MIRA
INFORM REPORT
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Report Date : |
24.10.2007 |
IDENTIFICATION DETAILS
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Name : |
PCS TECHNOLOGY LIMITED |
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Formerly Known As : |
PCS INDUSTRIES LIMITED |
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Registered Office : |
Plot No. 148 / 151, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
22.04.1981 |
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Com. Reg. No.: |
11-24279 |
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CIN No.: [Company
Identification No.] |
U74200MH1981PLC024279 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEP08887E |
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PAN No.: [Permanent
Account No.] |
AABCP0316J |
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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 : |
Computer System design and development and also undertaking turnkey projects comprising of Computer Hardware Installation, Commissioning, Complete System Integration and assembling computer CPUs with suitable peripherals. |
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 2800000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established IT and Hardware Company having satisfactory
track. Profit margin is under severe pressure. 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 Office : |
Plot No. 148 / 151, |
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Tel. No.: |
91-22-28521177 / 2635 / 28591795 / 28502312 |
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Fax No.: |
91-22-28520193 |
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E-Mail : |
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Website : |
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Head Office : |
Plot No.4, PCS House, Sakinaka, |
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Tel. No.: |
91-22-28521177/2635/2636/6271/6273 |
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Fax No.: |
91-22-28520193 |
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E-Mail : |
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Corporate Office : |
310 / 316, Raheja Chambers, Nariman Point, Mumbai - 400
021, |
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Tel. No.: |
91-22-22875525 |
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Fax No.: |
91-22-22873984 |
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Factory : |
Ř Plot No. 148/151, Alandi Markaal Road, Village Dhanore, Alandi, District Pune – 412 106, Maharashtra Ř
Plot No. 110/1/111, Himalaya Industrial
Estate, Village Amli, Silvassa – 396 230, Ř
44/45, Mapusa Industrial Estate, Mapusa, |
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Overseas Office
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Located at :
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Branches : |
Located at:
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DIRECTORS
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Name : |
Mr. Gajendra Kumar Patni |
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Designation : |
Joint Managing Director |
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Date of Birth |
24.03.1941 |
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Qualification |
B.Chem. |
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Date of Joining |
22.04.1981 |
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Other Directorship |
Patni Computer Systems Limited PCS International Limited |
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Name : |
Mr. Ashok Kumar Patni |
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Designation : |
Joint Managing Director |
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Date of Birth |
01.08.1951 |
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Qualification |
B.Tech. |
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Date of Joining |
22.04.1981 |
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Other Directorship |
Patni Computer Systems Limited PCS International Limited PCS Finance Limited |
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Name : |
Mr. D. B. Engineer |
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Designation : |
Director |
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Name : |
Mr. Satish B. Ajmera |
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Designation : |
Director |
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Name : |
Mr. P. V. Mehta |
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Designation : |
Director |
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Name : |
Mr. Girish M. Dave |
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Designation : |
Director |
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Date of Birth |
12.07.1938 |
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Qualification |
M.Com., LLB, C.A.I.I.B. |
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Date of Joining |
29.09.1995 |
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Other Directorship |
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Name : |
Mr. K. K. Barjatya |
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Designation : |
Director |
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Name : |
Mr. N. K. Patni |
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Designation : |
Director |
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Name : |
Mr. Amit Kumar Patni |
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Designation : |
Director |
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Date of Birth |
26.03.1966 |
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Qualification |
B.Com, M.B.A. |
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Experience |
14 years |
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Date of Joining |
28.04.1986 |
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Other Directorship |
PCS International Limited PCS Finance Limited |
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Name : |
Mr. M. Y. Kulkarni |
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Designation : |
Director |
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Date of Birth |
10.06.1957 |
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Qualification |
Chartered Accountant |
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Date of Joining |
