MIRA INFORM
REPORT
|
Report
Date : |
30.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
VIVEK LIMITED |
|
|
|
|
Registered
Office : |
133, Royapettan High Road, Mylapore, Chennai – 600004,
Tamilnadu |
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|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
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|
|
|
Date
of Incorporation : |
31.08. 1994 |
|
|
|
|
Com.
Reg. No.: |
18-28470 |
|
|
|
|
CIN
No.: [Company
Identification No.] |
U51909TN1994PLC028470 |
|
|
|
|
TAN
No.: [Tax
Deduction & Collection Account No.] |
CHEV02035F |
|
|
|
|
PAN
No.: [Permanent
Account No.] |
AAACV1186B |
|
|
|
|
Legal
Form : |
Closely Held Public Limited Liability Company |
|
|
|
|
Line
of Business : |
Traders in consumer durables of leading brands. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
250000 |
|
|
|
|
Status
: |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
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|
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Litigation
: |
Clear |
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|
Comments
: |
The company has made steady progress in retail business
but profit margin is very limited. Directors are reported as experienced, respectable
and having satisfactory means. Their payments are reported as usually correct
and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
133, Royapettan High Road, Mylapore, Chennai – 600004,
Tamilnadu |
|
Tel.
No.: |
91-44-24989439 |
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|
|
|
Corporate
Office: |
New. No. 171, Old No. 74, LUZ Church Road, 2nd
Street, Mylapore, Chennai - 600004, Tamilnadu, India |
|
Tel.
No.: |
91-44-262021166/62169495/62169330/ 24992015/24996783 |
|
Fax
No.: |
91-44-24996783 |
|
E-Mail
: |
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|
Website
: |
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Branches
: |
Located
at:
Tel. No. 91-44-22316970
Tel. No. 91-44-26422462/26422486
Tel. No. 91-44-28140062/28144129
Tel. No. 91-44-28232020/28233005
Tel. No. 91-44-24845454/24845444
Tel. No. 91-44-26261841/26212107
Tel. No. 91-44-28524247/28524248
Tel. No. 91-44-22261470
Tel. No. 91-80-26532338
Tel. No. 91-80-2125437/23121772
Tel. No. 91-80-25286240/25286241
Tel. No. 91-80-3337868/3337869
Tel. No. 91-80-22247122/22247123
Tel. No. 91-80-22206546/22206547
Tel. No. 91-452-2750476/2750477
Tel. No. 91-422-2200329/2200330
Tel. No. 91-427-2334343/2334344
Tel. No. 91-462-2578983 |
DIRECTORS
|
Name : |
Mr.
Kodandarama Setty B. A. |
|
Designation
: |
Chairman and Managing Director |
|
Address
: |
64, Luz Church Road, Mylapore, Chennai
- 600014, Tamilnadu |
|
Date
of Birth/Age : |
07.02.1939 |
|
Date
of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr. B. A. Chandrasekara Setty |
|
Designation
: |
Director |
|
Address
: |
2 Taylors Road, Kilpauk,
Chennai - 600010, Tamilnadu |
|
Date of
Birth/Age : |
09.06.1946 |
|
Date
of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr. B. A. Srinivasa |
|
Designation
: |
Joint Managing Director |
|
Address
: |
23, 1B, Sterling First Cross
Street,Sterling Road, Nugambakkam,
Chennai - 600034, Tamilnadu |
|
Date
of Birth/Age : |
19.05.1957 |
|
Date
of Appointment : |
31.08.1994 |
|
|
|
|
Name : |
Mr. J. Ramanan |
|
Designation
: |
Director |
|
Address
: |
5, Thiruveedi Amman Koil
Street, Raja Annamalai Puram, Chennai - 600028, Tamilnadu |
|
Date
of Birth/Age : |
02.07.1946 |
|
Date
of Appointment : |
22.07.1998 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No of Shares |
|
Mr. B. L.
Aswathanarayana Setty |
120,100 |
|
Mr. B. A.
Vasanthalakshmi |
198,600 |
|
Mr. B. K.
Nalini Jayanthi |
191,100 |
|
Mr. B. C.
Padmavathi |
113,600 |
|
Mr. B. A.
Kodandarama Setty |
795,774 |
|
Mr. B. A.
Chandrasekara Setty |
789,263 |
|
Mr. B. A.
Srinivasa |
1,480,263 |
|
Mr. J.
