MIRA
INFORM REPORT
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Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
BHUSHAN POWER AND STEEL LIMITED |
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Registered Office : |
4th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught
Place, New Delhi - 110001 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.02.1999 |
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Com. Reg. No.: |
55-108350 |
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CIN No.: [Company
Identification No.] |
U99999DL1999PLC108350 |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers of Flat, Round and value added products in Steel |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 60000000 |
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Status : |
Good |
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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 having fine track.
Fundamentals are strong. Trade relations are fair. Payments are correct and
as per commitments. The company can be considered good for any normal business
dealings. |
LOCATIONS
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Registered Office / Corporate Office : |
4th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught Place, New
Delhi - 110001, India |
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Tel. No.: |
91-11-30451000 |
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Fax No.: |
91-11-23712737 |
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E-Mail : |
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Website : |
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Head Office : |
F – Block 1st Floor, International Trade Tower Nehru Place,
New Delhi |
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Manufacturing
Units : |
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Marketing Offices : |
North Amritsar Baddi Chandigarh Delhi Derabassi Faridabad Indore Jammu Jalandhar Ludhiana Panchkula Ranchi Mandi Gobindgarh Parwanoo Una Kullu Manesar Ghaziabad (UP) South Hosur Bangalore Chennai Vijayawada Hyderabad East Guwahati (Assam) Kolkata Patna Gulabbagh
(Bihar) Bhubaneshwar Sambalpur Siliguri Janshedpur
(Jharkhand) West Mumbai Pune Aurangabad Ahmedabad Rajkot |
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Branches : |
Located At :
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DIRECTORS
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Name : |
Mr. Sanjay Singal |
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Designation : |
Chairman &
Managing Director |
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Address : |
57, Jor Bagh, New Delhi |
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Date of Birth/Age : |
19.06.1960 |
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Date of Appointment : |
22.02.1999 |
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Name : |
Ms Radhika Singal |
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Designation : |
Whole Time
Director (Admin) |
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Name : |
Mr. Ravi Prakash Goyal |
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Designation : |
Whole Time
Director (Commercial) |
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Address : |
House No. 157, Sector 16, Panchkula – 134112, Haryana, India |
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Date of Birth/Age : |
09.09.1951 |
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Date of Appointment : |
01.03.2006 |
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Other Directorship : |
Marble Finvest Limited U65910CH1998PTC021285 Pittie Stripes Private Limited U27100MH1991PTC060692 |
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Name : |
Mr. H.C. Verma |
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Designation : |
Whole Time
Director (Marketing) |
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Address : |
House No. 1258, Near old Post Office, Mani Majra, Chandigarh – 160002,
India |
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Date of Birth/Age : |
15.11.1952 |
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Date of Appointment : |
01.03.2006 |
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Other Directorship : |
ASL Investments Private Limited U67120DL1999PLC102461 Adhunik Investments Private Limited U67120DL1999PLC102460 Décor Investment and Finance Private Limited U00000DL1994PTC060843 Classic Transportation Private Limited U00000DL1996PTC074322 Track Casting India Private Limited
U99999DL1995PTC069880 |
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Name : |
Mr. R.N. Yadav |
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Designation : |
Whole Time
Director (Technical) |
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Address : |
Flat No. 1A, 14/4 A, Burdwan Road, Alipore, Kolkata |
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Date of Birth/Age : |
16.07.1959 |
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Date of Appointment : |
14.06.2003 |
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Name : |
Mr. R.D. Batra |
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Designation : |
Director |
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Address : |
4148, Pocket 4, Sector D, Vasant Kunj, New Delhi |
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Date of Birth/Age : |
16.05.1936 |
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Date of Appointment : |
01.03.2001 |
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Name : |
Mr. Dinesh Kumar Behal |
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Designation : |
Director |
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Name : |
Mr. Jimmy Mahtani |
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Designation : |
Director |
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Name : |
Mr. Anil S. Supanekar |
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Designation : |
Director |
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Address : |
694/2, Swami Kripa Apartments, Market Yard Road, Pune |
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Date of Birth/Age : |
24.10.1940 |
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Date of Appointment : |
14.06.2003 |
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Name : |
Mr. Bharat Kumar Jain |
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Designation : |
Director |
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Name : |
Mr. Aloke Sengupta |
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Designation : |
Nominee Director of IDBI |
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Name : |
Mr. B.N Nayak |
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Designation : |
Nominee Director of IFCI |
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Name : |
Mr. Thomas P. T. |
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Designation : |
Director |
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Address : |
A – 93, Twin Towers, Prabhadevi, Mumbai |
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Date of Birth/Age : |
24.01.1947 |
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Date of Appointment : |
01.03.2001 |
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Name : |
Mr. Rajeev Mittal |
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Designation : |
Director |
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Address : |
154/1,Maharani Jhansi Road, Civil Lines, Ludhiana |
