MIRA
INFORM REPORT
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Report Date : |
20.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MAGNA ELECTRO
CASTINGS LIMITED |
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Registered Office : |
43, (Old No. 62), |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.08.1990 |
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Com. Reg. No.: |
18-2836 |
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CIN No.: [Company
Identification No.] |
U31103TZ1990PLC002836 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBM03032B |
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Legal Form : |
It is a Public
Limited Liability company. The company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Manufacturing and
Marketing of Iron Castings including grey iron, SG iron and other Iron alloy
castings – Machines and Un-machined. |
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 520000 |
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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
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 : |
43, (Old No. 62), |
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Tel. No.: |
91-422-210 109 / 216 184 |
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Fax No.: |
91-422-216 209 |
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E-Mail : |
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Website : |
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Factory 1 : |
Foundry Division SF No. 34 and 35
Part, Coimbatore Pollachi Main Road, Mullipadi Village, Tamaraikulam Post,
Pollachi Taluk, Coimbatore District – 642 109, Tamilnadu, India |
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Tel. No.: |
91-4259-259316 |
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Fax No.: |
91-4259-259451 |
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Factory 2 : |
Wind Energy Division |
DIRECTORS
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Name : |
Mr. L G
Ramamurthi |
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Designation : |
Chairman |
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Name : |
Mr. N Krishna
Samaraj |
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Designation : |
Managing Director
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Name : |
Mr. V Rajendran |
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Designation : |
Director |
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Name : |
Mr. J Vijaykumar |
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Designation : |
Director |
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Name : |
Mr. K
Gnanasekaran |
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Designation : |
Director |
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Name : |
Mr. R Nandini |
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Designation : |
Director |
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Name : |
Dr. Jairam
Varadaraj |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R Ravi |
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Designation : |
Company Secretary
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Name : |
Mr. S. K. Shankar Raman |
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Designation : |
Vice President – Operations |
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Date of
Birth/Age : |
55 years |
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Qualification
: |
D. M.E., Diploma in Metallurgy |
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Experience : |
36 years |
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Date of
Appointment : |
1st December, 1993 |
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Previous Employment : |
Best & Crompton Limited, Chennai |
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Name : |
Mr. K. Seshadri |
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Designation : |
Senior General
Manager (Quality) |
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Date of
Birth/Age : |
48 years |
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Qualification
: |
M.I.E., M.B.A. |
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Experience : |
27 years |
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Date of
Appointment : |
10th
February, 1997 |
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Previous Employment : |
NEPC Micon Limited,
Chennai |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
1258801 |
27.47 |
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Mutual Funds and
UTI |
600 |
0.01 |
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Private Corporate
Bodies |
404807 |
8.83 |
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Indian Public |
2394142 |
52.25 |
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NRIs / OCBs |
462120 |
10.09 |
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Independent
Directors and Relatives |
61730 |
1.35 |
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Total |
4582200 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Iron Castings including grey iron, SG iron and other Iron alloy
castings – Machines and Un-machined. |
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Products : |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Iron Castings including grey iron, SG iron and other Iron alloy
castings – Machines and Un-machined |
MT |
7200.000 |
7200.000 |
5967.127 |
GENERAL INFORMATION
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No. of Employees : |
Around 300 |
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Bankers : |
Industrial Finance Branch, 1604,
31, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Krishnamoorthy
& Company Chartered
Accountants |
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Address : |
Coimbaore – 641
012, |
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Memberships : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5,000,000 |
Equity Shares |
Rs. 10/- |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,582,200 |
Equity Shares |
Rs. 10/- |
Rs.45.822 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 |
45.822 |
45.822 |
45.800 |
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2] Reserves & Surplus |
86.218 |
60.871 |
48.500 |
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NETWORTH |
132.040 |
106.693 |
94.300 |
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LOAN FUNDS |
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1] Secured Loans |
108.549 |
49.859 |
25.300 |
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2] Unsecured Loans |
18.043 |
20.933 |
23.200 |
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TOTAL BORROWING |
126.592 |
70.792 |
48.500 |
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Deferred Tax |
55.913 |
29.562 |
0.000 |
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TOTAL |
314.545 |
207.047 |
142.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
265.297 |
182.136 |
108.300 |
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Capital work-in-progress |
0.000 |
0.000 |
18.800 |
