MIRA
INFORM REPORT
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Report Date : |
30.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
DBS CHOLAMANDALAM ASSET MANAGEMENT LIMITED |
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Formerly Known As : |
CHOLAMANDALAM CAZENOVE AMC LIMITED |
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Registered Office : |
Dare House, No.2, N. S. C. Bose Road, Parry’s Chennai – 600001,
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
25.04.1996 |
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Com. Reg. No.: |
18-35321 |
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CIN No.: [Company
Identification No.] |
U65991TN1996PLC035321 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is the asset management company and the investment manager of DBS Chola Mutual Fund, Which offers mutual funds to retail, high networth and institutional investors. |
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 750000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Murugappa Group. Director are reported as
experienced, respectable and having satisfactory means of their own. Trade
relations are fair. Payments are reported as slow but correct. The company can be considered good normal business dealings. |
LOCATIONS
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Registered Office : |
Dare House, No.2, N. S. C. Bose Road, Parry’s Chennai – 600001,
Tamilnadu, India |
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Tel. No.: |
91-44-25307172 |
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Fax No.: |
91-44-25346464 |
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E-Mail : |
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Corporate Office: |
World Trade Centre, Centre 1, 27th Floor, Cuffe Parade,
Mumbai – 400025, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Munusamy Anandan |
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Designation : |
Director |
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Address : |
AL-192, 12th Main Road, Anna Road, Chennai – 600040,
Tamilnadu, India |
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Date of Birth/Age : |
26.01.1950 |
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Date of Appointment : |
25.04.2006 |
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Name : |
Mr. Sunil Vinayak Patel |
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Designation : |
Director |
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Address : |
2989/H, 12th Main Road, Hal 2nd Stage Indira
Nagar, Bangalore – 560008, Karnakata, India |
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Date of Birth/Age : |
01.11.1949 |
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Date of Appointment : |
21.01.1997 |
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Name : |
Mr. Wing Tat Lau |
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Designation : |
Additional Director |
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Address : |
34 Thomson Heights Singapore- 574860 |
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Date of Birth/Age : |
04.11.1954 |
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Date of Appointment : |
29.11.2006 |
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Name : |
Mr. Arunachalam Lakshmanan |
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Designation : |
Director |
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Address : |
25 II Street, D P Nagar, Kottupuram, Chennai – 600085, Tamilnadu,
India |
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Date of Birth/Age : |
07.01.1930 |
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Date of Appointment : |
06.07.1998 |
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Date of Ceasing : |
30.01.2006 |
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Name : |
Mr. M. J. Subbaiah |
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Designation : |
Director |
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Address : |
201 Skyli NE Apartments Longford Road, Bangalore – 560025, Karnataka,
India |
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Date of Birth/Age : |
12.12.1942 |
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Date of Appointment : |
30.01.2006 |
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Name : |
Mr. Rajan Raju |
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Designation : |
Director |
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Address : |
11 Nathan Road, Regency Park, 10-1, Singapore – 248732 |
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Date of Birth/Age : |
26.10.1965 |
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Date of Appointment : |
22.04.2008 |
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Name : |
Mr. Nyuk Choo Deborah Joanne Ho |
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Designation : |
Additional Director |
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Address : |
38 Siglap Avenue, Singapore 456309 |
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Date of Birth/Age : |
24.05.1964 |
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Date of Appointment : |
22.04.2008 |
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Name : |
Mr. Rahunathan Shankaran |
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Designation : |
Additional Director |
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Address : |
401 Sand Pebbles, Perry Cross Bandra West, Mumbai – 400050,
Maharashtra, India |
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Date of Birth/Age : |
03.08.1946 |
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Date of Appointment : |
29.11.2006 |
KEY EXECUTIVES
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Name : |
Mrs. Trupti Vyas |
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Designation : |
Company Secretary |
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Address : |
A 6 Jeevan Sudha C D Barfiwala Marg, Andheri (West), Mumbai – 400058,
Maharashtra, India |
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Date of Birth/Age : |
06.07.1976 |
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Date of Appointment : |
20.01.2006 |
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Name : |
Mr. Rajiv Joshi |
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Designation : |
Company Secretary |
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Address : |
57 Dadi Seth Agiari Lane 4th Floor, Vyas Building Kalbadevi
Road, Mumbai – 40002, Maharashtra, India |
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Date of Birth/Age : |
07.05.1963 |
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Date of Appointment : |
27.07.2004 |
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Name : |
Mr. Raman Gurushankar |
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Designation : |
Manager |
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Address : |
Aditya Flats GB, B Block, 106 Arcot Road, Kadambakkam. Chennai –
600024, Tamilnadu, India |
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Date of Birth/Age : |
31.08.1967 |
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Date of Appointment : |
01.07.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 16.06.2006)
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Names of Shareholders |
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No. of Shares |
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Mr. M A Alagappan |
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1 |
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Mr. M M Murugappan |
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1 |
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Mr. M M Venkatachalam |
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1 |
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Mr. A Venkatachalam |
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1 |
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Mr. M. Anandan |
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1 |
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Mr. S. Valliappan |
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1 |
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Mr. R. Eswaran |
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1 |
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Cholamandalam DBS Finance Limited |
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22499993 |
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Total |
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22500000 |
(As on 31.03.2008)
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Category |
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Percentage |
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Bodies Corporate (Not mention avbove) |
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99.99 |
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Other top fifty shareholders (Other than listed above) |
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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 : |
Subject is the asset management company and the investment manager of DBS Chola Mutual Fund, Which offers mutual funds to retail, high networth and institutional investors. |
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Products : |
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GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
S. B. Billimoria and Company Chartered Accountant |
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Address : |
12, Dr. Anne Besant Road, Opposite Shiv Sagar Estate, Worli Mumbai –
400018, Maharashtra, India |
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Holding Company : |
Cholamandalam DBS Finance Limited (L65993TN1978PLC007576) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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35000000 |
Equity Shares |
Rs.10/- each |
Rs.350.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
350.000 |
350.000 |
225.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(199.145) |
(182.938) |
(115.559) |
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NETWORTH |
150.855 |
167.062 |
109.441 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.213 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.213 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
150.855 |
167.062 |
109.654 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
17.329 |
16.217 |
16.713 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
143.923 |
179.312 |
84.980 |
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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 |
7.899
|
10.483
|
1.967 |
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Sundry Debtors |
0.295
|
0.279
|
0.666 |
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Cash & Bank Balances |
0.000
|
0.000
|
0.000 |
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Other Current Assets |
8.992
|
6.967
|
12.010 |
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Loans & Advances |
0.000
|
0.000
|
0.000 |
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Total
Current Assets |
17.186
|
17.729
|
14.643 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
24.664
|
43.497
|
5.136 |
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Provisions |
2.919
|
2.699
|
1.546 |
|
Total
Current Liabilities |
27.583
|
46.196
|
6.682 |
|
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Net Current Assets |
(10.397)
|
(28.467)
|
7.961 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
150.855 |
167.062 |
109.654 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
110.911 |
63.510 |
0.000 |
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Other Income |
13.554 |
8.703 |
57.814 |
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Total Income |
124.465 |
72.213 |
57.814 |
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Profit/(Loss) Before Tax |
(15.357) |
(65.901) |
(23.724) |
|
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Provision for Taxation |
0.850 |
1.478 |
1.245 |
|
|
Profit/(Loss) After Tax |
(14.507) |
(64.423) |
(22.479) |
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Expenditures : |
|
|
|
|
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Salaries, Wages, Bonus, etc. |
56.385 |
61.069 |
39.491 |
|
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Payment to Auditors |
0.465 |
0.280 |
0.230 |
|
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Insurance Expenses |
0.777 |
0.706 |
0.675 |
|
|
Depreciation & Amortization |
4.101 |
3.698 |
3.776 |
|
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Other Expenditure |
78.094 |
72.361 |
37.366 |
|
Total Expenditure |
139.822 |
138.114 |
81.538 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
(11.66)
|
(89.21) |
(38.88) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(13.85)
|
(103.76) |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(44.49)
|
(194.13) |
(75.66) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.10)
|
(0.39) |
(0.22) |
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|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.18
|
0.28 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.62
|
0.38 |
2.19 |
LOCAL AGENCY
FURTHER INFORMATION
Website Details
Profile:
Subject Established in 1996, the company manages funds in
excess of Rs.22490.000 Millions (as on Jun 30th, 2008) across 23 schemes with
over 2,00,000 customer accounts. Known for prudent and disciplined investment
philosophy, DCAM products cover the entire range of equity, debt and cash asset
classes. Company is present in over 20 locations in the country and also has a
strong distribution network.
Cholamandalam
DBS Finance Limited
Cholamandalam DBS is a joint venture between the Murugappa
Group and DBS Bank of Singapore. The Company, along with its subsidiaries and
affiliates offers individual and institutional customers a range of financial
services – vehicle finance, capital market finance, corporate finance, mutual
funds, securities broking and distribution of investment and insurance
products. The Company’s shares are listed on Bombay (BSE) and National (NSE)
stock exchanges.
