MIRA
INFORM REPORT
|
Report Date : |
21.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
D. PARIKH ENGINEERING WORKS |
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Registered Office : |
Plot No. 115, Marol Co-operative Industrial Estate, M. V. Road, Near Saki
Naka, Andheri (East ) Mumbai – 400 059, Maharashtra |
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Country : |
INDIA |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
Sept. 1948 |
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Registration Number : |
27226 |
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SSI Registration Number : |
11-07-03810 PMT SSI dated 28.09.1961 |
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IEC No.: |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMD01406G |
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PAN No.: [Permanent
Account No.] |
AAAFD1155B |
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Legal Form : |
Subject is a partnership Concern with an Unlimited Liability of the
Partners. |
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Line of Business : |
Manufacturer of Vertical Centrifuges for Industrial Appliance, Textile
Process Mechanical for Pharmaceutical Machines. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established concern having satisfactory trade
record. Trade relations are fair. Payments are reported as slow but correct. The
concern is doing steady business. Nothing adverse reported. The concern can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Plot No. 115, Marol Co-operative Industrial Estate, M. V. Road, Near
Saki Naka, Andheri (East ) Mumbai – 400 059, Maharashtra |
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Tel. No.: |
91-22-28504787 / 4788 |
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Mobile No.: |
91-9322634447 |
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Fax No.: |
91-22-28505979 |
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E-Mail : |
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Website : |
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Area : |
20000 Sq. ft. + 15000 Sq.ft. Open Space |
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Location : |
Owned |
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Head Office : |
CRISIL House |
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Address : |
121 – 122, Andheri – Kurla Road, Andheri East, Mumbai – 400 093,
Maharashtra |
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Tel. No.: |
91-22-56913142 |
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Fax No.: |
91-22-56913030 |
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Contact : |
Mr. Parekh Pingulkar |
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Branche Offices : |
301,Paritosh Usmanpura, Ahmedabad – 380013, Gujarat |
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Tel. No.: |
91-79-27550317 / 1533 |
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Fax No.: |
91-79-7559863 |
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Contact : |
Mr. Chirag Jagirdar |
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Branch Office : |
W-101, 1st Flor, Sunrise Chambers, 22, Ulsoor Road,
Bangalore – 560042 |
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Tel. No.: |
91-80-25580899 / 25594802 / 6708 |
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Fax No.: |
91-80-25594801 |
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Contact : |
Mr. Sudhir Narayan |
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Branch Office: |
Mezzanine Floor, Thapar House, 43 /44 – Montieth Road, Egmore, Chennai
– 6000008 |
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Tel. No.: |
91-44-28546205 / 06/ 28546093 |
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Fax No.: |
91-44-28547531 |
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Contact : |
Mr. Venugopal |
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Branch Office : |
Uma Chamber, 3rd Floor, Banjara Hills, Nr. Punjagutta Cross
Roads, Hyderabad – 500082, Andhra Pradesh |
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Tel. No.: |
91-40-23358103 / 8105 |
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Fax No.: |
91-40-23357507 |
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Contact : |
Mr Annam Ramaswamy |
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Branch Office : |
The Millennium, unit No. 2 W(i), 235 / 2A, AJC Bose Road Kolkata –
700020 West Beggal |
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Tel No.: |
91-33-22891949 / 22891950 |
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Fax No. : |
91-33-22830597 |
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Contact : |
