MIRA
INFORM REPORT
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Report Date : |
24.04.2008 |
IDENTIFICATION DETAILS
|
Name : |
HARSHA ENGINEERS LIMITED |
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Registered Office : |
Changodar, Sarkhej-Bavla Road, P.O. Changodar, Ahmedabad – 382213, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.03.1986 |
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Com. Reg. No.: |
04-8520 |
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CIN No.: [Company
Identification No.] |
U29259GJ1986PLC008520 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMH00485C |
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PAN No.: [Permanent
Account No.] |
AAACH4828C |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturers of Ball or Roll Bearing Cages and Bearing housing
and Taper Rolling Bearing Cages |
RATING & COMMENTS
|
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
3551420 |
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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 company having satisfactory track. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Changodar,
Sarkhej-Bavla Road, P.O. Changodar, Ahmedabad – 382213, Gujarat |
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Tel. No.: |
91-2717-391200
/ 251204 to 9 |
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Fax No.: |
91-2717-250259 |
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E-Mail : |
adm.04038@sbi.co.in |
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Website : |
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Area : |
20749 sq. mtrs. |
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Location : |
Leased |
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Factory : |
Ř
217, GVMM Industrial Estate, Odhav, Ahmedabad – 382 415, Gujarat Area : 928.79 sq. mtrs Ř
Changodar, Sarkhej-Bavla Road, P. O. Changodar, District
Ahmedabad – 382 210, Gujarat Area : 24807 sq. mtrs Ř
Moraiya Farm, Sarkhej-Bavla Road, Moraiya, P. O. Changodar,
District Ahmedabad, Gujarat Area : 28328.08 sq. mtrs. wind
mill plant
Located at Upleta, Rajkot, Gujarat |
DIRECTORS
|
Name : |
Mr. Rajendra Shantilal Shah |
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Designation : |
Chairman cum Managing Director |
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Address : |
289 C, Manekbaug Society,
Behind Manekbaug Hall, Ambawadi, Ahmedabad –
380015, Gujarat |
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Date of Birth/Age : |
01.02.1948 |
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Qualification : |
B. E. (Mech.) |
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Date of Appointment : |
04.03.1986 |
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Name : |
Mr. Harishbhai Ranjit Rangwala |
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Designation : |
Director |
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Address : |
10, Nishant Bungalow, Satellite
Road, Ahmedabad -380015, Gujarat |
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Date of Birth/Age : |
01.08.1948 |
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Qualification : |
B. E. (Mech.) |
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Date of Appointment : |
04.03.1986 |
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Name : |
Mr. Dhirajlal Chunilal Bhatt |
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Designation : |
Director |
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Address : |
8, Nishant Bunglows, Satellite
Road, Ahmedabad – 380015, Gujarat |
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Date of Birth/Age : |
05.08.1952 |
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Date of Appointment : |
02.02.1987 |
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Name : |
Mr. Kirit Jayantilal Sanghvi |
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Designation : |
Director |
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Address : |
50, Jain Sthanikvasi Society,
Near Naranpura Railway Crossing, Ahmedabad –
380013, Gujarat |
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Date of Birth/Age : |
24.05.1944 |
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Date of Appointment : |
02.02.1989 |
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Name : |
Mr. Jitendra Ujamshi Mamtora |
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Designation : |
Director |
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Address : |
26, Sangam Park, Ambawadi,
Ahmedabad – 380015, Gujarat |
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Date of Birth/Age : |
25.04.1948 |
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Qualification : |
B. E. (Ele.) |
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Date of Appointment : |
02.02.1987 |
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|
|
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Name
: |
Mr.
Hemant K Sharma |
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Designation
: |
Director
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MAJOR SHAREHOLDERS
As on
07.07.2006
|
Names
of Shareholders |
No. of Shares |
|
Mr. Rajendra S.
