MIRA
INFORM REPORT
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Report Date : |
15.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ROTO PUMPS LIMITED |
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Registered Office : |
Roto House, Special Economic Zone, Noida – 201305, Uttar Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
31.07.1975 |
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Com. Reg. No.: |
4152 |
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CIN No.: [Company
Identification No.] |
L28991UP1975PLC004152 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTR00670F |
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Legal Form : |
Public Limited Liability Company. The company's shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturers of rotary positive displacement pumps, helical rotor pumps, twin screw pumps, centrifugal pumps and parts of pumps. |
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 |
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Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 410000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Directors are reported as experienced
and respectable businessmen. Trade
relations are reported as fair.
Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered / Marketing Head Office/ Factory : |
Roto House, Special Economic Zone, Noida – 201305, Uttar Pradesh |
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Tel. No.: |
91-120-3043901-4 |
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Fax No.: |
91-120-2562561 |
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E-Mail : |
contact@rotopumps.com |
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Website : |
http://www.rotopumps.com |
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Factory 1 : |
B – 15, Phase – II, Extension Noida, Roto House, NSEZ, Noida |
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Regional Offices : |
308, Tel. No. 91-11-2644 7606 / 2647 9610 / 2622 4529 Fax No. 91-11-2647 6626 E Mail : rotomhq@satyam.net.in - Tel. No. 91-44-2854 6606 / 2859 1002 Fax No. 91-44-2859 3165 E Mail : rotochn@satyam.net.in 310, Shantiniketan, 8, Tel. No. 91-33-2242 1943 / 6324 Fax No. 91-33-2242 6304 E Mail : rotomhq@satyam.net.in 54, Ajay Deep, 240, Tel. No. 91-22-2269 4604 / 2267 9657 Fax No. 91-22-2265 9681 E Mail : rotomum@satyam.net.in |
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R & D Centre :
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B-14, Hosiery Complex, Phase II Extension, Tel. No. 91-11- 89 2567956 Telefax : 91-11- 89 2567957 E Mail : rotonepz@satyam.net.in |
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Overseas Office
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Located in |
DIRECTORS
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Name : |
Mr. Gopi Krishna Arora |
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Designation : |
Chairman |
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Name : |
Mr. Harish Chandra Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. Anurag Gupta |
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Designation : |
Whole Time Director |
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Name : |
Mr. Arvind Veer Gupta |
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Designation : |
Whole Time Director |
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Name : |
Mr. B. S. Ramaswamy |
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Designation : |
Director |
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Name : |
Ms. Asha Gupta |
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Designation : |
Director |
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Name : |
Mr. K. Chandramouli |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. Ashwani K. Verma |
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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 |
2174861 |
70.37 |
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Mutual Funds and Banks |
3100 |
0.10 |
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Private Bodies Corporate |
105404 |
3.41 |
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NRIs and OCBs |
78460 |
2.54 |
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Individuals |
728936 |
23.58 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of rotary positive displacement pumps, helical
rotor pumps, twin screw pumps, centrifugal pumps and parts of pumps. |
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Products : |
Progressive Cavity Pumps Twin Screw Pumps |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
Europe and |
GENERAL INFORMATION
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Suppliers : |
Guru Nanak Casting Guru Nanak Foundry J C Steals Private Limited Leak Proof Engineering [ L & V Tech Fab Nundlal Inderchand Private Limited Precisions Machine Tools Rajshree Enterprises Rotomak Seals Private Limited Schematci System Shakti Pulley Manufacturing Company Shyam Alloys Private Limited Shyam Ispats and Trident Steals |
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No. of Employees : |
350 |
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Bankers : |
Bank of ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
A. Kay Mehra & Company Chartered Accountants |
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Address : |
114 [Basement], |
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Memberships : |
Confederation of Indian Industry |
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Associates : |
Roto Sterling Limited, Polymer Products, |
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Subsidiaries : |
Roto International Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued & Subscribed Capital :
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No. of Shares |
Type |
Value |
Amount |
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3100061 |
Equity Shares |
Rs. 10/- each |
Rs. 31.000
millions |
Paid-up Capital :
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3090761 |
Equity Shares |
Rs. 10/- each |
Rs. 30.907
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 |
30.907 |
30.907 |
30.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
72.687 |
67.449 |
63.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
103.594 |
98.356 |
93.900 |
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LOAN FUNDS |
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1] Secured Loans |
37.110 |
42.352 |
35.800 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
37.110 |
42.352 |
35.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
140.704 |
140.708 |
129.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
48.094 |
47.023 |
45.900 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
3.600 |
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DEFERREX TAX ASSETS |
0.223 |
0.429 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
69.406
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71.686 |
47.600 |
