MIRA
INFORM REPORT
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Report Date : |
14.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
M N RAMA RAO AND COMPANY |
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Registered Office : |
No. 54 / 3 / B, Ejipura Main Road, Viveknagar Post, Bangalore - 560
047, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1973 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM01266G |
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Legal Form : |
Partnership concern with an unlimited liability of the partners. |
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Line of Business : |
Exporter An Importer of Automotive and Industrial Filters and
Undertakes Assemblies for Automotive, Industrial and Pollution Control
Applications. |
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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Maximum Credit Limit : |
USD 80000 |
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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 concern having satisfactory track. Their
trade relations are fair. Payments are usually correct and as per
commitments. The concern can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office / Factory / Head Office : |
No. 54 / 3 / B, Ejipura Main Road, Viveknagar Post, Bangalore - 560 047,
Karnataka, INDIA |
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Tel. No.: |
91 – 80 – 25713021 / 2936 /
25716422 |
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Mobile No.: |
91-9845186210 |
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Fax No.: |
91 – 80 – 25713874 |
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E-Mail : |
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Website : |
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Area : |
12,000 sq. ft. each floor – 5 [Stored building including ground
floor.] |
PARTNERS
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Name : |
Mr. M N Rama Rao |
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Designation : |
Managing Partner |
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Address : |
18, Victoria Road, Viveknagar Post, Bangalore - 560 047, Karnataka,
INDIA. |
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Date of Birth/Age : |
76 Years |
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Qualification : |
Graduate Engineer |
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Previous
Employment : |
15 years with Telco, Jamshedpur from 1956
- 1970 |
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Name : |
Mr. M R Narayan |
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Designation : |
Partner |
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Address : |
18, Victoria Road, Viveknagar Post, Bangalore - 560 047, Karnataka,
INDIA. |
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Date of Birth/Age : |
44 Years |
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Qualification : |
Graduate Engineer |
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Previous
Employment : |
Currently working with Intel, USA |
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Name : |
Mrs. Usha Rama Rao |
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Designation : |
Partner |
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Address : |
18, Victoria Road, Viveknagar Post, Bangalore - 560 047, Karnataka,
INDIA. |
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Date of Birth/Age : |
66 Years |
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Qualification : |
Science Graduate |
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Name : |
Mrs. Rekha Rao |
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Designation : |
Partner |
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Date of Birth/Age : |
41 Years |
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Previous
Employment : |
Working Experience in USA with Travel Related Companies. |
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Name : |
Mr. V Hayagriva Rao |
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Designation : |
Partner |
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Date of Birth/Age : |
46 Years |
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Previous
Employment : |
15 Years with Multinationals in USA |
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Name : |
Mrs. Gauri Acharya |
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Designation : |
Partner |
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Date of Birth/Age : |
42 Years |
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Previous
Employment : |
5 Years in Travel / Cargo Related Business |
BUSINESS DETAILS
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Line of Business : |
Exporter An Importer of Automotive and Industrial Filters and
Undertakes Assemblies for Automotive, Industrial and Pollution Control
Applications. |
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Exports : |
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Countries : |
Dubai and Srilanka |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
Europe and USA |
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Terms : |
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Selling : |
L/C, Credit [90 days] and Advance Payments |
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Purchasing : |
L/C, Credit [30-45 days] and CAD |
GENERAL
INFORMATION
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Customers : |
End Users and
Manufacturers
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No. of Employees : |
120 |
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Bankers : |
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Facilities : |
Credit Facility : Rs. 10.000 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. Narayanana Chartered Accountants |
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Address : |
Bangalore |
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Memberships : |
Centre For Development of Telematics, Government of India |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 20.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 20.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2007 |
31.03.2006 |
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Sales Turnover |
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180.000 |
220.000 |
Expected Sales (2007-08) : Around Rs. 230.000 Millions
LOCAL AGENCY
FURTHER INFORMATION
The Company
Clean air is an integral element of
every human endeavour. Its purity is critical for humans and equipment in a
wide variety of industries and applications: Automobiles, Pharmaceuticals,
Operation Theatres, Gas Turbines, Clean-rooms, Paint Shops, etc... Just about
every industry that requires an efficient clean air system.
