MIRA
INFORM REPORT
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Report Date : |
25.10.2007 |
IDENTIFICATION DETAILS
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Name : |
ZENITH COMPUTERS LIMITED |
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Registered Office : |
Plot No. B-5, Electronic Sadan 1, MIDC, TTC Industrial
Area, Mahape, Navi Mumbai – 400 709, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.05.1980 |
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Com. Reg. No.: |
11-22652 |
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CIN No.: [Company
Identification No.] |
L72900MH1980PLC022652 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMZ00991E |
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PAN No.: [Permanent
Account No.] |
AAACZ0104F |
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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 : |
Manufacturer, installing and servicing a wide range of computer systems. |
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 2022800 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Although subject is an established company, its’ performance remain subdued. Profit is insignificant. Payments are reported as slow. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Plot No. B-5, Electronic Sadan 1, MIDC, TTC Industrial
Area, Mahape, Navi Mumbai – 400 709, |
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Tel. No.: |
91-22-27610665 / 28377300 |
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Fax No.: |
91-22-27610668 / 28364859 |
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E-Mail : |
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Area : |
Leased -- 10000 sq.ft |
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Head Office : |
Unit No. 5,6,7, 8 SDF Building No. 1, Electronic Sadan TTC
Mahapte, Dist. Thane – 400 701 Maharashtra, |
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Tel. No.: |
91-22-2768 1312 / 6165 / 2761 4994 / 5281 / 0667 / 82 / 83 |
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Fax No.: |
91-22-2761 0668 |
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E-Mail : |
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Website : |
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Factory : |
Ø
P-31/39 and P-33/37, Sancoale Industrial
Estate, P.O. Zuari Nagar, Goa – 403 726, Tel No. 91-832-2555346 / 2555826 Ø
A-71, TTC, MIDC, Ø
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Area : |
45000 sq.ft. -- Owned |
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Branches : |
Located at ·
Mumbai
Office: -Zenith
House, 29, Tel. No.: 91-22-2837 7300 / 2836 6030 Fax No.: 91-22-2836 4859 / 2837 7297 / 2836 0897 E- Mail : channel@zenith-india.com Website : http://www.zenith-india.com -Chakala Junction, Near Popular Car Bazar, Andheri (East), Mumbai – 400 099 Tel No:91-22-28245616/28245617 Fax No: 91-22-28245611 ·
Ahmedabad
Office: Address: Shed
No. SA 9, Sancoale Industrial Estate, P.O. Zuari Nagar, Tel No. 91-79-26560810 / 26462528 / 26853486/ 26850673 Fax: 91-79-6851348 ·
Address: 30/1,
3rd Floor, Leeman’s Complex, Tel No. 91-80-22264999 / 305 /
6588/ 64305/
66588/64190 Fax: 080-22203310 ·
Chennai
Office: 1-E, Tel. No. 91-44-24349661 / 24349323/ 22394/24322395 Fax No: 91-44-24331314 ·
2nd
Floor, “ Tel No. 91-422-2300155 / 2302118 / Fax No: 91-422-2300274 ·
Tel No. 91-172-2615496 / 2605496 ·
Address: Shed No. SA 9, Sancoale
Industrial Estate, P.O. Zuari Nagar, Tel: 91-832-2555823 / 825 / 827 / 2555825/ 2555346 Fax: 91832
-2555826 ·
Kerala Tel No. 91-484-2350548 / 2371461 ·
Kolkata
Office: 27/1,
Tel No. 91-33-24753872 / 24765445 / 24860180/82 /24543960 Fax no: 91-33-24765446 ·
Uttar Pradesh Tel No. 91-522-2328988 ·
S
-69, F I E , Okhla Industrial Area, Phase –II, Tel No. 91-11-26387154 / 3702 / 9089 / 6386796 / 6384129 Fax No: 91-11-26384151
·
Pune
Office: Address: 208, West Wing, Tel No:
91-20-26050690/ 26050691 / 91-11-/26133827 / 26050690 Fax:
91-20-26133306 ·
Secunderabad
