MIRA INFORM REPORT

 

 

 

Report Date :

04.12.2008

 

IDENTIFICATION DETAILS

 

Name :

ARMSEL MHE PRIVATE LIMITED

 

 

Formerly Known As :

MATERIAL HANDLING ENGINEERS PRIVATE LIMITED

 

 

Registered Office :

# 25, Koramangala Industrial Layout, Hosur Road, Bangalore -560 095, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2008

 

 

Date of Incorporation :

03.06.1981

 

 

Com. Reg. No.:

08-4248

 

 

CIN No.:

[Company Identification No.]

U72206KA1981PTC004248

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRA05276F

 

 

PAN No.:

[Permanent Account No.]

AABCM1443P

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter and Importer of Material handling Equipments, Cranes

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

 

 

 

Maximum Credit Limit :

USD 160000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are reported as experience and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Sushil Heri

Designation :

Director

Contact No.:

91-9448019005

Date :

03.12.2008

 

 

LOCATIONS

 

Registered Office :

# 25, Koramangala Industrial Layout, Hosur Road, Bangalore -560 095, Karnataka, India

Tel. No.:

91-80-2553 0439 / 2553 0440, 4110 4897 / 98

Mobile No.:

91-9845150140/ 9448019005

Fax No.:

91-80-2553 0411

E-Mail :

armsel@vsnl.com

info@armsel.com
armsel@airtelbroadband.in

Website :

http://www.armsel.com

Area :

5000 sq.ft (Owned)

 

 

Factory:

78/A, KIADB Industrial Area, Jlgini, Anekal Taluk, Bangalore – 562 106, Karnataka, India 

Tel. No.:

91-80-27825252 / 27825351

Fax No.:

91-80-27825796

Area :

135000 sq. ft. (Owned)

 

 

DIRECTORS

 

Name :

Mr. Archibald Chrisopher Heri

Designation :

Managing Director

Address :

Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, Langford Road, Richmond Town, Bangalore – 560025, Karnataka, India

Date of Birth/Age :

06.11.1942

Qualification :

L. M. B.

Date of Appointment :

03.06.1981

 

 

Name :

Mr. Preet H Heri

Designation :

Director

Address :

Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, Langford Road, Richmond Town, Bangalore – 560025, Karnataka, India

Date of Birth/Age :

19.10.1977

Qualification :

M. S.

Date of Appointment :

15.06.1998

 

 

Name :

Mr. Sushil C Heri

Designation :

Director

Address :

No. 6, New No. 13, Norris Road, Richmond Town, Bangalore – 560025, Karnataka, India

Date of Birth/Age :

30.09.1968

Qualification :

B. Com

Date of Appointment :

25.09.1990

 

 

Name :

Mrs. D. M. Heri

Designation :

Director

Address :

Flat C – 1, 2nd Floor, ‘Chartered Cottage’ No. 8, Langford Road, Richmond Town, Bangalore – 560025, Karnataka, India

Date of Appointment :

01.04.2003

 

 

KEY EXECUTIVES

 

Name :

Ganapathi and Mohan

Designation :

Company Secretary

Address :

No. 53, Gandhi Bazaar main Road, Bangalore – 560004, Karnataka, India

 

 

Name :

Mr. Sham Sundar

Designation :

Export Manager

 

 

Name :

Mr. S Ranganath

Designation :

Marketing manager

 

 

Name :

Mr. A. Vinaya Shetty

Designation :

Purchasing Manager

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 29.09.2008

 

Names of Shareholders

 

No. of Shares

A. C. Heri

 

119860

D. M. Heri

 

1150

Sushil C. Heri

 

4990

Preet H. Heri

 

3000

C. S. Furtado

 

6000

Total

 

135000

 

Equity Share Breakup (Percentage of Total Equity)

As on 30.09.2008

 

Equity Share Breakup

 

 

Category

 

Percentage of Holding

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Material handling Equipments, Cranes

 

 

Products :

Item Code No.

Product Description

842611

Cranes

843131

Electric Hoists

871100

Tankers

842511

Hoists

 

·         Hand Chain Hoists

·         Electric Chain Hoists

·         Wire Rope Hoists

·         Winches

·         Cage/Goods Lifts

·         Light Cranes Systems (Profile Master)

·         Semi Portal Cranes

·         Cantilever Cranes

·         Single Girder and Double Girder Overhead Cranes

·         Jib Cranes

·         Gantry Cranes

·         Cranes and Hoists for Hazardous Areas

·         Crane Accessories.