Ramanan |
500 |
|
Mr. B K
Shanker |
18000 |
|
MR. B K
Anand |
52500 |
|
Mr. B K Sridhar |
42500 |
|
Mr. B A
Kodandarama Setty |
34500 |
|
Mr. B A
Koodandarama Setty |
22500 |
|
Mrs. B A
Nanda Srinivas |
97000 |
|
Mr. S D
Gopinath |
20000 |
|
Mrs. G
Priya |
7500 |
|
Mrs. D
Kalanithi |
10000 |
|
Mrs. M
Sheela Devi |
10000 |
|
Mrs. A
Selvi |
5000 |
|
Ms. S
Shagunthlal |
7500 |
|
Mr. S S
Rameshwarnath |
5000 |
|
Mrs.
Shanthi Kannan |
5000 |
|
Mr. B V
Ramachandran |
5000 |
|
Mrs. B R
Devendrakumar |
5000 |
|
Mr. K
Saravanan |
5000 |
|
Mr. R D
Badrinath |
10000 |
|
Mrs. R B
Rajeshwari |
5000 |
|
Ms. S
Lakshmi |
5000 |
|
Mrs. B A
Mahalakshmi |
12500 |
|
Ms. G
Priya |
7500 |
|
Mr. R
Nageshwaran |
17100 |
|
Mr. Pani
N Chakrapani |
11700 |
|
Mrs.
Rajeshwari Chakrapani |
11700 |
|
Mr. Arun
C Swaminath |
11700 |
|
Mr. R
Srinivasan |
10000 |
|
Mr. Vinay
Goyal |
5000 |
|
Mr. Vikas
Goyal |
5000 |
|
Mr.
Vardhman Jain |
5000 |
|
Ms. C
Sita |
10000 |
|
Mr. B R
Veerabhadar Guptha |
5000 |
BUSINESS DETAILS
|
Line
of Business : |
Traders in consumer durables of leading brands. |
GENERAL INFORMATION
|
Customers
: |
Retailers
and End users |
|
|
|
|
No. of
Employees : |
200 |
|
|
|
|
Bankers
: |
v
South
Indian Bank, Mylapore, Chennai - 600034, Tamilnadu v
Canara
Bank, Mylapore Branch, Royapettah High Road, Mylapore. Chennai - 600004 |
|
|
|
|
Facilities : |
Secured Loan From Bankers Working Capital Facilities – Rs. 194.995 From Financial Institutions Term Loan – 88.091 Millions From Others On Hire Purchased – 1.973 Millions |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
Frazer
and Ross Chartered Accountants |
|
Address
: |
2nd
Floor, Temple Towers, 672 Anna Salai, Nandanam, Chennai - 600035, Tamilnadu |
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|
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Associates/Subsidiaries
: |
Vivek
Hire Purchase and Leasing Limited Vivek
Hire Purchase and Leasing Limited Vivek
& Company Profile: Subject is mainly engaged in the business of extending hire
purchase finance for consumer durables and home applicances at all the above
38 retail outlets of Viveks, Jainsons and Premier. The company also extends hire purchase finance at few
other dealer retail outlets in Chennai, Bangalore and Uttar Pradesh towns of
Tamilnadu for a variety of products like consumer durables, cell phones,
office equipments like Xerox machines, EPABX Machines and Fax Machines,
Household Furniture, Computers, Air Conditioners, Electronic Weighing
Machines and Two & Three Wheeler Vehicles. The company is a pioneer in consumer finance and enjoys a
significant and sizable market share in the hire purchase business among the
consumer finance companies, which operate at Viveks, Jainsons and Premier
Showrooms. The company also offers corporate finance (Loans and Bills
Discounting) and Personal Loans to Individuals to a limited extent. The company also had attractive Fixed Deposit Schemes for
the public. The fixed deposit schemes are rated by Credit Analysis and
Research Limited (CARE) |
|
|
|
|
Subsidiaries |
v
Jainsons
Corporation Limited v
Premier
Consumer Electronic Limited v
Bysani
Consumer Electronic Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
4,822,150 |
Equity Shares |
Rs.10/- each |
Rs. 48.221 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
48.200 |
48.221 |
48.200 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
14.800 |
11.546 |
9.500 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
63.000 |
59.767 |
57.700 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
476.200 |
285.060 |
268.300 |
|
|
2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
476.200 |
285.060 |
268.300 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
12.139 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
539.200 |
356.966 |
326.000 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
102.200 |
60.106 |
54.700 |
|
Capital work-in-progress
|
0.000 |
2.127 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.100 |
29.600 |
29.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
299.800
|
146.334
|
183.200
|
|
|
Sundry Debtors
|
98.800
