MIRA INFORM REPORT
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Report Date : |
23rd February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANTHA BIOTECHNICS LIMITED |
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Registered Office : |
Plot No. 822-A, Road No. 40, Jubilee Hills, Hyderabad – 500 033,
Andhra Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.03.1993 |
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Com. Reg. No.: |
01-15470 |
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CIN No.: [Company
Identification No.] |
U24110AP1993PTC015470 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS07760E |
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PAN No.: [Permanent
Account No.] |
AAECS6982Q |
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Legal Form : |
Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturing of Hepatitis B Vaccine, Alpha Interferon, Restriction
Enzymes, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
-- |
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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a relatively small company having satisfactory track. Directors
are reported as experienced and respectable businessmen. Trade relations are
fair. Business is active. Payments are however reported as usually correct
and as per commitments. The company can be considered for small business
dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. 822-A, Road No. 40, Jubilee Hills, Hyderabad – 500 033,
Andhra Pradesh, India |
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Tel. No.: |
91-40-23543010/ 23548507/ 266364225 |
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Fax No.: |
91-40-23541713 |
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E-Mail : |
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Website : |
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Corporate Office : |
8-2-334, Serene Chambers, 3rd Floor, Road No. 5,
Banjarahills, Hyderabad – 500 034, Andhra Pradesh |
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Factory 1 : |
PB No.4, Medchal – 501401, R. R. District, Andhra Pradesh, India |
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Tel. No.: |
91-418-2222922/2222693/2222694/2222695 |
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Fax No.: |
91-418-2222656 |
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Branches : |
Located at ·
G-1, Saikamala Nivas, Padmarao Nagar, Secunderabad – 500 003, Andhra
Pradesh Tel. 91-40-26211372 ·
3rd Floor, Serene Chambers Road No. 7, Banjara Hills, Hyderabad
– 500 034, Andhra Pradesh Tel. 91-40-26502866/26502868 ·
Flat No. 101, Gayatri (West), Srinagar Colony, Hyderabad – 500 034,
Andhara Pradesh Tel. 91-40-26570215 ·
203, Ridge Wood Residency (West), Maredpally, Secunderabad – 500
026, Andhra Pradesh Tel. 91-40-26211285 ·
202, Maithri Nivas, B. S. Maktha, Begumpet, Hyderabad – 500 016,
Andhra Pradesh Tel. 91-40-26502867 |
DIRECTORS
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Name : |
Mr. Khalil Ahmed |
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Designation : |
Executive Director |
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Address : |
Plot No. 387, Road No. 22, Jubilee Hills, Hyderabad – 500 033, Andhra
Pradesh, India |
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Date of Birth/Age : |
19.01.1958 |
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Date of Appointment : |
Initially appointed 21.02.1994 and revised w.e.f. 06.08.2004 |
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Name : |
Dr. Kodandarami Reddy T. |
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Designation : |
Director |
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Address : |
1002, Spring View Point, Cincinati, Ohio 45224, USA |
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Date of Appointment : |
15.10.1996 |
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Name : |
Mr. H E Sheikh Ghassan I Shaker |
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Designation : |
Director |
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Address : |
Flat No. 11, 17 Grossvenor Square, London WIX 9LD, UK |
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Date of Birth/Age : |
20.06.1937 |
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Date of Appointment : |
28.04.1998 |
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Name : |
Mr. Sabu M Kota |
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Designation : |
Director |
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Address : |
72, Wessan Terrace, North Boro Mass 01532, USA |
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Date of Birth/Age : |
02.05.1945 |
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Date of Appointment : |
30.09.2002 |
KEY EXECUTIVES
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Name : |
Mr. N Rajasekar |
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Designation : |
Vice President (Finance ) and Secretary |
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Address : |
105, Maitri Enclave, Raja Sham Karan Road, Ameerpet, Hyderabad – 500
016, Andhra Pradesh, India |
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Date of Birth/Age : |
14.08.1961 |
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Date of Appointment : |
23.04.2001 |
SHAREHOLDING
PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. K I Varaprasad Reddy |
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807000 |
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Mrs. K Vasantha |
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81000 |
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Mrs. K Shanthamma |
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102300 |
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Mr. K P Sharma |
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15000 |
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Mr. M S Sastry |
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15000 |
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SVAS Investments Private Limited |
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673500 |
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Mrs. N Sangeeta |
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180000 |
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Stock Holding Corporation of India Limited, A/c State Bank of India
Mutual Fund |
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343000 |
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HDFC Bank Limited, A/c State Bank of India Mutual Fund, Umbrella