 

 

Agencies Held :

SWF Germany

 

 

Exports :

 

Products :

Cranes and Hoists

Countries :

·         China

·         France

·         Italy

·         Germany

·         Indonesia

·         Nigeria

·         Ghana

·         United Arab Emirates

·         Yemen

·         Zambia

·         Oman

·         Kuwait [Middle East]

·         Dubai

·         Saudi Arabia

 

 

Imports :

 

Products :

Material Handling Equipments, Motor Special Break Parts

Countries :

·         Germany

·         Hongkong

·         Frnache

·         China

·         Singapore

 

 

Terms :

 

Selling :

L/C,  Cash and Credit

 

 

Purchasing :

L/C and Credit [60 days]

 

PRODUCTION STATUS

 

Particulars

 

 

Actual Production

Cranes

 

 

 

65 Nos.

Hoists

 

 

 

171 Nos.

Others, Wines etc.

 

 

 

17 Nos.

 

 

GENERAL INFORMATION

 

No. of Employees :

162 [In Office : 42 and In Factory :120]

 

 

Customers :

End Users and OEM’s

 

 

No. of Employees :

125 (Office 25, Factory 100)

 

 

Bankers :

·         Vijaya Bank,

Address:  Bridge Road, Bangalore – 560 001, Karnataka, India

 

·         HDFC Bank

 

 

Facilities:

SECURED LOAN

31.03.2008

Rs. In Millions

Working Loan form Vijaya Bank

26.304

Term Loan From Vijaya Bank

(Secured by Invetory, Book Debts, Floating charge on Assets and personal guarantee of Director’s)

1.360

Car Loan form Banks

(Secured against Vehicle)

0.564

Total

28.229

 

 

Unsecured Loan

31.03.2008

Rs. In Millions

Loan form Directors and Shareholders

13.227

Security Deposits

0.112

Advance received against sale of Assets

0.076

Total

13.415

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

S. P. Krishnamurthy and Company

Chartered Accountants

Address :

No 36/162, 4th Main, 14th Cross, Vylikaval, Bangalore – 560 003, Karnataka, India

Tel. No.:

91-80-331 2859

Fax No.:

91-80-344 9580 / 23312859

 

 

Associates/Subsidiaries :

Ř       Power Gear (Bangalore),

-     No. 24, Koramangala Industrial Layout, Hosur Road, Bangalore – 560       095, Karnataka

-           Manufacturers of cranes and hoists

 

works

            Sarakki Industrial Estate, Bangalore, Karnataka

 

 

CAPITAL STRUCTURE

 

As on 29.09.2008

 

Authorised Capital :

No. of Shares

Type

Value

Amount

140000

Equity Shares

Rs.100/- Each

Rs.14.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

135000 

Equity Shares

Rs.100/- Each

Rs.13.500 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2008

31.03.2007

31.03.2006

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

13.500

13.500

13.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

19.964

11.418

7.129

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

33.464

24.918

20.629

LOAN FUNDS

 

 

 

1] Secured Loans

28.229

29.925

28.672

2] Unsecured Loans

13.415

13.431

14.681

TOTAL BORROWING

41.644

43.356

43.353

DEFERRED TAX LIABILITIES

3.114

3.164

3.245

 

 

 

 

TOTAL

78.222

71.438

67.227

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

22.307

20.549

26.646

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.006

0.006

0.006

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
37.153
27.707
22.200

 

Sundry Debtors
59.781
54.085
43.656

 

Cash & Bank Balances
16.743
10.939
4.664

 

Other Current Assets
4.765
4.856
0.841

 

Loans & Advances
10.425
3.669
2.751

Total Current Assets
128.867
101.256
74.112

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Current Liabilities
64.789
46.717
32.478

 

Provisions
8.169
3.656
1.059

Total Current Liabilities
72.958
50.373
33.537

Net Current Assets
55.909
50.883
40.575

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

78.222

71.438

67.227

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2008

31.03.2007

31.03.2006

Sales Turnover

236.843

155.447

122.798

Other Income

0.000

0.000

0.000

Total Income

236.843

155.447

122.798

 

 

 

 

Profit/(Loss) Before Tax

13.261

6.818

2.755

Provision for Taxation

4.715

2.529

1.059

Profit/(Loss) After Tax

8.546

4.289

1.696

 

 

 

 

Earnings in Foreign Currency :

7.753

1.174

NA

Total Earnings

7.753

1.174

NA

 

 

 

 

Imports :

31.015

13.336

NA

Total Imports

31.015

13.336

NA

 

 

 

 

Expenditures :

 

 

 

 

Depreciation & Amortization

1.694

1.733

1.690

 

Increase/(Decrease) in Finished Goods

221.888

146.896

118.353

Total Expenditure

223.582

148.629

120.043

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2008

31.03.2007

31.03.2006

PAT / Total Income

(%)

3.61
2.76

1.38

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

5.59
4.39

2.25

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.51
5.59

2.73

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.39
0.27

0.13

 

 

 
 

 

Debt Equity Ratio

(Total Liability/Networth)

 

2.18
3.76

3.73

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.77
2.01

2.21

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Construction of Building:

 

The second bay in the factory No. 78/A KIADB, Jiganl Industiral Area, is completed and we have started Manufacturing, and assembly of Cranes at this building to enhance the production capacity of the plant. 

