MIRA
INFORM REPORT
|
Report Date : |
01.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PAXAR INDIA PRIVATE LIMITED |
|
|
|
|
Formerly Known As : |
MANDHANA
BORNEMANN INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Registered Office : |
90/91, 7th
Main, 3rd Phase, Peenya Industrial Area, Bangalore – 560058,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Year of Establishment : |
2000 |
|
|
|
|
Com. Reg. No.: |
08-26195 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U18101KA2000PLC026195 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM02265E |
|
|
|
|
Legal Form : |
Private Limited
Liability Company |
|
|
|
|
Line of Business : |
Providing innovative
merchandising systems for the retail and apparel industry. |
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and reputed company having fine track. Financial position is good.
Trade relations are fair.
Payments are usually correct and as per commitments. The company is doing very well. It can be
considered good for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
90/91, 7th
Main, 3rd Phase, Peenya Industrial Area, Bangalore – 560058,
Karnataka, India |
|
Tel. No.: |
91-80-251370400 |
|
Fax No.: |
91-80-251370600 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office: |
Paxar Corporation |
|
Address: |
105 Corporate Park Drive, White Plains, NY 10604, USA |
|
Tel. No.: |
1-800 33PAXAR
(72927) |
|
Fax No.: |
1-914 696 4128 |
|
E-Mail : |
|
|
|
|
|
Branches: |
Tirupur, Chennai,
Delhi and Mumbai |
DIRECTORS
|
Name : |
Mr. Nitin
Mandhana |
|
Designation : |
Managing Director
|
|
Address : |
323 Embassy
Woods, Cunningham Road, Bangalore – 560052, Karnataka |
|
Date of Birth/Age : |
B. Com |
|
Qualification : |
17 years |
|
Experience : |
22.11.1967 |
|
Date of Appointment : |
29.09.1988 |
|
|
|
|
Name : |
Mr. Narayandas
Mandhana |
|
Designation : |
Director |
|
Address : |
Lotus Court, ‘A’
Wing, 12Q Dr. Annie Beasant, Road, Worli, Mumbai – 400018, Maharashtra |
|
Date of Birth/Age : |
16.04.1943 |
|
Date of Appointment : |
07.08.1992 |
|
|
|
|
Name : |
Mr. Govindlal
Mandhana |
|
Designation : |
Director |
|
Address : |
Shri Vishnu
Bunglow, Lale Plot, Near Venkatesh Mandir, Sangli – 400026, Maharashtra |
|
Date of Birth/Age : |
22.09.1936 |
|
Date of Appointment : |
02.09.2003 |
|
|
|
|
Name : |
Mr. Gerhard
Bornemann |
|
Designation : |
Director |
|
Address : |
Schmiedesh 5 D
45549, Sprockhovel, Germany |
|
Date of Birth/Age : |
25.09.1939 |
|
Date of Appointment : |
18.05.1996 |
|
|
|
|
Name : |
Mr. George
Bornemann |
|
Designation : |
Director |
|
Address : |
Am Wichelavsberg,
42275, Wuppertal, Germany |
|
Date of Birth/Age : |
29.08.1969 |
|
Date of Appointment : |
18.05.1996 |
|
|
|
|
Name : |
Mr. Frank Fischer |
|
Designation : |
Director |
|
Address : |
Mibelungenster,
25 42653, Solinjen, Germany |
|
Date of Birth/Age : |
31.05.1952 |
|
Date of Appointment : |
18.05.1996 |
|
|
|
|
Name : |
Mr. B. M.
Srinivasa Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Ho Boon Eng.