Pharma Fund |
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3000 |
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Stock Holding Corporation of India Limited, A/c State Bank of India Mutual
Fund, Magnum Equity linked Savings Scheme 1995 |
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13500 |
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Stock Holding Corporation of India Limited, A/c State Bank of India
Mutual Fund, Magnum Global Fund 1994 |
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13500 |
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State Bank of India Capital Markets Limited, A/c Indian Magnum Fund N
V Mutual Fund |
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150000 |
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Morgan Stanley Mutual Fund, A/c Morgan Stanley Growth Fund |
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250000 |
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Mrs. K Sravanthi |
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53700 |
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Mrs. Janani K Krishna |
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10000 |
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Mr. Bedapudi Venkateswara Prasad |
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11000 |
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State Bank of India Mutual Fund, A/c Magnum Balanced Fund |
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60000 |
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Mr. Subu M Kota |
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802200 |
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Mr. Shankar N Planjery |
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811500 |
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Mr. Vijaya Sekhar T reddy |
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17400 |
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Dr. Kodandarami Reddy T |
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248750 |
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Dr. (Mrs.) Vimala A
Majeti |
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85200 |
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August Holding |
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375000 |
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Canam Investment Limited |
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25000 |
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Mr. Rajeev Tummuru |
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100000 |
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Ms. Prasanthi Tumurru |
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100000 |
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Mr. Ramesh C Tumurru |
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69750 |
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Koduru Sravanthi |
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37300 |
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Rass Investments Limited |
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1520400 |
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Mr. Bedapudi Prakash |
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39000 |
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Mr. Ramachandra Rao Nemani |
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50000 |
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Mr. Radhakisan Sohanlal Baheti |
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10000 |
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Mrs. Padma Radhakisan Baheti |
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10000 |
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United Overseas Investment Limited |
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6750000 |
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Sheikh Ghassan I Shaker |
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67000 |
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Morgan Stanley Investment Management Inc., A/c Morgan Stanley India
Investments Fund Inc. |
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500000 |
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Morgan Stanley Investment Management Inc., A/c Taj Investments Limited
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100000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Hepatitis B Vaccine, Alpha Interferon, Restriction
Enzymes, etc. |
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Products : |
·
Hepatitis B Vaccine ·
Diagnostic Kits |
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GENERAL
INFORMATION
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No. of Employees : |
Around 300 |
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Bankers : |
·
Export Import Bank of India (EXIM Bank) Centre One Building,
Floor No. 21, World Trade Centre Complex, Cuffe Parade, Mumbai – 400 005,
Maharashtra, India ·
Karnataka Bank ·
Indian Overseas Bank ·
State Bank of Hyderabad |
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Facilities : |
The Company enjoys mortgage facilities from Export Import Bank of
India dated 16.0.2005 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A V Reddy Chartered Accountants |
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Address : |
206, Srinilaya Estates, Ameerpet, Hyderabad – 500 016, Andhra Pradesh,
India |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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22,000,000 |
Equity Shares |
Rs. 10/- |
Rs. 220.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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14,650,720 |
Equity Shares |
Rs. 10/- |
Rs. 146.507 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
146.507 |
145.000 |
145.000 |
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2] Reserves & Surplus |
712.348 |
646.263 |
595.400 |
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NETWORTH |
858.855 |
791.263 |
740.400 |
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LOAN FUNDS |
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1] Secured Loans |
641.954 |
540.682 |
333.500 |
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2] Unsecured Loans |
87.358 |
84.702 |
81.1000 |
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TOTAL BORROWING |
729.312 |
625.384 |
414.600 |
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DEFERRED TAX LIABILITIES |
115.459 |
99.776 |
0.000 |
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TOTAL |