 

 

history

 

The company was incorporated on 3rd June, 1981 at Bangalore in Karnataka under the name and style of Material Handling Engineers Private Limited having Company Registration Number 4248.  The name of the company was changed to present with effect from 19.10.1998.

 

The company is in trade terms with the following :

 

 

 

Fixed Assets:

 

·         Land

·         Building

·         Plant and Machinery

·         Tools

·         Electrical Installation

·         H.T. Installation

·         Office Equipments

·         Furniture and Fixture

·         Vehicles

·         Hoists

·         R and D Equipment

·         Computer

 

Bankers Charges Report as per Registry

 

Name of the company

MATERIAL HANDLING ENGINEERS PRIVATE LIMITED

Presented By

A C Heri

1) Date and description of instrument creating the change

10.07.1982 – agreement for overdraft

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 0.150 Million

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

Pledge of supply bills

4) Gist of the terms and conditions and extent and operation of the charge.
  • Interest @ 15.5 % p.a.
  • 1 ˝ Commission P. A.
  • 10 % margin

5) Name and Address and description of the person entitled to the charge.

Vijaya Bank, Bridge Road, Bangalore – 560 001, Karnataka

6) Date  and brief description of instrument modifying the charge

02.08.1984 Agreement for overdraft

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Increased from Rs. 0.150 Million to Rs. 0.450 Million interest rate reduced from 17.5 % to 16.5 % other conditions remain unaltered.

 

This form is for

Modification  of charge

Charge identification number of the charge to be modified

90194700

Corporate identity number of the company

U72206KA1981PTC004248

Name of the company

ARMSEL MHE PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

# 25, Koramangala Industrial Layout, Hosur Road, Bangalore -560095, Karnataka

Type of charge

·         Immovable Property

·         Movable Property

·         Floating Charge

Particular of charge holder

Vijaya Bank, Bridge Road, Bangalore – 560 001, Karnataka

Nature of Description of the instrument(s) creation or modifying the charge (Copy to be attached)

Supplimentary Agreement 2 No’s and Memorandum for Equitable Mortgage – (Both the Above Pertain to the Same charge)

Date of instrument Creating the charge

03.07.2008

Amount secured by the charge

Rs. 73.500 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

WCL at VBPLR with a minimum of 13.00 % p.a. rising of falling therewith on daily products with monthly rests, pre eff rate 1

13.00 % p.a. penal interest for non compliance of terms of sanction: Max 2 % p.a. over the normal rate.

 

Terms of repayment

Working capital facility repayable on demand facility for a period of one year.

 

Margin

Raw materials : Semifinished goods / finished goods 25 %

CC MISC 15 %

DBD 25 %

Bank Guarantee 20 %

 

Extent operation of the charge

Exclusive first charge on the assets of the company and to the full extents. Charge on Current assets cover to the extent of Rs. 73.500 Millions, Charge on immovable property cover to the extent of Rs. 29.000 Millions.

 

Others :

Cash credit [Hypothecation] : Rs. 12.500 Millions

CC –Misc (SBP) Rs. 22.000 Millions (Increased form Rs. 20.000 Millions)

Drawee Bills Discounting – Rs. 3.000 Millions (Continue)

Foreign Letter of Credit – Rs. 3.500 Millions (Contnue)

Bank Guarantee : Rs. 30.00 Millions

Total Limit Rs. 73.500 Millions

Short particulars of the property charged (including location of the property)

Hypothecation of present and future all of the borrower’s stocks of raw materials, semi finished and finished good of cranes, hoists, material handling Equipments, components, with collaterals of plant and machineries, other movable assets etc wherever situate, held or stored or in transit or in the custody fo any third part. Equi. Mort. Of immovable property situated at No. 785/A, Sy. No. 118, 121 and 551, KIADB, Jigani, Industrial Area, Anekal Taluk, Bangalore Dist.l

Date of Latest Modification prior to the present modification

15.02.2007

 

WEBSITE DETAIL:

 

Profile:

 

Subject is manufacturers of Overhead Material Handling Equipment, located in Bangalore (South India) in the state of Karnataka. They offer all types of Overhead Material Handling Equipment like Jib Cranes, Gantry Cranes, etc., covering the industries across all the segments. Tailor made, Custom Built Cranes and Hoists are designed and manufactured in-house as per Indian standards and Customer specifications. They also offer Standard Cranes and Hoists along with SWF Krantechnik GmbH, Germany Crane Kits in accordance with International Standards - DIN/FEM with quick deliveries. They provide specialized services and individual solutions that guarantee and strengthen the competitive edge.