29.03.2001 |
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Name : |
Mr. H. C. Tandon |
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Designation : |
Whole-time Director |
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Qualification |
B.E. (Electronics) |
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Date of Joining |
01.01.1991 |
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Previous Employment |
Patni Computer System Limited (Senior General Manager) |
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Name : |
Mr. B. N. Agrawal |
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Designation : |
Whole-time Director |
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KEY EXECUTIVES
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Name : |
Mr. C. D. Sakaria |
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Designation : |
Company Secretary cum Financial Controller |
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Name |
Mr. B. N. Agrawal |
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Designation |
Whole-time Director |
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Qualification |
B.E. (Hons. Electrical Engineer) |
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Date of Joining |
31.12.1982 |
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Previous Employment |
Computer Maintenance Corporation Limited - (Consultant) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
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Indian Promoters |
14700411 |
71.17 |
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Non Promoters
Holding |
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Banks, Financial Institutions and Insurance Companies |
216786 |
1.03 |
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FIIs |
800 |
0.00 |
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Other Investors |
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Private Corporate Bodies |
433660 |
2.07 |
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NRI’s / OCB’s / Foreign Others |
106606 |
0.51 |
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Others |
52420 |
0.25 |
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General Public |
5308411 |
25.34 |
BUSINESS DETAILS
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Line of Business : |
Computer System design and development and also
undertaking turnkey projects comprising of Computer Hardware Installation,
Commissioning, Complete System Integration and assembling computer CPUs with
suitable peripherals. |
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Products : |
Mini / Micro Computer Systems, Glass Epoxy Copper Clad
Laminates, R & T Services |
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Brand Names : |
“Avion”, “Clarion” and “AST”. |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
Europe and |
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Terms : |
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Purchasing : |
L/C terms |
PRODUCTION STATUS
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Particulars |
Licensed
Capacity |
Installed
Capacity |
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CCL Division |
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Glass Epoxy Copper Clad Laminates |
0.300 million sq. mtrs. p.a. |
0.300 million sq. mtrs. p.a. |
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Paper Phenolic & Composite Copper Clad Laminates |
0.500 million sq. mtrs. p.a. |
0.500 million sq. mtrs. p.a. |
GENERAL INFORMATION
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Customers : |
Hardware
Consultancy
Laboratory
Information System
Software
Solutions
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No. of Employees : |
600 |
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Bankers : |
·
Canara Bank, District Pune, ·
Indian Bank, District Pune, ·
The United Western Bank Limited, District
Pune, ·
Dena Bank, District Pune, ·
Standard Chartered Grindlays Bank Limited,
District Pune, ·
Bharat Overseas Bank Limited, District Pune, ·
Union Bank of ·
Central Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. C. Bandi & Company Chartered Accountants Mumbai |
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Membership : |
Manufacturers Association for Information Technology |
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Associates : |
Patni Computer Systems Private Limited |
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Subsidiaries : |
PCS International Limited, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/-each |
Rs. 250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
13098798 |
Equity Shares |
Rs.10/-each |
Rs. 130.988 millions |
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7851879 |
Equity Shares |
Rs. 10/- each |
Rs. 78.519 millions |
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Total |
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Rs. 209.507 millions |
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Add |
Forfeited of Shares |
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Rs. 0.733 million |
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TOTAL |
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Rs. 210.240 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2006 [15 Months] |
31.03.2005 [12 Months] |
31.03.2004 [12 Months] |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
210.200 |
210.240 |
210.240 |
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2] Reserves &
Surplus |
496.000 |
474.597 |
525.505 |
NETWORTH
|
706.200 |
684.837 |
735.745 |
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LOAN FUNDS |
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1] Secured Loans |
357.700 |
281.091 |
272.802 |
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2] Unsecured
Loans |
237.500 |
55.000 |
55.000 |
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TOTAL BORROWING |
595.200 |
336.091 |
327.802 |
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DEFERRED TAX
LIABILITIES |
0.000 |
18.122 |
28.073 |
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GRAND TOTAL
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1301.400
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1039.050
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1091.620
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APPLICATION OF