1703.626 |
1516.423 |
1155.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
689.684 |
418.293 |
434.400 |
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Capital work-in-progress |
139.362 |
257.340 |
204.000 |
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INVESTMENT |
303.078 |
263.805 |
171.900 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
207.326 |
191.140 |
222.500 |
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Sundry Debtors |
106.908 |
163.949 |
152.300 |
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Cash & Bank Balances |
45.619 |
126.298 |
32.800 |
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Loans & Advances |
307.383 |
118.566 |
136.600 |
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Total
Current Assets |
667.236 |
599.953 |
544.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
129.734 |
128.030 |
186.500 |
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Provisions |
44.662 |
30.351 |
13.100 |
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Total
Current Liabilities |
174.396 |
158.381 |
199.600 |
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Net Current Assets |
492.840 |
441.572 |
344.600 |
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Product Development Expenditure |
78.662 |
135.413 |
0.100 |
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TOTAL |
1703.626 |
1516.423 |
1155.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
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31.03.2004 |
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Sales Turnover |
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302.300 |
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Other Income |
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8.300 |
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Stock Adjustments |
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19.100 |
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Total Income |
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329.700 |
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Profit/(Loss) Before Tax |
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22.200 |
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Provision for Taxation |
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(4.300) |
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Profit/(Loss) After Tax |
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26.500 |
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Expenditures : |
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Other Expenditure |
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362.900 |
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Total Expenditure |
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362.900 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
--
|
-- |
8.03 |
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Net Profit Margin (PBT/Sales) |
(%) |
--
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-- |
6.73 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
--
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-- |
1.64 |
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Return on Investment (ROI) (PBT/Networth) |
|
--
|
-- |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.18
|
2.11 |
1.83 |
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Current Ratio (Current Asset/Current Liability) |
|
3.82
|
3.79 |
2.72 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was incorporated on 10.03.1993 at Hyderabad in Andhra Pradesh under the name and style of Shantha Biotechnics Private Limited having Company Registration Number 15470. Consequent to the decision taken by the Shareholders at he Extraordmary General Meeting held on 6th August 2004, Company's name has been changed and the Company has also become a Public Limited Company with effect from 6th August 2004. Now the name of Company is SHANTHA BIO-TECHNICS LIMITED.
The genesis of Shantha Biotechnics Ltd can be traced back to the initiatives of Dr. K I Varaprasad Reddy, the Founder and Managing Director. Dr. Varaprasad, an electronics engineer by profession, established the company in 1993 with the sole purpose of developing efficacious but cost effective vaccines and therapeutics that are within the reach of the common man.
The seeds of this ambitious venture were sown in Geneva at a conference on global programs for immunization. This is where Dr.Varaprasad first realized the pressing need for an affordable Hepatitis-B vaccine for India. At that point in time, the high cost of the imported vaccine rendered it out of reach for most segments of society.
Aware that the price of the vaccine had to be drastically reduced in order for the government of India to include it in the National Immunization Program, Dr. Varaprasad decided to develop the technology in-house rather than importing it at a higher cost. His early years in R&D had given him confidence in indian Scientific talent and he was convinced that given a conducive atmosphere we could put India on the map for Genetic Engineering.
The initial years were tough. Banks and financial institutions viewed the project skeptically and refused to fund the project. The project began modestly as an R&D outfit at the Osmania University under the industry-university interactive programme in 1993 and later at the Center for Cellular and Molecular Biology (CCMB) until an independent R&D facility was built.
The fledgling company received a big boost with the entry of H.E Yusuf Bin Alawi Abdullah, Foreign Minister of Sultanate of Oman, who invested money in his personal capacity along with other friends as co promoters in 1995. H.E also arranged for long term loans from Oman International bank at low rates of interest. The perseverance and hard work finally began to pay off. In 1997, Shantha developed India’s first r- DNA Hepatitis-B vaccine. And there has been no looking back ever since.
Shantha Biotechnics Limited (Shantha) has become a part of the Merieux Alliance group after MA acquired the majority shareholding in the company in November, 2006. Merieux Alliance is a France based global organization having presence in all elements of the healthcare chain: prevention, diagnostics, prognosis, treatment and clinical monitoring. The group’s turnover is over US$1.3 billion and has a workforce of more than 9000 people around the globe.
About Subsidiary
Shantha West Inc.
The reports and audited accounts of the subsidiary company along with the
statement pursuant to Section 212 of the Companies Act, 1956, are
annexed.
