MIRA
INFORM REPORT
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Report Date : |
11.10.2007 |
IDENTIFICATION DETAILS
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Name : |
ZANDU PHARMACEUTICAL WORKS LIMITED |
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Registered Office : |
70, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.12.1919 |
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Com. Reg. No.: |
652 |
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CIN No.: [Company
Identification No.] |
L24239MH1919PLC000652 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMZ00003D |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of Ayurvedic Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 2738800 |
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Status : |
Excellent |
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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 and a part of
Zandu Group. The company is progressing well. 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. Fundamentals are strong and healthy The company can be considered normal for business dealings at usual
trade terms and conditions. The company can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
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Registered Office : |
70, |
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Tel. No.: |
91-22-24307021 Ext. 402 or 299 / 39800382 / 39800301 / 24304517 / 24307983 / 24304518 / 24307994 / 24227964 |
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Fax No.: |
91-22-24375491 |
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E-Mail : |
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Website : |
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Factory: |
·
Plot No. 82, G.I.D.C., Vapi – 396 195, ·
Shed No. 3 & 7, Industrial Area, Site No.
2, Unnao – 209 861, ·
Plot No. 200, ·
Plot No. 7-A, Government Industrial Estate,
Phase – I, Piparia – 396 230, Dadra & Nagar Haveli, ·
Survey No. 61/2, Plot No. 1, Village Masat,
Silvassa – 396 230, Dadra & Nagar Haveli, |
DIRECTORS
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Name : |
Mr. Y P Trivedi |
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Designation : |
Director cum Chairman |
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Name : |
Mr P P Vora |
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Designation : |
Director |
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Name : |
Mr. D. M. Parikh |
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Designation : |
Managing Director |
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Date of Birth/Age : |
60 years |
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Qualification : |
B.Com., LL.B. |
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Experience : |
37 years |
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Date of Appointment : |
03.04.1970 |
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Previous Employment: |
First Employment |
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Name : |
Mr. H. J. Vaidya |
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Designation : |
Director – Planning & Development |
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Date of Birth/Age : |
68 years |
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Qualification : |
B.Sc. |
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Experience : |
50 years |
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Date of Appointment : |
03.04.1970 |
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Previous Employment: |
Productivity Council, |
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Name : |
Dr. A. C. Shah |
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Designation : |
Director |
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Name : |
Dr. A. B. Vaidya |
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Designation : |
Director |
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Name : |
Mr. Y.P. Trivedi |
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Designation : |
Director |
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Name : |
Mr. K. Natarajan |
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Designation : |
Director |
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Name : |
Mr. A. V. Shah |
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Designation : |
Director (Nominee ICICI) |
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Name : |
Mr. S S Handa |
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Designation : |
Director |
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Name : |
Mr Girish G Parikh |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Jaisinh Vithaldas |
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Designation : |
Chairman |
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Name : |
Mr. Anand R. Mundra |
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Designation : |
Company Secretary & Finance Manager |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Ayurvedic Products. |
GENERAL INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
·
Central Bank of · The North Kanara G. S. B. Co-operative Bank Limited · The Saraswat Co-operative Bank Limited ·
State Bank of · Development Credit Bank Limited |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
C. C. Chokshi & Company Chartered Accountants |
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Cost Consultants:
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B. J. D. Nanabhoy & Company Cost Accountants |
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Associates/Subsidiaries : |
· Leopard Investments Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity shares |
Rs.10/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6048000 |
Equity shares |
Ras.10/-
each |
Rs.60.480
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
80.600 |
60.500 |
60.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
604.100 |
561.400 |
490.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
684.700 |
621.900 |
550.600 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
1.300 |
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2] Unsecured Loans |
2.000 |
3.900 |
7.900 |
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TOTAL BORROWING |
2.000 |
3.900 |
9.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
686.700 |
625.800 |
559.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
209.500 |
237.800 |
231.100 |
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Capital work-in-progress |
148.800 |
0.000 |
9.700 |
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INVESTMENT |
66.800 |
113.700 |
78.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
184.100
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187.600 |
192.200 |
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Sundry Debtors |
34.800
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56.600 |
52.500 |
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Cash & Bank Balances |
0.000
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0.000 |
0.000 |
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Other Current Assets |
124.200
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127.700 |
74.500 |
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Loans & Advances |
145.600
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120.400 |
132.400 |
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Total
Current Assets |
488.700
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492.300 |
451.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
203.500
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212.500 |
174.000 |
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Provisions |
23.600
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5.500 |
36.800 |
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Total
Current Liabilities |
227.100
