MIRA
INFORM REPORT
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Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
M AND M AUTO INDUSTRIES LIMITED |
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Formerly Known As : |
VARUN AUTO AND ALLIED INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
1/3 KM Stone, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02.12.1994 |
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Com. Reg. No.: |
05-32462 |
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CIN No.: [Company
Identification No.] |
U34101HR1994PLC032462 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKM01833G |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers, Importers and Exporters of Parts and Accessories for
Motor Vehicles and their Engines. |
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 350000 |
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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 and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
1/3 KM Stone, |
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Tel. No.: |
91-124-4030224/ 5030224 |
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Fax No.: |
91-124-4030229/ 5030229/ 5030227 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Manoj Singhal |
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Designation : |
Managing Director |
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Address : |
1-1721, |
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Date of Birth/Age : |
05.11.1955 |
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Date of Appointment : |
02.12.1994 |
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Name : |
Mrs. Malti Syngle |
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Designation : |
Director |
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Address : |
1-1721, |
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Date of Birth/Age : |
29.05.1922 |
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Date of Appointment : |
15.09.2000 |
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Name : |
Mr. Mahesh Munjal |
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Designation : |
Director |
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Address : |
B-35, Barewal Awana, Behind Magnet Resort, Off Ferozepur Road, New
Octroi Post, Ludhiana-141012, Punjab |
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Date of Birth/Age : |
28.02.1954 |
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Date of Appointment : |
13.04.2002 |
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Name : |
Mr. P A S Rao |
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Designation : |
Director |
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Address : |
12 D, MIG DDA Flats, SaraiJulena, New Delhi-110025 |
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Date of Birth/Age : |
20.12.1933 |
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Date of Appointment : |
02.12.1994 |
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Name : |
Mr. Dhiraj Dhar Gupta |
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Designation : |
Director |
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Address : |
Padam Niwas, 1, |
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Date of Birth/Age : |
09.07.1950 |
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Date of Appointment : |
01.03.2003 |
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Name : |
Mr. Rattan Lal Jajoo |
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Designation : |
Director |
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Name : |
Mr. Mohinder Kumar Jajoo |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Anil Tyagi |
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Designation : |
Company Secretary |
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Address : |
811, Sector 10A, Gurgaon-122001, Haryana |
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Date of Birth/Age : |
30.06.1971 |
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Date of Appointment : |
01.07.2003 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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Mr. Manoj Singhal |
148285 |
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Mrs. Malti Syngle |
21540 |
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Mr. Opinder Singh |
475 |
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MNS Global Finance Limited |
181350 |
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Mrs. Renuka Munjal |
100 |
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Mr. Mahesh C Munjal |
100 |
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Mr. Dhiraj D Gupta |
10000 |
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Mrs. Chitra Gupta |
5000 |
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Mrs. Ratika Jain |
100 |
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Mrs. Man Mohini Rastogi |
100 |
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Mrs. Ruchi Rastogi |
100 |
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Total |
367150 |
As on 31.03.2006
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Names of Shareholders |
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Percentage of
Holding |
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Bodies corporate |
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49.96 |
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Directors or their relatives |
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49.83 |
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Other top 50 shareholders |
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0.21 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Importers and Exporters of Parts and Accessories for
Motor Vehicles and their Engines. |
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Products : |
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Steel Springs v
Spokes v
Manufacturing of Auto Parts v
Manufacturing of Springs for shockers and
Circlips |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Steel Springs |
MT |
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17000 |
4744.365 |
GENERAL INFORMATION
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Suppliers : |
v
Sterling Abrasives Limited v
Baweja Packaging |
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Customers : |
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Hero Honda Motors Limited v
Gabriel India Limited v
Suzuki Motor Corporation v
Faiveley Transport India Limited v
Majestic Auto Limited v
Ucal Fuel Systems Limited v
Munjal Showa Limited v
Indian Railways v
Rico Auto Industries Limited v
UZ Daewoo Auto Company v
FCC Rico Limited v
Ferper Springs Srl. v
Endurance Systems India Limited v
Bosch Rexroth DSI Sas, France |
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No. of Employees : |
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Bankers : |
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State Bank of v
ABN Amro Bank N.V., |
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Financial Institutions : |
Hero Honda Finlease Limited, 34, Community Centre Basant Lokvasant
Lok, Vasan Vihar, New Delhi-110057, India |
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Facilities : |
Secured Loans : (Rs. In
millions)
Unsecured Loans
:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Vinod Sahni & Associates, Chartered Accountants |
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Address : |
P-70, Basement, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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800000 |
Equity Shares |
Rs.100/- each |
Rs.80.000 millions |
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200000 |
Preference Shares |
Rs.100/- each |
Rs.20.000 millions |