Shantha West Inc. based in San Diego, USA, is carrying out basic research and
development of fully human monocional antibodies for vancus cancers. The
targeted monoclonal antibodies are to cure non-small cell lung cancer,
pancreatic cancer, breast cancer, colon cancer and melanoma. The products are
being expressed iii Cho Cells at Gala, USA. The Company is also working on
MULTIAB technology with the combination of the monoclonal antibodies. The
products are expected to enter into pre clinical trials by end of year 2004.
Shantha Marine Biotechnologies Private
Limited (SMBPL)
The Company has entered into Memorandum of Compromise on 16th March 2004 with
the joint venture partner of SIVIBPL in connection with the affairs of SMBPL
and your company has agreed to compensate the subsidiary for its losses in
settlement of your Company's obligations and also divest its equity hoidirg in
SMBPL. Accordingly SMBPL is ceased to be a subsidiary company.
As Per Web:
Corporate Overview
A pioneer in the field of biotechnology, Shantha Biotechnics is the first Indian company to develop, manufacture and market a recombinant human healthcare product in India. They are committed to breaking new ground in modern biotechnology to address critical healthcare needs of the developing world.
Shantha is currently focusing its R&D efforts in the development of generic biologicals, novel therapeutic antibodies, proteins and vaccines. Shantha conducts exploratory research in the fields of Oncology, Infectious Diseases and Platform technologies.
SHANVAC- B is the first Indian Hepatitis-B vaccine to be pre-qualified by WHO, Geneva, for supplying to UN agencies globally. Today, Shantha caters to major international markets including Asia-Pacific, Africa, CIS and Latin America in addition to supra nations like UNICEF and PAHO.
To make cutting edge technologies available to the common man Shantha is constantly exploring the possibilities of partnerships to facilitate innovations in research and development.
A deep sense of commitment and a tradition of excellence have characterized Shantha’s journey thus far and have placed it in the forefront of exciting scientific ventures. However, there are still bigger oceans to be crossed and farther shores to be reached.
Shantha has also obtained WHO-Geneva Pre-qualification for its combination vaccine of DPT+ Hepatitis-B vaccine “ SHANTETRA, enabling supplies to UN Agencies.
Board of Directors
Mr.
Georges Hibon – Chairman
Dr. K.I. Varaprasad Reddy - Managing Director
Mr. Khalil Ahmed - Executive Director
Mr. Alain Merieux - Director
Mr. Philippe Sans - Director
Mr. Johannes Burlin - Director
Mr.
Abhey Yograj - Director
Mrs. Harsha Bangari - Director (Exim Bank Nominee)
Products
Shanvac-B (r-DNA Hepatitis
B Vaccine) Is India's first recombinant vaccine and is produced in the yeast
Pichia pastoris. Hepatitis B vaccine is used for the prevention of the deadly
liver infection Hepatitis B which can lead to liver failure or cancer.
Shanvac-B is India’s first WHO-Geneva pre-qualified Hepatitis-B vaccine
Press Releases
News Update as at 15.00 hrs (IST)
Corporate
Merieux picks up 60 pc stake in Shantha Biotecnics
NEW DELHI: French healthcare company Merieux
Alliance on Thursday said it has picked up about 60 per cent stake in the
Hyderabad-based bio-pharmaceutical firm Shantha Biotechnics Ltd to strengthen
its India presence.
"We have picked about 60 per cent stake
in Shantha Biotechnics. The stake will help us strengthen our presence within
the country, which has strong potential in the field of biology and significant
needs in public health," Ms Rekha Khanna, Managing Direc tor, Merieux
Alliance India, said.
Merieux bought the stake from Oman-based
financial firms, which had invested in Shantha a few years ago. However, she
refused to disclose the financial details of the deal.
The investment is part of the international
development strategy adopted by Merieux Alliance in Asia, particularly in
India. "This alliance is likely to favour synergies in terms of research
and clinical development between the group companies. Shantha B iotechnics will
also have access to the support provided by Merieux Alliances international
network," Mr Alain Merieux, Managing Director, Merieux Alliance, said in a
statement. - PTI
Merieux
picks up 60% in Shantha Biotecnics
PTI (Thrusday, November 09, 2006 02:10:55 PM)
NEW DELHI: French healthcare company Merieux Alliance on Thursday said it
has picked up about 60 per cent stake in Hyderabad-based bio-pharmaceutical
firm Shantha Biotechnics Ltd to strengthen its India presence.