 

If it is a matter of strengthening the work process by providing specific cranes, jib cranes, gantry cranes and lifting technology, or significantly increasing productivity and retaining the competitive edge on the long term, then they prove to be the popular choice worldwide. All the Customers benefit in every case, no matter how specialized the case may be. The two ways, through which the Customers benefit from the internationally accepted products are:


Firstly, from the transfer of global expertise. Innovative solutions developed by SWF for Customers all across the world.


Secondly, from the synergy effect of an internationally active company, allowing them to realise saving potential on the one hand, and also to set new standards in service as a result of dense global service network.


They only consider providing jib cranes, gantry cranes and other material handling solutions that are worthwhile, not only technically feasible, but also financially affordable. They know that the best ideas are born from experience. When you have been involved with a particular industry, as long as Armsel/SWF has, you have an ingredient that other companies can only dream of. That ingredient is called expertise. Quite simply, it is another word for experience.

Milestones

1974  The company was founded by Mr. A.C.Heri, as a SSI unit at Koramangala Industrial Estate, in the City of Bangalore . In the beginning years, the company started with activities such as repairs, servicing and modifications of imported cranes and hoists in the material-handling field.

1977 Started manufacturing Wire King model, electric wire rope hoists.

1978 Introduced Single Girder and Double Girder EOT cranes at Bangalore.

1980 Introduced Co-Axial model EPITRANS Hoists with micro speed attachments for general-purpose use.

1981 Introduced Precision Electric Chain Hoists with machined and heat treated load wheel and Grade - 80, lifting chains.
M/s. The copmany (earlier name Material Handling Engineers Private Limited) - A Company specially floated with full fledged facilities for manufacturing heavy duty Cranes, Winches and Pressure Vessels, was incorporated and registered. Mrs. D.M.Heri joined the group as a Director.

1982 Introduced Heavy Duty Goliath Cranes with overhang on both ends, specially designed to work in ports, Granite Plants, Warehouses, Transshipment Centers , etc.

1984 Introduced Jib Cranes of all type, including motorized boom swivel.

1986 Introduced Winches for Steel Plants and General use.

Mr. SUSHIL C. HERI - the eldest son of founder Director Mr. A.C. HERI also joined the group as Executive Director in-charge of manufacturing at the new plant at Jigani.

1990 Introduced Grabs and Tongs mainly for steel plants.

1992 Introduced Wall Mounted Cranes upto a capacity of 5000 Kgs., to service local areas in the bay under the EOT Cranes.

1994 Introduced Hand Chain Hoists (Chain Pulley Blocks) with traveling trolleys and improved version of chain hoists, coded pressure vessels, etc.

1995 Introduced - LPG Industrial Storage and Handling Systems, LPG Industrial Installations and Bottling / Filling Plants.
Bureau of Indian Standards elected Mr. A.C. Heri in the Sectional Committee ME-14 On Cranes, Lifting Chains and Related Equipments for drafting and Modifying BIS standards for lifting equipment.

1997 Continued to improvise, standardize and economize the production to offer total customer satisfaction.

1998 Mr. Preet Heri after completing his Masters Degree in Manufacturing Technology from RMIT, Melbourne joined the company as Technical Director.

1999 The business of M/s. Armsel ( Bangalore ), a proprietary concern was fully taken over by the company Armsel MHE Private Limited, under the same management headed by Managing Director Mr. A.C.Heri.

2000 The entire manufacturing activities were shifted to Jigani Industrial Area, wherein the company developed full fledged manufacturing facilities adding 3 huge crane bays cater to vast manufacturing requirements.

2002 Expanded the facility by constructing the third bay, which has added to their production capacity.

2003 Supplied many numbers of explosion proof cranes suitable for Gas Group IIC to prestigious customer like IOCL, CPCL, GAIL, etc.

2004 Executed a prestigious project of Rail Handling System for SAIL- Bhilai Steel Plant through M/s. Vai Engineering and Automation Limited, Kolkata, the order value was approx. Rs.17.5 Million.

2005 Mr. Preet Heri – Technical Director was inducted as an alternate Committee member of Bureau of Indian Standards in the Sectional Committee ME-14 on Cranes, Lifting Chains and Related Equipments for drafting and modifying BIS standards.

2005 Constructed a new Crane Test Bay for Cranes upto a capacity of 100 Tones with an overall height of 13 Mtrs with length and breadth of 40 X 15 Mtrs and necessary dead load and test/measuring equipment.
Introduced standard cranes with imported SWF Crane Kits into the market executed number of Double Girder and Single Girder Crane orders for machine tool and automotive industries.

Product

Reference


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.49.90

UK Pound

1

Rs.74.30

Euro

1

Rs.63.42

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

48

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions