MIRA
INFORM REPORT
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Report Date : |
09.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
CRANES SOFTWARE INTERNATIONAL LIMITED |
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Registered Office : |
4th Floor, Block 1, Shankar Narayana Building,
# 25, M G Road, Bangalore – 560001, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.02.2003 |
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Com. Reg. No.: |
08-31621 |
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CIN No.: [Company
Identification No.] |
U05190KA2003PLC031621 |
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Legal Form : |
Public Limited Liability Company, The Company’s shares are listed on the Stock Exchange |
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Line of Business : |
Company is in engaged in Software Sales and Services and Software Training. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 12000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well –established software development company, doing very well. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered / Corporate Office : |
4th Floor, Block 1, Shankar Narayana Building,
# 25, M G Road, Bangalore – 560001, Karnataka, India |
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Tel. No.: |
91-80-51231275/6/7 |
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Fax No.: |
91-80-51231274 |
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E-Mail : |
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Website : |
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Regional Office : |
C –
100, Shivalik, New Delhi – 110 017, India Telefax
: +91 – 11 – 6674891 / 92 Email: infodelhi@cranessoftware.com
Fax :
91 – 40 – 55840028 Email :
cvhyd@cranessoftware.com |
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Witel Systems : |
# 1152,
12th Main, Indiranagar, Bangalore – 560038 Phone:
91 – 80 – 51254131 / 2 / 3 / 4 Fax: 91
– 80 – 25356299 Email: Wi5@cranessoftware.com |
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Cranes Enterprises Solutions : |
5th
Floor, Block 1, Shankar Narayana Building, 25, MG Road, Bangalore - 560001 Phone:
91 – 80 – 51231275 / 6 / 7 / 8 / 9 Fax: 91
– 80 – 51231274 Email: ces@cranessoftware.com
29, 7th
Cross, 14th Main, Vasanthnagar, Bangalore – 560 052, Karnataka,
India Phone :
91 – 80 – 22381740 / 41 / 42 Fax :
91 – 80 – 22268410 Email: info@cranessoftware.com |
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Cranes Varsity : |
5,
Service Road, Domlur Layout, Airport Road, Bangalore – 560 071, Karnataka,
India Fax : 91
– 80 – 25356299 Email: cvinfo@cranessoftware.com
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Cranes Mems Lab : |
Department
of Mechanical Engineering, Indian Institute
of Science (IISc), C.V. Raman Avenue, Bangalore – 560012, Karnataka, India Phone :
91 – 80 – 2293 3224 Fax :
91 – 80 – 2360 0648 Email :
cranessci@mecheng.iisc.ernet.in Society
for Innovation and Development (SID), Indian
Institute of Science (IISc), C.V. Raman Avenue, Bangalore – 560012,
Karnataka, India Phone :
91 – 80 – 23442779 Fax :
91 – 80 – 23314314 Email: info@cranessoftware.com |
DIRECTORS
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Name : |
Dr. Rudra Pratap |
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Designation : |
Chairman |
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Name : |
Mr. Asif Khader |
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Designation : |
Co-founder & Managing Director |
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Name : |
Mr. Mukkaram Jan |
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Designation : |
Co-founder & Director |
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Name : |
Mr. Mueed Khader |
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Designation : |
Director |
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Name : |
Mr. Richard Gall |
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Designation : |
Director |
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Name : |
Mr. Ronald Brown |
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Designation : |
Director |
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Name : |
Mr. Ajay Singh |
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Designation : |
Director |
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Name : |
Mr. Mirza Yawar Baig |
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Designation : |
Director |
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Name : |
Dr. Manju Bansal |
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Designation : |
Director |
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Name : |
Dr. Peter Ryser |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. B. Parasuram |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
43193000 |
38.00 |
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Mutual Funds |
4391370 |
3.86 |
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Banks |
33364 |
0.03 |
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Insurance Companies |
1000000 |
0.88 |
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Private Bodies Corporate |
11974074 |
10.53 |
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Foreign Company |
1500200 |
1.32 |
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FII’s |
37986695 |
33.42 |
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NRI’s / OCB |
1995520 |
1.76 |
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Individuals & Others |
11593747 |
10.20 |
BUSINESS DETAILS
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Line of Business : |
Company is in engaged in Software Sales and Services and
Software Training. |
GENERAL
INFORMATION
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Customers : |
Systat Software GmbH Systat Software UK Limited Systat Software Asia Pacific Limited Systat Software Inc, U.S.A. |
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Bankers : |
The Jammu & Kashmir Bank Limited, Bangalore State Bank of Travancore, Bangalore HSBC Bank, Bangalore Standard Chartered Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Janardhan
& Associates Chartered Accountants |
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Address : |
Apartment Nos. 104 & 203, Embassy Centre No. 11, Crescent Road,
Bangalore – 560 001, Karnataka, India |
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Subsidiaries : |
Systat Software Inc Systat Software UK Limited Systat Software Asia Pacific Limited Systat Software GmbH Cranes Software International Pte Limited EMRC Engineering Mechanics Research (India) Limited (EMRC
India) NISA Software Inc |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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165000000 |
Equity Shares |
Rs. 2/- each |
Rs. 330.000
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.