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Date of Birth/Age : |
13.04.1962 |
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Date of Appointment : |
09.12.2003 |
KEY EXECUTIVES
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Name : |
Mr. R. K. Gupta |
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Designation : |
Secretary |
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Address : |
2147/3, Sec 45 C, Chandigarh |
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Date of Birth/Age : |
31.05.1958 |
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Date of Appointment : |
21.09.2000 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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B. B. Singal |
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52328 |
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Sanjay Singal |
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707555 |
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Neeraj Singal |
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346576 |
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B. B. Singal - HUF |
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124465 |
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B. B. Singal - HUF Smaller |
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8815 |
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Sanjay Singal – HUF |
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51450 |
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Priyanka Singal |
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29895 |
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Radhika Singal |
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106220 |
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Sanjay Singal Neeraj Singal Family Trust |
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45217 |
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Kishori Lal – HUF |
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43459 |
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Devi Shanti |
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61164 |
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Singal Uma |
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350268 |
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Singal Aarti |
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891613 |
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Singal Amiket Through Sanjay Singal |
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562480 |
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Mittal Archana |
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881559 |
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Singal Ashwarya Through Neeraj Singal |
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8711 |
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Singal Ritu |
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294813 |
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Punjab National Bank |
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578920 |
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Rockland steel Trading Private Limited |
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12110451 |
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Shivalikview Steel Trading Private Limited |
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10853976 |
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Jasmine steel Trading Private Limited |
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13028022 |
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Marsh Steel Trading Private Limited |
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13155817 |
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Diyajyoti Steel Private Limited |
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13154602 |
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Vision Steel Private Limited |
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13197004 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Nationalised or other banks |
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0.43 |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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7.88 |
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Bodies corporate |
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75.10 |
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Directors or relatives of directors |
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16.58 |
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Other top fifty shareholders |
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0.01 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Flat, Round and value added products in Steel |
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Exports : |
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Countries : |
China, Singapore, Malaysia, Hong
Kong, Indonesia, Philippines, Dubai, Oman, Saudi Arabia, South Africa,
Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, USA, Nepal,
England, Belgium, Turkey and a host of African countries |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
Above 1000 |
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Bankers : |
Indusind Bank Limited 2401, General Thimayya Road, Cantonment, Pune – 411001 Punjab National
Bank MID Corporate
Branch, Sector – 17-B, Chandigarh, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mehra Goel and Company Chartered Accountants |
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Address : |
505, Chiranjiv Tower, Nehru Place, New Delhi – 110019, India |
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Associates : |
SMS Demag, Germany Siemens, Germany Waldrich Siegen,
Germany Techint Tagliaferry,
Italy Beijing Sino–Steel
& Group Corporation (SSIT), China Industry IMS Messsysteme,
Germany Techint
Italimpianti, Germany Mecon Limited, India
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Subsidiaries : |
ASL Investments
Private Limited U67120DL1999PLC102461 Adhunik
Investments Private Limited U67120DL1999PLC102460 Décor Investment
and Finance Private Limited U00000DL1994PTC060843 Classic
Transportation Private Limited U00000DL1996PTC074322 Track Casting
India Private Limited U99999DL1995PTC069880 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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200,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 2000.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
136,051,665 |
Equity Shares |
Rs. 10/- each |
Rs. 1360.517
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 |
1360.517 |
1108.874 |
806.454 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
11353.043 |
5789.585 |
3939.407 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
12713.560 |
6898.459 |
4745.861 |
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LOAN FUNDS |
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1] Secured Loans |
34905.266 |
23241.622 |
10124.402 |
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2] Unsecured Loans |
4676.699 |
4245.208 |
1920.053 |
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TOTAL BORROWING |
39581.965 |
27486.830 |
12044.455 |
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DEFERRED TAX LIABILITIES |
1350.600 |
900.600 |
741.100 |
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TOTAL |
53646.125 |
35285.889 |
17531.416 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
