MIRA
INFORM REPORT
|
Report Date : |
12.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
AUTOMOTIVE AXELS LIMITED |
|
|
|
|
Registered Office : |
Hootagalli Industrial Area, Off |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.09.2006 |
|
|
|
|
Date of Incorporation : |
21.03.1981 |
|
|
|
|
Com. Reg. No.: |
004198 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U51909KA1981PLC004198 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRA04953E |
|
|
|
|
Legal Form : |
Public Limited Liability Company The Company’s shares are listed on the Stock Exchange |
|
|
|
|
Line of Business : |
Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and
Brake Assemblies |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 2500000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having satisfactory
track. |
LOCATIONS
|
Registered Office / Factory: |
Hootagalli Industrial Area No. 36 Off |
|
Tel. No.: |
91-821-2402453 / 2402452 / 240451 |
|
Fax No.: |
91-821-2402451 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. Ashok Rao |
|
Designation : |
President & Wholetime Director |
|
|
|
|
Name : |
Mr. B.C.
Prabhakar |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. B.N. Kalyani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Blake G.
Palmer |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bradley A.
Arnold |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.C.
Bhalerao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P.M.
McNamara |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pratap
Bhogilal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.S. Marathe |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Sabareeshan C. K. |
|
Designation : |
Executive
Director (finance) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Category Code |
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
( A ) |
Shareholding of Promoter and promoter Group |
|
|
|
( 1 ) |
Indian |
|
|
|
( a ) |
Bodies Corporate |
5367806 |
35.52 |
|
|
Sub-Total ( A ) ( 1 ) |
5367806 |
35.52 |
|
( 2 ) |
Foreign |
|
|
|
( a ) |
Bodies Corporate |
5367275 |
35.52 |
|
|
Sub-Total ( A ) ( 2 ) |
5367275 |
35.52 |
|
|
Total Shareholding of Promoter and Promoter Group ( A ) = ( A ) ( 1 ) + ( A ) ( 2 ) |
10735081 |
71.04 |
|
( B ) |
Public Shareholding |
|
|
|
( 1 ) |
Institutions |
|
|
|
( a ) |
Mutual Funds / UTI |
1854516 |
12.27 |
|
( b ) |
Financial Institutions / Banks |
166 |
0.00 |
|
( c ) |
Foreign Institutional Investors |
405837 |
2.69 |
|
|
Sub-Total ( B ) ( 1 ) |
2260519 |
14.96 |
|
( 2 ) |
Non-Institutions |
|
|
|
( a ) |
Bodies Corporate |
1275937 |
8.44 |
|
( b ) |
Individuals – i. Individual shareholders holding nominal
share capital up to Rs. 0.100 million
(including Non-Reserved shareholders) ii. Individual Shareholders holding nominal
share capital in excess of Rs. 0.100 million (including Non-reserved Shareholders) |
784922 55516 |
5.19 0.37 |
|
|
Sub-Total ( B ) ( 2 ) |
2116375 |
14.00 |
|
|
Total Public Shareholding ( B ) = ( B ) ( 1 ) + ( B ) ( 2 ) |
4376894 |
28.96 |
|
|
GRAND TOTAL ( A ) + ( B ) |
15111975 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Axle Housing, Complete Axles, Gears and
Brake Assemblies |
|
|
|
|
Products : |
Product Item Code
No. 870839.00 (ITC CODE) Product
Description Brakes-Brake Parts Item Code
No. 870839.00 (ITC CODE) Product Description Other
parts |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed
Capacity |
Actual
Production |
|
Axle Housing |
|
Nos. |
109200 |
90464 |
|
Complete Axles |
|
Nos. |
83000 |
65000 |
|
Brake Assemblies |
|
Nos. |
270000 |
Nil |
|
Gear Sets |
|
MT |
4775 |
3147.04@ |
GENERAL INFORMATION
|
No. of Employees : |
2000 |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ø
State Bank of Ø
Punjab National Bank Ø
State Bank of Ø
Bank of Ø
ICICI Bank Limited Ø
BNP Paribas Ø
IDBI Bank Ltd Ø
Export Import Bank of Ø
HDFC Bank Ltd |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
SECURED LOANS
As on 30.09.2005