350.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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113667970 |
Equity Shares |
Rs. 2/- each |
Rs. 227.335
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 |
227.335 |
101.667 |
121.667 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2889.588 |
1456.402 |
1065.596 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3116.923 |
1558.069 |
1187.263 |
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LOAN FUNDS |
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1] Secured Loans |
494.436 |
1155.584 |
811.553 |
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2] Unsecured Loans |
2742.877 |
0.000 |
0.000 |
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TOTAL BORROWING |
3237.313 |
1155.584 |
811.553 |
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DEFERRED TAX LIABILITIES |
241.901 |
116.901 |
76.458 |
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TOTAL |
6596.137 |
2830.554 |
2075.274 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1485.419 |
1106.509 |
473.081 |
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Capital work-in-progress |
0.132 |
13.558 |
5.787 |
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INVESTMENT |
266.178 |
208.769 |
195.370 |
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DEFERREX TAX ASSETS |
0.614 |
0.458 |
1.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
21.018
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60.435
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22.695 |
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Sundry Debtors |
1061.918
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1108.751
|
485.318 |
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Cash & Bank Balances |
2886.038
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408.228
|
778.739 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
1161.154
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262.214
|
411.442 |
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Total
Current Assets |
5130.128
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1839.628 |
1698.194 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
536.794
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164.099
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203.160 |
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Provisions |
217.281
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204.596
|
98.819 |
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Total
Current Liabilities |
754.075
|
368.695 |
301.979 |
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Net Current Assets |
4376.053
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1470.933
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1396.215 |
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MISCELLANEOUS EXPENSES |
467.741 |
30.327 |
3.821 |
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TOTAL |
6596.137 |
2830.554 |
2075.274 |
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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 |
1870.200 |
1318.815 |
988.382 |
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Other Income |
23.607 |
0.000 |
0.000 |
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Total Income |
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1318.815 |
988.382 |
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Profit/(Loss) Before Tax |
820.977 |
577.597 |
355.949 |
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Provision for Taxation |
186.592 |
128.697 |
30.952 |
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Profit/(Loss) After Tax |
634.385 |
448.900 |
324.997 |
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Earnings in Foreign Currency : |
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Export Earnings |
1415.372 |
918.070 |
N.A. |
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Commission Earnings |
0.000 |
0.000 |
N.A. |
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Other Earnings |
0.000 |
0.000 |
N.A. |
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Total Earnings |
1415.372 |
918.070 |
N.A. |
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Imports : |
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Raw Materials |
0.000 |
0.000 |
N.A. |
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Stores & Spares |
0.000 |
0.000 |
N.A. |
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Capital Goods |
334.817 |
463.448 |
N.A. |
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Others |
255.814 |
177.971 |
N.A. |
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Total Imports |
590.631 |
641.419 |
N.A. |
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Expenditures : |
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Cost of Goods Sold |
401.256 |
265.481 |
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Personnel Expenses |
134.280 |
51.780 |
632.433 |
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Administrative Expenses |
207.189 |
147.161 |
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Interest |
80.859 |
107.920 |
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Depreciation & Amortization |
249.245 |
167.679 |
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Total Expenditure |
1072.829 |
740.021 |
632.433 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 1st
Qtr. |
30.09.2006 2nd
Qtr. |
31.12.2006 3rd
Qtr. |
|
Sales
Turnover |
586.200 |
657.400 |
674.200 |
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Other
Income |
14.000 |
00.000 |
00.000 |
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Total
Income |
600.200 |
657.400 |
674.200 |
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Total
Expenditure |
270.600 |
290.100 |
230.900 |
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Operating
Profit |
329.600 |
367.300 |
443.300 |
|
Interest |
11.400 |
13.300 |
16.100 |
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Gross
Profit |
318.200 |
354.000 |
427.200 |
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Depreciation |
94.200 |
104.700 |
126.300 |
|
Tax |
32.600 |
30.000 |
36.300 |
|
Reported
PAT |
191.400 |
219.300 |
264.600 |
Notes
200606 Quarter 1
EPS is Basic 1. The above results have been taken on record
by the Board of Directors at their meeting held on 27.07.2006. 2. There were no
Investor complaints received during the quarter. There were no complaints pending
at the beginning or lying unresolved at the end of the quarter. 3. Previous
period figures have been regrouped/reclassified wherever necessary. 4. The
Statutory Auditors have conduct a Limited Review of accounts for the aforesaid
period. 5. During the March 2006 the company raised Euro 42 Million (Rs. 2207.7
millions) by way of issue of 2.50% Foreign Currency Convertible Bonds due in
2011. The Utilisation of Funds upto June 30, 2006 as follows. Particulars Rs .
In millions Issue Expenses 77.6 Capital Expenditure 1826.7 Term Loan Repayment
to Jammu & kashmir Bank 97.3 Software Imports 80.9 Others(exchange
Variation) (10.08) Total 1981.7 6. Plan for utilisation of the funds of Rs.
1080 millions mobilised through preferential issue of shares is under formulation;
contracts under final stage of negotiations.
200609 Quarter 2
Net Sales/Services includes - Overseas Rs 538.153 million -
Domestic Rs 119.269 million Expenditure includes (Increase)/Decrease in stock Rs
1.600 million Material Cost Rs 54.307 million Personnel Expenses Rs 86.562
million General & Administrative Expenses Rs 118.357 million Tax indicates
Provision for Tax including Deferred Tax & Fringe Benefit. EPS is Basic
Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The above results have
been reviewed by the Audit Committee and taken on record by the Board of
Directors at their meeting held on October 26, 2006. 2. Previous period figures
have been regrouped / reclassified wherever necessary. 3. The Statutory
Auditors have conducted a Limited Review of Accounts for the aforesaid period.