Mr. Arnab Chanda |
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Branch Office : |
Hindustan Times Building. 9th Floor, 18-20, K. G. Marg, New
Delhi – 110001 |
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Tel No. : |
91-11-23721603 / 23320980 / 23736541 |
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Fax No. : |
91-11-23721605 |
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Contact : |
Mr. Nitin Mahajan |
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Branch Office : |
1187/ 17 , Ghole Road, Shivajinagar, Pune – 411005 |
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Tel No. : |
91-20-25539064 / 67 |
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Fax No.: |
91-20-25539068 |
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Contact : |
Ms Jasmine A Chaney |
PARTNERS
|
Name : |
Mr. P. R. Parikh |
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Designation : |
Partner |
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Date of Birth/Age : |
63 Years |
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Qualification : |
B. E. Mechanical |
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Experience : |
43 Years |
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Name : |
Mr. Mayank Parikh |
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Designation : |
Partner |
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Date of Birth/Age : |
35 Years |
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Qualification : |
B. E. , M. B .A |
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Name : |
Mr. R.M. Parikh |
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Designation : |
Partner |
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Date of Birth/Age : |
90 Years |
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Qualification : |
Undergraduate |
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Experience : |
60 Years |
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Date of Appointment : |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Profit Sharing Ratio as on March 31, 2005
|
Names of Shareholders |
Percentage of Profit Sharing |
|
Mr. P. R. Parikh (HUF) |
50.00 |
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Mr. R. M. Parikh |
25.00 |
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Mr. M.P. Parikh |
25.00 |
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Total 100.00 |
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Partners’ Capital as on March
31, 2005
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Names of Shareholders |
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Capital Invested
|
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Mr. P. R. Parikh (HUF) |
|
Rs.15.217Millions |
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Mr. R. M. Parikh |
|
Rs. 5.725
Millions |
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Mr. M.P. Parikh |
|
Rs.12.744Millions |
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Insurance Details
|
Assets |
Insurer |
Date of Validity |
Sum Insured (Rs. Millions ) |
|
Plant and Machinery, Electrical Installations and Furniture and
Fixtures of parishram Engineering Works |
United India
Insurance Company Limited |
07/08/2005 To
06/08/2006 |
2.850 |
|
Plant and Machinery, Electrical Installations and Furniture and
Fixtures, Stocks and Other Specific Items of D Parikh Engineering Works |
United India
Insurance Company Limited |
07/08/2005 To
06/08/2006 |
29.625 |
|
|
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|
Total 32.475 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Vertical axis basket Centrifuges for Industrial
Appliance, Textile Process Mechanical for Pharmaceutical Machines |
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Products : |
Centrifuge, Pillar Bay, Horizontal Axis Peeler, Horizontal Pharma
Peeler , Vertical, Laboratory, Manual Top Discharge, Lifting bag, Bottom
discharge, |
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Exports : |
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Products : |
Centrifuges |
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Countries : |
Middle East, Asia, Philippines, Sri Lank, Bangladesh |
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Imports : |
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Products : |
Nicol Allay Components Guokers |
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Countries : |
U.S.A.., U.K., Germany |
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Terms : |
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Purchasing : |
L / C , Cash Credit |
GENERAL
INFORMATION
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Suppliers : |