Foreigner |
|
Designation : |
Director |
|
|
|
|
Name : |
Chu Che Lop Paul,
Foreigner |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jai
Balakrishna Naidu |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Rajesh Sharma |
|
Designation : |
Director |
|
|
|
|
Name : |
Arunachalam C. Subramaniam |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Govind Sultania |
|
Designation : |
Company Secretary |
|
Address : |
201, Shivanand, 32/3, TP Venugopal Layout, Anandnagar, Bangalore –
560024, Karanataka |
|
Tel No.: |
91-80-56958680 |
|
Telefax: |
91-80-23330699 |
|
Mobile: |
91-9844035873 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. Shashikant
Govindlal Mandhana |
|
60000 |
|
Mr. Nitin
Narayanda Mandhana |
|
40000 |
|
Mr. Govindlal
Chhaganlal Mandhana |
|
55000 |
|
Mr. Narayandas
Chhaganlal Mandhana |
|
135000 |
|
Mr. Prakash
Govindlal Mandhana |
|
60000 |
|
Mr. Prakash
Govindlal Mandhana [HUF] |
|
10000 |
|
Smt. Neeta
Prakash Mandhana |
|
30000 |
|
Smt. Kavita
Shashikant Mandhana |
|
25000 |
|
Smt. Sneha Ashok
Mandhana |
|
30000 |
|
Mr. Ashok
Govindlal Mandhana |
|
60000 |
|
Mr. Govindlal
Chhaganlal Mandhana |
|
5000 |
|
Smt. Leelabai
Govindlal Mandhana |
|
25000 |
|
Smt. Nirmala
Narayandas Mandhana |
|
30000 |
|
Mr. Narayandas
Chhaganlal Mandhana [HUF] |
|
35000 |
|
Mr. Govindlal
Chhaganlal Mandhana |
|
15000 |
|
Mr. Shashikant
Govindlal Mandhana [HUF] |
|
5000 |
|
Mr. Nitin
Narayandas Mandhana [HUF] |
|
145000 |
|
Ms. Niharika
Shashikant Mandhana |
|
5000 |
|
Mr. Ashok
Govindlal Mandhana |
|
2500 |
|
Mr. Abhijeet
Ashok Mandhana |
|
7500 |
|
Mr. Sidhant
Shashikant Mandhana |
|
5000 |
|
Smt. Savita Nitin
Mandhana |
|
15000 |
|
Paxar Central
Europe GmbH |
|
800000 |
|
|
|
|
|
TOTAL |
|
1600000 |
BUSINESS DETAILS
|
Line of Business : |
Providing
innovative merchandising systems for the retail and apparel industry. |
GENERAL INFORMATION
|
Suppliers : |
v
Engee
Enterprises v
Uniprec
Tools India v
Veepee
Graphic Solutions Private Limited v
HBR
Containers v
Kayen Print
and Process Private Limited v
Sunrays
Weaving Technologies v
Paxar
Bangladesh Limited v
Paxar,
France v
Paxar
Mauritius Limited v
Paxar UK v
Paxar
Cantral Europe GMBH v
Paxar Far
East Limited |
|
|
|
|
No. of Employees : |
About 150 |
|
|
|
|
Bankers : |
v
Corporation
Bank, Industrial Finance Branch, Indian Express Building, Queen’s
Road, Bangalore – 560001 v
Scotia Bank v
State Bank
of India |
|
|
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Dagaliya and
Company (Chartered Accountant) |
|
Address : |
‘L’ Block, Unity
Building, J. C. Road, Bangalore – 560002, Karnataka, India |
|
Tel. No.: |
91-80-22236783/4 |
|
Mobile No.: |
91-80-22213203 |
|
Fax No.: |
dagliyaysd@vsnl.net |
|
|
|
|
Name : |
Brahmayya and Company (Chartered Accountants) |
|
Address : |
Khivraj Mansion,
10/02 Kasturba Road, Bangalore – 560001, Karnataka |
|
Tel. No.: |
91-80-22274551/22274552 |
|
Fax No.: |
91-80-22212437 |
|
|
|
|
Name : |
A and Y
(Chartered Accountant) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10.00 each |
Rs. 16.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1600000 |
Equity Shares |
Rs. 10.00 each |
Rs.16.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
16.000 |
16.000 |
16.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
461.459 |
244.298 |
177.111 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
477.459 |
260.298 |
193.111 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.107 |
37.428 |
55.554 |
|
|
2] Unsecured Loans |
65.991 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
66.098 |
37.428 |
55.554 |
|
|
DEFERRED TAX LIABILITIES |
2.428 |
42.404 |
40.845 |
|
|
|
|
|
|
|
|
TOTAL |
545.985 |
340.130 |
289.510 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
423.902 |
200.155 |
210.237 |
|
|
Capital work-in-progress |
26.687 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.004 |
0.004 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
127.147
|
80.676 |
69.132 |
|
|
Sundry Debtors |
114.600