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Sundry Debtors |
58.762
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54.675 |
46.100 |
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Cash & Bank Balances |
6.184
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6.647 |
8.500 |
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Other Current Assets |
0.039
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0.070 |
0.000 |
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Loans & Advances |
14.161
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10.116 |
18.000 |
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Total
Current Assets |
148.552
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143.194 |
120.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
39.975
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41.187 |
36.100 |
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Provisions |
16.190
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8.751 |
3.900 |
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Total
Current Liabilities |
56.165
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49.938 |
40.000 |
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Net Current Assets |
92.387
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93.256 |
80.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
140.704 |
140.708 |
129.700 |
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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 |
243.051 |
190.248 |
152.200 |
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Other Income |
1.794 |
2.291 |
6.000 |
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Total Income |
244.845 |
192.539 |
158.200 |
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Profit/(Loss) Before Tax |
15.696 |
14.643 |
2.100 |
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Provision for Taxation |
6.603 |
6.120 |
[0.700] |
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Profit/(Loss) After Tax |
9.093 |
8.523 |
2.800 |
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Earnings in Foreign Currency : |
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Export Earnings |
109.205 |
109.638 |
N.A. |
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Commission Earnings |
0.000 |
0.000 |
N.A. |
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Other Earnings |
0.013 |
0.013 |
N.A. |
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Total Earnings |
109.218 |
109.651 |
N.A. |
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Imports : |
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Raw Materials, Stores & Spares |
1.105 |
0.480 |
N.A. |
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Capital Goods |
0.278 |
0.158 |
N.A. |
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Others |
0.000 |
0.000 |
N.A. |
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Total Imports |
1.383 |
0.638 |
N.A. |
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Expenditures : |
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Raw Material Consumed |
80.904 |
52.114 |
43.600 |
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Employment |
57.746 |
41.732 |
28.000 |
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Excise Duty |
0.000 |
0.000 |
12.800 |
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Power & Fuel Cost |
0.000 |
0.000 |
4.600 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
11.200 |
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Selling and Administration Expenses |
0.000 |
0.000 |
23.600 |
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Miscellaneous Expenses |
0.000 |
0.000 |
15.500 |
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Operations |
78.007 |
79.169 |
0.000 |
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Interest |
4.579 |
4.734 |
4.800 |
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Depreciation & Amortization |
7.911 |
7.037 |
5.500 |
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Total Expenditure |
229.147 |
184.786 |
149.600 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales
Turnover |
58.700 |
86.600 |
88.600 |
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Other
Income |
1.500 |
0.300 |
0.400 |
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Total
Income |
60.200 |
86.900 |
89.000 |
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Total
Expenditure |
52.900 |
73.500 |
77.200 |
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Operating
Profit |
7.300 |
13.400 |
11.800 |
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Interest |
0.900 |
0.900 |
1.100 |
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Gross
Profit |
6.400 |
12.500 |
10.700 |
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Depreciation |
1.800 |
2.000 |
2.400 |
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Tax |
2.100 |
4.200 |
2.600 |
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Reported
PAT |
2.600 |
6.300 |
5.900 |
Notes
200606 Quarter 1
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 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter Nil 1.The above results as reviewed by the
Audit Committee have been taken on record by the Board of Directors of the
Company at its meeting held on July 29, 2006 and are subject to limited review
of the Statutory Auditors of the Company. 2.The Company's operations
predominantly comprises of only one segment - Pumps & Spares, therefore,
segment reporting does not apply.
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 02 Complaints disposed off during the
quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above
results as reviewed by the Audit Committee have been taken on record by the
Board of Directors of the Company at its meeting held on October 27, 2006 and
are subject to limited review of the Statutory Auditors of the Company. 2. The
Company's operations predominantly comprises of only one segment - Pumps &
Spares, therefore, segment reporting does not apply
200612 Quarter 3
Expenditure Includes (Increase) / Decrease in Stock in Trade
Rs (7.017) million Consumption of Raw Materials Rs 35.537 million Staff Cost Rs
21.253 million Other Expenditure Rs 27.470 million Tax Includes Provision for
Current Year Tax Rs 2.721 million Fringe Benefit Tax Rs 0.169 million Deferred
Tax Rs (0.254) million Short/(Excess) provision for earlier years tax Rs
(0.273) million Status of Investor Complaints for the quarter ended December
31, 2006 Complaints Pending at the beginning of the quarter 01 Complaints
Received during the quarter 04 Complaints disposed off during the quarter 05
Complaints unresolved at the end of the quarter Nil 1. The above results as
reviewed by the Audit Committee have been taken on record by the Board of
Directors of the Company at its meeting held on January 27, 2007 and are
subject to limited review of the Statutory Auditors of the Company. 2. The
Company's operations predominantly comprises of only one segment - Pumps &
Spares, therefore, segment reporting does not apply.