1] Jindal Stainless Limited , Mumbai 2] Fluid Logic Systems Private Limited, Ahmedabad 3] Naalsons Engineers India Private Limited 4] Waves Engineering , mumbai 5] Anuradha Industries, Maharashtra |
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Customers : |
End Users 1] Cipla Limited, Banglore And Kurkumbh 2] Ranbaxy Laboratories Limited, Mohali 3] Jubilant Organosyts Limited, Mysore 4] Signa S. A. 5] DSM Anti Infective India Limited 6] Gharada Chemicals 7] Regent Drugs Limited 8] Macleods Pharmaceutical 9] Lupin Limited 10] Dr. Reddy’s Laboratories Limited 11] Micro Labs 12] Koffolk (1949) limited 13] Anuh Pharma limited 14] USV limited 15] Cadila Healthcare 16] J. P. Pharmaceutical 17] Anphar Lab Limited 18] Apicore LLC 19] G. M. Chemical 20] Calyx Chemicals & Pharmaceuticals 21] FDC Limited 22] Pam Labs Healthcare 23] G. A. Amphray Lab |
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No. of Employees : |
70 (Group Employer 100
People ) |
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Bankers : |
State Bank of India , Marol, Andheri (E) Mumbai |
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Facilities : |
Cash Credit / Working Capital / Demand Loan, Non –Fund Based Bank Guarantees |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Haribhakti & Company |
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Associates/Subsidiaries : |
Nima Engineering Private Limited |
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Line of Business : |
Manufacturer Simpler Varian in of Centrifuges |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs,33.785 Millions |
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Borrowed : |
--- |
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Total : |
Rs.33.785 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
31.03.2007 |
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Sales Turnover |
130.000 |
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Partner Investment Rs.30.000 / 40.000 Millions
Group Sales Rs.220.000 Millions
Nima Engineering Private Limited Rs. 85.000 Millions
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
33.785 |
26.471 |
19.650 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
33.785 |
26.471 |
19.650 |
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|
LOAN FUNDS |
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1] Secured Loans |
9.200 |
7.943 |
7.022 |
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2] Unsecured Loans |
3.812 |
0.000 |
0.000 |
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TOTAL BORROWING |
13.012 |
7.943 |
7.022 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
46.797 |
34.414 |
26.672 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2.918 |
2.237 |
1.798 |
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Capital work-in-progress |
0.000 |
2.03 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
34.516
|
25.840 |
19.271 |
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Sundry Debtors |
17.977
|
8.164 |
6.414 |
|
|
Cash & Bank Balances |
11.328
|
11.586 |
12.592 |
|
|
Other Current Assets |
9.105
|
5.558 |
5.530 |
|
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Loans & Advances |
0.264
|
0.243 |
0.162 |
|
Total
Current Assets |
73.190
|
51.391 |
43.969 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
29.311
|
19.214 |
19.095 |
|
|
Provisions |
0.000
|
0.000 |
0.000 |
|
Total
Current Liabilities |
29.311
|
19.214 |
19.095 |
|
|
Net Current Assets |
46.797
|
34.414 |
26672 |
|
|
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
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|
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|
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TOTAL |
46.797 |
34.414 |
26.672 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
112.169 |
85.271 |
76.661 |
|
|
Other Income |
1.554 |
0.498 |
0.425 |
|
|
Total Income |
113.723 |
85.769 |
77.086 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
13.540 |
9.273 |
6.219 |
|
|
Provision for Taxation |
5.071 |
3.391 |
2.353 |
|
|
Profit/(Loss) After Tax |
8.469 |
5.882 |
3.866 |
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Expenditures : |
|
|
|
|
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
0.644 |
0.538 |
1.093 |
|
|
Administrative Expenses |
5.755 |
4.923 |
4.811 |
|
|
Raw Material Consumed |
71.996 |
51.987 |
48.304 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
2.863 |
2.503 |
2.576 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Direct Labour |
11.388 |
9.684 |
8.464 |
|
|
Interest |
0.000 |
0.000 |
0.000 |
|
|
Insurance Expenses |
0.000 |
0.000 |
0.000 |
|
|
Power & Fuel |
1.739 |
1.444 |
1.359 |
|
|
Depreciation & Amortization |
0.000 |
0.000 |
0.000 |
|
|
