MIRA
INFORM REPORT
|
Report Date : |
08.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
VYAPAR INDUSTRIES LIMITED |
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Registered Office : |
145, S.V Road, Khar (West), Mumbai-400052,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.04.1983 |
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Com. Reg. No.: |
11-29875 |
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CIN No.: [Company Identification No.] |
U65990MH1983PLC029875 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMV09032C |
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PAN No.: [Permanent Account No.] |
AAACB8643H |
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Legal Form : |
A public limited liability company. The company’s shares are listed on the Stock Exchange. |
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Line of Business : |
Manufacturer and Exporter of Yarn and Provider of Computer
Software. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine
track. Trade relations are fair. Financial position is satisfactory. Payments
are usually correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
145, S.V Road, Khar (West), Mumbai-400052,
Maharashtra, India |
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Tel. No.: |
91-22-56989111/56987013/56987014 |
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Fax No.: |
91-22-56987010 |
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E-Mail : |
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Website : |
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Factory : |
MIDC, Plot no. V-38, Taloja Indistrial
Zone, Navi Mumbai, Maharashtra. Unit no. 181, Plot no.261, Surat
Special Economic Zone, Sachin, Surat - 394230 Plot No. 159, Surat Special
Economic Zone, Sachin, Surat - 394230 134, Ranchodnagar Soc. Behind Tara Vidhyalay,
80ft. Road, Bhathena, Surat |
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Retail Shop : |
Siddhi Vinayaka Viwara, Shop no.3, S.J. Marg, Sunmill Compound, Lower
Parel (West), Mumbai-13 Shop no.745, Rabindra Co-operative
Housing Society Ltd. Lady Jamshedji Road, Mahim (West) Mumbai-400016 |
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Branches : |
Yaasin
Park. Ground Floor, Satranjiwad, Zampa Bazar, Begumpura, Surat (Gujrat) Tel
No. : 91-261-2982224 Mobile
No.:
91-9824796027 Fax
No.: 91-261-3982224 D
58/33, Krishi Export Plaza, Sigra, Varanasi (U.P) -221010 No.4, 13th Cross, Cubbonpet, Bangalore-
560 002 |
DIRECTORS
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Name : |
Mr. Abbas A Rassai |
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Designation : |
Chairman |
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Name : |
Mr. Hussain A Rassai |
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Designation : |
Executive Director |
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Name : |
Ms. Sakina A. Rassai |
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Designation : |
Executive Director |
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Name : |
Mr. Ramesh Lalwaney |
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Designation : |
Director |
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Name : |
Mr. M. Bharmal |
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Designation : |
Director |
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Name : |
Mr. Parvez Master |
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Designation : |
Director |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
2407968 |
39.34 % |
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Financial
instructions, Banks, Mutual Funds etc. |
167384 |
2.74 % |
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Private
Corporate Bodies |
1185152 |
19.37 % |
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Indian
Public |
907745 |
14.83 % |
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NRI/OCB's |
1428720 |
23.34 % |
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Shares
in Transit |
23031 |
0.38 % |
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Total |
6,12,00,000 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Yarn and Provider of Computer
Software. |
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Products : |
Yarn |
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Exports to : |
Far East, Middle East, Europe and US |
GENERAL
INFORMATION
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Customers : |
Ø
Yibin Grace Company Limited Ø
Xinxiang Chemical Fibre and Company Limited Ø
Vicunha Textiles Ø
Zlatex Group Limited Ø
Vyapar.com and Industries Limited |
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No. of Employees : |
70 |
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Bankers : |
Ø
HDFC Bank Limited Ø
The Vysya Bank Limited Ø
Standard Chartered Bank Ø
Syndicate Bank |
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Banking Relations : |
-- |
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Auditors : |
Kantawala and Company Chartered Accountant Mumbai, Maharashtra, India