14542.679 |
11448.854 |
8441.511 |
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Capital work-in-progress |
30773.386 |
16130.194 |
5178.850 |
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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 |
4886.965
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3888.148 |
2831.757 |
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Sundry Debtors |
5428.552
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4893.174 |
3020.432 |
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Cash & Bank Balances |
264.815
|
2683.417 |
148.429 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
4367.115
|
2077.609 |
1354.415 |
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Total
Current Assets |
14947.447
|
13542.348 |
7355.033 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
6549.289
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5810.812 |
3428.917 |
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Provisions |
68.098
|
24.695 |
15.061 |
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Total
Current Liabilities |
6617.387
|
5835.507 |
3443.978 |
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Net Current Assets |
8330.060
|
7706.841 |
3911.055 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
53646.125 |
35285.889 |
17531.416 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
27177.067 |
21812.003 |
18711.600 |
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Other Income |
220.492 |
60.061 |
66.835 |
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Total Income |
27397.559 |
21872.064 |
18778.435 |
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Profit/(Loss) Before Tax |
2537.229 |
2046.484 |
1192.398 |
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Provision for Taxation |
526.914 |
342.314 |
234.370 |
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Profit/(Loss) After Tax |
2010.315 |
1704.170 |
958.028 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
16293.363 |
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Raw Material Consumed |
18462.083 |
15203.473 |
0.000 |
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Purchases made for re-sale |
1326.739 |
592.887 |
0.000 |
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Consumption of stores and spares parts |
420.900 |
347.258 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[160.203] |
[139.662] |
0.000 |
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Salaries, Wages, Bonus, etc. |
582.614 |
330.132 |
0.000 |
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Managerial Remuneration |
7.709 |
5.444 |
0.000 |
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Payment to Auditors |
3.195 |
2.274 |
0.000 |
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Interest |
1060.585 |
724.697 |
625.368 |
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Insurance Expenses |
6.724 |
6.786 |
0.000 |
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Power & Fuel |
1422.407 |
1169.374 |
0.000 |
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Depreciation & Amortization |
1043.847 |
701.276 |
667.306 |
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Other Expenditure |
683.730 |
881.641 |
0.000 |
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Total Expenditure |
24860.330 |
19825.580 |
17586.037 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
7.34
|
7.79 |
5.10 |
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Net Profit Margin (PBT/Sales) |
(%) |
9.34
|
9.38 |
6.37 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.60
|
8.19 |
7.55 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.30 |
0.25 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.63
|
4.83 |
3.26 |
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Current Ratio (Current Asset/Current Liability) |
|
2.26
|
2.32 |
2.14 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
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Charge
identification number of the charge to be modified |
90045304 |
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Corporate
identity number of the company |
U99999DL1999PLC108350 |
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Name of the
company |
BHUSHAN POWER AND STEEL LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
4th Floor, Tolstoy House, 5-17, Tolstoy Marg, Connaught
Place, New Delhi – 110001, India |
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Type of charge |
Immovable Property |
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Particular of
charge holder |
Punjab National
Bank MID Corporate
Branch, Sector – 17-B, Chandigarh, India |
|
Nature of
description of the instrument creating or modifying the charge |
No Instrument was
executed. Joint mortgage by deposit of Title deeds was created by he company
in favour of Punjab National Bank by deposit of title deeds with ICICI Bank
Limited in respect of the immovable properties of the company situated at
Chandigarh, Dera Bassi District Mohali and village Bangihatti and Kolkata
[West Bengal] for the due repayment and discharge by the company to Punjab
National Bank for Additional Working Capital Limits of Rs. 800.000 Millions |
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Date of
instrument Creating the charge |
12.03.2007 |
|
Amount secured by
the charge |
Rs. 6500.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 16 % p.a. or as
may be applicable from time to time Terms of
repayment The Working
Capital Limits are repayable on demand Margin Stocks 25 % Book Debts 30 % Extent operation
of the charge 100 % Others Second pari passu
charge on immovable properties in favour of Punjab National Bank |
|
Short particulars
of the property charged |
The whole of the
immovable properties of the company situated at [1] Dera Bassi [2] Plot No.
22, 71, 83 P and 141-142 situated at Industrial Area, Ph – 1, Chandigarh [UT]
and [3] Village Bangihattia and City Office and Residential Premises situated
at Kolkata in the State of West Bengal, more particularly describedc in Joint
Mortgage by deposit of Title deeds of respect of immovable properties and
moveable properties executed on 12.03.2007 |
|
Date of latest
modification prior to the present modification |
12.03.2007 |
|
Particulars of
the present modification |
Additional
Working Capital Limits of Rs. 800.000 Millions [Rs. 6500 millions – Rs. 3450
Millions Adhoc Limit Rs. 2250 Millions] [Total Rs. 4250 Millions] is also now
secured by way of second charge ranking pari passu baisi in respect of
company’s immovable properties situated at [1] Dera Bassi [2] Chandigarh [UT]
and [3] Village Bangihattia & Kolkata [WB] inter alia by deposit of Title
deeds as and by way of constructive delivery with ICICI Bank Limited –
Security Agent. All other terms and conditions remained unchanged except as
stated above. |
FIXED ASSETS
- Freehold Land
- Lease Hold
Land
- Building
- Railway
Siding
- Plant and
Machinery
- Furniture and
Fixture
- Vehicles
AS PER WEBSITE
PROFILE
Subject an ISO
9002 certified company, is a merged
entity of Bhushan Industries Limited, Bhushan Metallics Limited and Decor Steel
Limited having turnover of more than INR 30000 Millions (USD 750 Million) is a
manufacturer of Flat, Round and value added products in Steel. Subject has by
continuous up-gradation of technology, redesigning structures, integrating and
synergizing operations made a special place in production of various value
added products in Secondary Steel segment among the steel producers in India.