Selling and Distribution Expenses |
2.071 |
2.963 |
1.700 |
|
Total Expenditure |
96.456 |
74.042 |
68.307 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Performance Growth |
|
|
|
|
|
Net Sales Growth |
(%) |
31.54
|
11.23 |
0.00 |
|
OPBDIT Growth |
(%) |
47.28
|
33.56 |
0.00 |
|
PBT Growth |
(%) |
46.01
|
49.12 |
0.00 |
|
Profitability |
|
|
|
|
|
OPBDIT / Net Sales |
(%) |
15.39
|
13.75 |
11.45 |
|
PBT / Net Sales |
% |
12.07
|
10.88 |
8.11 |
|
PAT / Net Sales |
(%) |
7.55
|
6.90 |
5.04 |
|
PAT / Total Asset (ROA) |
(%) |
13.06
|
11.84 |
8.45 |
|
Pat / Tangible Net Worth (RONW) |
(%) |
28.11
|
25.51 |
1967 |
|
ROCE |
(%) |
43.20
|
41.00 |
33.76 |
|
Activity |
|
|
|
|
|
Asset Conversation Cycle (Days) |
|
133 |
146
|
108 |
|
- Days Inventory (On Cop ) |
|
147
|
145 |
122 |
|
- Days Receivable (On Gross Sales ) |
|
58
|
35 |
30 |
|
- Days Payable (On Materials ) |
|
72
|
34 |
45 |
|
Working Capital Turnover |
|
2.57
|
2.67 |
3.10 |
|
Gross Block turnover |
|
11.38
|
10.11 |
9.95 |
|
Total Asset Turnover |
|
1.47
|
1.59 |
1.68 |
|
Coverage |
|
|
|
|
|
PBDIT / Interest |
|
4.54
|
4.00 |
3.40 |
|
Dividend Cover (PAT / Dividend ) |
|
|
|
|
|
Debt Cover |
|
3.28
|
2.96 |
2.55 |
|
Average Cost of Borrowing |
(%) |
8.85
|
12.09 |
14.58 |
|
Balance Sheet Structure |
|
|
|
|
|
(Total Outside liability + DTL ) Tangible
Net worth |
|
1.25
|
1.03 |
1.33 |
|
Current Ratio |
|
2.19
|
2.59 |
2.20 |
|
Quick Ratio |
|
1.15
|
1.25 |
1.19 |
|
Long Term Debt / Tangible Networth |
|
0.27
|
0.30 |
0.36 |
|
Total Debt / Tangible Networth |
|
0.39
|
0.30 |
0.36 |
|
Total Outside Liability / Tangible Networth |
|
1.25
|
1.03 |
1.33 |
Notes Ratio --
The firm pays interest @ 12 per cent on the partners’ capital, which has
not been included in the interest cost to computer the average cost of
borrowing.
LOCAL AGENCY
FURTHER INFORMATION
Company Profile :
One of the largest manufacturers of Vertical axis basket centrifuge in
India. Manufactures Top Discharge, Bottom Discharge, Lifting Bag Type,
Laboratory, High Speed Centrifuge in stainless steel, mild steel, haler coated,
PFA coated and in special material. Have supplied more than 3600 centrifuge,
with exports to Middle East and South East Asia.
Future Plans
- In keeping
with its plans to expand its operation, the firm intends to shift to a
larger premise outside the municipal limits of Mumbai.
- At the new
location, the firm plans to have a proper layout for all its machinery,
quality control equipment and other ancillary instruments besides
designated area for research and development (R & D) activities, a
testing laboratory, storage space for finished and semi-finished goods and
raw materials, and an administrative office.
- Since the new
premise will be based outside Mumbai, it will bring the added advantage of
a reduction in octroi duty. The firm pays octroi duty at the rate of 5.5
percent on the value of almost all its purchase currently.
- The firm
plans to take term loan for the expansion. Once the new facility is ready,
it plans to dispose off its existing building in Mumbai to repay a major
portion of the loan. It will however, take around 5 years for the firm to
shift its base. Since the plans are at a preliminary stage, CRISIL has not
factored them in the report.
Marketing Arrangement :
The firm showcases its products in trade fairs in India and abroad. It
has participated in every chemtech exhibition in India. In 2000 and 2003, it
also participated in the Achema international exhibition for chemical and
pharmaceutical equipment held in Frankfurt every 3 years, and intends to do so
in 2006 as well. The firm has received a good response from the last two Achema
exhibitions. It also participated in the 51st CPI Expositions
Chemshow 2005 held at New York in November 2005.The firm also has a website,
which gives details, including technical specifications, of its products. It
relies heavily on words-of-mouth to promote its products.
Competitors
The firm mainly faces competition from Mumbai-based Sukhras Machines
Pvt. Ltd. and Chemofab Engineering, Anoop Engineering Ltd of Ahmedabad,
Oriental Equipment Manufacturing Pvt. Ltd. of Baroda, and Joflo Engineering
Pvt. Ltd. of Hyderabad.The promoters, however, claim that the firm’s technical
and R&D capabilities, especially its employee’s superior technical skills
and sound infrastructure, give it an edge over its competitors, which is why it
has managed to sustain its market share over the years.
Industry Overview :
D. Parikh Engineering Works manufacture a range of centrifuges, which
are largely used to manufacture Pharmaceutical (including bulk drugs),
dyestuffs and dye intermediates, chemicals and processed foods besides being
used to process textiles and in a host of other applications.