Office: Plot No. 17, Paigha Colony, Beside Anand Theatre, Secunderabad – 500003 Andhra Pradesh Tel No. 91-40-27903256 / 2494 /27900779/27902494
Fax: 91-40-27902691 ·
1st Floor, Sky
Bright, 39/3479, Tel: 91-484-2359461/ 2358548 Fax: 91-484-2359585 |
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Area : |
30000 sq.fts |
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Location: |
Owned |
DIRECTORS
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Name : |
Mr. Raj Kumar Saraf |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. H. P. Ranina |
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Designation : |
Director |
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Name : |
Mr. B. H. Antia |
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Designation : |
Director |
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Name : |
Mr. B. K. Tibrewala |
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Designation : |
Director |
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Name : |
Mrs. Vijayrani Saraf |
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Designation : |
Director |
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Name : |
Mr. Vijay R Mukhi |
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Designation : |
Director |
KEY EXECUTIVES
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Name |
Mr. Raj Kumar
Saraf |
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Designation |
Chairman &
Managing Director |
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Age |
58 years |
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Qualification |
B. Com., LL.B |
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Date of Joining |
01.11.1987 |
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Experience |
38 years |
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Address |
Saraf House, 5th
Floor, Opposite Sukhsagar Juice Centre, |
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Name |
Mr. H. P. Ranina |
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Designation |
Director |
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Age |
57 years |
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Qualification |
B.Com (Hons),
LL.B., FCA |
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Experience |
35 years |
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Address |
“Commonwealth”,
Flat No. 24, 6th Floor, 181, Backbay Reclamation, Mumbai – 400 020 |
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Name |
Mr. B. H. Antia |
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Designation |
Director |
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Age |
69 years |
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Qualification |
B.Sc. (Hons),
L.L.B. |
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Experience |
40 years |
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Address |
Mulla & Mulla
and Craigie Blunt & Caroe 51, |
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Name |
Mr. B. K.
Tibrewala |
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Designation |
Director |
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Age |
69 years |
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Qualification |
M.Com., L.L.B. |
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Experience |
47 years |
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Address |
D/52/499, Gandhi
Nagar, 1st Floor, Bandra (East), Mumbai – 400 051 |
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Name |
Mrs. Vijayrani
Saraf |
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Designation |
Director |
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Age |
52 years |
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Qualification |
M.A. (Economics) |
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Experience |
32 years |
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Address |
Saraf House, 5th
Floor, Opposite Sukhsagar Juice Centre, |
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Name |
Mr. K.