|
71.145 |
56.973 |
|
|
Cash & Bank Balances |
34.531
|
59.092 |
7.802 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
163.884
|
16.288 |
25.816 |
|
Total
Current Assets |
440.162
|
227.201 |
159.723 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities and Provisions |
344.766
|
87.230 |
80.454 |
|
Total
Current Liabilities |
344.766
|
87.230 |
80.454 |
|
|
Net Current Assets |
95.396
|
139.971 |
79.269 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
545.985 |
340.130 |
289.510 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
Sales Turnover [Including other Income] |
694.578 |
492.551 |
359.149 |
|
|
|
|
|
|
|
|
Total Income |
694.578 |
492.551 |
359.149 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
117.183 |
115.978 |
44.999 |
|
|
Provision for Taxation |
41.704 |
48.791 |
14.555 |
|
|
Profit/(Loss) After Tax |
75.479 |
67.187 |
30.444 |
|
|
|
|
|
|
|
|
Export Value |
58.995 |
41.993 |
16.613 |
|
|
|
|
|
|
|
|
Import Value |
275.812 |
63.545 |
66.214 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Financial Charges |
3.117 |
0.000 |
0.000 |
|
|
Revaluation Loss |
0.000 |
0.000 |
0.000 |
|
|
Depreciation |
25.887 |
0.000 |
0.000 |
|
|
Other Expenditure |
519.387 |
352.675 |
291.556 |
|
Total Expenditure |
548.391 |
352.675 |
291.556 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
PAT / Total Income |
(%) |
10.87
|
13.64 |
8.47 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.87
|
23.54 |
12.12 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.56
|
27.13 |
12.16 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.44 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.86
|
0.47 |
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28
|
2.60 |
1.98 |
LOCAL AGENCY
FURTHER INFORMATION
FINANCIAL RESULTS:
The directors are pleased
to inform that the company has once again registered substantial increase in
turnover by Rs. 146.400 millions as compared to previous year. The company registered sales of Rs. 487.000
millions as against Rs. 340.600 millions during the previous year. The profits for the year before depreciation
and taxation have been recorded at Rs. 136.000 millions as against Rs. 61.500
millions during the previous year.
Profit after tax of Rs. 67.200 millions together with Rs. 155.000
millions of the previous balance is carried to Balance Sheet.
FUTURE PROSPECTS
The company in the
coming year has set aggressive but achievable goals for the coming three years
with plans to outsource capacities and establish wide distribution network.
FIXED ASSETS:
- Land
- Factory Building
- Air Conditioner
- Plant & Machinery
- Electrical Installation
- Furniture & Fixtures
- Computer Software
- Office Equipment
- Motor Car & Vehicles
|
Name of the company |
MANDHANA BORNEMANN INDUSTRIES PRIVATE LIMITED |
|
Presented By |
MANDHANA BORNEMANN INDUSTRIES PRIVATE LIMITED and Corporation Bank Industrial Finance Branch, Indian Express Building,
Queen’s Road, Bangalore – 560001 |
|
1) Date and description of instrument creating the change |
08.04.2004 [Eight day of April, 2004] – Regd. On 13.05.2004 [D. No. 37] Common Deed of Hypothecation of Movables/Assets/Debts |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 71.323 millions [Hypo of stock/ bookdebts –cum-FCDL] Rs. 30.000 millions with a sublimit of Rs. 2.500 millions at Yeshwanthpur Branch, Term Loan : Rs. 31.323 millions Inland / Import LC-cum-BG Rs. 10.000 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. Hypothecation of entire current assets by way of exclusive first charge b. Exclusive first charge on the entire movable fixed assets [excluding vehicles] of the company [present & future] for term loan and continuing charge on the same for the working capital credit limits |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest : CC - @ 10.5% p.a. i.e. @ COBAR TL - @ 10.5% p.a. Being 0.5% below COBAR Margin – 25% on stocks & book debts Repayment – Repayable in 22 monthly installments comprising first 3 monthly installments of Rs. 1.800 millions each; next 18 monthly installments of Rs. 1.400 millions each and last installments of Rs. 0.723 million |