With 30 years of pioneering
experience, subject has provided innovative solutions for clean air to a wide
range of industries in the country.
About MNR
Subject is an ISO 9001-2000 certified company with expertise in the Design, Manufacture, Testing, and Commissioning of a wide variety of filters for Automotive, Industrial, and Pollution Control applications. By pioneering the introduction of the Flexible Porous Cellular Plastic (FPCP) media in India, MNR has evolved as the largest supplier of air filters for two wheelers in the country, with over 85% market share. In fact, every large two wheeler manufacturer in the country is a customer of theirs.
Subject is a family owned (and run) organization with low overheads where their customers experience the benefits of personalized service, short turnaround times, total focus on technical excellence and quality.
For industrial applications, MNR supplies filters and filtration solutions to the rapidly expanding pharmaceutical sector, hospitals, outsourced manufacturing, paint shops, and a variety of other industries. In short, since 1973 MNR has been designing and manufacturing filters that provide creative and technically competent solutions for almost all automotive and industrial filtering requirements.
Subject is proudly associated with EMW Filtertechnik Gmbh of Germany, a world leader in Air, Water and Molten Metal filtration, for over 25 years. The technical collaboration helps in offering customers high quality and high performance products at a competitive price. Their warehousing facilities enable them to develop and maintain an efficient supply network in the country and across the world. For MNR, 'Customers First' is not just a slogan, but a way of life.
Subject have a 25,000 sq.ft. factory in the heart of Bangalore, India, where their filters are designed and manufactured with pride.
Outstanding
Developments
A new pioneering concept in air filter design for four wheelers has been initiated. The revolutionary hi-tech eco-friendly next gen filters have been introduced with a major automobile manufacturer in the country.
MNR has successfully developed superfine filters for ISRO resulting in 33% reduction in current drawn by the blower to save enormous energy.
MNR has been retained by a multinational compressor company for the design, manufacture and supply of test facilities, apart from providing filters. The fully automatic test rigs are used for testing different HEPA filter cartridges and are equipped with D.O.P generators, digital photometers etc. The cartridges vary from less than 100mm to one meter in height and aerosol application is done by linear motor drive for uniform travel. The test rig size is 2500mm long by 750mm wide and a height of 2500mm. All operations by the operator are ergonomically planned.
A standard Pocket Filter experiences a high and turbulent face velocity. Their design enables the turbulent flow to be converted to a uniform laminar flow at the outlet. This results in uniform loading of the pockets and ensures longer life.
Their in-house test facilities rank
as one of the foremost in the country. They are on the approved list of
Defence, D.G.S.D, ISRO, C-DOT, N.P.C, N.T.P.C, N.S.I.C, Rail-Wheel Factory, and
other organizations.
The Team
M. N. Rama Rao,
Managing Partner
Mr. Rama Rao has a long and distinguished role in the world
of filtration for over 30 years. After graduating from the University of Mysore
in 1953, he had a successful career for 15 years. He joined hands with KLN Engineering
in Bangalore and developed the first lube oil filter for Tata Direct Injection
Engines that were introduced in 1972. In 1985, he saw tremendous potential in a
new filter media called Flexible Porous Cellular Plastic, which had several
advantages over the paper filter that was prevalent in those days. He
successfully developed the first FPCP air filter for the new generation TVS
Suzuki motorcycles. Mr. Rama Rao has been associated in one way or the other
with several filter companies in India: Esramatic Enterprises that started
supplying the first indigenously developed edge filter pack for John Fowler
India, Merit Industries that supplied air filters for the automotive market,
KLN engineering and others. He also founded Trijama Filterall which was later
sold to the Kirloskar group in 1990. Mr. Rama Rao has several innovations to
his credit including developing the first Superfine filters for a Class 100K
clean room at ISRO, developing a washable, re-useable F6 class fine filter and
washable re-useable pre filter, and developing a Quick Media Change panel
filter that increases the uptime of the filter system. He also helped co-design
a test facility for MNR with the Indian Institute of Science in Bangalore. Mr.