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins
& Sells (Chennai) Chartered Accountants
|
|
Address : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23,000,000 |
Equity Shares |
Rs.10/- each |
Rs.230.000 millions |
|
2,000,000 |
Preference Shares |
Rs.10/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15,111,975 |
Equity Shares fully paid up |
Rs.10/- each |
Rs. 151.119 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
151.100 |
151.120 |
151.119 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
800.300 |
590.841 |
437.599 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
951.400 |
741.961 |
588.718 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
371.700 |
467.988 |
260.633 |
|
|
2] Unsecured Loans |
174.700 |
143.812 |
189.665 |
|
|
TOTAL BORROWING |
546.400 |
611.800 |
450.298 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
76.220 |
68.000 |
|
|
|
|
|
|
|
|
TOTAL |
1497.800 |
1429.981 |
1107.016 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1150.300 |
722.251 |
560.645 |
|
|
Capital work-in-progress |
91.800 |
118.721 |
108.045 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
580.700 |
467.433 |
460.098 |
|
|
Sundry Debtors |
368.200 |
639.018 |
382.701 |
|
|
Cash & Bank Balances |
25.300 |
51.560 |
46.589 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
554.000 |
546.008 |
371.013 |
|
Total
Current Assets |
1528.200 |
1704.019 |
1260.401 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
679.000 |
510.560 |
408.838 |
|
|
Provisions |
593.500 |
604.450 |
413.236 |
|
Total
Current Liabilities |
1272.500 |
1115.010 |
822.074 |
|
|
Net Current Assets |
255.700 |
589.009 |
438.326 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1497.800 |
1429.981 |
1107.016 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
|
|
Sales Turnover |
5242.000 |
3558.440 |
2650.965 |
|
|
Other Income |
42.300 |
0.000 |
0.000 |
|
|
Stock Adjustments |
49.40 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Total Income |
5333.700 |
3558.440 |
2650.965 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
648.400 |
550.095 |
357.453 |
|
|
Provision for Taxation |
214.900 |
181.460 |
131.300 |
|
|
Profit/(Loss) After Tax |
433.500 |
368.635 |
226.153 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
0.000 |
0.000 |
0.000 |
|
|
Commission Earnings |
0.000 |
0.000 |
0.000 |
|
|
Other Earnings |
0.000 |
0.000 |
0.000 |
|
Total Earnings |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
0.000 |
0.000 |
0.000 |
|
|
Stores & Spares |
0.000 |
0.000 |
0.000 |
|
|
Capital Goods |
0.000 |
0.000 |
0.000 |
|
|
Others |
0.000 |
62.584 |
71.302 |
|
Total Imports |
0.000 |
0.000 |
71.302 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
|
|
Manufacturing Expenses |
281.600 |
0.000 |
0.000 |
|
|
Administrative Expenses |
29.800 |
0.000 |
0.000 |
|
|
Raw Material Consumed |
3109.300 |
0.000 |
0.000 |
|
|
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. |
218.100 |
0.000 |
0.000 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Payment to Auditors |
0.000 |
0.000 |
0.000 |
|
|
Interest |
58.200 |
0.000 |
0.000 |
|
|
Insurance Expenses |
0.000 |
0.000 |
0.000 |
|
|
Power & Fuel |
145.200 |
0.000 |
0.000 |
|
|
Depreciation & Amortization |
136.900 |
0.000 |
0.000 |
|
|
Other Expenditure |
706.200 |
3008.344 |
2293.512 |
|
Total Expenditure |
4685.300 |
3008.344 |
2293.512 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
31.12.2006 |
31.03.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
1453.400 |
1573.900 |
|
Other Income |
|
13.400 |
9.600 |
|
Total Income |
|
1466.800 |
1583.500 |
|
Total Expenditure |
|
1203.000 |
1303.800 |
|
Operating Profit |
|
263.800 |
279.700 |
|
Interest |
|
18.500 |
20.600 |
|
Gross Profit |
|
245.300 |
259.100 |
|
Depreciation |
|
40.300 |
39.700 |
|
Tax |
|
63.500 |
54.200 |
|
Reported PAT |
|
135.600 |
143.800 |
1st Quarter (01.10.2006 –31.12.2006)
Notes Other Income includes Other Income Rs.