Shah |
57,568 |
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Mrs. Nirmala R. Shah |
56,400 |
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Mr. Pilak R. Shah |
40,820 |
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Mr. Mily R. Shah |
9,184 |
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Mrs. Hetal R. Shah Jointly with Mrs. Nirmala R. Shah |
9,166 |
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Mrs. Krina R. Shah |
9,200 |
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Mrs. Harish R. Rangwala |
54,507 |
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Mrs. Charusheela R. Rangwala |
55,290 |
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Mr. Vishal H. Rangwala |
36,779 |
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Mr. Munjal H. Rangwala |
35,761 |
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Mr. Dhirajlal C. Bhatt |
3,600 |
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Mr. Fuljibhai M. Gondalia |
540 |
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Total |
368,815 |
Equity
Share break-up (Percentage of Total Equity)
As on
31.03.2007
|
Sr. No. |
Category |
Percentage |
|
1. |
Directors or relatives
of directors |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Ball or Roll Bearing Cages and Bearing housing
and Taper Rolling Bearing Cages |
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Products : |
Bearing Cages Roller Bearing Cages
Stamped Auto Components |
GENERAL INFORMATION
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No. of Employees : |
517 |
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Bankers : |
·
State Bank of India Overseas Branch, Navjivan Trust Building, Ahmedabad - 380014,
Gujarat ·
ICICI Bank Limited JMC House, Opp. Piramal Garden, Ahmedabad, Gujarat · CITI Bank N.A. Rembrandt, C.G. Road, Ground Floor, Near Panchvati Circle,
Ahmedabad – 380006 |
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Banking Relations : |
Satisfactory
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Auditors : |
Chetan P. Shah and Company, Chartered Accountants 403, Ashwamegh House, 5, Smruti Kunj Society, Navrangpura, Ahmedabad - 380009, Gujarat |
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PAN No.: |
ACBPS8919F |
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Associates/Subsidiaries : |
·
ACMA (Automobile Component
Manufacturers Association) ·
AMA (Ahmedabad Management
Association) ·
CII (Confederation of Indian
Industry) |
CAPITAL STRUCTURE
As on 30.09.2007
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
15,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
12,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 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 |
120.000 |
36.881 |
36.882 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
767.855 |
760.841 |
638.552 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
887.855 |
797.722 |
675.434 |
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LOAN FUNDS |
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1] Secured Loans |
530.762 |
221.126 |
150.192 |
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2] Unsecured Loans |
285.670 |
149.231 |
125.577 |
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TOTAL BORROWING |
816.432 |
370.357 |
275.769 |
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DEFERRED TAX LIABILITIES |
78.965 |
65.723 |
0.000 |
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TOTAL |
1783.252 |
1233.802 |
951.203 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
808.754 |
545.625 |
438.613 |
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Capital work-in-progress |
63.094 |
93.037 |
30.954 |
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INVESTMENT |
81.477 |
64.102 |
6.998 |
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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 |
405.025
|
259.218
|
214.586 |
|
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Sundry Debtors |
445.219
|
394.153
|
318.927 |
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Cash & Bank Balances |
24.214
|
34.088
|
9.762 |
|
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Other Current Assets |
0.000
|
0.000
|
0.000 |
|
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Loans & Advances |
126.966
|
128.479
|
136.425 |
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Total Current Assets |
1001.424
|
815.938
|
679.700 |
|
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
145.797
|
199.346
|
120.108 |
|
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Provisions |
25.700
|
85.554
|
84.954 |
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Total Current Liabilities |
171.497
|
284.900
|
205.062 |
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Net Current Assets |
829.927
|
531.038
|
474.638 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1783.252 |
1233.802 |
951.203 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2130.374 |
1808.554 |
1392.295 |
|
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Other Income |
34.590 |
12.684 |
2.189 |
|
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Total Income |
2164.964 |
1821.238 |
1394.484 |
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Profit/(Loss)
Before Tax |
194.371 |
273.567 |
258.803 |
|
|
Provision
for Taxation |
38.942 |
40.618 |
58.765 |
|
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Profit/(Loss)
After Tax |
155.429 |
232.949 |
200.038 |
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Expenditures : |
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Raw Material Consumed |
1103.541 |
906.713 |
665.892 |
|
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Consumption of stores and spares parts |
163.772 |
121.939 |
0.000 |
|
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Salaries, Wages, Bonus, etc. |
115.204 |
83.347 |
69.372 |
|
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Managerial Remuneration |
7.046 |
7.893 |
7.583 |
|
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Payment to Auditors |
0.359 |
0.551 |
0.412 |
|
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Interest |
36.829 |
21.301 |
14.037 |
|
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Insurance Expenses |
11.628 |
11.090 |
10.952 |
|
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Power & Fuel |
45.396 |
34.336 |
26.183 |
|
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Depreciation & Amortization |
89.704 |
66.133 |
0.000 |
|
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Other Expenditure |
430.278 |
330.231 |
341.249 |
|
|
Increase/(Decrease) in Finished Goods |
(33.164) |
(35.863) |
0.000 |
|
Total
Expenditure |
1970.593 |
1547.671 |
1135.680 |
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
7.18
|
12.79 |
14.34 |
|
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Net
Profit Margin (PBT/Sales) |
(%) |
9.12
|
15.13 |
18.59 |
|
|
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
8.98
|
15.02 |
18.56 |
|
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|
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|
Return
on Investment (ROI) (PBT/Networth) |
|
0.22
|
0.34 |
0.38 |
|
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|
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|
Debt
Equity Ratio (Total
Liability/Networth) |
|
0.19
|
0.36 |
0.30 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
5.84
|
2.86 |
1.43 |
LOCAL AGENCY FURTHER INFORMATION
History
The subject was originally incorporated as private limited liability
company and then it was converted into a closely held public limited liability
company.