Centrifuges are a segment of the engineering and fabrication industry,
which is poised to grow at between 6.5 per cent during 2005-2009. according to
a centrifuge manufacturer, domestic demand for centrifuges is around Rs.1
millions currently. The industry is witnessing a technological up gradation
with the increased use of precision CNC machines. Hence, indigenous
manufacturers in the organized sector have to not only compete with
subsidiaries of multinational on quality and price but also with imports of
plants and equipment. The letter are currently permitted at liberalized customs
duties in order to promote modernization and technology transfer in various
sector so as to improve their export competitiveness. With the industrial
sector growing by 7.7 per cent in 2004-2-05 and the ensuing expansion in
investment, the capital goods sector recorded an impressive 13.3 per cent
growth in the first 9 months (April to December ) of 2004-05. And it is set to
exceed even this in 2005-06. Within this, the industrial machinery and
equipment sector, which include centrifuges and other allied processing
equipment, registered a healthy growth of 21.9 months of 2004-05.
The business prospects of the two main end-user industries:
Pharmaceuticals :
Centrifuges are used in the bulk drugs segment of the pharmaceutical
industry, which accounted for nearly 23 per cent of the aggregate
pharmaceutical production of Rs.398.73 billion in 2004-05. Indian bulk drug
manufacturers are likely to gain from the emerging opportunities for alliances
between Indian and multinational drug companies for contract research and
manufacturing service. Generic manufacturer will also benefit as a large number
of bulk drugs valued at $70 billion are to go off-patent between 2004 and 2009.
Bulk drug production in India increased at a healthy 17.4 per cent from
Rs.78.37 billion in 20032-04 to Rs.91.95 billions in 2004-05. Bulk drug exports
also rose by 21.6 per cent from Rs. 66.32 billions in 2003-04 to Rs.80.66
billion in 2004-05. Encouraged by these new opportunities, the industry is
likely to witness significant capacity expansions, which will push up the demand
for centrifuges.
Dyes and Dye Intermediates
The global dyes, pigments and intermediates markets is estimated at
approximately UD$23 billions. The industry is expected grow at around 5 per
cent to 7 per cent annum over the next decade.
The domestic dyes and dyestuff industry, which initially grew on the
import substitution plank, comprises around 900 small scale units and 50 large
organized units producing around 80000 tones to dyestuff per annum. Small –
scale units account for more than 70 per cent of India’s total dyestuff
production and 75 per cent of its exports. Maharashtra and Gujarat (Chiplun to
Mehsana Belt ) account for over 90 per cent of the dyestuff produced in the
country.
India current share in the global dyestuff market is estimated at 5 per
cent to -6 per cent. The Indian dyestuff industry has grown by more than 15 per
cent over the last decade to emerge as the second – largest producer of dyes
and dyes intermediates in Asia. Moreover, it can realistically account for
about 10 per cent of the global market in the next 5 years by growing to $2
billion by 2010. Since half the production is exported in value terms, this
would mean that exports can treble in this period.
Developed countries have already begun sourcing their supplies from
developing nations because of rising production costs at home. Germany, USA,
Japan, Switzerland and UK account for two-thirds of the world’s dyestuff
production of 85,000 tones today. But the developed counties share of global
dyes production has fallen from 65 per cent to 50 per cent today, and is likely
to drop further with countries like China, South Korea, Taiwan and India
emerging as large producers.
Other Information :
1)
Availability of Raw Materials : Ample
2)
Price Fluctuation in Raw Material : High
3)
Products Range : Single
4)
Marketing Network : Adequate
5)
Competition Risk : High
6)
Power Availability : Stable
7)
Research & Development : Undertaken
8)
Ability to raise Funds : Good
9)
Expansion / Diversification Plan : Yes
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 |
Rs43.70. |
|
UK Pound |
1 |
Rs.85.90 |
|
Euro |
1 |
Rs.58.25 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavorable 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 |
Unfavorable & favorable 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 |
|