|
77.573
|
54.900
|
|
|
Cash & Bank Balances
|
35.600
|
12.038
|
9.400
|
|
|
Loans & Advances
|
123.200
|
55.751
|
63.000
|
Total Current Assets
|
557.400
|
291.696
|
310.500
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
92.800
|
25.344
|
49.200
|
|
|
Provisions
|
27.700
|
1.219
|
19.500
|
Total Current Liabilities
|
120.500
|
26.563
|
68.700
|
|
Net
Current Assets
|
436.900
|
265.133
|
241.800
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
539.200 |
356.966 |
326.000 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3422.900 |
1660.796 |
1566.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
9.500 |
2.094 |
8.400 |
Provision for Taxation
|
0.200 |
0.046 |
3.800 |
Profit/(Loss) After Tax
|
9.300 |
2.048 |
4.600 |
|
|
|
|
|
Import Vale
|
NA |
NA |
8.988 |
|
|
|
|
|
Total Expenditure
|
3413.400 |
1658.701 |
1557.800 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
6.20 |
4.71 |
4.54 |
|
Long Term
Debt Equity Ratio |
6.20 |
4.71 |
4.54 |
|
Current
Ratio |
4.92 |
4.98 |
4.45 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
20.32 |
15.13 |
12.54 |
|
Inventory
|
13.41 |
9.92 |
7.75 |
|
Debtors |
33.91 |
24.67 |
26.24 |
|
Interest
Cover Ratio |
1.24 |
1.08 |
1.30 |
|
Operating
Profit Margin (%) |
2.06 |
2.17 |
3.29 |
|
Profit
Before Interest and Tax Margin (%) |
1.65 |
1.74 |
2.79 |
|
Cash
Profit Margin (%) |
0.73 |
0.55 |
0.86 |
|
Adjusted
Net Profit Margin (%) |
0.31 |
0.12 |
0.35 |
|
Return on
Capital Employed (%) |
11.13 |
8.47 |
11.57 |
|
Return on
Net Worth (%) |
15.16 |
3.41 |
8.11 |
LOCAL AGENCY FURTHER
INFORMATION
Operation
The company continued to drive the advantage
of new products like Cell Phones and Air Conditioners which have seen increased
in demand and future the rationalization of prices by manufacturer have also
helped in the growing market. Despite difficult market conditions and falling
prices in all the product the company has grown more than 25% in turnover.
However due to aggressive pricing adopted by the company, the profit from
operation has declined for the year under review
Future Prospects
The company has plans to
continuously expand the network of showroom both in existing locations and all
new locations. The company is on course to becoming a leading national leval
player in the consumer Durables Retail segment. Future the company plans to
file necessary paper with the High Court of Madras for the merger of the
subsidiaries jainsons corporation Limited and Bysani Consumer Electronics
Limited with Self
Subsidiary Companies
The subsidiaries Jainsons Corporation Limited and Bysani
Consumer Limited have posted turnover of Rs. 777.100 Millions and Rs. 233.300
Millions respectively and loss/profit after tax of Rs. 26.228 Millions and Rs.
1.065 Millions respectively. The balance sheet as at 31.03.2005 for the
subsidiaries as per the provisions of section 212 is attached
Fixed Assets
v Showroom Equipment
v Electrical Installation
v Office Equipment
v Computer
v Vehicles
v Furniture & Fixture
v Building
Business:
Subject is
engaged in as traders in consumer durables of leading brands.
The company
deal with the following brand companies:
- BPL
- Sanyo
- Sony
- Philips
- Akai
- Kelvinator
- Allwyn
- Cromptor Greaves
- Electrolux
- TVS
- Whirlpool
- LG
- Sharp
- Videocon
- Godrej
- Onkyo
- Carrier
- Voltas
- Usha
- Samsung
Generic
Names of Principal Products/Services are:
- Television and Audio Products
- Refrigerators and Washing
Machines
The company's group as on
date had a total of 38 showrooms out of which 19 showrooms are under the brand
name of "VIVEKS" and 17 showrooms are under the brand name of
"JAINSONS" and 2 showrooms are under the brand name of
"PREMIER". Out of the 19 Viveks showrooms, 9 are in Chennai, 6 are in
Bangalore and 4 are in the Up-Country tows of Tamilnadu. Out of the 17 Jainsons
showrooms, 8 are in Chennai and 9 are in the Up-Country tows of Tamilnadu. The
2 showrooms of Premier are in Salem. Thus the group had 17 showrooms in
Chennai, 6 showrooms in Bangalore and 15 showrooms in the Up-Country towns of
Tamilnadu viz. Salem, Erode, Trichy, Madurai, Tirunelveli, Nagerkoil and Hosur.
