MIRA
INFORM REPORT
|
Report Date : |
28.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VASUDHA PHARMA CHEM LIMITED |
|
|
|
|
Registered Office : |
78-A, Vengal Rao Nagar, Hyderabad-500 038, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
20.12.1994 |
|
|
|
|
Com. Reg. No.: |
01-19021 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U24230AP1994PLC019021 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
HYDV00799B |
|
|
|
|
Legal Form : |
A Closely held public limited liability company. |
|
|
|
|
Line of Business : |
Manufacturers of drugs and drug intermediates. |
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 1486068 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is well
established and reputed company having satisfactory track. Trade relations
are fair. Financial Position is good. Payments are usually correct and as per
commitments. The company can be considered good for any normal business
dealings. It can be
regarded as a promising business partners in a medium to long run. |
LOCATIONS
|
Registered
Office : |
78-A, Vengal Rao Nagar,
Hyderabad – 500038, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23711717/23812046
/ 23814987 |
|
Fax No.: |
91-40-23811576/
23706696 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
Rented |
|
Location : |
Residential |
|
|
|
|
Factory 1 : |
Plot 39/A &
B, Phase I, I. D.A., Jeedimetla Village, Hyderabad - 500 855, Andhra Pradesh,
India |
|
Tel. No.: |
91-40-23095056 , 23095898 |
DIRECTORS
|
Name : |
Mr. M. V. Rama
Raju |
|
Designation : |
Chairman and
Managing Director |
|
Address : |
78-A, Vengal Rao
Nagar, Hyderabad – 500038, Andhra Pradesh, India |
|
Date of Birth
: |
15.06.1946 |
|
Experience : |
30 Years |
|
Date of
Appointment : |
03.09.2004 |
|
Email |
|
|
|
|
|
Name : |
Mr. M. V. S. Raju |
|
Designation : |
Director |
|
Address : |
E-17, Vikrampuri Colony,
Secunderabad-500009, Andhra Pradesh |
|
Qualification
: |
M.Sc. |
|
Date of Birth
: |
10.05.1946 |
|
Experience : |
20 Years. |
|
Date of
Appointment : |
30.06.2001 |
|
Date of
Ceasing : |
11.03.2005 |
|
|
|
|
Name : |
Mr. Ashok
Srinivas Raju Manthena |
|
Designation : |
Whole time
Director |
|
Address : |
78-A, Vengal Rao
Nagar, Hyderabad – 500038, Andhra Pradesh, India |
|
Qualification
: |
Chemical Engineer |
|
Date of Birth
: |
26.03.1972 |
|
Experience : |
7 Years. |
|
Date of
Appointment : |
24.06.1998 |
|
Other
Directorship : |
Shri Ram
Chlorochem Limited CIN :
U24100AP1996PLC Designation :
Managing Director Vasudha Organics
Limited CIN :
U24230AP2003PLC041857 Designation :
Director Vasudha Homes
Limited CIN :
U70102AP2003PLC041857 Designation : Director |
|
|
|
|
Name : |
Mr. Anand Manthena |
|
Designation : |
Director |
|
Address : |
78-A, Vengal Rao
Nagar, Hyderabad – 500038, Andra Pradesh, India |
|
Qualification
: |
M.B.A |
|
Date of Birth
: |
10.06.1974 |
|
Experience : |
6 Years. |
|
Date of Appointment
: |
16.03.1998 |
|
Other
Directorship : |
Shri Ram
Chlorochem Limited CIN :
U24100AP1996PLC Designation :
Managing Director Vasudha Organics
Limited CIN :
U24230AP2003PLC041857 Designation :
Director Vasudha Homes
Limited CIN : U70102AP2003PLC041857 Designation :
Director |
|
|
|
|
Name : |
Mr. Satyanarain
Kanchal |
|
Designation : |
Director |
|
Address : |
Flat No.3E, Altas
Apartments, Road No.10, Banjara Hills, Hyderabad, Andhra Pradesh |
|
Date of Birth
: |
22.11.1945 |
|
Date of
Appointment : |
30.09.2005 |
|
|
|
|
Name : |
Mr. G. Ranga Raju |
|
Designation : |
Director |
|
Address : |
Juvvalapalem PO,
Kalla Mandal, West Godavari, Andhra Pradesh |
|
Date of Birth
: |
10.06.1952 |
|
Date of
Appointment : |
30.07.2004 |
|
|
|
|
Name : |
Dr. Sambasiva
Ramachandran |
|
Designation : |
Director |
|
Address : |
274, Tulasi
Apartments, S R Nagar Colony, Hyderabad-500073, Andhra Pradesh |
|
Date of Birth
: |
10.06.1929 |
|
Date of
Appointment : |
04.09.2003 |
|
|
|
|
Name : |