Headquartered in Singapore, DBS is one of the largest
financial services groups in Asia. The largest bank in Singapore and the fifth
largest banking group in Hong Kong as measured by assets, DBS has leading
positions in consumer banking, treasury and markets, asset management,
securities brokerage, equity and debt fund raising. Beyond the anchor markets
of Singapore and Hong Kong, DBS serves corporate, institutional and retail
customers through its operations in Thailand, Malaysia, Indonesia, India and
The Philippines. In China, the Bank has branches and representative offices in
Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin, Dongguan and Hangzhou.
The Bank's credit ratings are one of the highest among banks competing in the
Asia-Pacific region, and the highest among banks in Singapore.
About
Murugappa Group
Headquartered in Chennai, the $1.6 billion Murugappa Group
is India’s leading business conglomerate, which fosters an environment of
professionalism for its strong workforce of 28,000 employees. The group has 29
registered companies, which are market leaders in diverse areas on business
viz. engineering, abrasives, finance, general insurance, sanitaryware, cycles,
sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals.
The Group has manufacturing units in 12 states. The Group has forged strong
joint venture alliances with leading international companies like Roca of
Spain, Cargill of Geneva, Cerdak of South Africa, DBS Bank of Singapore, Mitsui
Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated
its status as one of the fastest growing diversified business house in India.
News:
DBS Cholamandalam Asset Management Limited, has announced that Mr. Rajnish Narula will be the company's new Chief Executive, effective June 23, 2006
DBS Chola AML, a subsidiary of Cholamandalam DBS Finance Limited, a joint venture between the Murugappa Group and DBS Bank of Singapore, is the investment manager of DBS Chola Mutual Fund.
Mr. MA Alagappan, Chairman of the company said, "I am pleased to welcome Mr. Rajnish Narula to DBS Cholamandalam. With his rich experience in banking and financial services, I am confident Mr. Narula will provide the leadership that will enable the company achieve its plans for accelerated growth."
Mr. Narula was earlier the Chief Executive Officer of Alliance Asset Management Limited. He has over two decades of experience in banking with ANZ Grindlays Bank (and, subsequently, Standard Chartered Bank) where he was the Head of Investment Services and Priority Banking.
Mr. Narula's appointment follows the secondment of Mr. Sashi Krishnan to DBS in Singapore. Mr. Krishnan will work closely with the DBS South and Southeast Asia team in the areas of strategic planning and business development.
Extending a warm welcome to Mr. Narula, Mr. Rajan Raju, Director of DBS Cholamandalam and Managing Director - South and South East Asia, DBS Bank said, "The Asset Management business has immense potential in India. At this time, we are looking to leverage the existing strengths of DBS Chola with the pan-Asian capabilities of DBS in this area. We are delighted to have Mr. Narula on board to lead the company's growth."
Mr. Rajnish Narula said, "I am very excited about this assignment. DBS Chola represents the coming together of two great institutions, their strengths and their values. I look forward to this opportunity to take DBS Chola Mutual Fund to a position of leadership in the coming years."
DBS
Cholamandalam mutual launches infrastructure fund
Tuesday,
07 August, 2007, 17:00
Mumbai: DBS Cholamandalam Asset Management
Limited on Tuesday launched an equity fund with a mandate to invest in stocks
of companies that are likely to benefit from the country's increasing
expenditure on infrastructure development.
Three of India's top five performing funds in 2006 were pure
infrastructure funds, data from fund tracker Lipper showed.
Such funds have risen about 19 per cent on an average till
August 3 this year as compared with 9.8 per cent rise in India's benchmark BSE
index and attracted attention of investors and fund houses.
"The cake is big enough for everyone to be in the
space," Chief Investment Officer R. Rajagopal said, adding his fund would
not have any capitalisation or style biases and generally invest in 30-40
stocks.
He said the infrastructure sector is likely to see huge
public and private investment that would benefit companies in sectors such as
power, cement, oil and gas among others.
"We are taking infrastructure more seriously than we
have ever before," Rajagopal, who manages nine other funds for the asset
manager, said, adding India was likely to invest $320 billion in the Eleventh
Five Year Plan 2007-12.
Three-year close-end DBS Chola Infrastructure Fund, open for
subscription till September 6, would invest at least 65 per cent of the assets
in equities and the rest in debt and money market instruments.
The fund will not charge any entry load but will levy an
exit load of up to 2 per cent for redemptions within three years. Those
redeeming units would also have to pay the unamortised portion of the initial
issue expenses.
The fund house managed assets worth about Rs.51000.000
Millions at the end of July, data from Association of Mutual Funds in India
showed.