|
Name of the company |
VIVEK LIMITED |
|
1) Date and description of instrument creating the change |
19.03.2002 Hypothecation of movable machinery Agreement of hypothecation of book debts Agreement for Cash Credit Security for advance and loans |
|
2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 57.500 millions |
|
3) Short particular of the property charged. If the
property acquired is subject to charge, date of the acquired of the property
should be given |
Stocks Book Debts All movable and other assets |
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Hypothecation of stocks, book debts and all movables and
other assets in the premises and godown Rate of Inertest – 13.5%
|
|
5) Name and Address and description of the person entitled
to the charge. |
Andhr Bank, North Mada Street, Mylapore, Chennai –
600004 |
|
6) Date and brief
description of instrument modifying the charge |
21.02.2005 |
|
7) Particulars of modifications specifying the terms and
conditions or the extent of operations of the charge in which modification is
made and the details of the modification. |
The total limits has been enhanced from Rs. 77.500
Millions to 127.500 Millions OCC – Existing – Rs. 77.500 Millions, Enhanced – Rs.
89.000 Millions Working Capital Demand Loan - Enhanced – Rs. 38.500
Millions Besides the securities so far offered hypothecation by way
of first charge in favour of Bank on all the borrower goods produced and
merchandise and vehicles existing and or by way of cash monies under the cash
incentives to secure the above enhanced limit of Rs. 127.500 Millions |
|
|
|
|
Name of the company |
VIVEK LIMITED |
|
1) Date and description of instrument creating the change |
05.11.2004 Letter of hypothecation Letter of undertaking by company not to created to any
future charge over their property and assets including uncalled capital |
|
2) Amount secured by the charge/amount owing on the
securities of charge |
Rs. 20.000 Millions |
|
3) Short particular of the property charged. If the
property acquired is subject to charge, date of the acquired of the property
should be given |
Hypothecation of all types of stock of consumable
durables, book debts in their premises. Godown and fixed assets of the
company |
|
4) Gist of the terms and conditions and extent and
operation of the charge. |
Rate of Interest, Margin and other conditions as per
agreement |
|
5) Name and Address and description of the person entitled
to the charge. |
The Lakshmi Vilas Bank Limited, Cathedral Branch, Chennai
– 600086 |
|
6) Date and brief
description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions
or the extent of operations of the charge in which modification is made and
the details of the modification. |
Not Applicable |
Form 8 Particular for
creation or modification of charges
|
Corporation identity number or foreign company
registrations number of the company |
U51909TN1994PLC028470 |
|
Name of the company |
VIVEK
LIMITED |
|
Address |
133, Royapettan High Road, Mylapore |
|
This Form is for |
Modification Charge |
|
Particular of the charge holder |
Canara Bank, Mylapore Branch, Royapettah High Road,
Mylapore. Chennai - 600004 |
|
Name or description of the instrument creating charge |
Supplemental Agreement Cash Credit Agreement Agreement Collateral Security – Machinery Supplemental Collateral Security Agreement Hypothecation Agreement of Goods and Book Debts |
|
Date of the instrument creating charge |
19.10.2006 |
|
Amount Secure by the charge |
Rs. 120.000 Millions |
|
Rate of Interest |
3.50% over and above on going PLR with a minimum of 15%
with monthly rests on cash credit |
|
Property Charged |
Hypothecation in favour of Bank on Show Room equipments,
fixed assets and movable assets like office furniture fixture etc. The goods
receivable under the said credit facilities to secure the limit to Rs.
120.000 Millions |
|
Date of instrument modifying the charge |
11.07.2006 |
|
Particulars of the present modification |
The total credit facilities by the bank to the company has
been enhanced to Rs. 120.000 Millions Cash Credit – Rs. 70.000 Millions Cash Credit – Rs. 30.000 Millions FLC – Rs. 20.000 Millions Total – Rs. 120.000 Millions |
Press Release:
Vivek
plans to raise funds thru equity
Chennai , Sept. 6
WITH major expansion plans on the anvil Vivek Limited plans
to raise fresh capital through private equity or an initial public offering.
Mr. B.A. Kodandarama Setty, Chairman and Managing Director,
Viveks, said that the company would divest about 25 per cent in the next four
to six months.
Mr. Setty said that the expansion plan involves setting up
another 50 retail outlets in the South, mainly Tamil Nadu and Karnataka, before
venturing into markets in the northern and western region. The Rs 3500.000 Millions Viveks currently has a chain of 52 outlets
in Tamil Nadu and Karnataka.
He said that the retail sector in India is going into a boom
period and potential investors are keen to participate in retail ventures. The
only way to survive in this market is to grow and gear up to face the
challenges when the Government opens up foreign direct investment in retail, he
said.
CMT REPORT [Corruption, Money laundering &
Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders, director,
officer or employee of the company is a government official or a family member
or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.32 |
|
UK Pound |
1 |
Rs. 81.35 |
|
Euro |
1 |
Rs. 56.75 |
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 |
|
41 |
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
|
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 |