Mr. Jagadeeswara
Varma Raju Vegesana |
|
Designation : |
Additional
Director |
|
Address : |
8-3-169/43,
Siddartha Nagar, Behind Vengalrao Nagar, Hyderabad-500038, Andhra Pradesh |
|
Date of Birth
: |
10.08.1955 |
|
Date of
Appointment : |
26.12.2006 |
|
|
|
|
Name : |
Mr. Venkata
Subramanyam Raju Penmetsa |
|
Designation : |
Director |
|
Address : |
02-010 / 3 / 7,
Lakshmi Nagar Colony, Suraram, MIDA, Jeedimetla, Hyderabad – 500055, Andhra
Pradesh |
|
Date of Birth
: |
05.08.1969 |
|
Date of
Appointment : |
26.12.2006 |
|
|
|
|
Name : |
Mr. Krishnam Raju
Manthena |
|
Designation : |
Director |
|
Address : |
Door No. 24-8-2,
Sreerama Puram, Shimavaram -534202, Andhra Pradesh |
|
Date of Birth
: |
22.07.1939 |
|
Date of
Appointment : |
30.09.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
No. of Shares |
|
Mr. M. V. Rama Raju |
7500 |
|
Mr. M.
Varalakshmi |
2500 |
|
Mr. M. Ashok
Srinivas Raju |
2500 |
|
Mr. Sivarama Raju |
3000 |
|
Mr. G. Ranga Raju |
500 |
|
Mr. D. V. Subba
Raju |
4000 |
|
Mr. G.
Satyanarayana Raju |
3500 |
|
Mr. M. Anand |
2500 |
|
Mr. M. Aruna |
2500 |
|
Mr. D.
Suryanarayana Raju |
500 |
|
Mr. P. Venkayamma |
2000 |
|
Mr. M. Kama Raju |
5000 |
|
Mr. M. Rama Raju |
700 |
|
Mr. J. Seetarama
Raju |
3500 |
|
Mr. A. V.
Satyanarayana Raju |
3500 |
|
Mr. K. Rama Raju |
3500 |
|
Mr. M. Venkata
Raju |
3500 |
|
Mr. P. Subba Raju |
3500 |
|
Mr. G. Naga Raju |
3000 |
|
Mr. Balarama Raju |
3500 |
|
Mr. R. Soma Raju |
3000 |
|
Mr. G. Latchi
Raju |
3500 |
|
Mr. K. Kalivara
Prasad |
2000 |
|
Mr. G. C. Sekhar
Raju |
680 |
As on 31.03.2006
|
Names
of Shareholders |
Percentage of holding |
|
Bodies Corporate |
1.57 |
|
Directors or
their relatives |
70.93 |
|
Other top 50
shareholders |
7.63 |
|
Others |
19.87 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturers of
drugs and drug intermediates |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Exports to : |
Europe |
GENERAL
INFORMATION
|
No. of
Employees : |
900 |
|
|
|
|
Bankers : |
Ř
Union Bank of
India IFC Branch, Somajiguda, Hyderabad - 500 482, Andhra Pradesh, India Ř
Citi Bank
N.A., Ground Floor, G Pulla Reddy Building, Somajiguda, Hyderabad-500016,
Andhra Pradesh, India |
|
|
|
|
Banking Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Paturi &
Associates Chartered
Accountants |
|
Address : |
203, Drystal
Residency, Jayprakash Nagar, Opposite Lane : State Home Bus Stop,
Yellareddyguda, Hyderabad 500 073,
Andra Pradesh, India |
|
Tel. No. : |
91-40-23746430 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22000000 |
Equity Shares |
Rs.10/- each |
Rs220.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
220.000 |
100.000 |
82.409 |
|
|
2] Share
Application Money |
0.000 |
15.100 |
0.000 |
|
|
3] Reserves &
Surplus |
151.517 |
107.280 |
82.254 |
|
NETWORTH
|
371.517 |
222.380 |
164.663 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
178.448 |
192.216 |
112.718 |
|
|
2] Unsecured
Loans |
29.922 |
29.922 |
30.932 |
|
TOTAL
BORROWING
|
208.370 |
222.138 |
143.650 |
|
|
DEFERRED TAX
LIABILITIES |
15.463 |
17.075 |
20.827 |
|
|
|
|
|
|
|
TOTAL
|
595.350 |
461.593 |
329.140 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
222.534 |
217.445 |
149.441 |
|
Capital work-in-progress
|
110.297 |
45.131 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.000 |
0.000 |
0.050 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
159.556
|
123.356
|
83.167
|
|
|
Sundry Debtors
|
391.475
|
266.487
|
240.073
|
|
|
Cash & Bank Balances
|
10.347
|
13.396
|
0.511
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
88.914
|
68.726
|
44.822
|
Total Current Assets
|
650.292
|
471.965
|
368.573
|
|
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
379.336
|
267.243
|
189.021
|
|
|
Provisions
|
8.437
|
5.753
|
0.000
|
Total Current Liabilities
|
387.773
|
272.996
|
189.021
|
|
Net
Current Assets
|
262.519
|
198.969
|
179.552
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.048 |