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.71
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4.42 |
1.76 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.41
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7.60 |
1.32 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.98
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7.69 |
1.26 |
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Return on Investment (ROI) (PBT/Networth) |
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0.15
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0.14 |
0.02 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.90
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0.93 |
0.80 |
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Current Ratio (Current Asset/Current Liability) |
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2.64
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2.86 |
3.005 |
STOCK PRICES
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Face Value |
Rs.10/- each |
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High |
Rs.58.90/- |
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Low |
Rs.57.00/- |
LOCAL AGENCY FURTHER INFORMATION
History :
Founded in 1968 by R R Gupta as a partnership firm, Roto
Pumps (RPL) was incorporated as Roto Pumps & Hydraulics Private Limited in
July 1975 and converted into a public limited company in December, 1993. In
July 1981, Roto Pumps Private Limited, a group company, was amalgamated with
Roto Pumps & Hydraulics Private Limited. In February, 1991, it was taken
over by another group company, Dwarka Industrial Development (Chains) Private
Limited.
Since inception, subject has been manufacturing helical rotor pumps. It
pioneered the manufacture of helical motor pumps in
During 1997-98, the Company appointed a new distributor in
During the year 1999-2000, the company has taken steps to reduce cost and
improve sales in domestic as well as international market apart from the
development of approved design & cost effective RMA Series of Helical Rotor
Pumps and is endeavoring to enter new markets.
Year in retrospect
The total turnover during the year under report amounted to Rs. 244.846
millions representing an increase of 27% over previous year's turnover of
Rs.192.540 millions. The Export turnover during the year was Rs. 109.639
millions as compared to Rs 85.601 millions in the preceding year thus
representing an increase of 28% over last year. Export turnover of the year
includes sales of Rs. 79.186 millions (previous year Rs. 54.916 millions) from
Company's warehouse cum marketing offices in Australia and U. K. Domestic sales
during the year were Rs. 133.413 millions as compared to Rs. 104.648 millions
during the previous year registering a growth of 27% over last year. The profit
after tax during the year was Rs. 9.094 millions as compared to Rs. 8.523
millions in the preceding year.
Outlook
The Company's operations are showing consistent improvements. Indian Economy is
on a growth path and investment in new projects / infrastructure development is
expected to grow which would result in increased opportunities for growth of
the Company.
On the International front, continued acceptance of the Company's products in
established markets and the operations of Warehouse cum Marketing Offices in U.
K. and
With the above, the performance of the Company is expected to register further
improvements in 2006-07.
MANAGEMENT DISCUSSION AND ANALYSIS
Overview
The Financial Statements of the Company have been prepared in compliance with
the requirement of the Companies Act, 1956 and Generally Accepted Accounting
Principles in
Financial performance
Revenue of Roto Pumps is generated principally from the sale of pumps and its
spares. The Company has a rich heritage in manufacturing technology. The
company offers comprehensive range of progressive cavity (single screw and
multiple screw pumps) for various applications. Though the pump industry has
not grown as per the expectations envisaged as a result of thrust in the
infrastructure industry by the Government, the Company's revenue has grown to
Rs. 244.846 millions from 192.540 millions during 2004-05.
The Company earned a profit after tax of Rs. 9.094 millions against Rs. 8.523
millions in 2004-05 and also recommended a dividend of 10% for 2005-06
involving total cash out flow of Rs. 3.524 millions.
Future Outlook
Roto's strength is its committed manpower and in-house technology. Favorable
trends in the Indian economy and the functioning of operational Warehouse cum
Marketing Office in U. K. and Warehouse cum Marketing Office in
Contingent Liabilities :
[Rs. in Millions]
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2005-06 |
2004-05 |
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Disputed Sales Tax [appeals pending] |
3.800 |
4.914 |
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Disputed Income Tax [appeals pending] |
5.054 |
4.611 |
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Bank Guarantees |
7.706 |
5.514 |
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ESI Additional Demand |
0.177 |
0.177 |
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Labour Cases |
1.434 |
1.631 |
The credit facilities from Bank of
Equitable Mortgage of Land & Building
located at B – 14, Phase – II Extension, Noida and Roto House, Noida
The company has been accredited with ISO-9001 Certification.
The company has joint venture with "Kosaka Laboratores
/ Mitsubishi Corporation,
Fixed Assets :
Land,
Website Details :
Founder :
38 Years ago, Mr. Ram Ratan Gupta, a coal mine owner, was
using a battery of progressive cavity pumps in his
mines for face dewatering application. While
he was intrigued by the complex profile of the rotor but at the same time he
was frustrated by the recurring problems faced in importing spares for the
pumps. He was aware that the entire Indian mining industry was confronted by
this problem.