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Subsidiary : |
Hindupur Vyapar Apparel Park Limited (HVAP), Andhra
Pradesh |
CAPITAL
STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12000000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6120000 |
Equity Shares |
Rs. 10/- each |
Rs. 61.200 Millions |
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FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE SHEET
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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 |
61.200 |
61.2000 |
12.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
219.802 |
61.921 |
2.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
281.002 |
123.121 |
14.400 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.102 |
0.121 |
0.000 |
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TOTAL |
281.104 |
123.242 |
14.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net
Block] |
12.790 |
9.385 |
2.800 |
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Capital
work-in-progress |
0.000 |
0.914 |
0.100 |
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INVESTMENT |
0.499 |
0.675 |
18.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS
& ADVANCES |
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Inventories |
145.203
|
76.799 |
12.200 |
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Sundry Debtors |
191.796
|
23.665 |
7.000 |
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Cash & Bank
Balances |
2.028
|
2.508 |
14.600 |
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Other Current Assets |
0.345
|
0.000 |
0.000 |
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Loans & Advances |
8.316
|
28.601 |
25.700 |
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Total Current Assets |
347.688
|
131.573 |
59.500 |
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Less :
CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
75.574
|
12.098 |
64.800 |
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Provisions |
5.557
|
7.207 |
1.800 |
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Total Current Liabilities |
81.131
|
19.305 |
66.600 |
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Net
Current Assets |
266.557
|
112.268 |
[7.100] |
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MISCELLANEOUS
EXPENSES |
1.258 |
0.000 |
0.000 |
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TOTAL |
281.104 |
123.242 |
14.400 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
792.704 |
379.845 |
76.600 |
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Profit/(Loss) Before Tax |
160.272 |
66.263 |
3.300 |
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Provision for Taxation |
1.676 |
2.102 |
1.000 |
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Profit/(Loss) After Tax |
158.596 |
64.161 |
2.300 |
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Export Value |
600.150 |
234.024 |
NA |
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Import Value |
528.688 |
265.823 |
NA |
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Total Expenditure |
632.432 |
313.582 |
73.300 |
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
|
318.200 |
193.100 |
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Other
Income |
|
0.000 |
0.100 |
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Total
Income |
|
318.200 |
193.200 |
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Total
Expenditure |
|
270.400 |
170.800 |
|
Operating
Profit |
|
47.800 |
22.400 |
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Interest |
|
0.000 |
0.000 |
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Gross
Profit |
|
47.800 |
22.400 |
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Depreciation |
|
0.200 |
0.200 |
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Tax |
|
0.700 |
0.100 |
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Reported
PAT |
|
46.900 |
22.100 |
200606 Quarter 1 –
EPS is Basic and Diluted Status of Investor Complaints for the
quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter
Nil Complaints Received during the quarter Nil Complaints disposed off during
the quarter Nil Complaints unresolved at the end of the quarter Nil 1.
Extraordinary Expenses include balances written off of Loan & advances
which are irrevocable. 2. Figures for the previous year have been regrouped
wherever necessary. 3. The above financial results were approved and taken on
record by the Board of Directors at its meeting held on July 25, 2006.
200609 Quarter 2 –
Expenditure Includes (Increase) / Decrease in trade Rs (7.969)
million Stock Loss by Food Rs (37.689) million Cost of Material Consumed Rs
202.552 million Manufacturing, Administrative, Selling & Other Overheads Rs
(0.438) million Loss by Flood Rs 14.289 million Tax Includes Provision for Current
Tax Rs 0.110 million EPS is Basic and Diluted Status of Investor Complaints for
the quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 01 Complaints disposed off
during the quarter 01 Complaints unresolved at the end of the quarter Nil 1.