"We have picked about 60 per cent stake in Shantha Biotechnics.
The stake will help us strengthen our presence within the country, which has
strong potential in the field of biology and significant needs in public
health," Merieux Alliance India Managing Director Rekha Khanna said.
Merieux bought the stake from Oman-based financial firms, which had
invested in Shantha a few years ago.
However, she refused to disclose the financial details of the deal.
The investment is part of the international development strategy
adopted by Merieux Alliance in Asia, particularly in India.
"This alliance is likely to favour synergies in terms of research
and clinical development between the group companies. Shantha Biotechnics will
also have access to the support provided by Merieux Alliances international
network," Merieux Alliance Managing Director Alain Merieux said in a statement.
Bankers Charges
Report as per Registry
Name of the Company : Shantha Biotechnics
Limited
Presented by : -- Mr. Khalil Ahmed, Executive Director
|
1. Date and
description of the instrument creating or evidencing the charge
|
Unattested deed
of hypothecation dated 29.03.2005 executed by Shantha Biotechnics Limited
(therein and hereinafter referred to as “the Borrower”) in favour of
Export-Import Bank of India (EXIM Bank) a certified true copy whereof is
attached hereto. |
|
2. Amount secured
by the charge /amount owing on security of the charge |
Loan of USD 1.28
millions, (including any converted rupee amount (s) consequent upon default,
in the case of foreign currency loan) together with interest, compound
interest, additional interest by way of liquidated damages (in case of
default), costs (legal costs on a full indemnity basis), charges, expenses
and all other monies payable by the borrower to Exim Bank under the Loan
Agreement dated 29.03.2005 made between the borrower and Exim Bank. |
|
3. Short
Particular of the property charged. If the property acquired is subject to
change date of acquisition of property should be
given
|
The whole of the
borrower’s movable fixed assets, both present and future, briefly described
in schedule III to the Deed of Hypothecation, including its movable plant and
machinery, equipment, appliances, furniture, vehicles, machinery spears and
stores, tools and accessories, whether or not installed. |
|
4. Gist of the terms
and conditions and extent and operation of the charge. |
a) The charge
created by the aforesaid Deed of Hypothecation shall operates as a continuing
security by way of a first charge for the due repayment by the borrower to
Exim Bank of the Loan of USD 1.28 millions (including any converted rupee
amount(s) consequent upon default in the case f foreign currency loan)
together with payment of interest, compound interest, additional interest by
way of liquidated damages (in case of default), costs (legal costs on a full
indemnity basis), charges, expenses, and all other monies payable by the
borrower to Exim Bank in terms of the said Loan Agreement. b) The said
charge shall rank in the order of priority set out in schedule IV to the Deed
of Hypothecation. |
|
5. Names, address
and description of the persons entitled to charge |
Export Import
Bank of India Centre One
Building, Floor No. 21, World Trade Center Complex, Cuffe Parade, Mumbai –
400 005, Maharashtra, India |
|
6. Date and brief
description of instrument modifying the charge |
N A |
|
7. Particular of modification specifying the terms and conditions or the
extent or operation of the charge in
which modification is made and
the details of modification |
N A |
Contact
Shantha Biotechnics Limited
India
3rd Floor,
Serene Chambers, Road No.7, Banjara Hills, Hyderabad - 500 034, Andhra Pradesh,
India
Phone: 91-40-23543010, 23548507, 23608843
Fax: 91-40-23548476
Email: info@shanthabiotech.com
USA
Dr. Srinivas Rao
208 Parkway Drive, Roslyn Heights, New York 11577, USA
Phone: 516 859 3010
Fax: 516 626 3032
Email: srao@shanthabiotech.com
Shantha West Inc
USA
11211 Sorrento Valley Road, Suite C, San Diego, CA 92121.
Tel: (858) 658-9450
Fax: (858) 658-9230
Email: shanthawest@shanthabiotech.com
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.86.69 |
|
Euro |
1 |
Rs.58.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
32 |
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 |
|
PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions