MIRA INFORM REPORT
|
Report Date : |
08.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
ZENITH COMPUTERS LIMITED |
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Registered Office : |
Plot
No. B-5, Electronic Sadan 1, MIDC, TTC Industrial Area, Mahape, Navi Mumbai –
400 709, Maharashtra, India. |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.05.1980 |
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Com. Reg. No.: |
11-22652 |
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CIN No.: [Company Identification No.] |
L72900MH1980PLC022652 |
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TAN No.: [Tax Deduction & Collection Account No.] |
MUMZ00991E |
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PAN No.: [Permanent Account No.] |
AAACZ0104F |
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Legal Form : |
Public
Limited Liability Company The
company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer,
installing and servicing a wide range of computer systems. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2500000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Although subject is an
established company, its’ performance remain subdued. Profit is insignificant. Payments are reported as slow. The company can be
considered good for normal business dealings at usual trade terms and conditions.
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LOCATIONS
|
Registered Office : |
Plot
No. B-5, Electronic Sadan 1, MIDC, TTC Industrial Area, Mahape, Navi Mumbai –
400 709, Maharashtra, India. |
|
Tel. No.: |
91-22-27610665
/ 28377300 |
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Fax No.: |
91-22-27610668
/ 28364859 |
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E-Mail : |
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Area : |
Leased -- 10000 sq.ft |
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Head Office : |
Unit
No. 5,6,7, 8 SDF Building No. 1, Electronic Sadan TTC Mahapte, Dist. Thane –
400 701 Maharashtra, India. |
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Tel. No.: |
91-22-2768
1312 / 6165 / 2761 4994 / 5281 / 0667 / 82 / 83 |
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Fax No.: |
91-22-2761
0668 |
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E-Mail : |
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Website : |
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Factory : |
Ø
P-31/39 and P-33/37,
Sancoale Industrial Estate, P.O. Zuari Nagar, Goa – 403 726, India Tel No. 91-832-2555346 / 2555826 Ø
A-71, TTC, MIDC, Thane
Belapur Road, Khairne, Navi Mumbai – 400 705, Maharashtra Ø
Cochin Special
Economic Zone, Plot No. 43, New SDF, 2nd Floor, F Block, Kakkanad,
Cochin – 682030, Kerala |
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Area : |
45000
sq.ft. -- Owned |
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Branches : |
Located at ˜
Zenith House, 29, MIDC
Central Road, Andheri (East), Mumbai – 400 093, Maharashtra Tel.
No.: 91-22-2837 7300 / 2836 6030 Fax
No.: 91-22-2836 4859 / 2837 7297 / 2836 0897 E-
Mail : channel@zenith-india.com Website
: http://www.zenith-india.com ˜
Ahmedabad, Gujarat Tel
No. 91-79-26560810 / 26462528 ˜
Bangalore, Karnataka Tel No. 91-80-22264999 / 305 / 6588 ˜
Chennai, Tamilnadu Tel. No. 91-44-24349661 / 24349323 ˜
Coimbatore Tel No. 91-422-2300155 / 2302118 ˜
Chandigarh Tel
No. 91-172-2615496 / 2605496 ˜
Goa Tel
No. 91-832-2555823 / 825 / 827 ˜
Kochi, Kerala Tel
No. 2350548 / 2371461 ˜
Kolkata, West Bengal Tel
No. 91-33-24753872 / 24765445 ˜
Lucknow, Uttar Pradesh Tel
No. 91-522-2328988 ˜
New Delhi Tel
No. 91-11-26387154 / 3702 / 9089 ˜
Pune, Maharashtra Tel
No. 91-11-26133827 / 26050690 / 91 ˜
Secunderabad, Andhra
Pradesh Tel
No. 91-40-27903256 / 2494 |
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Area : |
30000
sq.ft- Owned |
DIRECTORS
|
Name : |
Mr. Raj Kumar Saraf |
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Designation : |
Chairman & Managing
Director |
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Name : |
Mr. H. P. Ranina |
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Designation : |
Director |
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Name : |
Mr. B. H. Antia |
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Designation : |
Director |
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Name : |
Mr. B. K. Tibrewala |
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Designation : |
Director |
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Name : |
Mrs. Vijayrani Saraf |
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Designation : |
Director |
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Name : |
Mr.
Vijay R Mukhi |
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Designation : |
Director
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KEY EXECUTIVES
|
Name |
Mr.
Raj Kumar Saraf |
|
Designation |
Chairman
& Managing Director |
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Age |
58
years |
|
Qualification |
B.
Com., LL.B |
|
Date of Joining |
01.11.1987 |
|
Experience |
38
years |
|
Address |
Saraf House, 5th Floor, Opposite
Sukhsagar Juice Centre, Sandhurst Road, Chowpatty, Mumbai – 400 006 |
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|
Name |
Mr.
H. P. Ranina |
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Designation |
Director
|
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Age |
57
years |
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Qualification |
B.Com
(Hons), LL.B., FCA |
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Experience |
35
years |
|
Address |
“Commonwealth”, Flat No. 24, 6th
Floor, 181, Backbay Reclamation, Mumbai – 400 020 |
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|
Name |
Mr.
B. H. Antia |
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Designation |
Director
|
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Age |
69
years |
|
Qualification |
B.Sc.
(Hons), L.L.B. |
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Experience |
40
years |
|
Address |
Mulla & Mulla and Craigie Blunt & Caroe
51, M. G. Road, Fort, Mumbai – 400 023 |
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|
Name |
Mr.
B. K. Tibrewala |
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Designation |
Director
|
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Age |
69
years |
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Qualification |
M.Com.,
L.L.B. |
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Experience |
47
years |
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Address |
D/52/499,
Gandhi Nagar, 1st Floor, Bandra (East), Mumbai – 400 051 |
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|
Name |
Mrs.
Vijayrani Saraf |
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Designation |
Director
|
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Age |
52
years |
|
Qualification |
M.A.
(Economics) |
|
Experience |
32
years |
|
Address |
Saraf House, 5th Floor, Opposite
Sukhsagar Juice Centre, Sandhurst Road, Chowpatty, Mumbai – 400 006 |
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|
|
|
Name |
Mr.
K. Venkatachalam |
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Designation |
Director
|
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Age |
59
years |
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Qualification |
M.
Tech. (Electronics) |
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Experience |
33
years |
|
Address |
495 /18, 6th Main, Lakkasandra
Extension, Wilson Garden, Bangalore – 560 030, Karnataka |
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|
|
Name |
Mr.
K Vaidyanathan |
|
Designation |
(Sr.Vice
President-Finance & Company Secretary) |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
68,62,005 |
44.3257 |
|
Indian
Promoters |
Nil |
Nil |
|
Foreign
Promoters |
16,16,304 |
10.4408 |
|
Non-Promoters
Holding |
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|
|
Institutional
Investors |
|
|
|
Mutual
Funds and UTI |
6500 |
0.0420 |
|
Banks,
Financial Institutions, Insurance Companies(Central/State Govt. Institutions/
Non- Government Institutions) |
3100 |
0.0200 |
|
Flls |
3800 |
0.0245 |
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Others |
|
|
|
Private
Corporate Bodies |
1163603 |
7.5164 |
|
Clearing
Members (Shares in Transit) |
981448 |
6.3397 |
|
NRIs/OCBs/Foreign
Nationals |
4798648 |
30.9973 |
|
Indian
Public |
45432 |
0.2934 |
|
Total |
1,54,80,840 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
installing and servicing a wide range of computer systems. |
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Products : |
Product
Description Item Code No. (ITC Code) Computer Systems 847100 Computer Parts & Accessories 847300 Computer
Software 852400 |
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Brand Names : |
“Zenith”. |
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Exports to : |
Saudi
Arabia, Yemen, Dubai, Sudan, Maldives, Nepal, Iran and Lebanon |
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Imports from : |
Philippines,
Malaysia, USA, Hong Kong and China, Winchester hard disk drives (WDS) from
Thailand and Malaysia, CD-ROM Drives from Hong Kong and floppy disk drives
from Philippines and China |
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Terms : |
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Selling : |
L/C,
Cash or Credit (30 days) terms |
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Purchasing : |
L/C,
Cash or Credit (30 days) terms |
PRODUCTION STATUS
|
Particulars |
|
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Computer / Micro Processor
based systems and peripherals |
|
No Limits |
200000 |
125672 Nos. |
GENERAL INFORMATION
|
Customers : |
Wholesalers
, retailers, end users and Original Equipment Manufacturers |
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No. of Employees : |
Total
667 persons -- 250 persons in factory, 167 persons in office and 250 persons
in branch offices |
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Bankers : |
v
Indian Bank v
State Bank of India v
Federal Bank Ltd. v
Union Bank of India v
Canara Bank |
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Facilities : |
SECURED
LOANS From
Banks Rs. 461.823
millions Secured
by hypothecation of raw materials, finished goods process stock, stores,
spares and book debts. |
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Banking Relations : |
Satisfactory
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Auditors : |
C.
L. Khanna & Company Chartered Accountants,
Mumbai |
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Associates : |
Zenith Infotech Limited 29, Zenith House, MIDC, Central Road, Andheri
(East), Mumbai – 400 093 Line
of Business : Banking Software and
Software Development |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Unclassified shares |
Rs. 10 each |
Rs. 50.000 millions |
|
20000000 |
Equity shares |
Rs. 10 each |
Rs. 200.000 millions |
|
|
Total |
|
Rs. 250.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
Issued & Subscribed Capital |
|
|
|
15480840 |
Equity Shares |
Rs. 10 each |
Rs. 154.808 millions |
|
|
Paid-up Capital |
Rs. 10 each |
|
|
15480840 |
Equity Shares |
|
Rs. 154.808 millions |
|
Add : |
Forfeited Shares (44600
shares) |
|
Rs. 0.223 million |
|
Less : |
Calls in Arrears |
|
Rs. 0.031 million |
|
|
Total |
|
Rs. 155.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
155.000 |
155.000 |
155.000 |
|
|
3] Reserves & Surplus |
500.763 |
380.789 |
315.230 |
|
NETWORTH
|
655.763 |
535.789 |
470.230 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
461.823 |
554.211 |
337.736 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
461.823 |
554.211 |
337.736 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1117.586 |
1090.000 |
807.736 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
275.085 |
278.987 |
249.749 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
222.870
|
292.433
|
313.788 |
|
|
Sundry Debtors
|
683.243
|
748.613
|
289.448 |
|
|
Cash & Bank Balances
|
26.834
|
32.549
|
18.943 |
|
|
Loans & Advances
|
71.441
|
36.123
|
34.259 |
Total Current Assets
|
1004.388
|
1109.718
|
656.438 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
119.549
|
277.191
|
95.621 |
|
|
Provisions
|
42.338
|
21.514
|
2.600 |
Total Current Liabilities
|
161.887
|
298.705
|
98.221 |
|
Net Current
Assets
|
842.501
|
811.013
|
558.217 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1117.586 |
1090.000 |
807.966 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3194.526 |
2831.126 |
2594.867 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
162.367 |
51.139 |
33.663 |
Provision for Taxation
|
16.082 |
4.010 |
2.600 |
Profit/(Loss) After Tax
|
146.285 |
47.129 |
31.063 |
|
|
|
|
|
Export Value
|
204.829 |
119.575 |
1388.551 |
|
|
|
|
|
Import Value
|
1660.199 |
1288.661 |
60.591 |
|
|
|
|
|
Total Expenditure
|
3032.159 |
2779.987 |
2561.204 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.06.2006 (1ST Quarter) |
|
Sales Turnover |
|
|
679.000 |
|
Other Income |
|
|
0.00 |
|
Total Income |
|
|
679.000 |
|
Total Expenditure |
|
|
600.700 |
|
Operating Profit |
|
|
78.300 |
|
Interest |
|
|
17.300 |
|
Gross Profit |
|
|
61.000 |
|
Depreciation |
|
|
3.400 |
|
Tax |
|
|
7.200 |
|
Reported PAT |
|
|
50.400 |
200606 Quarter
1 - :
The above
results were approved and taken on record by the Board of Directors on
24.07.2006. 2. The company operates in a single segment only. 3. Investors
Complaints: Pending at the beginning of the quarter (01.04.2006) 5 Received
& Disposed during the quarter 43 Pending at the end of the quarter
(30.06.2006) NIL
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.85 |
0.89 |
0.82 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
1.43 |
1.37 |
1.49 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
9.73 |
9.15 |
10.32 |
|
Inventory |
12.41 |
9.42 |
9.31 |
|
Debtors |
4.50 |
5.50 |
9.69 |
|
Interest Cover Ratio |
3.21 |
2.29 |
2.12 |
|
Operating Profit Margin(%) |
7.73 |
3.56 |
3.03 |
|
Profit Before Interest And Tax
Margin(%) |
7.38 |
3.17 |
2.23 |
|
Cash Profit Margin(%) |
4.93 |
2.04 |
1.89 |
|
Adjusted Net Profit Margin(%) |
4.58 |
1.65 |
1.09 |
|
Return On Capital Employed(%) |
21.36 |
9.55 |
7.73 |
|
Return On Net Worth(%) |
24.56 |
9.36 |
6.84 |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.85.00/- |
|
Low |
Rs.82.25/- |
LOCAL AGENCY FURTHER INFORMATION
Incorporated in May 80, Zenith Computers (ZCL) was promoted by chairman and managing director Raj Saraf, who has interests in other companies including Zenith Control Systems, Zenith Technologies, Brisk Controls, etc.
ZCL came out with a Rs 175.800 Millions public issue of 390.700 Millions equity
shares (premium: Rs 35) to set up a 100% EOU in Goa to manufacture PC-XT/ATs,
LAN cards, notebook computers and second unit at MIDC, Bombay (cost : Rs 250
millions). The company manufactures computer systems including PC-ATs, local
area networks (LAN), wide area networks (WAN) and computer peripherals. It has
marketing tie-ups with Texas Instruments, US, a Fortune-500 company, for
notebook computers and laser printers; with EICON, Canada, for open system
communication; with Retix, US, for E-mail; and with Interline, US, for
networking. ZCL is the distributor for these companies in India.
It also has entered into a tie-up with 3 Com US, for exclusive distribution and
installation of the latter's products in India. It has also joined hands with
IBM and Cabletron, both of the US, for distributing their products in India.
ZCL has a tie-up with Country-Wide for retailing their PCs in Madras. Currently
rated number Three in India, ZCL pioneered the concept of offering PCs at low
cost for homes, in instalment of Rs 790 per month payable over 3 years. ZCL is
the OEM for Oracle and Novell, US, in India.
It recently entered into a tie-up with Acer, US, for distributing its PCs. Some
of ZCL's clients include Hindustan Lever, Citibank, Air India, Lipton, Ministry
of Defence, Godrej, etc. It also exports its products to the US Russia, Sweden,
Taiwan, the UK, etc.
In 1999-2000, Zenith Computers has launched the Zenith Xtreme personal
computer, which offers endto-end gaming and entertainment experience through
the latest 3D graphics engine, multi-channel 3D audio engine and 3D surround
sound home theatre nspeaker systems, besides exciting software.
During 2000-01 the company discontinued its business at its branch office at
Singapore due to high costs of administration vis-a-vis demand for the
Company's products and the process of closure of the branch office is under
way.
REVIEW OF
OPERATIONS
During the year, the Company's turnover registered a growth in excess of
Sovereign GDP growth as compared to the previous year and the profit increased
substantially, which is the best in the industry as compared to previous year.
The demand for the products and services in the Information Technology sector
is poised for an exponential growth with the year under report, registering 20%
growth in the terms of volumes and prices. The product sales and profitability
in the current market conditions are expected to grow exponentially. At the
same time, the implementation of the strategic cost management initiatives has
resulted in cutting down the costs substantially.
The Company's Note Books comprise essentially of three brands styled as
'Executive', 'Starategist' and 'Presidio' to cater to the varying needs/
applications of diversed customers in the education and SMB segment, for
Corporates and Senior Executives. The Company's sales during the year included
the sale of 27,850 Note Books ; the company is exporting PC's and Note Books to
other countries and the Export mades during the year were of the value of Rs.
204.829 Millions as compared to Rs. 119.575 Millions in the previous year, that
is, a 71.30% growth rate the Director's expects this trend to continue in the
coming years.
Fixed
Assets :
Ø
Land (Leasehold) & Buildings
Ø
Plant & Machinery
Ø
Computers Systems
Ø
Electrical Fittings & Installation
Ø
Factory & Office Equipment
Ø
Furniture & Fixtures
Ø
Vehicles
Ø
Computers On Rental Basis
It recently entered into a
tie-up with Acer, USA for distributing its PCs.
Zenith Products Line for Corporates:
˜
Zenith Desktop Range
˜
Zenith One-up Server
˜
Zenith One-up Notebook
˜
Zenith Workstation
The company exports desktops
and laptops servers.
It imports central processing
units (CPU) – integrated circuits.
It is in trade terms with :
˜
Datamarg Systems Private
Limited
˜
S. B. Components Private
Limited
˜
Federation of Indian
Exporters Organisation, India
˜
Electronics &
Software Export Promotion Council, India
˜
Intel Semiconductors
(From Intel Group)
Mr.
Vincent Wong
Tel
No. 65-62131796
Fax
No. 65-62131027
E
Mail : vincent.k.wong@intel.com
˜
Western Digital
Corporation
20511,
Lake Forest Drive, Lake Forest, California 92630
Mr.
Miachel C. Bradley (WDT – Director Corp Credit)
Tel
No. 1-949-672-7417
Fax
No. 1-949-672-5417
E
Mail : michael.c.bradely@wdc.com
˜
Samsung Corporation
Mr.
R. S. Sahu – Credit Controller (IT Division)
Tel
No. 5151 1234 (Extn. 1316)
Mobile
No. 9811175101
˜
Panasonic Industrial
Asia Pte Limited
Mr.
P. K. Gupta – General Manager – Accounts
Mobile
No. 98111354450
E
Mail : pgupta@lgezbuy.com
Zenith launches sequel, revolutionary Infotainer 2....
The
Complete Digital Home entertainment PC will now enable consumers to engage in
gaming, listening to music and surfing the net at the same time
Mumbai,
10.01.2005: Zenith Computers, the leading Indian Home PC manufacturer, today
launched its sequel to the successful Infotainer – the Zenith Infotainer 2. The
Zenith Infotainer 2 will be a true convergence of information and entertainment
in a digital entertainment home PC. After selling over 50,000 units of its
first digital entertainment PC, the Infotainer, the I2 will be launched with
its partners – Intel and nVIDIA.
Zenith
understands that the Indian consumer is now looking to do more with his PC and
that every home PC has more users. The need was felt to upgrade technology and
innovate in the functionality, therefore the I2 was launched. The I2 has the
all the features of its predecessor [TV, Internet, PC etc] with high-end
graphics and audio provided by Intel’s 915G chipset.
The Zenith Infotainer 2 also includes advanced gaming features
with an additional graphic card from nVIDIA. nVIDIA is the world’s #1 graphic
card manufacturer and the I2 will have their high-end card for gaming
enthusiasts, as well as an option for budding gamers.
Zenith Computers is touring the length and breadth
of the country with seven “Infotainer Demo Vans” along with the support of its
dealers to extensively cover over 350 cities. The Zenith Van is visiting residential
areas, shopping areas, schools and high traffic area to enable people to have a
'hands on experience' of this digital entertainer.
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered against
subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 44.47 |
|
UK
Pound |
1 |
Rs.86.40 |
|
Euro |
1 |
Rs.57.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
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 |