MIRA
INFORM REPORT
|
Report Date : |
23.12.2006 |
IDENTIFICATION
DETAILS
|
Name : |
INDO
FARM TRACTORS & MOTORS LIMITED |
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Registered Office : |
SCO
859, N. A. C. Kalka Road, Manimajra, Chandigarh – 160101 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.02.1995 |
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Com. Reg. No.: |
53-15132 |
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CIN No.: [Company
Identification No.] |
U29219CH1994PLC015132 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLI10174D |
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PAN No.: [Permanent
Account No.] |
AAACW1982A |
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Legal Form : |
Closely
held public limited liability company |
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Line of Business : |
Manufacturers
of Agricultural Tractors. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
1750000 |
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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 company having fine track. Trade relations are
fair. Financial position is
good. Payments are correct and as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
SCO
859, Nac Kalka Road, Manimajra, Chandigarh – 160101, India |
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Tel. No.: |
91-172-2736901
[8 Lines]
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Fax No.: |
91-172-2736974/2734913 |
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E-Mail : |
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Website : |
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Factory
1 : |
Export
Promotion Industrial Park Phase
– II, Baddi, District Solan, Himachal Pradesh |
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Tel.
No.: |
91-1795-274241
[8 Lines] |
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Fax
No.: |
91-1795-274308-309 |
DIRECTORS
|
Name : |
Mr. R.
S. Khadwalia |
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Designation : |
Chairman
cum Managing Director |
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Address : |
H No.
334, Sector 10, Panchkula, Haryana |
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Date of Birth/Age : |
31.10.1960 |
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Date of Appointment : |
09.03.1999 |
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Name : |
Ms.
Sunita Saini |
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Designation : |
Director
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Address : |
H No.
334, Sector 10, Panchkula, Haryana |
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Date of Birth/Age : |
09.06.1969 |
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Date of Appointment : |
04.10.1994 |
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Name : |
Mr. S.
P. Mittal |
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Designation : |
Director
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Address : |
H No.
334, Sector 10, Panchkula, Haryana |
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Date of Appointment : |
04.10.1994 |
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Name : |
Mr.
Yogesh Chander Aggarwal |
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Designation : |
Director
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Address : |
H. No.
838, Sector -2, Panchkula – 134109, Haryana |
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Date of Birth/Age : |
01.11.1947 |
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PAN No. : |
AAXPA0185D |
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Date of Appointment : |
30.06.2006 |
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Name : |
Mr.
Raghbir Singh |
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Designation : |
Director
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Address : |
H. No.
289, Sector – 4, Panchkula – 134114, Haryana |
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Date of Birth/Age : |
12.06.1937 |
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PAN No. : |
AMDPS4620D |
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Date of Appointment : |
30.06.2006 |
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Previous Employment : |
Mount
Shivalik Industries Limited – Director CIN
No. : L15531RJ1993PLC007168 |
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Name : |
Mr.
Mewa Singh Turan |
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Designation : |
Director
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Address : |
Village
Kaul Khera, P O Popran, The. Assandh, Karnal – 132039, Haryana |
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Date of Birth/Age : |
15.04.1957 |
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PAN No. : |
AAJPT5333L |
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Date of Appointment : |
30.06.2006 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
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Mr.
Amar Singh |
|
100000 |
|
B. N.
Automobile Private Limited |
|
239500 |
|
Mr.
Balbir Singh |
|
203900 |
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Mr.
Baljit Singh |
|
54900 |
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Mr.
Brahma Nand |
|
34700 |
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Mr.
Chaman Lal |
|
223000 |
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Mr.
Chander Gupt Hooda |
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21000 |
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Mr.
Dass Kumar Saini |
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111100 |
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Ms.
Ganga Bishan |
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73300 |
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Mr.
Hans Raj |
|
87400 |
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Indo
German Pneumatics Limited |
|
45900 |
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Mr.
Jai Bhagwan |
|
96700 |
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Ms.
Mahindru Devi |
|
42700 |
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Mr.
Mam Chand |
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105000 |
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Mr. O.
P. Siani |
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243150 |
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Mr.
Pardeep Kumar |
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43300 |
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Mr. R.
S. Khadwalia |
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437450 |
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Mr.
Raj Kumar |
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24300 |
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Mr.
Rajesh Saini |
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57500 |
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Mr.
Ram Kishan |
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197000 |
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Mr.
RAmeshver Dass |
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137300 |
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Mr.
Sarjit Singh |
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50300 |
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Mr.
Sat Parkash Mittal |
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63890 |
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Sidhartha
Automobiles |
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205000 |
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Mr.
Subhash Chand |
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102000 |
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Mr.
Sudesh Rani |
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49400 |
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Ms.