FUNDS |
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FIXED ASSETS [Net
Block] |
245.900 |
258.166 |
274.242 |
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Capital
Work-in-Progress |
9.400 |
4.724 |
0.000 |
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INVESTMENTS |
51.700 |
143.102 |
168.950 |
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CURRENT ASSETS,
LOANS & ADVANCES |
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Inventories |
213.300 |
360.523 |
198.993 |
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Sundry Debtors |
1188.600 |
1547.485 |
1021.094 |
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Cash & Bank
Balances |
120.700 |
142.192 |
161.500 |
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Other Current
Assets |
0.000 |
25.188 |
2.052 |
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Loans &
Advances |
193.500 |
133.452 |
95.135 |
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Total Current Assets |
1716.100 |
2208.840 |
1478.774 |
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Less : |
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Current
Liabilities |
711.900 |
1569.647 |
839.417 |
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Provisions |
9.800 |
6.135 |
5.979 |
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Total Current Liabilities |
721.700 |
1575.782 |
845.396 |
Net Current Assets
|
994.400 |
633.058 |
633.378 |
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MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
15.050 |
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GRAND TOTAL
|
1301.400
|
1039.050
|
1091.620
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 [15 Months] |
31.03.2005 [12 Months] |
31.03.2004 [12 Months] |
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Sales Turnover |
4213.800 |
3295.300 |
2814.500 |
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Other Income |
121.500 |
102.000 |
76.000 |
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Total Income |
4335.300 |
3397.300 |
2890.500 |
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Profit/(Loss) Before Tax |
51.000 |
24.000 |
16.100 |
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Provision for Taxation |
24.800 |
[8.200] |
04.000 |
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Profit/(Loss) After Tax |
26.200 |
32.200 |
12.100 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
30.310 |
9.520 |
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Imports : |
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Total Imports |
NA |
385.584
|
334.212
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Expenditures : |
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Raw Materials |
3206.700 |
2584.500 |
2091.400 |
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Excise Duty |
35.100 |
21.200 |
121.200 |
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Power & Fuel Cost |
06.800 |
04.800 |
4.000 |
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Other Manufacturing Expenses |
23.100 |
16.500 |
23.000 |
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Employee Cost |
401.300 |
228.200 |
158.200 |
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Selling and Administration Expenses |
394.100 |
388.400 |
286.000 |
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Miscellaneous Expenses |
51.100 |
50.300 |
61.400 |
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Stock Adjustments |
2.500 |
[25.600] |
[6.600] |
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Interest & Financial Charges |
142.300 |
84.900 |
109.000 |
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Depreciation |
24.900 |
27.500 |
28.800 |
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Total Expenditure |
4287.900 |
3380.700 |
2876.400 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
30.06.2007 |
|
Type |
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|
Full
Year |
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Sales
Turnover |
|
|
3343.700 |
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Other
Income |
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|
11.800 |
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Total
Income |
|
|
3355.500 |
|
Total
Expenditure |
|
|
3184.700 |
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Operating
Profit |
|
|
170.800 |
|
Interest |
|
|
84.900 |
|
Gross
Profit |
|
|
85.900 |
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Depreciation |
|
|
21.800 |
|
Tax |
|
|
25.400 |
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Reported
PAT |
|
|
33.800 |
|
Dividend
(%) |
|
|
00.000 |
KEY RATIOS
|
PARTICULARS |
30.06.2006 [15 Months] |
31.03.2005 [12 Months] |
31.03.2004 [12 Months] |
|
Debt Equity Ratio |
0.77 |
0.54 |
0.63 |
|
Long Term Debt
Equity Ratio |
0.28 |
0.11 |
0.27 |
|
Current Ratio |
1.35 |
1.23 |
1.33 |
|
TURNOVER RATIOS |
TURNOVER RATIOS |
|
|
|
Fixed Assets |
7.25 |
7.35 |
5.91 |
|
Inventory |
11.75 |
11.49 |
14.84 |
|
Debtors |
2.46 |
2.50 |
2.70 |
|
Interest Cover
Ratio |
1.40 |
1.28 |
1.15 |
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Operating Profit
Margin (%) |
5.31 |
4.24 |
5.47 |
|
Profit Before
Interest and Tax Margin (%) |
4.72 |
3.39 |
4.44 |
|
Cash Profit
Margin (%) |
1.30 |
1.86 |
1.45 |
|
Adjusted Net
Profit Margin (%) |
0.71 |
1.00 |
0.43 |
|
Return on Capital
Employed (%) |
14.89 |
11.63 |
14.80 |
|
Return on Net
Worth (%) |
3.96 |
5.26 |
2.23 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Promoted by Patni Computer Systems Private Limited, PCS
Industries was incorporated in Apr.'81 at Andheri, Mumbai. The company
manufactures computer hardware -- large custom-built computer systems and peripherals
-- and is involved in system designing and integration and assembling computer
CPUs with suitable peripherals. It also maintains, on a long-term basis,
computer systems provided by it. The company has an issue house, and a
registrar and transfer division, which manages post-issue activities of many
companies and acts as their registrar and transfer agent. PCS also manufactures
copper-clad laminates at Dhanore, Maharashtra, in technical collaboration with
AEG Isolier Und Kunststoff,
In Jan.'93, the company came out with a rights issue at a premium of Rs 15,
aggregating Rs 82.800 Millions, to part-finance the expansion project to
manufacture the paper-phenolic range of copper-clad laminates.