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Total |
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Rs.100.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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375427 |
Equity Shares |
Rs.100/-
each |
Rs.37.543
millions |
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 |
37.543 |
36.715 |
35.215 |
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2] Share Application Money |
7.400 |
2.150 |
6.100 |
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3] Reserves & Surplus |
42.994 |
33.569 |
22.366 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
87.937 |
72.434 |
63.681 |
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LOAN FUNDS |
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1] Secured Loans |
136.855 |
129.361 |
92.729 |
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2] Unsecured Loans |
12.181 |
12.733 |
9.846 |
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TOTAL BORROWING |
149.036 |
142.094 |
102.575 |
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DEFERRED TAX LIABILITIES |
14.776 |
16.216 |
14.596 |
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TOTAL |
251.749 |
230.744 |
180.852 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
194.198 |
158.504 |
112.859 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
40.046
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37.254 |
34.550 |
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Sundry Debtors |
45.984
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52.716 |
52.347 |
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Cash & Bank Balances |
4.434
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2.818 |
3.742 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
18.761
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9.811 |
9.052 |
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Total
Current Assets |
109.225
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102.599 |
99.691 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
40.550
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23.668 |
29.153 |
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Provisions |
11.718
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7.212 |
3.309 |
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Total
Current Liabilities |
52.268
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30.880 |
32.462 |
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Net Current Assets |
56.957
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71.719 |
67.229 |
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MISCELLANEOUS EXPENSES |
0.517 |
0.521 |
0.764 |
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PREOPERATIVE EXPENSES |
0.077 |
0.000 |
0.000 |
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TOTAL |
251.749 |
230.744 |
180.852 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
374.879 |
370.106 |
324.377 |
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Other Income |
2.317 |
4.949 |
0.795 |
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Total Income |
377.196 |
375.055 |
325.172 |
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Profit/(Loss) Before Tax |
14.928 |
14.419 |
13.021 |
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Provision for Taxation |
0.000 |
5.451 |
2.941 |
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Profit/(Loss) After Tax |
14.928 |
8.968 |
10.080 |
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Imports : |
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Raw Materials |
NA |
0.219 |
NA |
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Capital Goods |
NA |
11.486 |
NA |
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Others |
NA |
1.218 |
NA |
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Total Imports |
NA |
12.923 |
NA |
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Expenditures : |
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Administrative Expenses |
NA |
21.893 |
17.523 |
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Raw Material Consumed |
156.113 |
289.335 |
248.795 |
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Consumption of stores and spares parts |
8.223 |
NA |
NA |
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Increase/(Decrease) in Finished Goods |
(0.513) |
NA |
NA |
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Salaries, Wages, Bonus, etc. |
19.054 |
19.459 |
16.698 |
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Managerial Remuneration |
30.000 |
NA |
NA |
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Payment to Auditors |
0.088 |
NA |
NA |
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Interest |
9.632 |
NA |
NA |
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Insurance Expenses |
3.519 |
NA |
NA |
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Power & Fuel |
6.746 |
NA |
NA |
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Depreciation & Amortization |
13.338 |
NA |
NA |
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Other Expenditure |
116.068 |
17.559 |
516.189 |
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Total Expenditure |
362.268 |
348.246 |
301.615 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.96
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2.39 |
3.10 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.96
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3.84 |
4.00 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.92
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5.52 |
6.13 |
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Return on Investment (ROI) (PBT/Networth) |
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0.17
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0.20 |
0.20 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.29
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2.39 |
2.12 |
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Current Ratio (Current Asset/Current Liability) |
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2.09
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3.32 |
3.07 |
LOCAL AGENCY FURTHER INFORMATION
Form 8 Particular for
creation or modification of charges
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Corporation identity number or foreign company registrations number of the company |
U34101HR1994PLC032462 |
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Name of the company |
M AND M AUTO INDUSTRIES LIMITED |
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Address |
1/3 KM Stone, |
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This Form is for |
Modification of charge |
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Type of Charges |
Immovable property Book debts Movable property |
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Particular of the charge holder |
State Bank of |
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Nature or description of the instrument creating charge |
Arrangement letter dated 23.03.2007, Form C-1 agreement of loan for
overall limits, form C-2 agreement of hypothecation of goods and assets, form
C-5 letter regarding grant of individual limits within the overall limit |
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Date of the instrument creating charge |
24.03.2007 |
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Amount Secure by the charge |
Rs.235.100 millions |
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Brief of the principal terms and conditions and extent and operation of the charge |
Rate of interest For working capital – 0.75% above SBAR (SB-1) present effective rate
13.00% p.a. for term loan and corporate loan – SBAR present effective rate
12.25% p.a. and for SLCTL 1% above SBAR present effective rate 13.25% p.a.
