MIRA
INFORM REPORT
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Report Date : |
12.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ECE INDUSTRIES LIMITED |
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Registered Office : |
“ECE House”, 28-A, Kasturba Gandhi Marg,
New Delhi – 110 001, |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.06.1945 |
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Com. Reg. No.: |
55-8279 |
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CIN No.: [Company
Identification No.] |
L31500DL1945PLC008279 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELE00023C |
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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 single phase meters, poly phase meters,
rss and other special meters, transformers, switchgears, circuit breakers,
instrument transformers and control boards, gls lamps, fluorescent tubes,
mercury vapour lamps, rough services lamps and railway lamps, glass shells
and undertakes contract jobs for elevators. |
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 3500000 |
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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 well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
“ECE House”, 28-A, Kasturba Gandhi Marg, New Delhi – 110 001, |
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Tel. No.: |
91-22-23314237/38/39 |
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Fax No.: |
91-22-23310410 |
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E-Mail : |
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Website : |
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Plant 1 : |
Chennai: Contract Division for Railway Electrification, Sub-Stations,
Roads and Bridges etc. |
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Plant 2 : |
Ghazibad : Elevators |
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Plant 3: |
Hyderabad: Meters and Transformers |
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Plant 4: |
Sonepat : Transformers and H.T. Switchgear |
DIRECTORS
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Name : |
Mr. O. P. Khaitan |
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Designation : |
Director |
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Name : |
Mr. S. C. Dalal |
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Designation : |
Director |
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Name : |
Mr. Vikram Prakash |
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Designation : |
Director |
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Name : |
Mr. O.P. Soni |
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Designation : |
Director |
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Name : |
Mr. C. Ram (Nominee LIC) |
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Designation : |
Director |
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Name : |
Mr T. K. Das (Nominee GIPSA) |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr.R. N. Jaju |
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Designation : |
President |
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Name : |
Mr. U.N. Vajpeyi |
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Designation : |
Executive Vice-President |
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Name : |
Mr. R. Prasad |
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Designation : |
Manager and Vice-President (Commercial & Elevator Division) |
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Name : |
Mr. G.S. Rathore |
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Designation : |
Vice-President, Transformer & Switchgear Divisions |
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Name : |
Mr. B. L Purohit |
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Designation : |
Vice-President, Meter Division |
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Name : |
Mr. R.K. Jhalani |
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Designation : |
Chief Executive (Management Control & Contract Division |
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Name : |
Mr. S.M. Wadhavan |
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Designation : |
Chief Executive, Transformer Design & Planning |
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Name : |
Mr. P.C. Agarwal |
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Designation : |
Chief Executive, Elevator Division |
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Name : |
Mr.S. C. Agarwal |
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Designation : |
Dy. Chief Executive, Transformer & Meter (Hyderabad |
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Name : |
Mr. Rajat Sharma |
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Designation : |
Senior Manager (Taxation & Corporate Affairs) |
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Name : |
Mr. V. K. Gupta |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A. Promoters |
13,58,878 |
30.97 |
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B. Non Promoters |
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Financial Institutions and
Banks |
11,11,723 |
25.97 |
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Body Corporates |
3,50,938 |
8.00 |
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Individuals |
13,89,018 |
31.65 |
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Non-Resident Indians(NRIs) |
15,598 |
0.35 |
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Overseas Corporate
Bodies(OCBs) |
1,62,000 |
3.69 |
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Total |
43,88,155 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
manufacturing and marketing of single phase meters, poly phase meters,
rss and other special meters, transformers, switchgears, circuit breakers,
instrument transformers and control boards, gls lamps, fluorescent tubes,
mercury vapour lamps, rough services lamps and railway lamps, glass shells
and undertakes contract jobs for elevators. |
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Product: |
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GENERAL
INFORMATION
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Suppliers : |
Atul Engineering Udyog Berlia Electricals Private Limited Brij Iron Industries Limited Friends Cable Industries Limited Kemfin Chemicals P. Limited P.K.Maheshwari Mkt. Private. Limited Trend Mfg. & Trading Premier Adhesives and Sri Durga Enterprises |
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No. of Employees : |
2000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S.R. Batliboi & Company Chartered Accountant |
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Address : |
B-26, Qutub Institutional Area, New Delhi-110 016 |
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Associates : |
Ř Bharat Commerce
& Industries Limited Ř Indian Rayon
& Industries Limited Ř Hindustan Gas
& Industries Limited Ř Manjushree
Plantations Limited Ř Mangalam Cement
Limited Ř Rajashree
Polyfil Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,45,00,000 |
Equity Shares |
Rs.10/-(each) |
Rs.145.000 Millions |
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50,000 |
Preference Shares |
Rs.10/- (each) |
Rs.5.000 Millions |
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Total: |
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Rs.150.000Millions |
Issued :
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No. of Shares |
Type |
Value |
Amount |
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44,33,385 |
Equity Shares |
RS.10/-(each) |
Rs.44.333
Millions |
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Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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43,88,155 |