0.14 million Exchange Fluctuation Rs. 13.28 million Expenditure Includes
(Increase) / Decrease in stock in Trade Rs. (143.19) million Consumption of Raw
materials Rs. 1131.11 million Staff Cost Rs. 65.11 million Other Expenditure
Rs. 149.91 million Tax Includes Provision for current Tax Rs. 63.50 million
Deferred Tax – Liability / (Assets) Rs. 5.96 million EPS is basic and Diluted
Status of Investor Complaints for the quarter ended 30.12.2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved
at the end of the quarter Nil.1. These working results were taken on record by
the Board of Directors at their meeting held on
12.01.2007. 2. Provision for Current Tax
includes Fringe benefit Tax of Rs. 0.45 million (Previous Year Rs. 0.80
million) for the quarter. 3. Previous period figures have been regrouped
wherever necessary. 4. The above results of the company are for this quarter
and are same for year to date hence year to date.
2nd Quarter (01.01.2007 – 31.03.2007)
Notes: 1. Sales for export are channelise
through Meritor HVS (
KEY RATIOS
|
PARTICULARS |
|
30.09.2006 |
30.09.2005 |
30.09.2004 |
|
Debt – Equity Ratio |
|
0.68
|
0.80 |
0.67 |
|
Long Term Debt-Equity Ratio |
|
0.53
|
0.48 |
0.42 |
|
Current Ratio |
|
1.19
|
1.18 |
1.21 |
|
TURNOVER RATIO: |
|
|
|
|
|
Fixed Assets |
|
3.06
|
2.96 |
2.48 |
|
Inventory |
|
10.00
|
8.68 |
8.31 |
|
Debtors |
|
10.41
|
7.88 |
7.53 |
|
Interest Cover Ratio |
|
12.14
|
24.21 |
33.80 |
|
Operating Profit Margin |
(%) |
16.09
|
16.95 |
16.04 |
|
Profit Before Interest and Tax Margin |
(%) |
13.48
|
14.26 |
12.63 |
|
Cash Profit Margin |
(%) |
10.88
|
11.86 |
11.17 |
|
Adjusted Net Profit Margin |
(%) |
8.27
|
9.16 |
7.75 |
|
Return on Capital Employed |
(%) |
49.56
|
47.95 |
39.29 |
|
Return on Net Worth |
(%) |
51.20
|
55.40 |
40.32 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company was
promoted as a joint venture by the Kalyani group and Rockwell International
Corporation,
It came out of the
purview of the Sick Industrial Companies Act, 1985. But, the very next year, its
net worth started to erode. So, in 1994-95, it embarked on a restructuring of
the capital in consultation with financial institutions. The company came out
with a rights issue in February 1995 to part-finance an expansion project to
increase the manufacturing capacity of axles and brakes.
During 1996-97, the expansion of Axles capacity has been completed and of
brakes was put on hold in view of down turn in the market.
The company managed to achieve an impressive 20% growth in sales during the
year 1999-2000. As the company is continuing to pursue its efforts on
increasing penetration into other domestic and export market opportunities,
Meritor HVS (
Automotive Axles
Limited was promoted as a joint venture in 1981, between the Kalyani Group and
Rockwell International Corporation,
The Plant was set
up at a cost of Rs. 303 million, which was financed through term loans of Rs.
218.300 million, an Equity issue of Rs. 82.500 million and the balance was
financed out of Central subsidies (Rs. 1.5 million) and deferred credit (Rs.
0.7 million). The company entered the capital market with an issue of 16,50,000
Equity Shares at par in July, 1983 and the Issue was oversubscribed 8.03 times.
2002
-Appoints Mr. Ashok
Rao as President and Wholetime Director of Automotive Axles.
Industry Structure
& Developments
The
Company still retains its pre-eminent position as the largest independent
manufacturer of Drive Axle Assemblies for Commercial Vehicles in the country,
apart from the in-house capabilities with the Original Equipment Manufacturers such
as Telco and Ashok Leyland, and continues to be the single source for Drive
Axle assemblies for certain Military application. The demand for the company's
products continues to largely arise from the OEMs mentioned above and is driven
by certain Key Economic factors such as the growth in agriculture, investment
in infrastructure such as Roads, Telecom, and Power etc.
The Government's initiatives on these infrastructure sectors have continued to
drive the demand for Multi-Axle Vehicles and, hence, for the company's
products. A recent development in the core sector is the planned expansion of
steel manufacturing capacity that is expected to have a significant impact on
the growth of commercial vehicles market and consequently, the growth of the
company's performance. The imminent entry of other OEMs such as Eicher Motors,
Asia Motor Works, & Bajaj Tempo into the multi-axle segment of the CV
market would also drive the demand for heavier axles that have already been
tried out on their new vehicles.
Capital Expenditure:
As reported in the
previous year, company has already accomplished the capital expenditure
programme aggregating to Rs. 498,42 towards up gradation of Gear capacity to
170,000 gear sets per annum and drive axle capacity of 105,000 per annum. While the gear capacity was ready by April 06
and consists of state of the art facility and technology, the capacity for
drive axles was completed by September 06.
The capex was funded through internal accruals Borrowings.
Company has also
planned for the year 2006 -07, further capital expenditure of Rs.419.70 towards
increasing further capacity for drive axles by 39000 Nos. p.a. and Gear sets by
50,000 Nos. p.a. These are expected to be completed by June
07.
Dividend:
For the year under
report, an interim Dividend of Rs. 5.50 per share was paid in August 06. Directors are pleased to recommend a final
Dividend of Rs. 7.50 per share (including a special Silver Jubilee Dividend of
Rs. 0.50 per share) aggregating to Rs. 13 per share (130 %) for the current
year. This together with the
distribution tax of 12.50 %, surcharges of 10% and cess @2%, aggregates to Rs.
224.00 million or a payout ratio of 52%.
Domestic:
S a result of the
unprecedented growth in the multi-axle vehicles segment, company’s turnover
reached the highest ever, during the year under report, representing an
improvement of 23.78 % over last year.
Exports:
The company is
addressing all exports through Meritor HVS (
Fixed Assets:-
Land-Freehold
Building
Plant &
Machinery
Furniture &
Office
Equipment
Vehicles
Assets held for
disposal
Generic Names of Principal
Products/Services of the company are as under :
- Complete Axles
- Brake Assemblies
- Axle Housing
Press Clipping:
MERITOR
TO PUMP IN $30 Million into Automotive Axles
CHENNAI, December
12: Meritor Automotive Inc is planning to pump in $30 million into Automotive
Axles Limited, a joint venture with the Kalyani group, over the next five
years.
Prakash
Mulchandani, president of Meritor's worldwide truck and trailer systems said on
Wednesday that
Automotive Axles
manufactures rear axle aggregates, including commercial vehicle brake systems
for Ashok Leyland, Telco and Daewoo Motors. Since Meritor is a supplier for
Iveco (which gives the know-how to Ashok Leyland for its range of vehicles)the
company realized the importance of being able to supply directly to
Although the truck
industry is not doing well as of now, Ashok Leyland's chairman RJ Shahaney said
the bearish phase was temporary and the company would go ahead with its
expansion plans as announced earlier. Consequently, Automotive Axles will also
expand the capacity from 36,000 axles to 80,000 axles and from 260,000 brakes
to 400,000 brakes.
Meritor, one of the
largest suppliers of truck axles, trailer axles, truck brake systems in the
heavy commercial vehicles, also supplies to Volvo and Renault overseas. The
company is also planning to negotiate for supplies with them in
Meritor has
acquired another company in
Established in
1981, subject is a joint venture of Arvin Meritor Inc.,
Ø Ashok Leyland
Ø Telco
Ø Vehicle Factory,
Ø Mahindra and Mahindra
Ø Volvo
Ø Bharat Earth Movers.
Subject exports axle parts to
Subject has a Quality Management System that
is certified to ISO / TS 16949: 2002 standard Environmental Management System
that is certified to ISO 14001: 2004 standard.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 40.90 |
|
|
1 |
Rs. 80.78 |
|
Euro |
1 |
Rs. 55.18 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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 |
|