0.097 |
|
|
|
|
|
|
|
TOTAL
|
595.350 |
461.593 |
329.140 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1541.238 |
1226.549 |
830.641 |
|
|
Other Income |
2.038 |
3.368 |
12.014 |
|
|
Total Income |
1543.276 |
1229.917 |
842.655 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
68.959 |
37.358 |
26.481 |
|
|
Provision for Taxation |
44.238 |
0.000 |
11.144 |
|
|
Profit/(Loss) After Tax |
24.721 |
37.358 |
15.337 |
|
|
|
|
|
|
|
|
Total Earnings |
NA |
NA |
265.980 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Stores & Spares |
NA |
NA |
89.946 |
|
Total Imports |
NA |
NA |
89.946 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
NA |
NA |
666.141 |
|
|
Administrative Expenses |
NA |
NA |
32.462 |
|
|
Raw Material Consumed |
893.653 |
750.640 |
NA |
|
|
Consumption of stores and spares parts |
26.983 |
14.938 |
NA |
|
|
Increase/(Decrease) in Finished Goods |
(15.461) |
(0.280) |
NA |
|
|
Salaries, Wages, Bonus, etc. |
30.975 |
28.993 |
27.266 |
|
|
Managerial Remuneration |
3.525 |
3.200 |
NA |
|
|
Payment to Auditors |
0.073 |
0.044 |
NA |
|
|
Interest |
16.257 |
9.589 |
6.711 |
|
|
Insurance Expenses |
5.561 |
5.038 |
NA |
|
|
Power & Fuel |
23.249 |
19.746 |
NA |
|
|
Depreciation & Amortization |
21.333 |
17.306 |
14.940 |
|
|
Other Expenditure |
0.000 |
343.344 |
68.653 |
|
Total Expenditure |
100.973 |
1192.559 |
816.174 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
1.60 |
3.04
|
1.82
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
4.47 |
3.04
|
3.14
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
7.90 |
5.42
|
5.11
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.18 |
0.17
|
0.16
|
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
1.04 |
2.23
|
2.02
|
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.67 |
1.73
|
1.95
|
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or
modification of charges
|
Name of the
company |
VASUDHA PHARMA
CHEM LIMITED |
|
Presented By |
Jointly by the
company and by the banker. |
|
1) Date and
description of instrument creating the change |
1. Letter of
hypothecation of bills 2. Trust Receipt 3. Hypothecation
(goods) Agreement 4. Letter of Lien
(Deposits) All dated:
22.09.2005 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Adhoc Import L C
Limits Rs.20.000 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 |
The goods
received under the adhoc import LC Limit are to be hypothecation to Union
Bank of India |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
1. Hypothecation
of goods imported under import LC in respect of Adhoc Limits sanctioned by
the bank. 2. Cash margin of
25% (10% payable at the time of the opening of LC and 15% at the time of
acceptance of LC) 3. The Adhoc LC
Limits sanctioned is for 3 months 4. Interest Rate:
12.25% on outstanding amount or such other rates as prescribed by the Bank
from time to time. |
|
5) Name and
Address and description of the person entitled to the charge. |
Union Bank of
India Somajiguda
Branch, Hyderabad |
|
6) Date and brief description of instrument
modifying the charge |
NA |
|
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. |
NA |
|
Corporation
identity number or foreign company registrations number of the company |
U24230AP1994PLC019021 |
|
Name of the
company |
VASUDHA PHARMA CHEM LIMITED |
|
Address |
78-A, Vengal Rao Nagar, Hyderabad – 500038, Andhra Pradesh |
|
This Form is for |
Creation of
charge |
|
Type of Charges |
Others |
|
Particular of the
charge holder |
ICICI Bank
Limited ICICI Bank Tower,
1-11-256, egumpet, Level 4, Hyderabad – 500016, Andhra Pradesh E-Mail: moguluru.raghuram@icicibank.com |
|
Amount Secure by
the charge |
Rs.120.000
millions |
|
Date of
instrument creating the charge |
09.06.2007 |
HISTORY
Subject was
incorporated on 20th December, 1994 at Hyderabad in Andhra Pradesh having
Company Registration Number 19021.