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INVESTMENT |
0.000 |
0.000 |
6.200 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
31.683
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24.303
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15.200 |
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Sundry Debtors |
58.216
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54.178
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43.000 |
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Cash & Bank Balances |
20.834
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2.703
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3.500 |
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Loans & Advances |
28.123
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17.860
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23.900 |
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Total Current Assets |
138.856
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99.044 |
85.600 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
66.561
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60.209
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60.900 |
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Provisions |
23.047
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13.924
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15.500 |
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Total Current Liabilities |
89.608
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74.133 |
76.400 |
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Net Current Assets |
49.248
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24.911
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9.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.300 |
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TOTAL |
314.545 |
207.047 |
142.800 |
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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 |
453.247 |
300.876 |
246.100 |
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Total Income |
453.247 |
300.876 |
246.100 |
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Profit/(Loss) Before Tax |
75.069 |
36.900 |
33.600 |
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Provision for Taxation |
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13.500 |
7.700 |
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Profit/(Loss) After Tax |
41.868 |
23.400 |
25.900 |
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Earnings in Foreign Currency : |
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Export Earnings |
324.232 |
174.643 |
0.000 |
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Other Earnings |
2.145 |
6.184 |
115.334 |
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Total Earnings |
326.377 |
180.827 |
115.334 |
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Imports : |
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Raw Materials |
17.474 |
23.316 |
0.000 |
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Stores & Spares |
2.305 |
0.490 |
0.000 |
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Others |
4.505 |
0.229 |
30.809 |
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Total Imports |
24.284 |
24.035 |
30.809 |
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Expenditures : |
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Cost of Goods Sold |
172.473 |
135.592 |
NA |
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Manufacturing Expenses |
135.352 |
89.351 |
NA |
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Administrative Expenses |
14.561 |
8.078 |
NA |
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Depreciation & Amortization |
26.742 |
10.076 |
NA |
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Other Expenditure |
47.538 |
32.580 |
295.500 |
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Total Expenditure |
396.666 |
275.677 |
295.500 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 (Full
Year) |
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Sales Turnover |
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487.600 |
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Other Income |
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11.700 |
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Total Income |
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499.300 |
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Total Expenditure |
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378.500 |
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Operating Profit |
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120.800 |
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Interest |
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15.700 |
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Gross Profit |
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105.100 |
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Depreciation |
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32.000 |
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Tax |
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24.200 |
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Reported PAT |
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57.700 |
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Dividend (%) |
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300.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity
Ratio |
0.83 |
0.59 |
0.44 |
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Long
Term Debt Equity Ratio |
0.83 |
0.50 |
0.32 |
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Current
Ratio |
0.95 |
0.93 |
1.04 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.67 |
1.72 |
1.77 |
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Inventory
|
16.87 |
16.19 |
16.14 |
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Debtors |
8.40 |
6.58 |
6.20 |
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Interest
Cover Ratio |
6.14 |
5.56 |
9.40 |
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Operating
Profit Margin (%) |
24.65 |
17.23 |
18.78 |
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Profit
Before Interest and Tax Margin (%) |
18.99 |
14.08 |
16.23 |
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Cash
Profit Margin (%) |
14.52 |
10.48 |
13.73 |
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Adjusted
Net Profit Margin (%) |
8.87 |
7.32 |
11.18 |
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Return
On capital Employed (%) |
41.15 |
28.13 |
30.52 |
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RETURN
On Net worth (%) |
35.11 |
23.28 |
30.13 |
STOCK PRICES
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Face Value |
Rs.10/- |
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High |
Rs.-0.01/- |
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Low |
Rs.-0.01/- |
LOCAL AGENCY FURTHER INFORMATION
History
Magna Electro Castings was incorporated in 1990. The company was
promoted and Managed by N Krishna Samaraj. The company is mainly engaged in
castings and sale of patterns.