He set his mind to manufacture these pumps indigenously but he did not have
access to the technical know-how, as the process of manufacturing
complex-profile rotor was closely guarded by few overseas manufacturers.
Mr. Gupta’s dedication, determination and technical ingenuity, led to
success. Soon, he invented a unique
manufacturing (generating) process for machining the complex profile of the
rotor. His technique was amazingly effective and did not demand huge
investment. News of the break through reached the mining community, who turned
to him to source these critical spares. The transition from manufacturing vital
components to complete pump was a logical step and thus, Roto was born.
Milestones :
1968
Mr. Ram Ratan Gupta founds ROTO Pumps for manufacture of Progressive Cavity
Pumps with indigenous technology, for the first time in
1975
Second generation ‘N' series pumps launched.
1980
Technical collaboration with Stothert & Pitt of
1990
A 100% export oriented unit established in Duty Free Zone at Noida, near
1993
Joint venture to form Roto Sterling Limited, a publicly held enterprise.
1994
Had a successful IPO and became Roto Pumps Limited, a Publicly held enterprise.
1994
Roto was honored with ISO 9001 Quality Certification by Underwriters Lab,
1995
Roto's own R & D center established at Noida, near
1998
Third generation ‘M' series pumps launched.
2001
Roto sets up its first overseas warehouse and marketing facility in
2003
Restructured the manufacturing operations by centralizing all the facilities to
a modern state-of-art multiproduct manufacturing plant at Noida near
2004
Roto strengthens its international presence by establishing its own Marketing
and Warehousing Facility in
2005
Quality Management Systems upgraded as per 2000 version of ISO 9001-2000.
Quality :
Continuous investments in precision measuring instruments,
state-of-the-art testing facility and a dedicated team of engineers are
testimony to Roto's commitment to maintain and constantly upgrade the quality
of its products. The manufacturing units are certified for conformance to the
ISO 9001-2000 quality surveillance systems.
Quality Policy
They, at Roto, are committed to meet customer's stated needs and
endeavour to meet unstated expectations in terms of quality, cost &
delivery related to industrial pumps.
This is achieved by continual improvements in Quality management systems
and employee's empowerment, training, and by providing safe and healthy working
environment.
Future Aspects:
In Future, Roto would continue to pursue its goal of being the leading
Positive Displacement Pumps manufacturer in the world by:
Offering innovative and quality products to its customers.
Expanding its world wide network.
Providing a working environment to its employees that would facilitate
professional growth and innovation.
Their medium term plan includes addition of Triple Screw Pumps and Lobe
Pumps in their product line and focus on development of South American market.
NEWS :
ADIPEC 2006 :
ADIPEC 2006 (Abu Dhabi International Petroleum Exhibition
& Conference) was being held under the patronage of H.H. Sheikh Khalifa Bin
Zayed Al Nahyan, President of UAE. Around 1200 exhibitior from 51 countries had
participated and around 2000 conference delegates, energy ministers and senior
executives from the world's biggest energy companies visited the exhibition.
They are pleased to inform that Roto Pumps Limited along with the business
partner Technical parts company
CHEMTECH :
The 23rd Industrial exhibition & conference
is starting from Feb 6-10 at Mumbai.
SEMINAR :
Roto Pumps conducted a seminar at Chennai focusing Sugar
Industry. The seminar was successful and many guests from different sugar
industries attended the seminar. The guest included the end user, contractors
and consultants.
6 No's of Twin Screw Pumps at
DEGUSSA ORDER:
Roto was successful in getting a prestigious order worth
more than 100,000 USD against a stiff competition from
leading German Gear pump manufacturer. This job is for Degussa's Rohmax Lube
Oil blending plant in
ONGC:
Roto was successful in getting a prestigious order for ONGC job, (a leading oil
& gas company) through their
contractor in
BITUMEN APPLICATION :
Roto has successfully executed single order for 30 No's of
Twin Screw Pump. The customer has already started
commissioning the pump. Their service team is assisting the commissioning.
CAIRN ENERGY:
Roto successfully executes Cairn Energy job worth 155,000
USD. 4 No's of large capacity pump in Super duplex steel (32750 SAF 507) were
inspected by the third party and the performance was found excellent. This is
the largest pump being produced by Roto as on date.
EXPLOSIVE INDUSTRY:
Roto bagged a large order from one of the prestigious
explosive manufacturer. The pumps are custom designed
vertical pumps. This is the biggest order Roto has received from explosive
industry.
BIRLA SUGAR:
Yet another mile stone was achieved by getting another large
order from Birla Sugar.
REPEAT ORDER:
One more milestone was achieved by Roto by getting a repeat
order for 100 numbers progressive cavity pumps
from one of the leading OEM from Ship building Industry in
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.40.64 |
|
|
1 |
Rs.80.17 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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 |
|