Equity Shares |
RS.10/-(each) |
Rs.43.881
Millions |
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Forfeited Shares Money |
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Rs.0.017
Millions |
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Total: |
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Rs. 43.898 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 |
43.898 |
43.898 |
43.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
694.573 |
685.077 |
682.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
738.471 |
728.975 |
726.400 |
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LOAN FUNDS |
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1] Secured Loans |
168.641 |
112.669 |
107.800 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.300 |
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TOTAL BORROWING |
168.641 |
112.669 |
108.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
907.112 |
841.644 |
834.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
131.200 |
131.594 |
120.800 |
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Capital work-in-progress |
7.687 |
1.006 |
0.200 |
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INVESTMENT |
29.918 |
29.999 |
47.100 |
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DEFERREX TAX ASSETS |
1.882 |
12.672 |
0.00 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
387.562
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278.430 |
348.1 |
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Sundry Debtors |
347.807
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291.516 |
305.3 |
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Cash & Bank Balances |
60.882
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50.232 |
105.200 |
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Other Current Assets |
39.587
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39.913 |
0.000 |
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Loans & Advances |
181.117
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182.199 |
219.500 |
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Total
Current Assets |
1016.955
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842.29 |
978.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
289.796
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174.994 |
293.200 |
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Provisions |
22.018
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22.787 |
26.600 |
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Total
Current Liabilities |
311.814
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197.781 |
319.800 |
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Net Current Assets |
705.141
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644.509 |
658.300 |
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MISCELLANEOUS EXPENSES |
31.284 |
21.864 |
8.100 |
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TOTAL |
907.112 |
841.644 |
834.500 |
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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 |
893.898 |
757.607 |
819.000 |
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Other Income |
33.330 |
97.712 |
99.900 |
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Total Income |
927.228 |
855.319 |
918.00 |
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Profit/(Loss) Before Tax |
31.389 |
10.746 |
25.600 |
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Provision for Taxation |
0.000 |
{1.300} |
10.5 |
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Profit/(Loss) After Tax |
19.599 |
12.690 |
15.100 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.056 |
0.162 |
NA |
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Commission Earnings |
0.000 |
0.000 |
NA |
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Other Earnings |
0.000 |
0.000 |
NA |
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Total Earnings |
0.056 |
0.162 |
NA |
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Imports : |
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Raw Materials |
0.199 |
73.496 |
NA |
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Stores & Spares |
0.321 |
1.143 |
NA |
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Capital Goods |
2.020 |
7.434 |
NA |
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Others |
0.000 |
0.000 |
NA |
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Total Imports |
2.54 |
82.073 |
NA |
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Expenditures : |
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Purchase of Trade Goods |
4.040 |
4.789 |
0.000 |
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Raw Materials,
Stores and Other Material Consumed |
675.163 |
508.928 |
455.700 |
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Excise
Duty |
0.000 |
0.000 |
95.500 |
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Power
& Fuel Cost |
0.000 |
0.000 |
14.200 |
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Other
Manufacturing Expenses |
0.000 |
0.000 |
98.500 |
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Employee
Cost |
0.000 |
0.000 |
72.500 |
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Selling
and Administration Expenses |
0.000 |
0.000 |
62.400 |
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Miscellaneous
Expenses |
0.000 |
0.000 |
69.000 |
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Interest
and Financial charges |
0.000 |
0.000 |
15.500 |
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Personnel Expenses |
60.568 |
57.059 |
0.000 |
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Operating and other Expenses |
162.992 |
176.894 |
0.000 |
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Decrease/(Increase) in Inventories |
[40.304] |
72.428 |
0.000 |
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Managerial Remuneration |
1.280 |
1.183 |
0.000 |
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Depreciation & Amortization |
10.518 |
10.239 |
9.500 |
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Financial Expenses |
21.584 |
13.052 |
0.000 |
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Total Expenditure |
895.841 |
844.572 |
892.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
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Sales
Turnover |
405.400 |
492.500 |
580.800 |
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Other
Income |
09.900 |
03.700 |
41.200 |
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Total
Income |
415.300 |
496.200 |
622.000 |
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Total
Expenditure |
386.800 |
468.300 |
589.400 |
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Operating
Profit |
28.500 |
27.900 |
32.600 |
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Interest |
08.000 |
06.900 |
09.400 |
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Gross
Profit |
20.500 |
21.000 |
23.200 |
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Depreciation |
02.900 |
02.900 |
02.600 |
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Tax |
05.800 |
06.200 |
04.000 |
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Reported
PAT |
11.800 |
11.900 |
16.600 |
200606 Quarter 1 –
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
(2.519) million Consumption of Raw Materials Rs 308.604 million Stores, other
materials etc Staff Cost Rs 16.409 million Provision for Contingency Rs 15.000
million Other Expenses Rs 49.270 million Tax indicates Provision for Income Tax
(including deferred tax and fringe benefit tax) Status of Investor Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter Nil Complaints disposed off
during the quarter Nil Complaints unresolved at the end of the quarter Nil 1.