In 2001 the company has successfully commissioned its state of the art CAD/CAM
Centre for producing tooling.
The Company had implemented a Energy Conservation Project in 2001-02 at a cost
of Rs.110 lakhs and was funded by internal accruals and term loans from
Corporation Bank. In the area of raw material recycling and production
automation the company is planning to make investments to the tune of Rs.150
lakhs and will be financed by means of Internal accruals and Term Loans. This
project was put on hold due to decision on implementation of the latest
technology and processes
OPERATIONS
The Company has registered impressive growth in total revenue and profits
during the year under review. While the total revenue during the year has
increased from Rs.312.561 Millions in the previous year to Rs.471.738 Millions,
an increase of 50.65%, the Profit before tax has increased from Rs.36.882
Millions in the previous year to Rs.75.070 Millions an increase of 105.34%. This is mainly
because of the better product mix adopted by the Company, focusing on those
products which had greater contribution, eliminating in the process, products
which did not have any contribution. The prices of certain critical raw
materials were highly volatile and added to this, the appreciation of the Rupee
against the US Dollar for most part of the year under review did have an effect
on the profits. As outlined in their last year's report, the actions taken by
the Directors to improve the margins has delivered the expected results. Taking
into account the above, the Directors are of the opinion that the performance
of the Company during the year under review has been satisfactory.
There was a keen demand for their products in the overseas market and this is
reflected in the exports on FOB basis during the year increasing by 85.65%,
from Rs.174.643 Millions to Rs.324.232 Millions.
PROJECTS
IMPLEMENTED
The Company commissioned in August 2005 one 1650 kw Wind Electric Generator at
a cost of Rs.96.917 Millions in
Ganapathipalayam village, Pollachi Taluk. This unit has generated 2.052
Millions units of wind power during the year. The newly commissioned Wind
Electric Generator along with the 750 kw installed in the previous year, has
the capability to generate about 60% of Company's power requirements at the
present production levels.
The Company has installed Simulation Software solution, which will enable the
Company to retain and improve its leading edge capability in product
development. This investment will enable the Company to reduce its cost of
production by improving yield and decreasing rejection rate. Further it will
enable the Company to provide better designed products with consistent quality
at the right price.
OUTLOOK FOR CURRENT YEAR
The Directors are pleased to state that there is an increasing demand for
the Company's products, both in the domestic and export markets. The general
economy being buoyant and with all round growth, the Directors are confident
that the Company will be able to increase its turnover and profitability in the
fiscal year 2006-07.
FUTURE PLANS
The Directors are taking steps to increase the capacity in a phased manner over
the next two years from the existing level of 600 MT per month to 1200 MT per
month. The Directors are in the process of identifying and evaluating the
various proposals on hand to increase the capacity. The Directors are confident
that the increased capacity will start to be in place by 2007-08 which will
enable the Company to focus on bigger size castings requirements of non-
automotive customers, using Furan technology.
FINANCE
The Company has availed Term Loan from its bankers to the extent of
Rs.76.800 Millions during the financial year under review towards part
financing the cost of Wind Energy Generator. It may be noted that out of the
total long term debts of Rs.108.550 Millions , Rs.20.410 Millions relates to
the Company's production activities and the balance Rs.88.140 Millions is for
the installation of the two Wind electric Generators.
The expansion project to double the capacity will cost about Rs.150.000
Millions. The expenditure for the project is being planned in a phased manner
during the current year and the following year. The sources of funds for the
proposal will be a mix of internal accruals, term loans from banks and
suppliers' credit.
QUALITY CERTIFICATION
As stated in the previous report, the Company's products are certified to
conform to the latest ISO 9001:2000 and ISO/TS 16949:2002 norms. The Company is
planning to go in for ISO 14000 certification during the current year.
MANAGEMENT
DISCUSSION AND ANALYSIS
Overview:
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956 and the Generally Accepted Accounting
Principles. There are no material departures from the prescribed accounting
standards. The estimates and judgements in so far as the financial statements
are concerned have been made on a reasonable basis to reflect in a true and
fair manner the state of affairs of the Company.