Meanwhile, PCS Data General India was amalgamated with PCS Industries on 1
Apr.'94. The company is expanding the production capacity of its copper-clad
laminate division by installing an additional press boiler and other line
equipment at a total cost of Rs 15 Millions.
During the year 1995-96, the company has expanded the installed capacity of CCL
Unit at Pune. The CCL plant at Pune was awarded by ISO - 9002 certification for
its entire product range of Copper Clad Laminates.
During the year 1999-2000, the company launched advanced model of Pentium - III
Computers, a latest version of product which was well received in the market.
The company is also
manufacturing Copper Clad Laminates in technical collaboration with AEG Isolier
Und Kunststoff,
The company also
acts as distributors of Data General Corporation USA, AST Research Inc.,
The company has been
accredited with ISO 9001 certification.
It is in trade terms with:
Ř
Reserve Bank of
Ř Andhra Bank
Ř Punjab & Sind Bank
Ř Vijaya Bank
Ř Canara Bank
Ř
Bank of
Ř Deutsche Bank
Ř Indian Bank
Ř
Bank of
Ř
Ř Bhabha Atomic Research Centre
Ř
Ř WIDA
Ř Hindustan Aeronautics Limited
Ř Gas Turbine Research Establishment
Ř ISRO
Ř Glaxo India Limited
Ř Rashtriya Chemicals & Fertilisers Limited
Ř Tamilnadu Secretariat
Ř Karnataka Housing Board
Ř
Administrative Training Institute,
Ř
Ř United Insurance Company Limited
Ř GIC
Ř Life Insurance Company
Ř MICO
Ř ABC Limited
Ř Kirloskar Toyoda Machinery
Ř Jindal
Ř Tata Iron & Steel Company Limited
Ř Titan Limited
Ř Associated Cement Companies Limited
Ř Air India Limited
Ř
Times of
Ř
DOT (
Ř Pagepoint India Services Limited
Ř Apollo Tyres Limited
Ř Blue Dart Limited
Ř Indian Airlines Limited
Ř Hero Honda
Ř Symbol Technologies
Ř Zee Telefilms Limited
The company has an issue house and a registrar and transfer division, which manages post issue activities of many companies and acts as their registrar and transfer agent.
The company is expanding the production capacity of its cooper-clad laminate division by installing an additional press boiler and other line equipments at a total cost of Rs. 15 millions.
The company imports raw materials and computer accessories, capital goods, trading goods and spares.
The company's fixed assets of important value include land, leasehold land, buildings, plant & machinery, leased machineries, tools & testing equipments, electrical installations, office equipments, furniture & fixtures and vehicles.
OPERATIONS
During the current financial period, The Directors have decided to change the
Financial Year of the Company commencing from 1st July and ending on 30th June.
Consequently the current Financial period closes on 30th June 2006 and
represents results for a period of 15 months.
During the period under review, the Company has achieved Gross Turnover of Rs.
4210.000 Millions (for 15 months) as against Rs 3290.000 Millions (for 12
months) for the previous financial year.
The production of CCL division of the Company continued to be suspended due to
adverse market conditions and low demand.
SOFTWARE & IT SERVICES AND NEW INITIATIVES
The Company has expanded its product portfolio by launching new products and
solutions in Laboratory Management Solutions, GPS/GIS based Solutions and IT
security Consulting. These green field portfolio would reap benefits and
improve bottom line in the upcoming year.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Scenario & Review
This year the industry witnessed mild growth in value terms. The Desktop Market
continued to characterize cutthroat competition with branded Indian, MNC and
unbranded companies vying for market share. It has been a tight ropewalk for PC
Manufacturers with margins under terrible pressure.