Sunita Saini |
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520360 |
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Mr.
Suraj Bhan |
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46100 |
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Mr.
Surinder singh |
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152100 |
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Mr.
Surjit Singh |
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16500 |
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Mr.
Sushil Kumar |
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22000 |
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Welcut
Marketing Private Limited |
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461000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Agricultural Tractors. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
Canara
Bank SCO
255-256, Sector 44 – C, Chandigarh |
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Banking Relations : |
Satisfactory
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Auditors : |
Ravinder
K. Sharma & Company Chartered
Accoutants, #
76-R, Industrial Area – B, Bhagwan Chowk, Ludhiana, India E-mail
: raviks2001@yahoo.com Mr. Khushroo
Panthaky Chartered
Accountant, 312
and 313 Ahura Centre 82, Mahakali Caves Road, Andheri [East], Mumbai –
400093, Maharashtra, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 100.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
9067900 |
Equity
Shares |
Rs. 10/- each |
Rs. 90.679 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
|
|
|
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1] Share Capital |
|
90.679 |
90.679 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
394.549 |
207.995 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
|
485.228 |
298.674 |
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LOAN FUNDS |
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1] Secured Loans |
|
244.479 |
160.891 |
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2] Unsecured Loans |
|
7.321 |
0.000 |
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TOTAL BORROWING |
|
251.800 |
160.891 |
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DEFERRED TAX LIABILITIES |
|
15.047 |
10.066 |
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TOTAL |
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752.075 |
469.631 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
243.805 |
209.342 |
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Capital work-in-progress |
|
39.410 |
9.057 |
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INVESTMENT |
|
0.035 |
0.035 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
333.852 |
250.728 |
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Sundry Debtors |
|
367.479 |
194.959 |
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Cash & Bank Balances |
|
34.852 |
16.263 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
10.868 |
3.998 |
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Total Current Assets |
|
747.051 |
465.948 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
|
255.778 |
196.297 |
|
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Provisions |
|
23.550 |
18.454 |
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Total Current Liabilities |
|
279.328 |
214.751 |
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Net Current Assets |
|
467.723 |
251.197 |
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MISCELLANEOUS EXPENSES |
|
1.102 |
0.000 |
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TOTAL |
|
752.075 |
469.631 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
1219.678 |
929.612 |
|
|
|
|
|
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Profit/(Loss)
Before Tax |
|
233.296 |
177.866 |
|
Provision
for Taxation |
|
26.062 |
16.796 |
|
Profit/(Loss)
After Tax |
|
207.234 |
161.070 |
|
|
|
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Export
Value |
|
1.149 |
N.A. |
|
|
|
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Total
Expenditure |
|
989.788 |
753.455 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
16.99 |
17.32 |
|
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|
Net
Profit Margin (PBT/Sales) |
(%) |
|
19.12 |
19.13 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
23.54 |
26.33 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.48 |
0.59 |
|
|
|
|
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|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.09 |
1.25 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
2.67 |
2.16 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
PERFORMANCE :
The
company has continued to maintain the path of progress during the year under
report. The company has sold 4262
Tractors as against 3390 tractors in the previous year. Sales and operating income amounted to Rs.
1223.100 millions as against Rs. 931.300 millions in the previous year registering
a growth of 31.33%. profit before
interest and depreciation has also grown from rs. 196.700 millions in the
previous year to Rs. 270.500 millions registering an increase of 37.51%. profit after tax stood at Rs. 207.200
millions as against Rs. 161.100 millions recording an increase of 28.61%. The company is carrying on consistent cost
cutting exercise, which has resulted in improved margins.
During
the year the company has launched 60 HP tractor to strengthen the company’s
position in the higher HP segment. Thus
the company is now manufacturing all models in the range of 30 HP to 60 HP.
Keeping
in view favourable policies of Government of India towards agricultural sector
and liberal credit facilities being offered to farmers, the tractor industry is
expected to sustain growth in the coming years.
DIVIDEND
In view
of encouraging performance, the directors are pleased to recommend a dividend
of 20% [P.Y. 15%] for the year ended 31st March, 2006. the said dividend together with tax on
distributed profit will absorb a sum of Rs. 20.680 millions [P. Y. Rs. 15.510
millions]
EXPANSION
The
company is undertaking substantial expansion plans in the near future
increasing its installed capacity from 6000 tractors to 12000 tractors p.a.
besides setting up in-house manufacturing facilities for critical tractor
components.