4. During the March 2006, the Company raised Euro 42 Million (Rs 2207.70
million) by way of issue of 2.50% Foreign Currency Convertible Bonds due in
2011. The Utilisation of fund upto September 30, 2006, is as follows: Issue
Expenses Rs 77.60 million Capital Expenditure Rs 1955.00 million Term Loan
repayment to Jammu Kashmir Bank Rs 97.30 million Software Imports Rs 80.90
million Other (Including Exchange Fluctuation) Rs (72.40) million TOTAL Rs
2138.40 million 5. Through a preferential issue of equity shares, of the
Company raised of Rs 1080 million during October 2005 & Rs 110 million
during September 2006. Pending utilisation, the same is retained in Fixed
Deposit with Bank.
200612 Quarter 3
Tax indicates Provision for Tax including Deferred Tax &
Fringe Benefit. EPS is Basic Status of Investor Complaints for the quarter
ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 4 Complaints disposed off during the
quarter 4 Complaints unresolved at the end of the quarter Nil 1. The above
results have been approved by the Audit Committee and taken on record by the
Board of Directors at their meeting held on Jauary 31, 2007. 2. Previous period
figures have been regrouped / reclassified wherever necessary. 3. The Statutory
Auditors have conducted a Limited Review of Accounts for the aforesaid period.
4. During the March 2006, the Company raised Euro 42 Million (Rs 2207.70
million) by way of issue of 2.50% Foreign Currency Convertible Bonds due in
2011. The Utilisation of fund is as follows: Issue Expenses Rs 77.60 million
Capital Expenditure Rs 1989.20 million Term Loan repayment to Jammu Kashmir
Bank Rs 97.30 million Software Imports Rs 80.90 million Other Rs (72.40)
million TOTAL Rs 2172.60 million 5. Through a preferential issue of equity
shares, of the Company raised of Rs 1080 million during October 2005 & Rs
110 million during September 2006. Pending utilisation, the same is retained in
Fixed Deposit with Bank.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.94 |
0.72 |
0.65 |
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Long Term Debt-Equity Ratio |
0.86 |
0.63 |
0.63 |
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Current Ratio |
3.72 |
3.22 |
3.43 |
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TURNOVER RATIOS |
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Fixed Assets |
1.09 |
1.31 |
2.07 |
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Inventory |
45.95 |
31.74 |
27.38 |
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Debtors |
1.72 |
1.65 |
2.62 |
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Interest Cover Ratio |
7.61 |
5.85 |
5.78 |
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Operating Profit Margin(%) |
63.85 |
65.53 |
49.41 |
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Profit Before Interest And Tax Margin(%) |
50.53 |
52.82 |
43.56 |
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Cash Profit Margin(%) |
47.25 |
46.75 |
38.74 |
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Adjusted Net Profit Margin(%) |
33.92 |
34.04 |
32.88 |
|
Return On Capital Employed(%) |
22.05 |
29.78 |
33.13 |
|
Return On Net Worth(%) |
27.14 |
32.94 |
41.80 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
|
High |
Rs.102.30/- |
|
Low |
Rs.100.55/- |
LOCAL AGENCY
FURTHER INFORMATION
Dr. Rudra
Pratap, an acknowledged
expert in the mechanical engineering domain, is an Associate Professor at the
Indian Institute of Science, Bangalore. He heads Cranes Software's MEMS
research initiative and also plays the role of Chief Scientific Advisor.
Asif Khader, Cranes Software's
Managing Director since inception, has recently assumed the additional
responsibility of Vice-Chairman. Asif has led the Company's metamorphosis from
a marketing-led organization to a global technical software company. He has
been instrumental in creating and enhancing Cranes Software' successful
relationships with leading global
organizations as
well as its focus on investing in future technologies.
Mukkaram Jan co-founded the
Company with Asif Khader and contributed substantially during the initial
growth phase of the organization. Mukkaram continues to play the role of an
advisor in his capacity as a member on Cranes Software's Board.
Mueed Khader is an intrinsic
part of Cranes Software's executive management team. He plays the role of Chief
Operations Officer and contributes to the strategic decision-making process.
Richard Gall has several decades
of experience at such leading technology-centric companies as Texas
Instruments, Raytheon and Parametric Technology, and has brought with him some
deep global corporate relationships.
Ronald Brown is the original
author of TableCurve 2D, TableCurve 3D, PeakFit and AutoSignal, leading data
visualization software products that now form part of Cranes Software's
portfolio. Ron remains closely associated with Cranes Software and plays the
role of Chief Software Architect.
Ajay Singh, through his
successful career in public administration, has been associated with several
key government agencies. He was previously an Advisor to the Minister of
Communications and Information Technology and part of the earlier Government's
IT policy think tank.
Dr. Peter Ryser is a Professor of
Microtechnology at the Swiss Federal Institute of Technology in Lausanne. He
has over three decades of research and teaching experience across corporate and
academic institutions. He was previously a Director at Siemens Building
Technologies where he was responsible for product innovation and patents for
the entire Siemens Group for a period of five years.
Mirza Yawar Baig has extensive
experience in organizational development and corporate training. He is
associated with several training institutions, including those run by GE,
Oracle and other corporations in the U.S.
Dr. Manju Bansal is a Director at
the Institute of Bio-informatics and Applied Biotechnology, Bangalore, and a
Professor in Molecular Biophysics at the Indian Institute of Science,
Bangalore. She has provided deep insight into the Life Sciences,
Bio-informatics and Applied Biotechnology markets which is critical to Cranes
Software's proprietary software products.
Business:
During the year, the Company achieved a Sales and Operating Revenue of Rs.