Subject has set up as a 100% Export Oriented Unit at Village
Moraiya, Taluka Sanad in Ahmedabad in 1998 in technical collaboration with
Timken Company of U.S.A – for manufacturing of Taper Roller Bearing Cages
(TRBG) at a cost of Rs. 178.546 millions. Timken, U.S.A. made a buy back
agreement for 10 years with the company. State Bank of India had sanctioned a
foreign currency loan of USD 2.8 millions for this project. It commenced
commercial production with effect from 1st August, 1999
Subject is India’s leading Bearing Cages manufacturing company
with a formidable international presence. The company brings to the world of
bearing cages a fine blend of technology, skill, experience and adherence to
global quality standards, imperative for the manufacturing of precision
components for an international market.
The company’s Design Lab reassures its worldwide customers of a
solid focus on design :-
Ř
Pro-engineering Software (Including Mechanica module for stress
analysis)
Ř
Pro-Manufacturing (for CNC Machine Programming)
Ř
Work Station with solid modelling
The subject is capable of designing tool in one day, which
includes manufacturing, drawings and computer programs for CNC Machines.
AMALGAMATION
With effect from 21st October, 1997 Harsha Components
Private Limited and Rollers and Retainers Private Limited, both these
associates were amalgamated with the company.
The company exports Taper Roller Bearing Cages (TRBG) to Timken –
France, British Timken, etc. as per the buy back agreement with the Parent
Organisation Timken – U.S.A.
The company gives training to its’ employees for nurturing growth
and sustaining its business plans.
The company has well equipped Standard Room and Laboratory to
check metallic and non-metallic dirt, its nature and size.
The company has been accredited with ISO 9002 Certification from
BVQI.
The company’s fixed assets of important value include goodwill,
freehold as well as leasehold (GVMASV Unit) plots, wind mill, bore well and
furniture and fixtures.
Form
8
|
This form is for |
Modification of charge |
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Whether charge is modified in favour of asset reconstruction company (ARC) of assignee |
No |
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Charge Identification (ID) number of the charge to be modified |
80027979 |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U29259GJ1986PLC008520 |
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Name of the company |
HARSHA
ENGINEERS LIMITED |
|
Address |
Ahmedabad, Gujarat, India. |
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Type of Charges |
v Immovable Property v Book Debts v Movable Property (not being pledge) |
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Whether consortium finance is involved |
No |
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Whether joint charge involved |
No |
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Number of charge holder(s) |
1 |
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Particular of the charge holder |
Name : State Bank of India Address : Overseas Branch, 3rd Floor, Amrit Jayanti Bhavan, Navjivan Trust Complex, P. O. Navjivan City : Ahmedabad State : Gujarat ISO Country Code : IN Pin Code : 380014 E-mail ID : adm.04038@sbi.co.in |
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Nature or description of the instrument creating or modifying the charge |
v Letter Regarding the grant of individual limits within the overall limit. v Supplemental agreement of loan for increase in the overall limit. v Supplemental agreement of hypothecation of goods and assts for increase in the overall limit. |
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Date of the instrument creating charge |
27.03.2007 |
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Whether charge created or modified outside India |
No |
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Amount Secure by the charge |
Rs. 550.000 millions |
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Brief particulars of the principal terms and conditions and extent and operation of the charge |
(a) Rate of Interest 1. DCC 1.25% below SBAR min. 9.75% subject to change from time to time. 2. TL 1.25% below SBAR min 9.75% subject to change from time to time. 3. EPC/FBD As Per RBI/Bank’s guidelines subject to change from time to time. (b) Terms of Repayment Term Loan of Rs. 190.000 millions repayable in twenty quarterly instalments of Rs. 9.500 millions each. First quarter ending 30.06.2007 last quarter ending 31.03.2010. Twenty quarterly Instalments as per the clause 3 of the WC Repayable on demand. (c) Margin Raw Materials – 25% Stock in Process – 40% Finished Goods – 40% Any other stores – 50% Book debts/receivables – 50% (cover period 75 days) TL – 30.61% LC – 10% BG – 10% EPC – 10% in FOB Value (d) Extent and operation of the charge Exclusive charge of present and future goods. Book debt, movables and Immovable properties, documents of title to goods and other assets. WC Hypothecation of all the chargeable current assets present and future ranking first pari passu with Citi Bank N.A. TL 1st charge over the assets created out of SBI’s Term Loan. |
|
Short particulars of the Property charged |