The growth in PC sales, can be attributed to significant consumption by
Industry verticals such as telecom, banking & financial services,
manufacturing, retail and BPO/IT-enabled services as well as major e-Governance
initiatives of the Central and State Governments. The downward trend in pricing
continued during the period due to technological reasons and other initiatives
of the Industry.
Performance & Review
Computer Division
In keeping with the above scenario the Company has maintained average growth in
core business area of manufacturing and marketing of Personal Computers,
Servers and Notebooks.
The Computer Division has recorded a Gross Turnover of Rs. 4210 Millions (for
15 months) against previous year Rs 3290 Millions (for 12 months). The key
contributors to the growth have been the Government segment through Rate
Contracts with DGS&D, Banking and State Governments.
The Company also expanded its Product Portfolio by focusing on Laboratory
Management solutions, GPS, GIS based solutions, Facilities Management and IT
Security Consulting. These green field portfolios would reap benefits and help
in fortifying the bottom line in the upcoming year.
The Company has also stepped up its Network Presence and has positioned itself
as the Second largest Service Network in the country with over 165 + direct
service location. The Company also initiated operations set up in US and
Manufacturing Operations
The facility at Silvassa achieved ISO 14001 certification. Thus ensuring
stringent and ongoing improvements in quality and manufacturing process.
Future Outlook
Though the last year was a stagnant growth year with many strategic
consolidations and realignment. Also the new verticals, which have seen
substantial investments in resources from the management, will start paying
returns in the upcoming year. The overseas expansion would also fuel the growth
engine and fortify the bottom line in the upcoming year. The re-orientation
strategy from a pure product push to solutions push strategy would help in
increasing per customer productivity as well as adding new customers. The
Company's rapid expansion in sales manpower would ensure better direct market
penetration and increasing overall customer base to ensure rapid growth in
hardware sales.
Overseas Subsidiary
PCS International Limited, (
Due to unfavourable market condition, faced during the period in Middle East,
PCS Technology USA, Inc.
The US Company has started developing the market for consulting with focuses on
GPS, Laboratory & Hospital Management Solutions. Both the activities have
started giving encouraging results.
PCS Positioning Systems Private Limited
The GPS /GIS based solutions vertical went into complete overhaul with
realignment of resources and management structure to ensure more focus and
ready to use solutions for the domestic markets. This realignment has resulted
in with initial orders from leading corporates. In the upcoming year rapid
progress would be seen from this segment
AS PER WEBSITE
Top Ranking IT Solutions Company
Started in the year 1983, PCS Technology is a 80
million dollar company today. Headquartered in Mumbai, they have their presence
in 22 offices across
Armed with the know-how to improve business performance across organizational
silos, business processes, technology platforms and a keen understanding of the
client requirements, their solutions focus on delivering competitive business
advantage and increased ROI for all their clients.
Offerings & Network
Their range of products and solutions are available across
Focus on Customer Delight
While their culture of thought leadership encourages them to explore new concepts and solutions, their strategic focus of delivering competitive advantage for their client's business success never varies. The testimony of this fact lies in the fact that their clients consists of Blue-chip and Fortune 500 companies, choose them for repeat or expanded business. They meet the client challenges by delivering the least expensive solution while maintaining a roadmap that can evolve to fit their future needs.
Partnering with Global Leaders
They believe that in order to keep pace with the global trends, it is imperative to stay connected to the leaders in the field of technology. To that end, they have formed a range of strategic relationships with a number of companies worldwide, which ensures that their products and services are always keeping pace with global trends.
More Highlights
- Global consulting and IT Service provider
- 20 Years of experience in managing mission critical contracts
- Global Representation across 5 Continents
- Widespread domestic service network with over 150+ points of presence
- State of art manufacturing facilities
- Installation base of over 5 million PC's
- ISO 9001 certified IT Services
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.39.57 |
|
|
1 |
Rs.81.01 |
|
Euro |
1 |
Rs.56.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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. |
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 |
|