Figures for the previous period has been regrouped wherever necessary. 2. The
capital employed of the respective segments is worked out after considering
operating assets & Liabilities that are directly attributable to segments
or allocated to the segments on reasonable basis. 3. The company is organised
into two main business segments namely: Textile & Toy products. The
Ancilary segment includes Crystal and Miscellaneous products. 4. The domestic
division sufferred an abnormal loss of stock on account of flood at Surat,
hence no provision for tax is made as there is a loss. Deferred tax assets if
any would be considered at the year end. 5. The above unaudited Financial
Results were reviewed by the Audit Committee, approved and taken on record by
the Board of Directors in its meeting held on October 31, 2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
4.76 |
2.22 |
1.04 |
|
TURNOVER RATIOS |
|
|
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Fixed Assets |
58.67 |
47.24 |
34.59 |
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Inventory |
6.42 |
6.95 |
9.21 |
|
Debtors |
6.62 |
20.22 |
4.00 |
|
Interest Cover Ratio |
535.33 |
166.75 |
25.00 |
|
Operating Profit Margin (%) |
22.63 |
21.72 |
12.03 |
|
Profit Before Interest and Tax Margin (%) |
22.53 |
21.56 |
11.72 |
|
Cash Profit Margin (%) |
22.35 |
20.91 |
8.44 |
|
Adjusted Net Profit Margin (%) |
22.25 |
20.75 |
8.13 |
|
Return on Capital Employed (%) |
79.72 |
97.02 |
56.18 |
|
Return on Net Worth (%) |
78.50 |
93.38 |
38.95 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.168.90/- |
|
Low |
Rs.154.00/- |
LOCAL
AGENCY FURTHER INFORMATION
Fixed
Assets
Leasehold Land
Building
Machinery
Air Condition & Office Equipments
Furniture & Fixture
Motor Car
Computer & Printer
History
Subject was incorporated on 27th April, 1983 at Mumbai
in Maharashtra having Company Registration Number 11-29875.
Subject was incorporated with the name Bhagwan Investments and
Trades Limited changed to the Vyapar Holdings Limited and a fresh certificate
of incorporation dated 28th August, 200s2 was obtained from the
Registrar of Companies, Maharashtra, incorporating the new name.
Subsequently the name of the company was further changed from
Vyapar Holdings Limited to Vyapar Industries Limited ands a fresh Certificate
of Incorporation dated 11th July, 2003 has been obtained from the
Registrar of companies, Maharashtra, incorporating the new name.
The registered office of the company has been changed from Todi
Estate, Sunmill Compound, Lower Parel, Mumbai-400013 to the present address.
Operations
During
the year under review the sales turnover registered a major jump from Rs.
309.401 Millions to Rs. 712.882 Millions thereby registering a growth of 230 %.
This was mainly due to WTO benefits, the removal of quotas and the Company's
diversification into the Balloon trading business. The Company's products are
very well accepted due to the ISO certification, quality improvement and timely
delivery policy. The results of the Company for the year under review bear a
witness to the effort of the Board in an environment of healthy competition.
The company has concentrated on its goals of consolidating and strengthening
its marketing network, delivering quality products and cutting cost wherever
possible. All these factors resulted in the Company posting a higher post tax
profit as compared to the last year. The Profit after tax for the year was Rs.
158.595 Millions as compared to Rs. 64.161 Millions in the previous year.
During
the year, the company expanded its project activities with formation of a
subsidiary M/s Hindupur Vyapar Apparel Park Ltd. (HVAP) in Andhra Pradesh which
will concentrate on setting a Textile Apparel Park in Hindupur, Andhra Pradesh.
The company has also acquired land in Hindupur Dist. Ananthapur (Andhra
Pradesh) for this Innovative Scheme of Integrated Textile Cum Apparel Park in
Public-Private Partnership with the Ministry of Textiles Government of India
project, to be implemented by the subsidiary HVAP.
The
decision to set up a Textile Apparel Park comes in line with the overall
economic environment in the country which continues to remain buoyant. This is
equally true for the infrastructure and real estate sectors. The realisation
that impetus to the infrastructure sector, including of course real estate, an
important component of this vital sector, can catalyse economic development in
the country in an all pervasive manner could not have come at a better time.