1,893.81 millions from Rs. 1,317.62
millions - a growth rate of 44%. The Profit Before Tax increased by 42% from
Rs. 577.60 millions to Rs. 820.98 millions while Net Profit increased to Rs.
634.39 millions from Rs. 448.77 millions (higher by 41%).
On a consolidated basis, during the year, the company together with its above
named subsidiaries, achieved a Sales and Operating Revenue of Rs. 2,138.24
millions from Rs. 1,632.65 millions - a growth rate of 31%. The Profit before
Tax increased by 36% from Rs. 595.50 millions to Rs. 812.51 millions while Net
Profit increased to Rs. 624.87 millions from Rs. 460.27 millions (higher by
36%).
Operations:
During the year under report, the following developments were noteworthy:
1. The Registered Office of the Company was shifted from Golden Enclave,
Airport Road, Bangalore to 4th Floor, Block - 1, Shankar Narayan
Building, #25, M G Road, Bangalore w. e. f. 15th June, 2005. The new
office has helped consolidate the corporate operations into one centralized
location and provide additional infrastructure for the operations of the Group
in Bangalore. This initiative will allow the Company and the Group to grow
employee strength and thereby support sustained growth with improved
administrative controls.
2. During the year the company together with its subsidiary Systat Software
Inc., USA jointly acquired the Intellectual Property Rights in and to InventX
ePM along with the ongoing business of InventX Inc., USA, for an amount of
about USD 3.50 millions.
3. The Company also acquired selected businesses and marketing relationships
and commercial rights of Karna Softek India Private Limited, at a consideration
of Rs.42 millions in cash.
4. The Company also took over the entire business operations of its wholly
owned subsidiary Systat Software Asia Pacific Limited, as a part of a Corporate
re-organization process, including internationalizing the `Cranes' Corporate
brand and attracting and retaining talent within the Group.
5. For similar reasons, the business of another subsidiary EMRC Engineering
Mechanics Research (India) Limited, has also been taken over w.e.f. 1st
April '06.
Appropriation:
The Directors, are pleased to recommend a regular dividend of 20% on the equity
shares and a special equity dividend of 40% (thereby aggregating to 60%) for
the year under report.
Members may note that this is on the enhanced capital, post the Bonus issue
made last year. The amount on account of the above Dividend including Dividend
Tax and Surcharge thereon on distributed profits works out to Rs. 155.53
millions, leaving the Company with Rs. 705.92 millions, of which Rs. 300
millions is transferred to General Reserve and the balance of Rs. 405.92
millions is retained as surplus in the Profit and Loss Account.
Capital Structure:
During the year the Company issued and allotted 1,200,000 equity shares of Rs.
10 each on preferential basis to promoters/strategic investors at a premium of
Rs. 890 per share.
It may be recalled that Members had, at the last Annual General Meeting,
approved sub-division of equity shares of the Company from a face value of Rs.
10/- to a face value of Rs. 2/-.The shares have accordingly been sub divided
into shares of face value of Rs. 2/- each. The Share holders had also approved
issue of Bonus shares in the ratio of 1:1 by capitalization of Reserves. The
same has also been given effect to. Consequently the Issued, Subscribed and
Paid-up Equity Share Capital of the Company has increased to Rs. 227.34
millions.
Further, Members had, at the Extra Ordinary General Meeting of the Company held
on April 25, 2005 authorized the Board of Directors to issue upto USD 50
millions in the form of GDRs / FCCBs or other such convertible instruments for
meeting the expansion plans. The Company came out with an issue of Foreign
Currency Convertible Bonds (Bonds) due 2011 aggregating to Euro 42 millions
during February '06. The issue closed successfully in March '06. The Bonds
carry an interest rate of 2.5% p.a. payable semi-annually and are convertible
into fully paid up equity shares or GDRs by the holders at any time between 27th
April, 2006 till maturity at an initial conversion price of Rs. 143.293 per
share with a fixed rate of exchange of INR 52.6828 = EUR 1.00. The conversion
price is subject to adjustments in certain specified circumstances. The Bonds
may also be redeemed at the option of the Company after 8th April,
2008 subject to satisfaction of specified conditions. Unless previously
converted, redeemed or repurchased and cancelled the Bonds will mature on 18th
March, 2011 at 112.833% of their principal amount. The Bonds are listed at the
Singapore Stock Exchange and the GDRs arising out of the Conversion of the
Bonds will be listed on the Luxembourg Stock Exchange.
Wholly Owned Subsidiaries:
Systat Software Inc:
This Company was incorporated during the year 2000. The total investment in
this subsidiary is USD 3.89 millions till 31st March, 2006. All intellectual
property rights in Systat, Peakfit, Tablecurve 2D and Tablecurve 3D is owned by
Systat Software Inc. During the year this Company generated a revenue of USD
6.34 millions with a profit before tax of USD 0.18 millions.
Systat Software UK Limited
This Company was formed during 2002 mainly to market and distribute products in
Europe as a wholly owned subsidiary of Systat Software Inc., USA. The total
capital invested in this Company by Systat Software Inc., is GBP 100. The
turnover during the year was GBP 0.512 millions and profit before tax amounted
to GBP 0.05 millions.
Systat Software Asia Pacific Limited:
Became a subsidiary during 2002-03. This Company undertook the development work
for the Systat range of products as an ODC arm of Systat Software Inc. As part
of the Corporate restructuring exercise, the Company acquired the entire
business operations of this subsidiary during December, 2005 at a price of Rs.5
millions based on the valuation of the business by S. Janardhan & Associates,
Chartered Accountants. The reorganisation would help the Company to integrate
all the Indian operations under the parent Company and also utilize the Cranes
brand optimally.