Secured by hypothecation/pledge of the company’s entire current assets like goods, movables and other assets, present and future including documents of title to goods and other assets such as book debt, out standing moneys, receivable, claims, bills, invoices, documents, contracts, engagements, securities, investments and rights and all machinery, present and future. TL 1st charge over the assets created out of SBI’s Term Loan |
|
Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
|
Date of latest modification prior to the present modification |
17.01.2007 |
|
Particulars of the present modification |
By present modification dated 27.03.2007 original charge as per agreement dated 30.08.2005 is increased from Rs. 250.000 millions to Rs. 550.000 millions vide supplementary agreement dated 27.03.2007 1. Letter regarding the grant of individual limits within the overall limit. 2. Supplemental agreement of loan for increase in the overall limit. 3. Supplemental agreement of hypothecation of goods and assets for increase in the overall limit. |
Form
8
|
Name of the company |
HARSHA ENGINEERS LIMITED |
|
Presented By |
Mr. Harishbhai Ranjit Rangwala – Director |
|
1) Date and description of instrument creating the change |
Memorandum of deposit for creation of further charge for term loan \ overall limit where the initial charge is created by a deed of Mortgage date – 30.08.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 250.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
(a) All that piece or parcel of freehold Non agricultural industrial use land bearing Revenue Survey No. 427 adm 21262.54 sq. ft. i.e. 25430 sq. yards and 431 adm. 12182 sq. ft. i.e. 14570 sq. yards of Mouje Moraiya of Sanand Taluka in the Registration District of Ahmedabad, Sannad together with superstructure consisting of factory building / shed standing thereon. (b) All that piece or parcel of freehold Non agricultural industrial use land bearing Revenue Bolck No. 336 (Paiki) adm 1312 sq. ft., Bolck No. 341 (Paiki) adm 4755 sq. ft., Bolck No. 344 (Paiki) adm 833 sq. ft., Bolck No. 345 (Paiki) adm 2730.92 sq. ft., Bolck No. 388 (Paiki) adm 2647 sq. ft., Bolck No. 388 (Paiki) adm 11265 sq. ft., of Mouje Moraiya of Sanand Taluka in the Registration District of Ahmedabad, Sannad together with superstructure consisting of factory building / shed standing thereon. (c) All that piece or parcel of freehold Non agricultural industrial use land bearing Revenue Bolck No. 644 (Paiki) adm 28328.08 sq. ft of Mouje Moraiya of Sanand Taluka in the Registration District and Sub district of Upleta. (d) All that leasehold land or plot together with ownership right in the shed standing thereon bearing sub-plot No. 217 adm. 1111 sq. sq. yards. Forming part of Revenue Survey No. 67 etc. of Mouje Moraiya of Sanand Taluka in the Registration District of Ahmedabad |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
v Repayable on demand – v Interest as such rate or rates as may be determined by SBI and or ICICI Bank Limited from time to time. v Personal guarantee of two Directors of the Company Rajendra S Shah, Harish R Rangwala |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India, a Body Corporate duly incorporated under the State bank of India Act, 1955 and having one or its Local head offices at Bhandra, Ahmedabad – 380001 amd branches amongst others at Overseas Brancgh at near Gujarat vidyapith, P. O. Navjivan, Ashram Road, Ahmedabad – 380014 ICICI Bank Limited, having its registered office at Landmark, Race course Circle, Alkapuri, Baroda – 390007, and branches amongst other at JMC House. Ambawadi, Ahmedabad – 380006 |
|
6) Date and Brief Description of Instrument modifying the charge. |
Deed of reconveyance executed on 17.01.2006 |
|
7) Particulars of Modification specifying the terms and conditions or the extent or operation of the charge in which modification is made, and the details of the modification. |
All that leasehold land or plot together with ownership right in the shed standing thereon bearing sub plot no. 217, admeasuring 1111sq.yards, i.e. 928.79 sq. mtrs, sub plot no224 admeasuring 1111 sq. yards, i.e. 928.79 sq. mtrs., and sub plot no 225 admeasuring 1111 sq. yards, i.e. 928.79 sq. mtrs, forming part of Revenue Survey No. 67 etc. of Mouje Odhav of City Taluka in Registration District and Sub District of Ahmedabad and situated in Gujarat Vepari Maha Mandal sahakari Audyogic Vasahat Limited, Odhav, Ahmedabad which was mortgaged under Memorandum of Deposit for creation of further charge for term loan / overall limit where the initial charge was created by a deed of mortgage, registered on 04.10.05 with ROC vide document no 115, was released vide deed of reconveyance executed on 17.01.2006, between State Bank of India and the Company. |
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 :
The 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.
The
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. 39.95 |
|
UK
Pound |
1 |
Rs. 79.46 |
|
Euro |
1 |
Rs. 63.80 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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, they
have no basis upon which to recommend credit dealings |
No Rating |
|