The buoyancy in the real estate can be seen across the length and breadth of
the country.
The
promulgation of the SEZ Act has induced developers and industrial houses to
establish SEZ's across industries and regions. The Board of Approval has
approved approximately 140 such proposals. Implementation of these projects
will provide a further boost to the real estate sector in particular and the
economy in general.
Various
organization development initiatives were undertaken during the year. These are
expected to help create a robust organization based on strong values, uniform
and systematic business processes and people empowerment. The company will
shortly be undertaking major marketing initiatives to create a differentiated
brand identity which will provide customers the requisite value and comfort
that they seek and which they have come to be very profoundly associated with
the 'Vyapar' brand.
The
directors are hopeful of better results for the company in the current year.
Subsidiaries
The
company on December 20, 2005 incorporated a subsidiary M/s Hindupur Vyapar
Apparel Park Ltd. (HVAP) in Andhra Pradesh for setting up a Textile Apparel
Park in Hindupur, Andhra Pradesh.
Future
Prospect/Business Plans Of The Company
The
company currently imports the yarn from China, Russia, Brazil, and Germany. It
also buys yarn from the local market from companies like Indian Rayon and
Century Rayon & exports it to various countries in Europe North America,
North Africa, South East Asia & the Middle East.
The
company may adopt one or more processes before it is being sold. The company
also sells the goods in wholesale Market to a chain of wholesalers who buys it
from them and ultimately sells it on a retail basis. The margin on wholesale is
relatively thinner compared to margins in retail sale. The margin in retails
trade is as high as 20 to 25%. Considering the huge retail market and high profit
margins and the past experience of the management in retail trade the company
has entered into the foray of retail trade. The management originally had long
experience in retail trade and now intends to consolidate and grow their
existing business by supplying it directly to the consumer. This will remove
the middleman cost which would enhance the profit margin by 20 to 25%. To start
the retail business the company has started setting up godowns and retail shops
at all centers over India where there is good demand for the company's
products, though most of the processing would be outsourced however certain
specialized processing for lubrication & rewinding would be done in house.
The
company has already started three unit / godowns in Mumbai, Surat and Varanasi.
The
result of the units is already seen in the form of higher sales. Thus the
company is very optimistic that given its marketing expertise of the past they
will be able to achieve much higher sales, profits and enhance the shareholders
wealth.
The
scope of selling in the local markets catering to export oriented & Export
Processing Zone unit is tremendous due to the opening of the textile export
quotas in the beginning of 2005.
Again
the local textile catering to the domestic market in India is very vibrant
keeping in mind the local population as the consumption of local thread &
yarn depends on the total quantity of people in that country and the need for
the textile products.
As per website
House of Vyapar - Serves manufacturing industries consuming
Embroidery, Yarns, Threads, Fabrics and other accessories.
One of the largest Manufacturers and Exporters of Quality Viscose Rayon
Filament Yarn (Twisted & Dyed.), polyester and other yarns.
Exporters of products in Far East, Middle East, Europe, and the U.S.
Markets.
Hi-tech business practices
State of the art setup to meet demanding global
standards
Driven by minds and hands matured with years of
professional experience
Highly cost effective packages
Ability to respond faster and honour strict deadlines
Ability to respond to greater challenges
Business Overview
Vyapar Industries specializes in embroidery threads, sewing threads and other
yarns. It also has an impressive array of tailoring accessories meant
specifically for the export market. At
the National level Vyapar import/export Yarn and other
stock & sell the same under its brandname.
The company's core business is
to manufacture twisted and dyed viscose rayon filament yarn as well as all
other yarns. Their technical processes call for twisting, doubling, bleaching,
lubricating, dyeing and rewinding of yarns.
