applying for a legal merger with the approval of court. Accordingly, Lifeon
Paediatrics Limited has been merged with the Company in terms of the Scheme of
Amalgamation as approved by the Order of the Honorable Bombay High Court dated
5th September 2002. The paediatrics business of Life on is now being operated
as a separate and distinct division of Company.
Turnover, profits, dividend & reserves
Their financial performance during the year has been excellent. Sales
registered a growth of 36% from Rs. 3975.94 million to Rs. 5407.15 million
while the profit before interest and depreciation has grown by 66.32% from Rs.
1185.46 million to Rs. 1971.69 million. The Board of Directors have declared
and paid an interim dividend of Rs.5 per share during the year. The Directors
do not propose any further dividend. Thus, the total dividend for the year
amounted to Rs. 107.59 million and tax paid by Company on this dividend
amounted to Rs. 13.78 million. For the preceding year ended 31stMarch, 2003,
the dividend proposed by the Board of directors of Rs.5 per equity share, was
not approved by the shareholders at the Annual General Meeting (AGM) held on
10th July, 2003, and consequently, the provision relating thereto as well as to
the tax thereon, was reversed in the accounts for the current year:
National business
Their domestic business continued to show stable growth. National business grew
by 21.39 %, out performing the industry average of: 7.3% (IMS-ORG March 2004
MAT). Their focus has been to build long lasting brands, which are easily
associated with the product and at the same time provide high quality
affordable healthcare.
International business
International business continued to leverage on its strengths in the regulated
markets primarily US, EU and Japan. The contribution of international business
to total turnover has increased from 25% to 33%.Sales have increased by 79.33%
to Rs.1797.62 million. The growth in the international business is in APIs,
with Met form in being at the forefront of the growth. The future outlook is to
increase presence by scaling up production of other APIs like Glimepiride and
Pioglitazone. In respect of formulations they continue to focus on existing
markets and build market share.
Building partnerships that add value is their belief. They constantly seek to
establish partnerships that are complementary and which enhance existing
product lines.. USV has successfully entered into an Out-licensing agreement
with Green Cross Pharmaceutical Corp. of Korea for Met form in 500 mg and1000
mg sustained release tablets. Green Cross will be producing and selling the
same in Korea under their brand name. The sourcing of the API will be done
exclusively through USV after the launch of the product in Korea. This deal
establishes their capabilities in drug delivery and paves the way for many such
deals having synergistic benefits.
Their partnership with B. Braun has progressed a step further, whereby they
will be marketing their oral anti-diabetic brands in select South-East Asian
markets.
Manufacturing operations (World class facilities)
Their manufacturing facilities are being continuously upgraded to make the
operations most efficient and conform to the latest international standards. US
FDA has carried out an annual review of Lote API facility and approved the
same. Finnish authorities inspected their finished products plant at Daman and
granted an in principal approval for manufacture of Glimepiride tablets. Plans
are underway to get US FDA and UK MCA approvals as well. This would enable the
Company to move up the value chain in regulated markets internationally.
Plans are underway to set up a manufacturing facility in Maharashtra dedicated to
recombinant products like human insulin analogues, growth hormones and
cardiovascular segment products.
Website Details :
Subject is a leading health care company with three clear areas of focus: Branded Generics, Active Pharmaceutical Ingredients (marketed globally with a focus on USA, European Union and Japan) and Research and Development (with an emphasis on Biotechnology, Drug Delivery and Chemistry).
In India subject rank 18th in the
pharmaceutical industry with leadership positions in diabetes and
cardiovascular diseases. Its strategy is to introduce innovative specialized
products while retaining a focus on brand building. It also leverages its
market leadership through acquisitions, and In-licensing alliances. Subject has
a successful track record of long term associations based on dogged and focused
marketing.
Subject has established their presence in the
international market as the largest generic manufacturer of Met form in
worldwide. Subject Active Pharmaceutical Ingredients business focuses on
regulated markets; and their plants have been inspected and approved by global
agencies like MCA, MCC, US FDA and TGA (Australia). Subject adds value by
supporting its customers in their effort at being “early to market”, especially
by offering superior service and regulatory support. Subject offer a
pre-registered package for select products backed by supply of the API or the
finished product and they are finalizing tie ups for marketing products based
on it ANDA’s in USA.
In the area of research, they offer RDNA proteins and
peptides backed by validated bio-assays, clinical trials and intellectual
property rights. Subject look for alliances in areas of mutual interest
benefiting from developments in their laboratories, which are currently manned
by 150 scientists. 5% of sales revenue each year is invested in research and
subject currently hold 8 patents and have 20 submissions to their credit.
Subject drug delivery laboratory works on value added dosages. Recently subject
out licensed 1000 mg Slow Release Met form in to Green Cross Pharmaceutical
Corporation, Korea and negotiations for similar arrangement in other countries
are in process. A major expansion of their R&D facilities involving a new
building adjacent to the existing corporate headquarters is currently in the
planning stages.
They completed 2004 financial year in March
registering sales of Rs. 5,407 million (USD 125 million) and growth of 36%.
Subject has 2075 employees that have the opportunity to learn and grow in an
open, encouraging and team environment. They aim at being a reliable healthcare
partner to those they interact with whether customer, collaborator, in license
partner, doctor or patient.
Domestic Market
Subject is an ideal partner for marketing premium products in India. 43 years credible marketing experience, an excellent track record of building brands, extensive sales and distribution network and proven expertise in regulatory support provide a prospective collaborator the opportunity to establish premium products in India through USV without having to set up expensive infrastructure.
Asia, Africa, CIS & Other Regions
Subject Branded Generics are now marketed globally, through two independent business units, one, which is focused on India and the other, on international markets. The India business operation has customer coverage of over 130,000 physicians and is worked by a team of 1,300 medical representatives. The international business operation covers 18 countries in Asia, Africa, Middle East, CIS and Panama and is in the process of setting up operations in another 12 countries.
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 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 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
|