DBS
Chola MF declares 11% dividend under DBS Chola Hedged Equity fund
Mumbai, October 29, 2007: DBS Chola MF in continuation with
its tradition of rewarding investors has declared yet another dividend of 10%
under DBS Chola Hedged Equity Fund. The record date for dividend is 2nd
November, 2007. All investors whose names appear on the register of unit
holders as on 2nd November, 2007 would be eligible for dividend. The NAV of the
scheme as on October 26, 2007 under the dividend option stood at Rs.12.00/- per
unit.
This is the fourth consecutive dividend under the scheme since its inception in
April, 2007. The first three dividends were declared in the month of May, 2007
(dividend of 5%), September (dividend of 6%) and October (dividend of 8%). The
investment objective of the fund is to generate long term capital appreciation
by investing in equity, equity related and derivative instruments. The fund
seeks to minimise risk by use of hedging instruments such as index and stock
derivative instruments. The aim is to generate returns with a lower volatility.
“DBS Chola MF has always followed an investor centric approach and has been
declaring dividends across its schemes on a regular basis. With the current
dividend, the total quantum of dividend declared under DBS Chola Hedged Equity
Fund over the last six months would be 29%. ” said Vineet Potnis, Chief
Marketing Officer, DBS Cholamandalam Asset Management Limited
The fund offers dividend & growth options. The minimum application amount
is Rs.5000/- under both the options.
DBS Cholamandalam Asset Management Limited (DCAM) is the
asset management company and the investment manager of DBS Chola Mutual Fund,
which offers mutual funds to retail, high networth and institutional investors.
Established in 1996, the company manages funds in excess of Rs. 3800 crores (as
of Sept, 2007) across 21 schemes with over 200,000 customer accounts. Known for
its prudent and disciplined investment philosophy, DCAM products cover the
entire range of cash, debt and equity asset classes. DCAM is present in over 20
locations in the country and also has a strong distribution network.
Cholamandalam
DBS Finance Limited
Cholamandalam DBS Finance Limited is a joint venture between
the Murugappa Group and DBS Bank of Singapore. The Company, along with its subsidiaries
and affiliates offers individual and institutional customers a range of
financial services – personal loans, vehicle finance, home equity loans,
capital market finance, corporate finance, mutual funds, securities broking and
distribution of investment and insurance products. The Company’s shares are
listed on Bombay (BSE) and National (NSE) stock exchanges.
About
Murugappa Group
Headquartered in Chennai, the USD 2 billion Murugappa Group
is India’s leading business conglomerate, which fosters an environment of
professionalism for its strong workforce of 28,000 employees. The group has 29
registered companies, which are market leaders in diverse areas on business
viz. engineering, abrasives, finance, general insurance, sanitaryware, cycles,
sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals.
The Group has manufacturing units in 12 states. The Group has forged strong
joint venture alliances with leading international companies like Roca of
Spain, Cargill of Geneva, Cerdak of South Africa,
About
DBS Cholamandalam Asset Management Limited
DBS Cholamandalam Asset Management Limited (DCAM) is the
asset management company and the investment manager of DBS Chola Mutual Fund,
which offers mutual funds to retail, high networth and institutional investors.
Established in 1996, the company manages funds in excess of Rs. 3800 crores (as
of Sept, 2007) across 21 schemes with over 200,000 customer accounts. Known for
its prudent and disciplined investment philosophy, DCAM products cover the
entire range of cash, debt and equity asset classes. DCAM is present in over 20
locations in the country and also has a strong distribution network.
Cholamandalam
DBS Finance Limited
Cholamandalam DBS Finance Limited is a joint venture between
the Murugappa Group and DBS Bank of Singapore. The Company, along with its
subsidiaries and affiliates offers individual and institutional customers a
range of financial services – personal loans, vehicle finance, home equity
loans, capital market finance, corporate finance, mutual funds, securities
broking and distribution of investment and insurance products. The Company’s
shares are listed on Bombay (BSE) and National (NSE) stock exchanges.
About
Murugappa Group
Headquartered in Chennai, the USD 2 billion Murugappa Group
is India’s leading business conglomerate, which fosters an environment of
professionalism for its strong workforce of 28,000 employees. The group has 29
registered companies, which are market leaders in diverse areas on business viz.
engineering, abrasives, finance, general insurance, sanitaryware, cycles,
sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals.
The Group has manufacturing units in 12 states. The Group has forged strong
joint venture alliances with leading international companies like Roca of
Spain, Cargill of Geneva, Cerdak of South Africa, DBS Bank of Singapore, Mitsui
Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated
its status as one of the fastest growing diversified business house in India.
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 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.42.54 |
|
UK Pound |
1 |
Rs.84.86 |
|
Euro |
1 |
Rs.66.95 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
42 |
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 |
|