|
Name of the company |
INDO FARM EQUIPMENT LIMITED |
|
Presented By |
Mr. R. S. Khadwalia, Managing Director, Indo Farm Equipment
Limited |
|
1) Date and description of instrument creating the change |
Mortgage deed dt. 07.12.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 89.280 millions Details of the amount OCC Rs. 52.000 millions + Adhoc Limit Rs. 10.000 millions = Rs. 62.000 millions FLC Rs. 10.500 millions + Adhoc Limit Rs. 5.000 millions = Rs. 15.500 millions Term Loan = Rs. 11.700 millions Total Amount = Rs. 89.200 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 |
Mortgage of Industrial Plot Nos. 26, 27, 28, 29, 30, 69, 70, 71, 72, 73, 82, 83, 89, 90, 91, 92, 93, 94, 95, 96, 98 and 99 measuring 1, 10, 775 sq. mtrs. situated at Export Promotion Industrial Park, Phase – II, Baddi, District Solan, Himachal Pradesh State |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
1. OCC Rs. 52.000 millions payable on demand, margin 25% on stocks and 40% on Book Debts, Interest @ 14.75% with various sub limits. 2. Adhoc OCC Rs. 10.000 millions payable on demand, interest @ 15.75% 3. FLC [DA] Rs. 10.500 millions and Adhoc FLC Rs. 5.000 millions, period of LC 3 months, usance 70 days, margin 25% 4. Term Loan Rs. 11.700 millions, payable in 12 quarterly instalments, commencing from 01.06.2001, interest payable as and when due, margin 35.96%, interest 16%. EXTENT and Operation of Charge 100%. |
|
Name of the company |
INDO FARM EQUIPMENT LIMITED |
|
Presented By |
Mr. R. S. Khadwalia, Managing Director, Indo Farm Equipment
Limited |
|
1) Date and description of instrument creating the change |
Mortgage deed dt. 07.12.2002 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 89.280 millions Details of the amount OCC Rs. 52.000 millions + Adhoc Limit Rs. 10.000 millions = Rs. 62.000 millions FLC Rs. 10.500 millions + Adhoc Limit Rs. 5.000 millions = Rs. 15.500 millions Term Loan = Rs. 11.700 millions Total Amount = Rs. 89.200 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 |
Mortgage of Industrial Plot Nos. 26, 27, 28, 29, 30, 69, 70, 71, 72, 73, 82, 83, 89, 90, 91, 92, 93, 94, 95, 96, 98 and 99 measuring 1, 10, 775 sq. mtrs. situated at Export Promotion Industrial Park, Phase – II, Baddi, District Solan, Himachal Pradesh State |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
1. OCC Rs. 52.000 millions payable on demand, margin 25% on stocks and 40% on Book Debts, Interest @ 14.75% with various sub limits. 2. Adhoc OCC Rs. 10.000 millions payable on demand, interest @ 15.75% 3. FLC [DA] Rs. 10.500 millions and Adhoc FLC Rs. 5.000 millions, period of LC 3 months, usance 70 days, margin 25% 4. Term Loan Rs. 11.700 millions, payable in 12 quarterly instalments, commencing from 01.06.2001, interest payable as and when due, margin 35.96%, interest 16%. EXTENT and Operation of Charge 100%. |
Form 8
Particular for creation or modification of charges
|
Corporation identity number or foreign company registrations number of the company |
U29219CH1994PLC015132 |
|
Name of the company |
INDOFARM
TRACTORS AND MOTORS LIMITED |
|
Address |
SCO
859, N. A. C. Kalka Road, Manimajra, Chandigarh – 160101 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Immovable property, book debts, movable property and others If others, only Equitable mortgage of land and building |
|
Particular of the charge holder |
Canara Bank Sector 44 – C, Chandigarh – 160047 E-mail : san1993@rediffmail.com |
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Nature or description of the instrument creating charge |
Supplemental common hypothecation agreement |
|
Date of the instrument creating charge |
26.09.2006 |
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Amount Secure by the charge |
Rs. 355.000 millions |
|
Brief of the principal terms and conditions and extent and operation of the charge |
Rate of Interest : 10.50% Terms of Repayment : Repayable on demand Margin : Margin 25% on stocks 40% on book debts Extent of Operation : 100% |
|
Date of instrument modifying the charge |
22.01.2001 |
|
Particulars of the Property charged |
EMT of factory land and building 104-105, Phase – I, Industrial Estate, Baddi measuring 2627 sq. mtrs. Valued Rs. 16.176 millions. EMT of lease hold rights of industrial plot measuring 110775 sq. mtrs located at EPP, Phase – II, Industrial Estate, Baddi Valued Rs. 153.300 millions |
|
Description of the instrument creating or evidencing the charge |
Deposit of title deed |
|
Short particulars of the property charged |
EMT of factory land and building 104-105, Phase – I, Industrial Estate, Baddi measuring 2627 sq. mtrs. Valued Rs. 16.176 millions. EMT of lease hold rights of industrial plot measuring 110775 sq. mtrs located at EPP, Phase – II, Industrial Estate, Baddi Valued Rs. 153.300 millions |
|
Date of latest modification prior to the present modification |
29.03.2006 |
|
Particulars of the present modification |
Overall limit increased from Rs. 315 millions to Rs. 355 millions bulc Rs. 90 millions Term Loan – Rs. 40.000 millions Term Loan – II Rs. 65 millions ILC/FLC Rs. 20 millions |
Mission
To deliver a high quality, multi-featured
fuel-efficient and world-class performance tractor at an economical cost.