Product
Rayon embroidery threads
These are made out of Viscose Rayon filament yarn. Vyapar
rayon threads incorporate the use of most hybrid raw materials. Highly
fine-tuned to meet today's hi-speed embroidery equipment & strict
production deadlines. Physically these threads are uncommonly silky, lustrous
& exceptionally strong as well as smooth running. Continuous innovations of
manufacturing strategies have made Vyapar threads almost break free.
Special features include:
- High tensile
strength
- Polyester
embroidery threads
- Knot free
- Consistency of
denier: eliminates tension problems
- Consistency of
dye lots: minimizes matching problems
- Length/Size can
be as per customers specification in case of large order
- Three different
weights: select the right thread for any job
- A rainbow of
over 800 spectacular shades available as solid shaded and multicolours
Polyester
embroidery threads:
Made from specially developed raw materials Polyester
embroidery threads better known as VYAPAR's polo is virtually free of looping,
puckering and all threads breaks. Suitable for any and every textile
application VYAPAR polo is the ideal thread for embroidery on uniforms, safety
garments and commercial linens
Features include:
- Superior
strength for fewer thread breaks & reduced down time
- Low elongation
eliminates looping & puckering for hours of worry- free embroidery
- Colorfast to
chlorine bleach & soda; ideal for embroidery on items which are subject
to harsh industrial laundering
- Colorfast to
stone wash process
- Length/Size can
be as per customers specification in case of large order
- Available in
over 360 spectacular shades.
- Silky luster
- Economically
priced to fit even the most conservative budget
Viscose
rayon filament yarn:
Made out of cotton linters/ wood pulp it is basically
a kind of regenerated cellulose fiber obtained after, processing involving
viscose preparation spinning and regenerating. As a crucial element for fashion
apparel it has got immense industrial appeal in the areas of weaving, knitting
& thread making.
Vyapar Deals with all deniers from 75D to 600D
Polyester
filament yarn:
Made out of POY (Partially Oriented Yarn) polyester
filament yarn has its regular application in the making of Polyester fabrics.
It is also proven to be useful for the weaving and knitting industries.
Vyapar deals with all main deniers 75,100 & 150 in case of trilobal
polyester yarn
Pure
silk yarn:
100% Mulberry Silk filature (Raw Silk) & Silk
fabrics. Vyapar Industries does major out sourcing of silk yarn & fabric
from China, right from the yarn & loom stage. After processing it to
perfection they are sold to the manufacturers of scarves stoles, tiles &
cushion carves.
Nylon
filament yarn:
Apart from twin weaving & knitting of fabric,
Nylon filament yarn has got wide applications in the manufacturing of fishing
nets. Vyapar imports deniers form Germany, Taiwan & Malaysia for some
select customers.
Spun
polyester and core spun polyester threads:
Made from prime quality raw materials in alliance
factories, with installed vertical production facilities from spinning yarn to
finished sewing thread, they cover spinning, winding & dyeing to finished
cones.
Miscellaneous
products;
Miscellaneous products like Lighters, Balloons etc.
are imported under the Vyapar brand & there after sold in the local &
export market after necessary repacking & printing.
Shade Card for :-
500 mts, 1000 mts, 5000 mts
2000 mts, 19 cms tubes
1000 mts, 5000 mts
It is in trade terms with :-
Ø
Balaji Yarn Trading Company
Ø
Remchandra Art Silks Yarn
Ø
Devakaran Soni
Ø
Emqube Consulting
Ø
B. M. Zaveri
Ø
Ray Industries and Tech Limited
Ø
Deepak Thread Works
Ø
J.P. and Company
Ø
Esoofi Kader Khokhawala
Ø
Bakir J Sanwala
Ø
Mustufa Djanerawalas
Ø
Mohammed I. Chatpat
Ø
Yunus Najmi
Ø
Zlatex Group Limited
Ø
N.K. Contractor
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.44.47 |
|
UK Pound |
1 |
Rs.86.40 |
|
Euro |
1 |
Rs.57.99 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|