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218.000 |
210.800 |
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Net Current Assets |
261.600
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274.300 |
240.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
686.700 |
625.800 |
559.800 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1472.600 |
1296.600 |
1134.200 |
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Other Income |
46.300 |
42.100 |
31.900 |
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Stock Adjustment |
4.800 |
[17.300] |
[5.400] |
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Total Income |
1523.700 |
1321.400 |
1160.700 |
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Profit/(Loss) Before Tax |
206.600 |
175.600 |
128.400 |
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Provision for Taxation |
60.600 |
54.300 |
41.100 |
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Profit/(Loss) After Tax |
146.000 |
121.300 |
87.300 |
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Expenditures : |
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Raw materials |
509.200 |
399.600 |
355.200 |
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Excise Duty |
183.500 |
154.200 |
129.300 |
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Power and Fuel |
20.200 |
18.600 |
18.100 |
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Other manufacturing Expenses |
53.900 |
49.400 |
52.400 |
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Employee cost |
129.300 |
117.900 |
113.600 |
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Selling and Administration Expenses |
352.700 |
333.700 |
294.400 |
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Miscellaneous expenses |
33.300 |
33.600 |
33.800 |
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Interest and Financial Charges |
4.000 |
4.100 |
5.300 |
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Depreciation
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31.000 |
34.700 |
30.200 |
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Total Expenditure |
1317.100 |
1145.800 |
1032.300 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2007 |
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Type |
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1st
Quarter |
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Sales Turnover |
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277.900 |
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Other Income |
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3.900 |
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Total Income |
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281.800 |
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Total expenditure |
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230.000 |
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Operating Profit |
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51.800 |
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Interest |
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1.000 |
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Gross Profit |
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50.800 |
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Depreciation |
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6.500 |
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Tax |
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13.300 |
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Reported PAT |
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31.200 |
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
7.52
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9.17 |
9.58 |
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Net Profit Margin (PBT/Sales) |
(%) |
14.02
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13.54 |
11.32 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
24.39
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24.05 |
18.54 |
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Return on Investment (ROI) (PBT/Networth) |
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0.30
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0.28 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.33
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0.35 |
0.02 |
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Current Ratio (Current Asset/Current Liability) |
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2.15
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2.25 |
1.98 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was established in October 1910 by Mr. Jugatram
Shankarprasad Vaidya at Mumbai in
Subject was well-known for its ayurvedic products, and become public limited in 1920. In 1930 the company added allopathic medicines to its product lines.
By 1960, the company had nearly 1200 products to its credit. In the same year, the management withdrew from the allopathic segment and concentrated only on ayurvedic medicines.
The company’s product range includes well-known ayurvedic products under the Zandu brand. It has entered into a joint venture with Gujarat Agro Industries Corporation for a vegetable plant extraction project to manufacture glycyrrhiza extract. It has a strong research and development set up in which around Rs. 30 millions have been invested to introduce new formulations, upgrade existing formulations and standardise ayurvedic products.
The application for an investigational new drug for Parkinson Diseases, HP- 200 has been accepted by US FDA and it expects to start clinical trials in American hospitals. Also, the new manufacturing unit at Masat has gone into operations fully. In response to invitation number of shareholders visited Masat factory in January, 2000 and they appreciated the same.
The company plans to concentrate on its core business strengths and further modernize its marketing activity with a greater customer focus and enhanced competitive edge. The company plans to introduce new product in some of the therapeutic segments to fulfill the medico marketing needs.
DIRECTOR
REPORTS:
COMMEMORATION:
Year 2007 is the 125th birth anniversary year of late Shri
Jugatram Vaidya.
YEAR IN RETROSPECT:
During the year under report, the Company achieved a
turnover of Rs.1472.600 millions as against Rs.1296.6 millions of the previous
year, an increase of approx.
14%
over the previous year. The net profit after tax was Rs.146.000 millions as
against Rs.123.000 millions of the previous year, an increase of approx.
19%.
The
turnover achieved by the Company during the year under report is the highest
ever in the history of the Company. It is the second successive year in which
the Company has achieved the higher turnover by surpassing the previous year's
turnover.
The
Analysis of the financial performance of the Company is given under Management
Discussion and Analysis.
CARE, the leading credit rating agency, has continued assigning the rating of
"PR1+" for the issue of Commercial Paper / MIBOR linked short term
instrument, which indicates a superior capacity for repayment of short term
promissory obligations. However, the Company has not issued any such instrument
during the year under review.
In the Brand Equity Survey of India's most trusted brands as published in The
Economic Times in May 2007, Zandu Balm was ranked at the 19'" position out
of 100 brands.
NEW MANUFACTURING
UNIT:
As informed, the Company is setting up a State of the Art manufacturing unit at Uttarakhand , which will further improve the operational efficiency of the Company. The work is going on in full swing. The capital work in progress including advances for this unit stood at Rs.139.100 millions. The new unit is expected to commence production shortly.
ZANDU CHEMICALS LIMITED - SUBSIDIARY:
As already informed, the Company took a strategic decision in September 2006, to make Zandu Chemicals Limited (ZCL ), a subsidiary of the Company.