Venkatachalam |
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Designation |
Director |
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Age |
59 years |
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Qualification |
M. Tech.
(Electronics) |
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Experience |
33 years |
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Address |
495 /18, 6th
Main, Lakkasandra Extension, Wilson Garden, |
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Name |
Mr. K
Vaidyanathan |
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Designation |
(Sr.Vice
President-Finance & Company Secretary) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
8477809 |
54.76% |
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Banks Financial Institution and insurance |
3150 |
0.02% |
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FII’s |
1439926 |
9.30% |
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Private corporate Bodies |
858464 |
5.55% |
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NRI’s / OCB’s/ Foreign Others |
802783 |
5.19% |
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Others |
24804 |
0.16% |
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General Public |
3867904 |
24.99% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, installing and servicing a wide range of computer systems. |
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Products : |
Product Description Item Code No. (ITC Code) Computer Systems 847100 Computer Parts & Accessories 847300 Computer Software 852400 |
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Brand Names : |
“Zenith”. |
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Exports : |
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Countries : |
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Imports: |
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Countries : |
Philippines, Malaysia, USA, Hong Kong and China, Winchester hard disk drives (WDS) from Thailand and Malaysia, CD-ROM Drives from Hong Kong and floppy disk drives from Philippines and China |
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Terms : |
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Selling : |
L/C, Cash or Credit (30 days) terms |
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Purchasing : |
L/C, Cash or Credit (30 days) terms |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Computer / Micro Processor based systems and peripherals |
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No Limits |
200000 |
125672 Nos. |
GENERAL INFORMATION
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Customers : |
Wholesalers , retailers, end users and Original Equipment Manufacturers |
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No. of Employees : |
Total 667 persons -- 250 persons in factory, 167 persons in office and 250 persons in branch offices |
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Bankers : |
v
Indian Bank v
State Bank of v
Federal Bank Ltd. v
Union Bank of v Canara Bank |
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Facilities : |
SECURED LOANS From Banks Rs. 461.823 millions Secured by hypothecation of raw materials, finished goods process stock, stores, spares and book debts. |
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Banking Relations
: |
Satisfactory |
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Auditors : |
C. L. Khanna
& Company Chartered Accountants, Mumbai |
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Associates : |
Zenith Infotech Limited 29, Zenith House,
MIDC, Line of Business : Banking Software and Software Development |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Unclassified shares |
Rs. 10 each |
Rs. 50.000 millions |
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20000000 |
Equity shares |
Rs. 10 each |
Rs. 200.000 millions |
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Total
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Rs. 250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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Issued &
Subscribed Capital |
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15480840 |
Equity Shares |
Rs. 10/- each |
Rs. 154.808 millions |
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Paid-up Capital |
Rs. 10/- each |
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15480840 |
Equity Shares |
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Rs. 154.808 millions |
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Add : |
Forfeited Shares (44600 shares) |
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Rs. 0.223 million |
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Less : |
Calls in Arrears |
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Rs. 0.031 million |
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Total
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Rs. 155.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
155.000 |
155.000 |
155.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
350.700 |
500.763 |
380.789 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
505.700 |
655.763 |
535.789 |
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LOAN FUNDS |
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1] Secured Loans |
333.800 |
461.823 |
554.211 |
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2] Unsecured Loans |
523.100 |
0.000 |
0.000 |
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TOTAL BORROWING |
856.900 |
461.823 |
554.211 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1362.600 |
1117.586 |
1090.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
582.600 |
275.085 |
278.987 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
282.000
|
222.870
|
292.433
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Sundry Debtors |
591.400
|
683.243
|
748.613
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Cash & Bank Balances |
29.500
|
26.834
|
32.549
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
150.700
|
71.441 |
36.123 |
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Total
Current Assets |
1053.600
|
1004.388 |
1109.718 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
204.300
|
119.549
|
277.191
|
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Provisions |
69.300
|
42.338
|
21.514
|