|
5) Name and Address and description of the person entitled to the charge. |
Corporation Bank Industrial Finance Branch, Indian Express Building, Queen’s Road, Bangalore – 560001, Karnataka |
|
6) Date and brief description of instrument modifying the charge |
7.10.2004 [Seventh day of October, 2004] No Instrument – Letter Regarding Deposit of Title Deeds Letter re : Revision of Credit Limits [Both the above pertain to the same charge] |
|
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. |
By the above, the amount secured by charge stands revised from Rs. 84.555 millions to Rs. 80.955 millions [CC Hyp. Rs. 45 millions & BG Rs. 10 millions renewed at the existing level; TL Rs. 29.555 millions now reviewed at the revised level of Rs. 25.955 millions. By the above, the company has extended additional security of its immovable property viz. all that part and parcel of Industrial lands bearing Plot No. 90 & 91, Situate at 7th Main, Peenya Industrial area, III Phase, Peenya, Bangalore – 560058, [Formed out of lands at Sy. Nos. 145, 146 & 147 of Laggere Village, Yeshwanthpur Hubli, Bangalore North Taluka by KIADB] in all measuring 4085 sq. mtrs. Together with building standing thereon bounded on the East by Road ; West by Plot No. 100; North by Plot No. 92 and South by Plot No. 89 |
|
Name of the company |
MANDHANA BORNEMANN INDUSTRIES PRIVATE LIMITED |
|
Presented By |
MANDHANA BORNEMANN INDUSTRIES PRIVATE LIMITED and Corporation Bank Industrial Finance Branch, Indian Express Building, Queen’s
Road, Bangalore – 560001 |
|
1) Date and description of instrument creating the change |
08.04.2004 [Eight day of April, 2004] – Regd. On 13.05.2004 [D. No. 37] Common Deed of Hypothecation of Movables/Assets/Debts |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 71.323 millions [Hypo of stock/ book debts –cum-FCDL] Rs. 30.000 millions with a sub limit of Rs. 2.500 millions at Yeshwanthpur Branch, Term Loan : Rs. 31.323 millions Inland / Import LC-cum-BG Rs. 10.000 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. Hypothecation of entire current assets by way of exclusive first charge b. Exclusive first charge on the entire movable fixed assets [excluding vehicles] of the company [present & future] for term loan and continuing charge on the same for the working capital credit limits |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest : CC - @ 10.5% p.a. i.e. @ COBAR TL - @ 10.5% p.a. Being 0.5% below COBAR Margin – 25% on stocks & book debts LC/BG – Cash margin 10% Repayment – Repayable in 22 monthly installments comprising first 3 monthly installments of Rs. 1.800 millions each; next 18 monthly installments of Rs. 1.400 millions each and last installments of Rs. 0.723 million |
|
5) Name and Address and description of the person entitled to the charge. |
Corporation Bank Industrial Finance Branch, Indian Express Building, Queen’s Road, Bangalore – 560001, Karnataka |
|
6) Date and brief description of instrument modifying the charge |
14.06.2004 [Fourteenth day of June, 2004] supplemental Common Deed of Hypothecation of Movables/assets/debts |
|
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. |
By the above, the amount secured by charge stands increased from Rs. 71.323 millions to Rs. 84.555 millions [CC Hyp. Rs. 45 millions [Enhanced from Rs. 30.000 millions; TL Rs. 29.555 millions now reviewed at the revised level ; Import / Inland and Letter of Credit cum Bank Guarantee Rs. 10 millions [renewed] |
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.42.95 |
|
UK Pound |
1 |
Rs.85.62 |
|
Euro |
1 |
Rs.67.81 |
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 |
YES |
|
--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/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, we have no basis upon which to
recommend credit dealings |
No Rating |
|