The above results have been approved by the Board of Directors at their meeting
held on July 31, 206 and have been reviewed by the Auditors of the Company. 2.
Regarding Auditor's qualification in the audited accounts for the year ended
March 31, 2006 about carrying stock of Meter Division, Hyderabad - Rs 99.575
million as on June 30, 2006 (Rs 103.640 million as on March 31, 2006). The
Company has not yet started production of Electronic Meters in full swing.
However, management is apprehensive of some obsolescence in the aforesaid stock
and as such has, during the quarter ended June 30, 2006, made a Contingency
Provision of Rs 15.00 million against the same. 3. Other Income for the quarter
ended June 30, 2006 includes profit on sale of fixed assets of Rs 3.303 million
(Previous year March 31, 2006- Loss of Rs 0.310 million. 4. Figures of the
corresponding previous period / year have been regrouped/rearranged wherever
necessary.
200609 Quarter 2 –
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 approved by the Board of Directors at their meeting held on
October 31, 2006 and have been reviewed by the Auditors of the Company. 2.
Regarding Auditors qualification in the previous audited accounts for the year
ended March 31, 2006 about carrying stock of Meter Division Rs 101.884
Millions. as on 30.09.2006 . The Company has not yet started production of
Electronic Meters in Full swing. Jowever, management is apprehensive of some
obsolescence in theaftresaid stock and as such has, during the half year ended
30th September 2006, made a Contingency provision of Rs.26.5 Millions
(includung Rs.115 lacs provided during the quarter ended 30th Sepetmber 2006)
against the same. 3. Other Expenses for the quarter ended 30th September 2006
includes reversal of profit on sale of land recoginesed in an earlier year of
Rs.63.08 Lacs. 4. The figures of sale for the quarter ended 30th September 2006
is after reversla of excess credit taken ofRs.331.9 Millions towards price variation
during the qurater ended 30th June 2006 and year ended 31st March 2006. 5.
Figures of the corresponding previous period/ year have been regrouped/
rearranged wherever necessary.
200612 Quarter 3 –
Expenditure Includes (Increase)/Decrease in Inventories Rs
90.710 million Consumption of Raw Materials Rs 426.725 million Stores, other
materials etc Staff Cost Rs 18.907 million Provision for Contingency Rs (26.50)
million Other Expenses Rs 79.526 million Provision for Tax includes deferred
tax and fringe benefit tax Status of Investor Complaints for the quarter ended
December 31, 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 approved by the Board of Directors at their meeting held on
January 19, 2007 and have been reviewed by the Auditors of the Company. 2.
Regarding Auditor's qualification in the audited accounts for the year ended
March 31, 2006 about carrying stocks of Meter Division Hyderabad of Rs 103.640
million. The Company has, during current quarter, carried out the exercise of
identifying obsolete stocks and accordingly these stocks have been valued at Rs
10.198 million. Loss of Rs 91.824 million after considering consumption during
the nine months period ended December 31, 2006, has been provided due to change
in the design and marketing conditions. Provision for contingency of Rs 26.5
million made till September 30, 2006 against the aforesaid stocks has been
recouped during the current quarter. 3. Other income for the quarter and nine
months period ended December 31, 2006 includes net profit on sale of fixed
assets amounting to Rs 40.042 million and Rs 37.008 million respectively. 4.