ZCL has become the subsidiary of the Company with effect from 1st November
2006, with the further acquisition of 44.20% of the equity share capital of ZCL
by the Company. As a result, the total holding of the Company in ZCL, after
this acquisition, has become 93.84% of the paid up share capital of ZCL.
Shri K. Natarajan, Shri P.P. Vora and Shri Girish Parikh, Directors of the
Company are also Directors on the Board of Zandu Chemicals Limited.
As required under Section 212 of the Companies Act, 1956 the Audited Statement
of Accounts, along with the report of the Board of Directors and the Auditors
Report of ZCL for the year ended 31st March, 2007 are annexed.
The total
turnover of ZCL during the year was Rs.451.700 millions - as compared to
Rs.255.000 millions in the previous year, an increase of approx. 77%. The net
profit was Rs.21.900 millions as against Rs.10.000 millions in the previous
year, an increase of approx. 119%. Your directors are pleased to state that
your subsidiary Company is progressing satisfactorily.
MANAGEMENT's
DISCUSSION AND ANALYSIS:
The Company is focussing on growth from the core activities
as well as exploring the possibilities of growth from relate activities. The
Company continues to enjoy remarkable market share in the ointment segment. The
issue of counterfeits duplicates, spurious products is affecting the industry
to a great extent. They are taking steps to fight this menace. A benchmark
exercise with our competitors shows they have produced excellent results in
terms of financials.
Several initiatives have been undertaken / are underway for topline and
bottomline growth of the Company. The details of the same are given under
Chairman's Statement. They are confident that with such initiatives the
performance of the Company will improve substantially in the years to come.
The new Ayurvedic Professional Division named "Bhishag" has started
functioning. The Company anticipates that the response will be very good in the
years to come.
The Board has recently constituted / reconstituted various functional
committees, which will take appropriate steps / draw an action plan for the
growth of the Company.
The management periodically carries out risks assessment exercises. The
management does not perceive any major technological, environmental and / or
financial risks for the Company in the near future. There are well establishes
procedures for internal control. The Audit Committee review's the report and
takes note of action taken on the Internal Auditor's Report.
The Statutory Auditors,
Internal Auditors and Cost Auditors are invited to the Audit Committee
meetings.
The Company recognises that the people are key drivers in its success. The
Company is making efforts to create the motivated environment as well as to
attract, develop and retain the best talent at all level. The industrial
relations continue t be harmonious.
SALES &
MARKETING:
Ointment:
The Company has achieved double digit growth in two successive years
under this category.
Avaleha Group:
The complete new packaging of Chyavanprash and Kesari Jivan was done during the year.
Ayurvedic Generic / Ethical Division:
The overall growth was muted because of
a decline in few products of this division.
Exports:
During the year, the Company effected exports to the tune of Rs.23.631
millions.
There are enormous opportunities in the International
market, considering the recent trend for tilting towards Ayurveda. The Company
is in the process of tapping the same and export strategies have been drawn.
MANUFACTURING:
The Company has four existing manufacturing units. The new manufacturing
unit at Uttarakhand is under construction.
Several initiatives have been undertaken during the year to improve the quality
of products and one of them was receiving the ISO 9001-2000 certificate for
Vapi, Masat and Talasari Unit.
Manufacturing and operational efficiency has improved considerably, which has
contributed to the growth of the Company.
MATERIALS COST:
There were severe pressures in terms of higher input prices for few of the raw materials and packaging materials, resulting in increase of material related consumption to 40.46% of net as compared to 37.95% of the previous year. The Company has absorbed the same; Recently, the Company has effected a moderate price increase to minimize the impact of higher material cost.
The Company has taken several
successful measures which has resulted into effective control on the
inventory.
TRADE REFERENCE:
Ř Vardhman Plasto Chem Private Limited
Ř Alka Chemical Industries
Ř
Super
Ř Quality Chemical Industries
Ř Shreenath Industries
Ř Creative Plast
Ř Nikesh Enterprises
Ř Waxoil
Ř Poly Blow
Ř Offset Printers
Ř Shanam Pharma
Ř Plastera
Ř Orient Art Printers
Ř Honey Age Industries
Ř Haldyn Glass Gujarat Limited
Ř Poly Plast
Fixed Assets:
The company’s fixed assets of important value include Land (Leasehold and Freehold), Building and Staff Quarters, Plant and Machinery, Scientific Research Machinery and Equipments, Utilities, Air Conditioners, Computers, Furniture, Fixtures and Office Equipments, Motor Cars and Lorries and Library Books.
WEBSITE DETAILS:
In the 18th century
a philanthropist and famous ayurvedic physician from
In 1864 he set up a
'Rasa Shala' to manufacture products for his personal practice, according to
the tenets of Ayurveda – which deals with the fundamental principles in nature
that underlie the creation, preservation, and restoration of health and the
promotion of longevity.
His grandson Shri
Jugatram Vaidya, inspired by the rich tradition, decided to start a pharmacy to
manufacture and market Zandu's Natural Herbal products (Ayurvedic Products).
In this endeavour,
Shri Pattani Prime Minister of the erstwhile state of
Since then, 'Zandu'
signifies – ayurvedic healthcare remedies which mean – quality.
The great success
received in the first 9 years necessitated immediate extension of the
production capacity. Subject thus went public in 1919 with the issuance of
stocks.
With the aid of
modern equipments. Subject manufactures a wide range of Ayurvedic products;
specialised in Rheumatology, Gynaecology and CNS (Central nervous system) etc.
Ever since its
inception, Zandu has been dedicated to the promotion of Ayurveda and bringing
the benefits of Ayurveda to the common man. Great emphasis has been laid on the
selection of the right type of raw material and scientific methods for
manufacturing herbal products.
Research and
Development facilities at Zandu are comparable to worldwide standards.
Using as many as 200
medicinal plants and their extracts, Subject produces a range of over 300
health promoting products. In fact, Zandu products hold the key to health and
longevity. The products are manufactured at several up to date plants all
across the country.
Today, Zandu is a multi-product
entity, comprising a group of companies. Zandu projects a sale of nearly Rs.
2,000/- Million by 2000 A.D.
The company has a
team of enthusiastic professionals, experienced in all the functional areas of
management.
The marketing team
comprises a nation wide network of trained sales and service representatives.
The production,
Research and Development facilities are managed by highly qualified and
competent professionals, supported by a skilled work force.
Talented and
hardworking scientists at Zandu have been dedicating their energies to
process/product development and manufacture of high qulaity standardised
Ayurvedic herbal preparations.
About, 2000
employees work and contribute towards Zandu's Success.
Exports:
The company has laid special
emphasis on International Operations.
The company’s
Ayurvedic Herbal Health Care products are available in almost all international
markets – U.S.A,
Having specialised
in Ayurveda, The copmany has diversified into Chemicals and Cosmetics.
The mission of The company is to propogate and promote the science of Ayurveda.
Betterment of health
with health products developed by research and knowledge gained from all over
the world. To produce and market Ayurvedic specialities which are
cost-effective, weigh high on quality and ensure Customer satisfaction. To
accomplish this Subject has sharp focus
on – Human resource. Subject encourages the virtues of team spirit, so that
employees have an opportunity to learn, grow and contribute to their own and
organizational success.
The following are a
brief description of other Zandu subsidiaries, HealthCare foundations and their
prized R and D Centre.
Leopard Investments
Limited, a subsidiary of Zandu, was established at Vapi to manufacture
vegetable plant extracts, with a capacity of over 1000 tons.
Zandu Foundation For
Healthcare (ZFHC)
Subject has
established a non-profit charitable organisation ZFHC with modern facilities
for conducting and promoting R and D in the field of health with emphasis on
Ayurveda, to fulfill its social commitments.
To augment the
natural sources of crude drugs and meet the increased demand for endangered medicinal
plants is the prime objective of ZFHC.
The foundation is,
therefore, undertaking, extensive research projects, on agrotechniques for
large scale cultivation of medicinal plants and laboratory methods for quality
control involving pharmacognostic and phytochemical research and clinical
evaluation.
ZFHC is spread over
two farms of 24 and 20 acres, with tissue culture and quality control
laboratories at Ambach in
Research and Development
Medical science
needs a strong support of scientific research. Research and Development is the
integral part of the organisation. Zandu's Research and Development laboratory
is recognised by the department of science and technology of the Government of
India. Equipments like High Performance Liquid Chromatography (HPLC),
Ultraviolet/visible spectrophotometer, Gas chromatography, Haematology
Analyser, Blood chemistry Analyser, and Automatic Absorption spectrophotometer
do the value addition to stringent quality control for each product
manufactured. Investments in R and D form a major portion of our budgeting.
Truly, with the help of talented and dedicated scientists, Subject is dedicated
to process/product development and the manufacture of high quality Ayurvedic
herbal preparations.
Zandu's Research and
Development activities are dedicated towards, highlighting the usefulness of
Ayurvedic herbo-mineral products by scientific studies. Our activities also aim
at the promotion and establishment of natural products beyond
Fundamental research
work has developed many important products and processes. New techniques have
evolved due to modernisation and dependence on R and D leading to
standardisation of raw finished materials preserving intrinsic values of
Ayurveda.
Zandopa
The product is the tribute to five years R and D efforts, bringing a
standardised formulation with the benefits of Ayurveda.
Zandopa is based on a natural herbal source and intended for the treatment of Parkinsonism.
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 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.39.33 |
|
|
1 |
Rs.79.74 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |
|