Highlights of Performance:
-Revenue growth :50% increase-PBT :103% increase-Exports :80%
increase
-Focus on quality, customer service, reduction in costs
Industry structure and
developments
As per recent estimates, there are about 4500 foundries in
Opportunities and Threats
The Company concentrates in the non-automotive sector of the market, where a
high growth rate has been achieved, The Company specializes in low to medium
volume products and its production capabilities enables it to cater to this
segment of the customers effectively. The new capacity addition planned by the
Company for the non- automotive sector for heavier and larger castings will
enable the Company to cater to the Wind mill, infrastructure equipments,
railways petroleum industry, machine tools and other capital equipment
manufacturers. These markets combined with the existing markets will provide a
balanced and consistent growth in future.
The main threat is competition from the unorganized sector in the
domestic market and from
Fixed Assets
The company’s
fixed assets of important value include Land, Buildings, Plant & Machinery,
Electrical Installations, Borewell Equipments, Office Equipments, Furniture,
Vehicles and Computers.
As Per Web Details
Profile
Magna will provide Quality Assured, Cost Effective and
Timely Delivered, Ferrous Components, meeting small to medium volume
requirements of customers, while striving to be the most environmental friendly
foundry.
The above will be ensured by
- A clear
understanding of the requirements
- Being the
best-cost producer
- Providing Quality Engineering and are housing Services
Being a green and clean foundry
History
1993 - Incorporated as a Public Limited Company
1995 - Commenced Production
1997 - First Exports Begin
1998 - Awarded ISO 9002 Certification
1999 - CNC Machine Shop
2000 - State of the art Tool Room
2001 - Interactive Website for Customer Relations Management
2002 - Awarded ISO 9001:2000 Certification by M/S. DNV
2003-Approved in accordance with Pressure Equipment
Directive (PED)97/23/EC and W0/AD2000 MERKBLATT by RWTUV.
2004 - ISO/TS 16949 Certification
2004-Completely automated Furan based No-Bake molding line
2004 - First Wind Electric Generator (750 KW)
2005 - Heavy Machining center
2005 - Second Wind Electric Generator (1650 KW)
Business
they are in
Magna is in the Business of Manufacturing and Supplying
Ferrous Components in small and medium volumes to users worldwide.
Magna specializes in the manufacture of Ductile Iron and
Gray Iron casting in the weight range of 300 grams to a maximum of 2000
Kilograms. Magna also adds value by heat treatment, surface treatments and
machining so that the products are ready to assemble.
Magna also produces fully machined components, utilizing its
in-house CNC machine shop and other facilities as well.
Magna has extensive experience in the supply of safety
requirement components in the casting and fully machined forms. The components
meet stringent requirements in terms of Radiographic Quality and Metallurgical
Control.
Magna has established warehousing in the
Magna proposes to establish similar facilities to provide the same to the
European consumers in the year 2006.
Products
Castings
Machined
Components
Facilities
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Casting
Facilities |
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Casting
Facilities at Magna |
|
Infrastructure
- Land -
10Acres
- High Bays
- Furnaces -
ABB - High Density Medium Frequency
- Digital
Control Unit
- 2.2 Ton
Crucibles - Two Nos
- Max. Liquid
Metal - 4 Tons
- Multimatic -
Melting / Holding (1500 kW / 0 kW)
- Automatic
Charging Facility
- Scrap ware house and Bundling
Machine
- LPG based ladle pre - heating
systems
Metal Handling
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Cranes |
Ladles |
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Charging 5 Tons Pouring 5 Tons Handling 5 done |
Treatment 5 Tons / 2 Tons / 1Ton / 0.5 Tons Pouring 5 Tons / 2 Tons /1 Ton / 0.5 Tons / 0.25 Tons |
Green Sand Molding
- Higher
Pressure Line
- Hunter HMP 20
Moulding Machine 120 molds per hour
- Flaskless,
Horizontal Parted Size of the mold 500x600x400 mm
- Max Casting Weight 30 Kgs Automated
Mold Handling Line
- Capacity 350 Tons / Month
Furan No-Bake
Fast
- Max Casting
Weight – 300 Kilograms/Piece
- Max Liquid Metal
– 500 Kilograms
- Flask less molds
- Furan resin
based no-bake molding line
- Customized mold
sizes
- Capacity 200
Tons / Month
- Sand reclamation plant
Floor
Molding
- Max Casting
Weight - 3 Tons/Piece
- Max Liquid
Metal - 4 Tons
- Customised
Mold Boxes
- Furan resin based
no-bake molding
- Capacity 50 Tons / Month
Sand
Plant
- Capacity 40
Tons / Hour
- Intensive
Mixer
- Pre Blender
- Rotary Drum
Knockout Casting / Sand Cooler
- Automatic
additive dosing system
- Online Compactability Controller
- Centralised PLC based Controls
- Casting
Deriser
- Hanger Type
Shot Blasting
- Table Type
Shot Blasting
- Max. Weight 2
Tons
- Swing Frame
Grinders
- Snagging
Grinders
- Pneumatic /
Electric Grinders
- Painting Section - Spray / Dipping
Heat
Treatment
- LPG based heating system
- Upto 1000 C
with Automatic computerized temperature controller and scanner
- Calibrated according to API 6,
Appendix H
- Processes: Annealing, Stress
Relieving, Normalising, Tempering
Core Shop
- Automatic Cold
Box Core Shooting Machine - 2nos : 60 Shoots / hour
- Automatic Shell
Core Shooter: 30 Shoots / hour
- LPG based core
heating system
- Automatic Core
Transport Conveyors
- Dedicated Ware House
- Stretch Wrapping
- Universal Product
Coding
- Fork lift
- Dedicated Ware House
Container Stuffing
Quality Policy
MAGNA will Provide customers,products and services consistently
Confirming to clearly established customer requirements,at the right cost at
the right time
This is achieved through
Total employee involvement
Implementing and maintaining QMS as per
ISO 9001 : 2000 and ISO/TS 16949:2002 and continually improving the
effectiveness of QMS
Training
Plants Improvements
Robust Product development process
Quality Certification
For ISO/TS 16949/2002
PED
97/23/EC Certification
Quality
Reports(Samples)
Property
Dimensional
Report
Material
Test Certificate
Process
Capabilities(Historical Data)
Chemical
Composition
Mechanical
Properties
Green Foundry
Magna drives to be a green and clean foundry by reducing
green gases and reducing waste as Magna drives to be a green and clean foundry
by reducing carbon gases and reducing waste.
Wind Energy
Magna has two Wind Electric Generators with a total
installed capacity of 2400 KW. This two generators are capable to generating
60-70% of the total annual power requirements of Magna. Magna also has plans to
install more Win Electric generators in the future to become self sufficient in
power requirements.
Rain Water Harvesting
The facility can harvest about 1.50 million liters of rain
water
Dust Collection systems
State of the art dust collectors are installed which ensures
an emission levels less than all National and International legislations.
Specialities
Magna provides the
following unique services to the customers.
Austempered Ductile Iron
Has rich experience in
the manufacture of Austempered Ductile Iron to various international standards.
Fabrication
to Casting Conversion
Magna provides the service of converting complicated
fabricated parts to castings, resulting in cost savings and process
improvements to customers.
Prototyping
Magna partners with its customers in developing the prototype castings
for test. These castings are developed at a record time of less than 14 days
from concept to casting.
Engineering Services
Linkto: Engineering Services
People
Magna takes great care on Human Resources Development and Employee
welfare activities. Magna has a highly qualified and motivated team consists of
Post Graduate / Graduate engineers.
Training
Training center equipped with
audio and visual communication equipment. Each employee undergoes 7 days of
training per annum.
Canteen
Hygienic food provided to all employees.
Contact Us
MAGNA ELECTRO CASTINGS LIMITED,
43,
Telephone : +91 422 - 2210109 / 2216184 / 2210487
Fax : +91 422 -
2216209
Email : magnacast@vsnl.com
Web : http://www.magnacast.com
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.40.82 |
|
|
1 |
Rs.81.18 |
|
Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|