Sales during the quarter ended December 31, 2006 include Rs 6.314 million (net
credit) on account of additional price variation claims accepted by electricity
boards, pertaining to quarters prior to December 31, 2006 in respect of transformer
divisions. 5. The previously identified business segments - Meter, Transformer
and Switchgear have been clubbed together to Equipment for power transmission
and distribution', since these are governed by the same set of risks and
returns. Accordingly, figures of previous year periods have been regrouped. The
other previously identified business segments - Elevator and Contracts have
been shown separately 6. Figures of the corresponding previous /year have been
regrouped/rearranged whenever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.20 |
0.16 |
0.16 |
|
Long
Term Debt-Equity Ratio |
0.04 |
0.00 |
0.00 |
|
Current
Ratio |
2.48 |
2.46 |
2.15 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
3.43 |
3.04 |
2.99 |
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Inventory |
3.10 |
2.77 |
2.37 |
|
Debtors |
3.23 |
2.91 |
2.20 |
|
Interest
Cover Ratio |
2.45 |
-2.36 |
1.97 |
|
Operating
Profit Margin(%) |
6.15 |
-2.39 |
4.87 |
|
Profit
Before Interest And Tax Margin(%) |
5.14 |
-3.56 |
3.71 |
|
Cash
Profit Margin(%) |
2.92 |
-3.53 |
2.23 |
|
Adjusted
Net Profit Margin(%) |
1.90 |
-4.70 |
1.07 |
|
Return
On Capital Employed(%) |
6.50 |
-3.91 |
3.84 |
|
Return
On Net Worth(%) |
2.79 |
-5.88 |
1.27 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.[0.01] |
|
Low |
Rs.[0.01] |
LOCAL AGENCY
FURTHER INFORMATION
FINANCE AND ACCOUNTS
The sales turnover for the current year is Rs.1031.9 Millions against
Rs.867.9 Millions in the previous year. The total gross profit for the year
ended 31st March, 2006 comes to Rs. 41.906 Millions (Previous year Rs.20.985
Millions).
After providing Rs.10.517 Million (Previous year Rs.10.238 Millions) for
depreciation and Rs.11.790 Millions as provision for taxation including a sum
of Rs.1.000 Millions for Fringe Benefit Tax (Previous year Rs.3.244Millions
being Deferred Tax Credit and Rs.1.300 Millions as MAT), there remains a
surplus of Rs. 19.599 Millions (Previous year Rs.12.691 Millions).
Fixed Assets:
- LeaseholdLand
- Freehold Land
- Temporary
Structures
- Buildings
- Plants and
Machinery
- Electric
& Gas Installation
- Office
Equipments
- Furniture
& Fixtures
- Vehicles
- Intangibles
(Software)
In Elevator
Division, the Company has to get credit of Rs. 13.904 Millions from sales tax
authorities in different states all over the country on account of certificates
furnished/ yet to be furnished to the department for sales tax deducted at
source by some customers.
As a measure of
abundant caution and to cover the losses, if any, against the realization of
aforesaid amount, the
Company has,
during the year, made a provision of Rs. 3.5 Millions in Elevator Division
against Company's claim for sales deducted as source certificates furnished/ to
be furnished to the department and sales tax assessments yet to be completed
The Meter Division, Hyderabad at the year end
is carrying stock of raw materials and stores, spares, work in
progress and
finished goods aggregating to Rs. 103.640 Millions as against corresponding
figures of Rs. 1,05.541 Millions as on 31 st March, 2005. The Division was
under lay off virtually during the whole of the year. The Company has during
the year, settled the accounts of all the workmen engaged in the manufacturing
of old type of electromechanical meters. The production activities at Meter
Division are expected to resume shortly whereafter the existing inventory will
start getting consumed. The aforesaid stocks have been valued at lower of cost
and net
realizable value, as estimated by the management. The management is
hopeful that losses, if any, will not have
material impact and are presently not ascertainable.
The Small Scale Industrial Undertakings to whom the Company owes sums
and which are outstanding for more than 30days are
The ECE story began as early as 1945 when it was Electric Construction & Equipment Co. Ltd. What was started as a small electrical repair workshop at Hazra Road in Calcutta, during the second World War Days, steadily emerged as a growing industrial enterprise establishing itself in various fields of Indian electrical industry.
From the manufacture of Transformers, which ECE took up first, the Company has expanded its activities into four major areas of power technology. Such as, Transformers, Elevators, Energy meters and turn key contracts of Railway Electrification, Power Sub Stations, Roads & Bridges etc. With a turnover in the region of Rs. 1000 Millions, ECE’s infrastructure presently includes four manufacturing Plants :
1. Transformer Plants, Sonipat(Haryana) and Hyderabad (Andhra
Pradesh)
2. Elevator Plant, Ghaziabad (Uttar Pradesh)
3. Meter Plant, Hyderabad(Andhra Pradesh)
4. Switchgear Plant, Sonipat(Haryana)
5. Contract Division, Chennai (Tamilnadu)
Over its four decades of resourceful growth, ECE has built up an infrastructure and manpower which has tremendous growth potential for expanding into several high technology fields. With a thrust of updating technology, ECE had in past established technical collaborations with five world renowned industrial leaders – Toshiba, Schindler, Dell, EAW-Germany, Tungsram etc for different Product ranges.
Transformer, Electro-Mechanical & Electronic Meters
Traction Elevators, Hydraulic Elevator & Car Parking stations, H.T.
Switchgear Railway Electrification, Sub -stations and Road & Bridges.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.22 |
|
UK Pound |
1 |
Rs.85.27 |
|
Euro |
1 |
Rs.58.24 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
|
66 |
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 |
|