interest to all loan accounts are changeable at monthly intervals/ rests. Terms of repayment As per agreement Margin Raw materials – 20% Stock in process – 30, Finished goods – 20, Domestic receivables (cover period 90 days) : fro customers Hero
Honda, Yamah and Munjal Showa – 20% For other customers – 30% Receivables : Export (cover period 120 days ) – 30% Letter of credit/ Bank Guarantee – 20% Extent and operation of the charge Limit sanctioned as under : Fund based limit Rs.145.100 millions Non fund base : Rs.50.000 millions SLC credit limit : Rs.20.000 millions SLC TL : Rs.20.000 millions Total limit Rs.235.100 millions Equitable mortgage of 1/3 Km. stone Khandsa road, Gurgaon by deposit
of title deeds in respect of company’s immovable property situated at Village
Khandsa, Tehsil and District Gurgaon at Khata No.570/713, Khsra
No.1371/602-603/3/0-17, and Khewat No.392, Khata No.618, Khasra
No.1370/602-603/2. |
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Modification charge Charge identification number of the charge to be modified |
80029896 |
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Particulars of the Property charged |
First charge on entire current assets present and future including raw
materials, semi finished goods and finished goods, including goods in
transit, book debts and other current assets of the company and first charge
on all the fixed assets presented future including EM of company’s factory
land and building, equitable mortgage by deposit of title deeds in respect of
company’s immovable property land and building situated at 1/3, Km. Stone
Khndsa Road, Gurgaon, Haryana. |
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Name of the company |
M AND M AUTO INDUSTRIES LIMITED |
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Presented By |
Mr. Manoj Singhal, Director |
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1) Date and description of instrument creating the change |
Home loan agreement dated 30.05.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.12.057 millions |
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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 |
First charge on company’s property at 0035, Block -65, Espace, Nirvane Country, Gurgaon, Haryana |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Loan of Rs.12.057 millions repayable in 240 installments each of Rs.0.935 millions at 7% p.a. floating rate loan |
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5) Name and Address and description of the person entitled to the charge. |
ABN Amro Bank N.V., |
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6) Date and brief description of instrument modifying the charge |
N.A. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
N.A. |
Fixed Assets :
v
Land
v
Refrigerator
v
Furniture and fixture
v
Jigs fixture and other
v
Crate and Bins
v
Electrical Installation
v
Electrical Fittings
v
Testing Equipments
v
Computer Systems
v
Air Conditioner
v
Desert and Water Cooler
v
Fans
v
Fire Equipments
v
Trucks
v
Cars
v
Motor Cycles and Scooters
v
Cycles
v
Mopeo
v
Typewriter
v
Building
v
Plant and Machinery
v
Mobile instrument
v
Miscellaneous assets
Contingent
Liabilities :
(Rs.
In millions)
|
Contingent liabilities
not provided for : |
2004-05 |
2003-04 |
|
Bank guarantee for sales tax |
3.766 |
7.473 |
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Guarantee against letter of credit |
1.281 |
Nil |
Website Details :
INTRODUCTION
v
Subject was established in 1991
v
Precision metallic coil springs manufacturing
company
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Added product synergies with tubular & sheet
metal pressed components
v
Start up manufacturing capacity of 645 MT. to
present level of
Further upgradation in progress
v
Plant covered area 35,000 Sq.ft.- Over all area
45,000 Sq.ft..
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Direct employment 330
v
Initial turnover in 1991 of US$ 0.9 million to US$
8.3 million in 2007. Continuing to climb at a healthy rate
v
Supplies to world class OEMs and renowned brands
v
Prestigious international system certifications for
design & manufacturing of metallic coil springs ISO-9001-2000 &
ISO/TS-16949-2002
They continue their quest for quality-technology and human skills
upgradation
MANAGEMENT
The Company is professionally managed by a Board of
Directors, who are eminent personalities in business & industry as C.E.O.,
supported by a team of qualified & experienced professionals, looking after
various areas of operations, in a well structured organisation.
The Company lays highest emphasis on
developement of human resources, commitment to Safety - Health &
Enviornment, infotech applications, modernisation of systems and technology,
total quality management, zero defect manufacturing and achieving customer
delight, as CUSTOMER'S FRIEND THROUGH EXCELLENCE.
INFRASTRUCTURE
The Company has complete infrastructure for
manufacturing of Precision Metallic Coil Springs, with fully equipped Coiling,
grinding, Stress Relieving, Press Sections, Material handling, Packaging & Packing,
Quality Assurance, Utilities and back up of 100% in-house power generation,
with efficient Logistics and ERP support.