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Total
Current Liabilities |
273.600
|
161.887 |
298.705 |
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Net Current Assets |
780.000
|
842.501 |
811.013 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1362.600 |
1117.586 |
1090.000 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
3556.200 |
3196.800 |
2855.700 |
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Other Income |
0.600 |
0.200 |
0.000 |
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|
[7.500] |
[2.500] |
15.200 |
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Total Income |
3549.300 |
3194.500 |
2870.900 |
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Profit/(Loss) Before Tax |
111.600 |
162.400 |
51.100 |
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Provision for Taxation |
15.500 |
16.100 |
4.000 |
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Profit/(Loss) After Tax |
96.100 |
146.300 |
47.100 |
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Expenditures : |
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Raw material |
2598.700 |
2628.100 |
2411.900 |
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Excise duty |
313.100 |
17.700 |
39.900 |
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Power and Fuel |
0.000 |
3.700 |
4.200 |
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Other manufacturing expenses |
0.000 |
1.400 |
1.800 |
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Employee cost |
95.100 |
97.700 |
84.100 |
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Selling and Administration Expenses |
235.600 |
193.000 |
222.500 |
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Miscellaneous Expenses |
73.800 |
5.800 |
4.800 |
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Interest and financial Charges |
70.100 |
73.400 |
39.500 |
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Depreciation |
51.300 |
11.300 |
11.100 |
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Total Expenditure |
3437.700 |
3032.100 |
2819.800 |
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QUARTERLY / SUMMARISED
RESULTS
|
Year |
30.06.2007 |
|
Type |
1st Quarter |
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Sales Turnover |
762.500
|
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Other Income |
0.100
|
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Total Income |
762.600
|
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Total Expenditure |
707.700
|
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Operating Profit |
54.900
|
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Interest |
5.000
|
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Gross Profit |
49.900
|
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Depreciation |
40.700
|
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Tax |
1.700
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Reported PAT |
7.500
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KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.14 |
0.85 |
0.89 |
|
Long Term Debt-Equity Ratio |
0.74 |
0.00 |
0.00 |
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Current Ratio |
2.29 |
1.43 |
1.37 |
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TURNOVER RATIOS |
|||
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Fixed Assets |
6.64 |
9.73 |
9.15 |
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Inventory |
14.09 |
12.41 |
9.42 |
|
Debtors |
5.58 |
4.50 |
5.57 |
|
Interest Cover Ratio |
3.64 |
3.21 |
2.29 |
|
Operating Profit Margin(%) |
8.63 |
7.73 |
3.56 |
|
Profit Before Interest And Tax
Margin(%) |
7.18 |
7.38 |
3.17 |
|
Cash Profit Margin(%) |
5.93 |
4.93 |
2.04 |
|
Adjusted Net Profit Margin(%) |
4.49 |
4.58 |
1.65 |
|
Return On Capital Employed(%) |
20.60 |
21.36 |
9.55 |
|
Return On Net Worth(%) |
27.48 |
24.56 |
9.36 |
LOCAL AGENCY FURTHER INFORMATION
REVIEW OF
OPERATIONS:
During the year under review, as compared to that of the previous year, the net sales revenue of Rs.3556.265 millions, registered a growth of 11.24%.
The Company continues to endeavour in maintaining customers to their utmost
satisfaction levels by registering impeccable track record of quality and
delivery efficiency, thereby ensuring their continued patronage for the
company's products and services;
Further changes and improvisations are under way in the manufacturing process and these changes are in compliance with international requirements;
The Company has changed the method of accounting depreciation on computer systems from Straight Line Method to Written Down Value Method during the year and thus the depreciation provided in the current year was Rs.125.069 millions as compared to Rs.11.358 millions in the previous year.
The Profits before tax has been impacted to this extent
resulting in a lower profit as compared to last year.
PROSPECTS AND OUTLOOK:
The Company has entered into the business of leasing/ renting / hiring of computer systems to small businesses and to corporate and it is expected that this activity would generate an added revenue stream and contribute to the company's profits in a big way.
The Directors are fully seized of the fact that the need of the hour is to
enhance the Revenue and Profit to higher levels and to achieve this end,
efforts have been initiated by adding on value of products, customers and
markets.
Vigorous marketing efforts and ceaseless cost reduction activities
continue with more thrust and vigour to accomplish these goals.
The efforts are being intensified to sustain leadership position by constantly
upgrading the products to match advancing technology trends, maintaining the
superiority in quality, and continuing the unblemished timely service
support;
The Directors are hopeful that all the above, coupled with continuous
monitoring of inventory, receivables and overheads, would result in healthier
results during the current and coming years.
Fixed Assets:
Ø
Land (Leasehold) and Buildings
Ø
Plant and Machinery
Ø
Computers Systems
Ø
Electrical Fittings and Installation
Ø
Factory and Office Equipment
Ø
Furniture and Fixtures
Ø
Vehicles
Ø
Computers On Rental Basis
It recently entered into a tie-up with Acer,
OTHER INFORMATION:
Zenith Products Line
for Corporates:
˜
˜ Zenith One-up Server
˜ Zenith One-up Notebook
˜ Zenith Workstation
The company exports desktops and laptops servers.