Philosophy
"Chase quality, quantity will chase
you"
Quality consciousness percolates down from the top management to the floor
level workers at Indo Farm. Indo Farm relies on quality assurance as its
guiding philosophy.
Taking forward a vision to make technology reach every Indian farmer at
an affordable price, they set out to manufacture high quality tractors. The
endeavour to lay the foundations for this initiative started with a study of
the international markets so that they had world class offerings as a benchmark
for them. The search culminated in a collaboration with the globally reputed
name in tractor engines – Ursus Diesel Company Limited., Poland. With the most
modern technology available to them, they have developed the expertise in
manufacturing and delivering High-Quality tractors for the Indian farmer.
They would also like to whole heartedly thank the Government of Himachal
Pradesh, for giving them opportunity and incentives to facilitate the
establishment of their manufacturing unit in its industrial heartland, Baddi.
Today, Indo – Farm boasts a modern manufacturing facility with an
unmatched infrastructure, dynamic work force, marketers, engineers and
technicians. It is poised to take on the challenges and is geared up to deliver
world-class tractors to every farmer and help make their dreams come true.
With the unflinching confidence and support reposed in them by their
business associates, they shall offer the best in the industry today and truly
inspire the future in farming.
Managing director
MOTIVATING
For the future in farming
The growth of ITML is credited to its committed and versatile workforce
and their efforts. The Company appreciates and recognizes their valuable
contributions to its growth. To further galvanise this core strength the
company keeps undertaking regular on-the-job training and role enhancement
programmes.
The management has also introduced a unique scheme of taking suggestions
from the employees to encourage their involvement at every level of production.
Monthly meetings with workers help in gaining insights into different ways of
improving the production in various areas. The management proactively meets the
concerns and issues being faced by workers and to nurture a mutual and
harmonious work environment. This has been instrumental in optimizing the
commitment of the workforce towards the company.
ENGINEERING
For the future in farming
At ITML, every tractor manufactured is designed keeping in view the
requirements of farmers as well as those who are using tractor for other
applications like haulage and transportation. Keeping this in mind, Indo Farm
has joined hands with URSUS Diesel Company Limited (Warsaw, Poland) to bring in
completely assembled engines in March 2000.
By March 2003, the company completely indigenized the production of
engine components, manufacturing and assembly line process. Taking forward
these capabilities, the company has completed a full circle, and today boasts
of exporting engine components back to Poland, beginning this year 2006.
The highlights of their state-of-art tractors are:
Fuel efficiency and low maintenance cost
Revolutionary Rotary Pumps
High Haulage capacity and back-up torque
Oil immersed brakes, power steering, dry air cleaner and high capacity
hydraulic lifts
Suitability for trailer tipping operation.
Adherence to 100% Minimum Performance Standards (MPS) set by the
Ministry of agriculture and Rural Development
PLANNING
For the future in farming
Indo-Farm Tractors & Motors Limited has a manufacturing strategy which
involves thorough implementation of appropriate levels of technology and
automation. This aids in making the manufacturing process remain profitable at
various production levels.
ITML has consolidated the manufacturing of tractors at Baddi, leading to
optimisation in capacity, technology and local costs. To further reduce
manufacturing costs, efforts are being made to streamline manufacturing
process, product designs, adding advanced technology, enhancing environmental
management systems and supply management & logistics and compensation
incentives.
With implementation of strategic plans as these, ITML is poised to set
new benchmarks in quality, innovation and dependability.
INNOVATING
For the future in farming
Indo-Farm Tractors & Motors Limited has a manufacturing strategy which
involves thorough implementation of appropriate levels of technology and
automation. This aids in making the manufacturing process remain profitable at
various production levels.
ITML has consolidated the manufacturing of tractors at Baddi, leading to
optimisation in capacity, technology and local costs. To further reduce
manufacturing costs, efforts are being made to streamline manufacturing
process, product designs, adding advanced technology, enhancing environmental
management systems and supply management & logistics and compensation
incentives.
With implementation of strategic plans as these, ITML is poised to set
new benchmarks in quality, innovation and dependability.
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.44.23 |
|
UK
Pound |
1 |
Rs.86.91 |
|
Euro |
1 |
Rs.58.26 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|