Rama Rao is also a member of the Institution of Engineers in India.
M.N. Krishna Rao,
Manager, Quality Control & Planning
Mr. Krishna Rao brings with him an abundance of experience in the field
of Quality and Planning. Having completed his Bachelors in Mechanical
Engineering from the Mysore University in 1956, Mr. Krishna Rao joined
Hindustan Aeronautics Limited in the Inspection Department. He later joined
Kirloskar Electric Company (KEC) in 1959 as an Engineer and rose to become
their Corporate Vice President in Quality & Reliability in 1985. During his
outstanding career at KEC, he worked in almost all disciplines like Planning,
Production, HRD, QA, Marketing and Product Engineering, giving him a broad view
of the entire organization. His biggest achievement was his focus on TQM and
getting Deming's philosophy propagated throughout the organization. While at
KEC, he was mentor and felicitator to more than 300 projects involving quality
improvements and cost reductions. In 1993, he joined Anaar Consultants and
helped various organizations in India move towards TQM in their production and
support departments. Mr. Krishna Rao has been with MNR for the last 12 years
and has helped MNR achieve ISO 9001-2000 certification as well as design the
complete Quality Management System for the company. Their quality systems are
obviously working very well since they are able to meet the schedules of 19 of
their OEMs on JIT/Kanban principles. Mr. Krishna Rao is also the Treasurer of
the Karnataka Chapter of the Indian Institute of Plant Engineers that helps
Plant Engineers from all over India enhance their effectiveness and
productivity.
Narayan Manepally,
Chief, Strategic Projects
Narayan Manepally has been chartered with product strategy and creating a
strategic direction for MNR. Prior to his current role, Mr. Manepally was with
the Intel Corporation in the US for 13 years. Mr. Manepally started his career
at Intel at the Princeton Research Operation for Intel and co-designed and
developed the Intel Videophone for which he holds a worldwide patent. He was
Technical Marketing Engineer at Intel's Architecture Lab where his group
authored, developed and promoted G.Lite a new standard for Digital Subscriber
Line or DSL. In that role he designed, developed and deployed an
Interoperability Test Network that allowed over 50 companies to test their
CPE's and DSLAMs against one another. He was posted to India in 1998/1999 to
head up Intel's Online Services Group that was a service offering from Intel
for Web Hosting. He later became the Manager of Product Strategy at Intel's
Internet Media Services and was responsible for developing a strategy around
Content Syndication and Monetization. Mr. Manepally then joined the Platform
Networking & Wireless Networking Groups as Technical Assistant to the Vice
President and was responsible for assisting the Vice President of the group on
the tactics as well as advising on strategic and acquisition discussions. Mr.
Manepally has four patents in his name and holds Bachelors in Electrical
Engineering with several credits towards an MBA.
Usha R Rao
Mrs. Usha Rao is their Production Manager. She has been responsible for setting up their flexible manufacturing processes that serves the needs of so many of their customers and has stood the test of time at MNR for almost 20 years. She has a Bachelors in Arts and has been with the company for over 20 years.
Prahlad Tantry
Mr. Tantry is their Senior Manager for Marketing. He graduated in 1987
from the Regional Engineering College in Jaipur with a degree in Metallurgical
Engineering. He later obtained an MTech from the IIT in Mumbai in 1990, with a
thesis on “Sintering of Silicon Nitride powders”. He worked for a year at
Mahindra Ugine before he joined Grindwell Norton. At Grindwell Norton, he was
instrumental in developing Ceramic Foam Filters from scratch, attempted for the
first time in India . He also focused on developing refractories for Steel
Industries and High Alumina products. He also authored a paper on the
Development of Porous Ceramics. Mr. Tantry has been associated with their
organization since 1998 and is currently chartered with the Technical Marketing
and Business Development of Industrial and Ceramic Filters.
Mr. Hanuman Singh
Prof. M. V. Narasimhan
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.39 |
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UK Pound |
1 |
Rs.81.31 |
|
Euro |
1 |
Rs.57.44 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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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 |
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|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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. |
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 |
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<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 |
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