In 1972 Mr. M. V.
Rama Raju the Chief Promoter of the company had started his professional
carrier in South India Research Institute [SIRIS], Hyderabad, Andhra Pradesh,
India as a manufacturing chemist.
During his five years career with Siris, he became well acquainted with
the process of Analgin, Niacinamide, Ethyl Nicotinate, Benzyl Nicotinate etc.,
biological products like Peptone, Pepaine and Heparin.
In 1977, he
promoted Aravind Chemical Industries [ACI].
It manufactured Niacin an intermediate for Niacinamide, B-complex
vitamin, Isonicotinic acid-on intermediate for Isoniazid, Dr. Karanth Laboratories and Pfizer India
Limited, Mumbai.
ACI also
manufactured ‘Thiosemicarbazide’ – a drug Intermediate for Thiacaetazone and
Sulphamethizole for export to European countries.
In 1990, ACI
started R & D activities and consultancy services for execution of projects
on turnkey basis.
The ACI has to its
credit the following two molecules developed in its R & D laboratory /
pilot plant:
> Phenylpropanolamine Hydrochloride
> Flutamide
In 1979, Mr. M. V.
Rama Raju promoted Hy-Fabs a chemical equipment fabrication company. Besides manufacturing chemical equipment for
captive use in his plant and also supplied chemical equipment like Reactors,
Centrifuges, Heat Exchangers, Leaf Filters, Tray Driers etc., to various
reputed Bulk Drugs and Pharmaceutical Industries.
In 1984, Mr. M. V.
Rama Raju with a few business associates, has also promoted HICEL Pharma
[Private] Limited to manufacture exclusively Analgin, initially produced 100
tons and finally the plant reached 300 tons capacity with highest turnover Rs.
70 million [US $ 2.4 million]. He acted
as its Managing Director from its inception.
Mr. M. V. Rama Raju
has finally launched broad based activities by merging the following inherent
strengths of his companies.
> R & D and production of bulk
drugs and intermediates
> Chemical Equipment Designing
> Product and Project Consultancy
And promoted the
company with the following objects:
> To
establish a most modern US FDA oriented Bulk Drug plant to produce multi
products meeting International standards.
> Strengthen
R & D efforts by including more scientists and a better equipped R & D facility
to develop new molecules / methods.
> Undertake
manufacture of Bulk Drugs and drug intermediates based on customer requirement.
> Provide
product and project consultancy for bulk drug industry and global customers.
The company has
developed new products of high values and showing hard to create demand for
these products both in domestic and export markets in order to increase
company’s share in bulk drug market.
Particulars of Capacity and Production:
As the product mix
is changing form time to time it is not possible to give statistical data
relating to installed capacity of the industrial units.
Production during
the year 2004-05 is 315068 Kgs.
Company’s fixed
assets include Land, Buildings, Plant and machinery, Miscellaneous fixed
assets, Boiler, Generator, Lab Equipments, Electrical Installations, Borewell,
Pollution Equipment, Fire Fighting Equipment, Office Equipmetn, Furniture and
Fixtures, Vehicles.
AS PER
WEBSITE
Subject
is a Company promoted by a team of accomplished technocrats for Bulk Drug
industry with a total capital of Rupees 153 million (US $ 5Million).
All the promoters of subject has
an accumulated experience in various areas of Bulk Drug industry such as
Research and Development (R& D), Production, Designing, and Fabrication of
Equipment, Quality Control, materials and Marketing.
Subject established manufacturing unit at Jeedimetla, Hyderabad (The Bulk Drug
capital of India).
Jeedimetla is a prime industrial area with all infra structural facilities like
Communications, Transport, Power, Potable Water etc.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.47 |
|
UK Pound |
1 |
Rs.77.98 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|