Systat Software GmbH:
This 100% subsidiary was incorporated in 2003-04 mainly to take over the
European operations of the Sigma Product Series which was acquired by the
Company at that time. The investments in this Company as of 31st
March, 2006 amounted to EUR 25000. The Company generated a revenue of EUR 1.08
millions and a Loss of EUR 0.05 million; Efforts are in progress to improve the
profitability of its operations.
Cranes Software International Pte Limited :
This subsidiary was incorporated during 2003-04 mainly to develop local
infrastructure and support its relationship with Texas Instruments (TI) in the
ASEAN region. Started with this objective, now this subsidiary caters to the
distribution of the Company's products in the entire ASEAN region and thereby
has strengthened sales initiatives in the ASEAN region, which have just begun.
The investments made in this Company as of 31st March, 2006 amounted
to SGD 0.17 million. The Company generated a revenue of SGD 0.92 million and a
Profit of SGD 0.01 million.
EMRC Engineering Mechanics Research (India) Limited (EMRC India):
The Company acquired the 100% shares of EMRC India, during April, 2005. The
acquisition is effective from 1st
January, 2005. The total investment in this Company is Rs. 2.18
millions. The Company was converted into a public limited Company during July,
2005. The revenue for the first full year ended 31st March, 2006 which is
included in the Consolidated Accounts of the Company amounted to Rs.28.45
millions which resulted in a Profit for the said period of Rs.0.32 million. As
a part of the Corporate restructuring exercise, the Company has acquired the
entire business operations of this subsidiary with effect from 1st April, 2006
at a price of Rs.2.07 millions based on the valuation of the business by S.
Janardhan & Associates, Chartered Accountants.
NISA Software Inc:
Has been formed primarily to take over the US operations of EMRC in USA as part
of the acquisition of EMRC and its NISA suite of products. The Company reported
a turnover of USD 0.25 million and a loss of USD 0.23 million for the year
under report. The operations are still in gestation and the Company is
confident of the profitability of this subsidiary in due course.
Fixed Assets :
Ø Land
Ø Furniture & Fixtures
Ø Computer
Ø Plant & Machinery
Ø Vehicle
About the Company
Technological progress can largely be credited to the dedicated efforts of scientists and engineers worldwide whose accumulation and inventive application of knowledge has created immense intellectual assets from which we all benefit everyday. Therefore, it is imperative to provide our scientists and engineers with an environment that is conducive to their innovative pursuits.
At Cranes Software, we have dedicated ourselves to this cause, either by
providing proprietary solutions or by partnering with leaders in this field. We
have developed software tools, specifically designed for scientists and
engineers enabling them to discover and build, invent and innovate newer
technologies. We have also created a robust pipeline that can reach the global
technical community with effectiveness and impact. This has been made possible
by leveraging our deep domain knowledge of this niche market.
Today, Cranes Software International Ltd. is a global corporation offering
scientific and engineering products and solutions to clients worldwide. The
Company its presence in 39 countries across the world and has a customer base
of more than 350,000.
With a mission statement to provide its customers the best in scientific
technology and to enable its customers to define new limits, Cranes Software is
setting new standards in the scientific and engineering field.
Cranes Software International Ltd. was co-founded by Mr. Asif Khader and Mr. Mukarram Jan in 1991. The Company started as a distributor of anti-virus software in Bangalore and later moved on to become the sole authorised distributor of MATLAB in South Asia in 1993.
The business of distribution of third party products grew in the 1990's and
partnerships were established with reputed companies such as MicroSim Inc.,
Windriver Inc. and dSPACE GmbH Germany to distribute their scientific software
products in India. The Company initiated its foray into the area of Digital
Signal Processing (DSP) tools by signing a reseller arrangement with Texas
Instruments for the ASEAN region which created the first overseas opportunity
in this business. Today, the Company's partnerships have diversified to offer
world-renowned solutions from reputed principals such as Texas Instruments,
Mentor Graphics, IBM, InventX, MapuSoft and others.
In 1998, Cranes Software decided to start a training division and Cranes
Varsity was formed to provide post-professional technical training in niche
domains such as digital signal processing (DSP), real time embedded Systems
(RTES) and mathematical modelling in 1998 for the academic and corporate
sectors. Cranes Varsity has partnered with Texas Instruments and Rational (a
subsidiary of IBM) to enhance the usage of technical software at engineering
colleges and universities across the country. It has also emerged as the
preferred training destination for several leading local and multinational
companies in India. Cranes Varsity has trained over 2500 engineers for the
likes of TI, GE's John F. Welch Technology Center, GE Transportation, Robert
Bosch, Delphi System, Wipro, Infosys, Honeywell, Intel, Sasken, Tata Elxi, TCS
etc.
In 2000, Cranes Software initiated its foray into software IPR with the
acquisition of U.S.-based AISN Software's range of visualization software
products, TableCurve 2D, Table Curve 3D and PeakFit. Ron Brown, the promoter of
AISN Software and the original author of the acquired suite of products,
endorsed Cranes Software's product management potential by joining the Company
as the Chief Software Architect for the products created by him. He continues
in this position at present and is also a member of Cranes Software's Board of
Directors. Cranes Software's technical products portfolio also includes the
global marketing rights to AutoSignal, SPSS' signal analysis product, also
developed by Ron Brown.
Soon thereafter, Cranes Software acquired SYSTAT, an award winning statistical
software product from SPSS Inc. The SYSTAT acquisition significantly
strengthened Cranes Software's position in statistical software as it brought
with it a global base of over 64,000 licensed users. Also, as in the case of
the previous acquisition, Lee Wilkinson, SYSTAT's original author, recognized
Cranes Software's strong strategic management and technical development
capabilities and fully endorsed this acquisition. Lee is the Senior Vice
President at SPSS Inc where he looks after the R&D function of that
company. He continues to provide his inputs to the ongoing development
initiatives and the strategic direction of the SYSTAT product.
In January 2004, Cranes Software acquired the marketing, licensing and
development rights for the Sigma product line from SPSS Inc., including the
flagship SigmaPlot® offering, SigmaStat® statistical analysis package, and
SigmaScan® image analysis software. These offerings are highly complimentary to
Cranes Software's current portfolio in terms of cross-selling potential within
existing users and addressable markets.
The transaction also included the acquisition of the product's customers,
personnel, fixed assets and all related intellectual property. At the time of
its acquisition, the Sigma product had an established active user base of over
100,000 globally, largely in the pharmaceutical and biotechnology marketplace.
Users included Merck, Eli Lilly, Pfizer and NASA, each of which had over a
thousand desktop installations.
In 2005, Cranes Software acquired the Indian arm of Engineering Mechanics
Research Corporation (EMRC). With this acquisition, Cranes Software not only
offers a Finite Element Analysis (FEA), through the NISA family of suites, but
also provides Computer Engineering Services (CAE) to clients in different
domains. These products and services are supported by our experienced engineers
to help clients solve the most complex of problems in various engineering
domains and help deliver results faster and more accurately.
Another push towards offering services to customers is through Enterprise Solutions,
which includes a wide range of services including consulting, research &
analysis, simulation/modeling & design, development and implementation,
migration, maintenance & support. Cranes's enterprise solutions portfolio
today includes end-to-end solutions in Enterprise applications, Knowledge
Management, Business Intelligence & analytics, and Performance Management.
The division blends the rich expertise of product designing, R&D investment
in emerging technologies and high-end consulting, thereby positioning it
uniquely in the spectrum of ICT solution providers.
As a significant global player in the scientific software domain, Cranes
Software is now in a position to combine the power of its software product
offerings with high-quality, cutting-edge services and solutions to scientific
researchers around the world.
Cranes Software has also made investments in emerging technologies such as
wireless and MEMS. The Company has developed IP cores for wireless
communications systems and wireless LAN test solutions for the automated test
equipment (ATE) industry. Cranes Software has played a pioneering role in MEMS
research by establishing CranesSci MEMS Lab in collaboration with Indian
Institute of Science (IISc), Bangalore. Located at the IISc campus, this
initiative is headed by Dr. Rudra Pratap, the Chairman of Cranes Software's
Board.
Today, Cranes Software has its presence in 39 countries across the world and
has a customer base of more than 350,000. Cranes Software provides its
customers with award winning proprietary products, training and high-end
consultancy services for engineers and scientists worldwide, and is
continuously investing in future technologies.
With a mission statement to provide its customers the best in scientific
technology and to enable its customers to define new limits, Cranes Software is
setting new standards in the scientific and engineering field.
Cranes Software International Limited : Significant Achievements
Year Milestone
1991 Cranes
Software International Limited (Cranes Software) founded by two young,
entrepreneurs.
1992 Initial
focus on engineering software.
1993 Acquired
Indian subcontinent distribution rights for MATLAB™.
1995 Strategic
alliance with dSPACE adds DSP development tools to portfolio.
1998 Alliance with Mentor Graphics' Nucleus Real Time Operating Systems (RTOS) for embedded solutions.
Cranes Varsity established for providing training services in DSP, RTOS, embedded systems and
mathematical modeling and
simulation (MMS).
1999 Cranes Varsity initiates corporate training and engages leading industry players.
Cranes Varsity acquires training
authorization for Texas Instruments' DSP University programme; initiates
mathematical modeling and simulation training using MATLAB; and real time
operating systems using Nucleus.
2000 Launch of Cranes' consulting division: initial engagements with GE, TI, the MathWorks and SPSS Inc.
Acquisition of AISN Software along
with its market leading software products TableCurve 2D, TableCurve 3D and PeakFit.
2001 Domestic mandates for marketing globally established products in telecom and networking, 3G and tool
chains for principals Texas Instruments, the MathWorks, Radioscape, AdventNet and Metaware.
Cranes Varsity becomes Global Connection Partner for the MathWorks, Inc.
Acquisition of SYSTAT from SPSS Inc.
Fully-owned U.S. subsidiary
incorporated in Richmond, California.
2002 R&D center established in Bangalore to develop product upgrades, and conduct research in new
technologies.
Fully-owned U.K. subsidiary incorporated in London.
CranesSci MEMS Lab established for MEMS research initiative in collaboration with the Indian Institute of Science (IISc), Bangalore.
ISO 9001-2000 certification acquired.
Global marketing and distribution alliance with AISN Software for the AutoSignal product.
Varsity alliance for introducing Rational Seed Programme at universities in South India.
Release of all-new,
internally-developed TableCurve 3D Version 4.0 and SYSTAT Version 10.2.
2003 Distribution rights for Texas Instruments' digital signal processing (DSP) tools in the ASEAN region.
Incorporated fully-owned subsidiaries in Singapore and Germany.
Launched SYSTAT Version 10.2 in Japanese to address latent local demand.
Invested in IISc faculty venture, ESQUBE, focused on communication technology research.