From production of special steel for vehicles and White Goods segment to high
class Steel for exports, Bhushan has made its mark.
Subject is having 7 World class and state of art plants at Chandigarh,
Derabassi, Kolkata and Orissa in India. A completely integrated plant is
commissioned under Phase I in Orissa and Phase II is all set for take off. In
Orissa plant, technology and equipments are procured from world-renowned
Companies like Luirgi from Germany, ABB Limited, SMS Demag, Siemens etc.
Bhushan is selling its Value added range of products in Secondary Steel through
a large distribution network in India (comprising more than 35 sales offices)
and Abroad.
A
rock-solid foundation combined with continuous upgradation and innovation has
ensured that they have constantly surpassed their goals. Their end-to-end
portfolio offers a wide spectrum of products with consistently superior
quality. In addition to their export thrust, they supply to fast-growing
sectors like automotive, white goods, construction, furniture, fasteners,
telecommunication, etc.
HISTORY
Growing from strength to strength
1970 - Started with very small initial outlay
for manufacturing Door Hinges & later on, Rail Track Fasteners.
1973
- Manufacturing
facilities set up for Tor Steel and Wire Rod in Chandigarh.
1981
- Rolling Mill
Project commissioned at chandigarh for Round and Narrow Strips.
1985
- Backward
Integration Project for Steel Melting facilities.
1986
- Upgrading of Mini
Steel Plant with continuous casting and ladle furnace facilities.
1997
- Commissioning of
Narrow Width Cold Rolling Project at Chandigarh with a project cost of Rs. 650
Millions.
1998
- Commissioning of
Precision Pipe Project at Chandigarh with a project cost of Rs. 570 Millions.
2001
- Commissioning of
Kolkata Project with a project cost of Rs. 2900 Millions.
2002
- Addition of narrow
width Cold Rolling facilities.
2003
- Expansion of wide
width Cold rolling facilities, ERW Water Pipes & Tubes down stream
facilities at Kolkata with a capital outlay of Rs. 880 Millions.
2004
- Further expansion
of Cold Rolling facilities at Kolkata with a capital outlay of Rs. 610
Millions.
2005
- Commissioning of
Orissa phase-I project consisting of 4 DRI Kilns, Steel Making Facilities, Coal
Washery and 100 MW Power Plant with a capital outlay of Rs. 8290 Millions.
2006
- Orissa Phase II
project consisting of Hot Metal (Pig Iron) 0.70 mtpa, Coke Oven Plant 0.45
mtpa, Sinter Plant 1.00 mpta, Oxygen Plant 1x400 TPD, Lime & Dolomite 2x300
TPD, Steel Making Facilities 0.90 mpta, HR Coil (CSP Plant) 0.90 mtpa with a
capital outlay of Rs.29000 Millions is under implementation.
2007 - Oxygen Plant and one Electric Arc
Furnace (EAF) commissioned under Orissa Phase-II project.
HIGHLIGHTS
The integrated power
and steel project at Orissa is a landmark in the nation’s infrastructure
development.
It combines our deep expertise with the best technology that the world offers
to integrate the entire steel manufacturing process – from mining to the
production of value-added products. It also generates captive power using gases
from the process.
Features
• Proposed facilities in close proximity of two bulk inputs i.e. iron ore and
coal to minimize input freight
• Already been allotted two adjoining non-coking coal blocks at nearby Jamkhani
and Bijhan in Orissa, and has got one coking coal block at Rohne in Jharkhand,
providing added logistic advantage in mining. Allotment of iron ore mines is
under process.
• Captive and inexpensive power generation using hot gases from sponge iron
kilns and unusable coal
• Operating synergy enhanced by captive coal washery that processes locally
available coal to ensure uninterrupted supplies and lower costs
• Captive limestone supply and use of waste products like Iron Ore
reduces costs further.
• With hot metal
infusion into EAF, exothermic reaction gives quicker steel production and
enhances capacity without additional capex.
• Captive coke
oven plant to reduce import costs
• The power
consumption for EAF Steel melting reduces from around 800 units/pmt to about
400 units, providing cost efficiency.
• Large reduction
in consumption of expensive consumables like electrodes and refractories.
• With added
capacities for both long and flat products, Bhushan Power & Steel will
emerge as a completely integrated, wider range player with a long term
competitive edge.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.98 |
|
UK Pound |
1 |
Rs.79.09 |
|
Euro |
1 |
Rs.62.25 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|