PLANT CAPACITY
From initial installed capacity of 645 M.T. over a
decade back, the company has reached the present capacity of 17000 M.T. per
annum
The company manufactures complete range of
Precision Metallic Coil Springs like Compression, Extension, Torsion, Tension,
Wire Forms & Flat Springs for a wide range of applications, in various
sizes ranging from 1.0 to 16.0 mm Wire Dia.
QUALITY POLICY
Their quality policy is based on "Excellence
Through Quality", zero defect supply chain, resulting in Total Customer
Satisfaction.
They believe in continuous upgradation of
human skills through training and motivation, providing conductive environment
for teamwork, error free performance, upgradation of equipments, process
technology, material inputs and systems.
Their endeavour is to create total quality
culture and be globally best in Precision Metallic Coil springs manufacturing
and supply systems.
THE ENVIRONMENT
CULTURE
Subject plays a good corporate citizen's role. The company is committed to
business and social responsibility, to create a safe, healthy work place and a
clean environment for its employees, as well as the surrounding community. The
Company with its global vision, strives, for latest international standards in
plant design, equipment selection, maintenance and operations to suit human
necessity. Subject endeavours to comply with all H.S.E. laws & regulations
(local/state/central/ international).
Subject firmly, believes that commitment to Health, Safety &
Environment is an integral part of the company philosophy. Further, all
employees are trustees, responsible and accountable individually, as well as
collectively for compliance. Subject provides information & guidance on
occupational health, safety and environmental issues, to its employees,
regulatory agencies and community at large, for overall benefit of the society.
Subject periodically audits occupational health, safety, environmental
systems & practices, takes preventive & improvemental steps, educates
its employees on Health, Safety & Environment, in continuity.
HUMAN INSTITUTION
Subject believes in creating a vibrant human institution. Continuous
upgradation of skills at all levels is a regular learning process.
Every employee is encouraged to think innovatively and deliver the best.
Highest emphasis is given to human productivity, motivation & team work.
HIGH PRECISION
MACHINERY
Subject possess world-class machinery in all section. These comprise:
• German automatic spring coilers in the coiling section, Italian
automatic spring end grinders in the grinding section and more.
MARKET PERFORMANCE
The Company's turnover during the first year of
operation was Rs. 13.7 million (US$ 0.9 million), the Company has seen
phenomenal growth in over a decade of operations with turnover touching RS
374.90 million (US$ 8.3 million) by end of Financial year 2005-2006 and planned
to cross Rs 456.0 million (US$ 10.10 million) by end of financial year
2006-2007
MARKET PROFILE
Company with initial market thrust as O.E.M. to two
wheeler manufactures, have strategically expanded its market base, offering
complete solutions for Precision Metallic Coil Springs for
Automobiles,Railways, White Goods, Textile Machinery, Electrical Switchgear,
Computers, other Industrial Segments & Global markets.
Press
Note
Subject is
The Company has added tubular & Sheet Metal Components
for a wide range of applications. A state of art manufacturing facility has
been established for this product spectrum (Tubular 0.8 to 3 mm wall thickness,
Sheet Metal 0.8 to 5 mm thickness).
Subject, apart from establishing a very good name in the Automotive sector as
OEM suppliers to Internationallly reputed brands, successfully entered other
marketing segments like Defence, Railways, Aircrafts, White Goods. Textile
Machinery & Engineering Industries. The Company is poised to achieve a
turnover of over US$ 17 (INR 763 Million ) by end of next financial year
2007-08.
As part of systems upgradation process, Subject have achieved ISO 9001:2000
& ISO/TS 16949:2002 Systems Certification from IATF accredited, Sai Global
Certification Services Pty. Ltd.,
The Company continues its ongoing effort on revamping and
modernizing of the Plant & Technology, continuous upgrading of human
skills, which ensure error free product quality, productivity and enhancement
in production levels. At the same time, full emphasis is given for improvement
of systems, work culture, environment, human health & safety, introduction
of information technology in all operational areas.The company is creating
customer delight in tune with its motto “CUSTOMER’S FRIEND THROUGH
EXCELLENCE”.
MANESAR PROJECT
The Company is setting up state of art precision metallic
coil spring manufacturing plant with latest technologies and equipments,to
cater to growing OEM markets in the Automobile sector. It will be operational
in 3rd quarter of 2007.
Products
Subject manufactures a complete range of Precision Metallic
Coil springs, in Wire Ø 1.0 to 16.0 mm, such as
Compression Spring
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.93 |
|
|
1 |
Rs.80.76 |
|
Euro |
1 |
Rs.54.46 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--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 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 |
|