Rated as Technology Leaders for two consecutive years by Scientific Computing & Instrumentation, USA.
SYSTAT rated the top five product of the year under 'Data Visualization' category by Scientific Computing
and Instrumentation.
2004 Acquisition of the presentation and analysis Sigma product line from SPSS Inc. for US $ 13 millions.
Listing of GDRs in Luxemburg Stock Exchange.
Wireless technology alliance with leading global instrumentation player National Instruments.
Assessed at SEI CMM Level 5 covering software product development and services across the Group
operations.
2004 Appointment of noted biologist Dr. Manju Bansal, one of India's foremost computational biologists and a
Professor at Indian Institute of Science in Bangalore on Cranes' Board.
Cranes Software's shares are listed on the National Stock Exchange (NSE).
Cranes enters JV with the Dubai-based Kanoo Group to set-up operations in the Middle East.
Cranes Software is ranked the leading Indian publicly listed technology company by the 2004 edition of
Deloitte Touche Tohmatsu's Asia Pacific Technology Fast 500 survey.
The Scientific Computing & Instrumentation (SCI) Journal, picks SYSTAT 11.0 for the top products award
in the statistical data analysis
segment for the year 2004.
2005 Acquired Engineering Mechanics Research Corporation (EMRC), the developer of the NISA family of FEA
programs and a pioneer in the field of Computer Aided Engineering Software.
Dr. Peter Ryser, a Swiss citizen, and a professor of microtechnology at the Swiss Federal Institute of
Technology in Lausanne, is appointed on Cranes' Board of Directors.
Launched SYSTAT 11in Japanese to further address the Japanese market.
Cranes Software Licenses Equbits' Predictive Modeling Framework to develop an integrated module for
the data mining community.
Cranes Software decides to invest in InventX™ePM Project Portfolio Management Solution, product
development and life-cycle management.
Cranians
believe in :
Relationship
Value for Money
Technology
Speed
No debt
Set-up in 1995, the quality system is based on the board
approved quality principles and conforms to ISO 9001: 2000 standards. The
Quality Manual has details and specifications of practices followed with the
organization.
The internal quality audits to evaluate and assess the level and implementation
of the quality system began in the first quarter of 2002. The quality system
was certificated in June 2002 by TUV CERT (TUV Rheinland / Berli-Brandenburg).
Later as a part of continuous improvement process, Cranes got assessed to CMM
L5 in July 2004. The journey is continuous and is process of implementing
BS7799 a information security standard.
Strategies and policies created in cooperation with the personnel, customers
and other stakeholders
Evaluation based on - both self-assessment and external
evaluation
Continuous learning, innovation and improvement
Quality training for personnel to strengthen continuous
quality development.
Management
Strategic planning
Client orientation
Knowledge and skills to analyze it
Development of the staff
Process management
Results/accountability
Effectiveness
Quality improvement is an on-going process which is based on
the commitment of the whole staff to common values and goals of the
organization.
The main tool of corporate improvement is an assessment-based quality
management system. It defines the group's general operating strategies,
guidelines, values and policies and also outlines the general decision-making
principles at all levels.
Strategic Levels
Operational Levels
Best Practices
External Evaluators' Views
Quality is a competitive element of strategic importance to
CSIL. The organization's management addresses quality standards and targets in
the normal business plans and is committed to continuous quality improvement.
Quality policy and quality principles have been defined for the organization
and the management ensures that these are understood at every level of the
organization.
CSIL was ranked the fastest growing listed Indian Company by
Deloitte Touche Tohmatsu Asia Pacific Fast 500 for two consecutive years 2003 &
2004. Deloitte's Technology Fast 500 Asia Pacific is a program that recognizes
and profiles fast-growing technology companies. The program, includes the
following and related industry sectors:
Communications
Software
Semi-conductor, Components and Electronics
Life Sciences
Internet
Computers and Peripherals
Other (Technology related companies not included above)
In 2004, CSIL was ranked 8th in the Dataquest Top 20 fastest
growing companies based on market capitalization. Dataquest Top 20 is India's
oldest and most comprehensive IT Industry survey report.
In 2004, CSIL was ranked 102 in the DQ Top 20. The DQ Top 20
and DQ Top 200 have for over a decade been the high point of IT publishing in
India. The compilation of this report is an exercise in profiling and ranking
the Top 200 InfoTech companies in the country, and is an exhaustive collection
of over 1,000 other companies' data. This also presents a one-stop information
source of the Indian IT industry's performance.
CSIL's 100% subsidiary Systat Software Inc. was rated as the
'Technology Leader' for two consecutive years - 2003 & 2004, by Scientific
Computing and Instrumentation, USA. Scientific Computing and Instrumentation is
a leading global industry journal that provides focused coverage of computer
technology for the scientific community, featuring technical software, computer
systems and related hardware, as well as the latest applications and techniques
that can aid in advancing scientific research.
CSIL was ranked 261 by the ET 500 survey in December 2004.
The Economic Times, one of India's leading Business Dailies, conducts a nation
wide research on all listed companies twice a year. This survey called ET 500
is a consolidated list which ranks companies based on market capitalization.
CSIL was ranked 217 by Business Today 500 survey. The BT 500
survey ranks India's 500 most valuable private sector companies on the basis of
market capitalization. Similar to ET 500, BT 500 does not include public sector
undertaking companies.
Press Releases :
Cranes Software Among India's Fastest Growing Technology
Companies
Bags award at Deloitte Technology Fast 50 India 2005 Awards Ceremony in Mumbai
Bangalore, November 28, 2005:
Cranes Software International Ltd., a global scientific and engineering
software solutions provider, has been recognised as one of the 50 fastest
growing companies in India by the Deloitte Technology Fast 50 India inaugural
award. This award has been instituted in India by Deloitte Touche Tohmatsu to
recognize the fastest growing technology companies in India. Cranes Software
bagged the award after a rigorous selection procedure that involved taking into
consideration its percentage revenue growth from FY 2003 to FY 2005, among
other considerations.
"It is an honour to be recognised amongst the Fast 50 rapidly growing companies
in India by Deloitte. This is the third time in a row that our company has been
judged to be one of the fastest growing technology companies in the Asia
Pacific region by Deloitte Touche Tohmatsu. They are committed to delivering
similar outstanding performance, by delivering high quality software products
and services to our customers," says Asif Khader, Managing Director,
Cranes Software International Limited.
In FY 2003, Cranes Software posted operating revenues of Rs. 610.1 millions,
which increased to Rs. 1,136.9 millions in FY 2004 and Rs. 1,633.8 millions in
FY 2005. Over the two last years, Cranes Software grew at a Compounded Annual
Growth Rate of 63.6%. Further, in the first six months of the current fiscal
year, Cranes Software's revenues have grown by 46.5%. Proprietary products
owned by Cranes Software, namely SYSTAT, Sigma Product Line, TableCurve 2D,
TableCurve 3D, Peakfit and NISA, make up 80% of total revenues.
Cranes Software had previously emerged the fastest growing Indian technology
company amongst the public-listed companies in Deloitte Touche Tohmatsu's Asia
Pacific Fast 500 Survey over two consecutive years: 2003 & 2004. These
surveys evaluated growth achievements over two consecutive years ended March
2003 and March 2004.
About Deloitte Technology Fast 50 Awards
Esablished in San Jose, California, in 1995, the Deloitte Technology Fast 50
ranks the 50 fastest growing technology companies by geographic region. The
growing program operates independently in 10 countries outside of the United
States, plus one region - Central Europe. The Fast 50 programs supplement the
broader Deloitte Technology Fast 500 initiative in that the winners typically
because automatically eligible to participate in the Fast 500. This is the
first time that the award has been held in India. In order to be eligible to
participate, participants were required to own proprietary technology that
contributes to a significant portion of their operating revenues; devote a
significant proportion of operating revenues to research and development of
technology; and operating revenues of at least USD$ 50,000 in the first year of
the three years being analyzed.
About Cranes Software International Limited (CSIL)
Cranes Software is a global scientific & engineering products and solutions
provider. The Company's business interests straddle products, services, R&D
in future technologies, training and high-end consultancy for engineers and
scientist worldwide. Focused on the scientific and engineering community, Cranes
Software has addressed the needs of a variety of customer groups ranging from
large multinational companies to government, defence, educational and research
institutions for over a decade.
Today, Cranes Software has its presence in 39 countries across the world and
has a customer base of more than 350,000. Cranes Software also offers
world-renowned solutions from reputed principals such as The MathWorks, Texas
Instruments, IBM through product alliances.
With a mission statement to provide its customers the best in scientific
technology and to enable its customers to define new limits, Cranes Software is
setting new standards in the scientific and engineering field.
CRANES SOFTWARE & THE KANOO GROUP LAUNCH MIDDLE EAST OPERATIONS
Joint Venture to offer customized solutions around its product domains and
enterprise services in the Middle East.
Bangalore, November 6, 2005:
Cranes Software Middle East LLC (CSIME), a joint venture involving Cranes
Software International Limited and The Kanoo Group, has launched its operations
in the Middle East by opening an office in Dubai.
The Company plans to offer to clients customized solutions in its product
domains and services in the areas of Analytics; enterprise project and
portfolio management,' Six Sigma consulting, and enterprise applications by
leveraging its own products, IP's and capabilities. The verticals that will be
targeted include Banking, Financial Services and Insurance, Retail,
Petrochemical Manufacturing, Pharmaceutical and Life Sciences, Education, and
Travel to name a few.
Speaking on the joint venture, Mr. Mishal Kanoo, Deputy Chairman of The Kanoo
Group said, "The joint venture with Cranes Software International is
another significant milestone for The Kanoo Group. Cranes Software owns some of
the best Scientific and Engineering software products and is considered the
industry leader in its products domain. Cranes Software's products have a
worldwide reach and there is a huge potential for these products in the Middle
East market. This joint venture relationship will help us promote Cranes
Software's state-of-the-art products through our strong network in the Middle
East."
Speaking about CSIME's plans for the region, Mr. Mueed Khader, Director, Cranes
Software International Limited said, "The Middle East is one of the
fastest growing regions in the world and a very significant market for Cranes
Software. With our global experience and their joint venture with The Kanoo
Group, one of the largest business conglomerates in the Middle East, we hope to
be a key IT player in the Middle East in the near future. They will look at
leveraging from The Kanoo Group's brand equity, wide reach and vast network of
partners and clients."
The venture will also enable greater focused access to the Middle East of Cranes
Software's major products, namely Statistical, Data Visualization and
Engineering tools such as SYSTAT, the Sigma Product Line and the NISA family of
FEA products.
The launch of the Middle East venture signifies the commitment of Cranes
Software International Limited to customers and partners in ensuring the
highest level of support and benefits of its latest research and technology.
Its award winning products and solutions are offered worldwide, and are widely
accepted by multinational companies, R&D establishments and educational
institutions in US, Europe, Japan, Australia, and other regions.
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.44.22 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.58.03 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|