It imports central processing units (CPU) – integrated circuits.
It is in trade terms
with:
˜ Datamarg Systems Private Limited
˜ S. B. Components Private Limited
˜
Federation of Indian Exporters Organisation,
˜
Electronics and Software Export Promotion
˜ Intel Semiconductors (From Intel Group)
Mr. Vincent Wong
Tel No. 65-62131796
Fax No. 65-62131027
E Mail : vincent.k.wong@intel.com
˜ Western Digital Corporation
20511,
Mr. Miachel C. Bradley (WDT – Director Corp Credit)
Tel No. 1-949-672-7417
Fax No. 1-949-672-5417
E Mail : michael.c.bradely@wdc.com
˜ Samsung Corporation
Mr. R. S. Sahu – Credit Controller (IT Division)
Tel No. 5151 1234 (Extn. 1316)
Mobile No. 9811175101
˜ Panasonic Industrial Asia Pte Limited
Mr. P. K. Gupta – General Manager – Accounts
Mobile No. 98111354450
E Mail : pgupta@lgezbuy.com
Website details:
Awards:
Best Indian Laptop Brand - 360 Magazine 2005
Best Buy Award for Laptop - Digit 2005
Best Value Award for Laptop - Digit 2004
Zero 1 Awards 2003 for Best Desktop PC - Digit 2003
Star Nite Award 2002 Best PC Indian Brand - VAR India 2002
Zero 1 Awards 2001 for Best Laptops - Digit 2001
PRESS
RELEASE:
30th June, 20
August 5, 2005, Mumbai: subject has reported excellent results for the quarter ended 30th June, 2005. The Company's Q1 Sales stood at Rs.703.100 millions (Rs.516.700 millions), an increase of 36% over the corresponding period last year. Profit Before Tax for the quarter was Rs.12.800 millions as against Rs.4.027 millions during the same period last year. The Company's Q1 Net Profit registered a sharp increase of 216% and stood at Rs.11.723 millions (Rs.3.711 millions).
According to the
latest Dataquest Top 20 IT companies in
During the
quarter, Zenith sold 126,699 units
of PCs and 7200 units of laptops. Zenith
continues to retain its position as the second highest Indian PC vendor and
No.1 Indian laptop vendor.
Zenith launches
sequel, revolutionary Infotainer 2....
The Complete Digital
Home entertainment PC will now enable consumers to engage in gaming, listening
to music and surfing the net at the same time
Mumbai, 10.01.2005: Zenith Computers, the leading Indian Home PC manufacturer, today launched its sequel to the successful Infotainer – the Zenith Infotainer 2. The Zenith Infotainer 2 will be a true convergence of information and entertainment in a digital entertainment home PC. After selling over 50,000 units of its first digital entertainment PC, the Infotainer, the I2 will be launched with its partners – Intel and nVIDIA.
Zenith understands that the Indian consumer is now looking to do more with his PC and that every home PC has more users. The need was felt to upgrade technology and innovate in the functionality, therefore the I2 was launched. The I2 has the all the features of its predecessor [TV, Internet, PC etc] with high-end graphics and audio provided by Intel’s 915G chipset.
The Zenith Infotainer 2 also includes advanced gaming features with an additional graphic card from nVIDIA. nVIDIA is the world’s #1 graphic card manufacturer and the I2 will have their high-end card for gaming enthusiasts, as well as an option for budding gamers.
Subject is touring
the length and breadth of the country with seven “Infotainer Demo Vans” along with
the support of its dealers to extensively cover over 350 cities. The Zenith Van
is visiting residential areas, shopping areas, schools and high traffic area to
enable people to have a 'hands on experience' of this digital entertainer.
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.39.51 |
|
|
1 |
Rs.81.16 |
|
Euro |
1 |
Rs.56.76 |
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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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/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 |
|