MIRA
INFORM REPORT
|
Report Date : |
05.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
EASTMAN CAST AND FORGE LIMITED |
|
|
|
|
Registered Office : |
RB-06, Inderpuri New Delhi - 110012 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
24.07.1986 |
|
|
|
|
Com. Reg. No.: |
55-24925 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U27109DL1986PLC024925 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELE02705D |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company's shares are listed on
Stock Exchange |
|
|
|
|
Line of Business : |
Manufacturer of Hand Tools and Forging |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 600000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The concern can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
|
Name : |
Mr. Vijay Bansal |
|
Designation : |
Finance Manager |
|
Date : |
30.06.2008 |
LOCATIONS
|
Registered Office : |
RB-06, Inderpuri New Delhi -110012, India |
|
Tel. No.: |
91-161-2511440 / 24648925 / 91-11-64721213 |
|
Mobile No.: |
91-161-2511444 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Administrative Office : |
A-3 Marble Arch Apartment 9, Prithvi Raj Road, New Delhi:110011, India |
|
Tel. No.: |
91-11-24648925 |
|
E-Mail : |
|
|
Website: |
|
|
|
|
|
Corporate Office / Factory : |
G.T. Road, Near Airport, Ludhiana -141120, India |
|
Tel. No.: |
91-161-2511440 / 2511441 / 2511442 / 2511443 |
|
Fax No.: |
91-161-2511444 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Jagdish Rai Singal |
|
Designation : |
Managing Director |
|
Address : |
610-11 B, Aggar Nagar, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
03.01.1946 |
|
Date of Appointment : |
24.07.1986 |
|
|
|
|
Name : |
Mr. O.P. Sahni |
|
Designation : |
Director |
|
Address : |
317, F, Kitchul Nagar, Civil Lines, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
16.12.1941 |
|
Date of Appointment : |
28.09.1991 |
|
|
|
|
Name : |
Mrs. Darshana Singal |
|
Designation : |
Whole Time Director |
|
Address : |
610-11, B, Aggar Nagar, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
11.08.1947 |
|
Date of Appointment : |
19.12.1995 |
|
|
|
|
Name : |
Ms Reema Jain |
|
Designation : |
Director |
|
Address : |
87-L, Model Town, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
29.11.1974 |
|
Date of Appointment : |
10.06.1996 |
|
|
|
|
Name : |
Mr. Ranjodh Singh |
|
Designation : |
Director |
|
Address : |
4-209, Dew Drop, Randhir Singh Naga, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
03.06.1965 |
|
Date of Appointment : |
30.09.1997 |
|
|
|
|
Name : |
Mr. Joginder Singh Juneja |
|
Designation : |
Director |
|
Address : |
E-9/4, Vasant Vihar,New Delhi110011, India |
|
Date of Birth/Age : |
19.07.1937 |
|
Date of Appointment : |
30.09.1997 |
|
|
|
|
Name : |
Mr. Surinder K Singhal |
|
Designation : |
Director |
|
Address : |
h-No 86 Lakshmi Ladi Es Club, Rakh Bagh Civil Lines Ludhiana-141120,
Punjab, India |
|
Date of Birth/Age : |
16.03.1935 |
|
Date of Appointment : |
30.09.1999 |
|
|
|
|
Name : |
Mr. Satish Kumar Vadera |
|
Designation : |
Director |
|
Address : |
132, Basant Vihar, Jawadi, Ludhiana-141120, Punjab, India |
|
Date of Birth/Age : |
10.3.1944 |
|
Date of Appointment : |
09.06.2004 |
MAJOR SHAREHOLDERS
|
Names of Shareholders (As on 30.09.2005) :- |
|
No. of Shares |
|
Sh. J.R. Singal |
|
1494380 |
|
Sh. Ashwani Kumar Garg |
|
10 |
|
Sh. Ram Krishna Gupta |
|
10 |
|
Smt. Darshana Singal |
|
1000 |
|
Ms. Nidhi Singal |
|
100 |
|
Sh. Shekar Singal |
|
3000 |
|
Ms. Vandana S Aggarwal |
|
100 |
|
Ms. Reema Jain |
|
100 |
|
Sh. Harshit Rai Singal U/G Ms. Shreya Singal |
|
100 |
|
Ms. Shreya Singal |
|
100 |
|
Ms. Vanda Aggarwal U/G Ms. Vandana S. Aggarwal |
|
100 |
|
Sh. Abhishek Aggarwal U/G Ms. Vandana S. Aggarwal |
|
100 |
|
Sh. Alok Aggarwal |
|
100 |
|
Ms. Meenakshi Jain. |
|
100 |
|
Ms. Ishani Jain U/G Ms. Meenakshi Jain |
|
100 |
|
Sh. Rishab Jain U/G Ms. Meenaksh Jain |
|
100 |
|
Sh. Vineet Jain |
|
100 |
|
Ms. Shruti Garg U/G Ms. Monika Garg |
|
100 |
|
Ms. Monika Garg |
|
100 |
|
Varun Garg U/G Ms. Monika Garg |
|
100 |
|
Sh. Rajesh Garg. |
|
100 |
|
Total: |
|
1500000 |
|
Category (As on 31.03.2007) :- |
Percentage |
|
Directors or relative of directors |
99.92 |
|
Other top fifty (50) shareholders |
0.08 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Hand Tools and Forging |
|
|
|
|
Products : |
|
|
|
|
|
Exports : |
|
|
Countries : |
Russia, Panama, France, Belgium, Peru, Portugal and sell through
export hose to Japan, Germany, Switzerland, Holland and OEM’s such as Hero
Honda, TAFE, Swaraj, HMT, Kirloskar Bajaj Auto, Mahindra and Mahindra. |
|
|
|
|
Imports : |
|
|
Countries : |
Taiwan, China |
|
|
|
|
Terms : |
|
|
Selling : |
Credit, L/C |
|
|
|
|
Purchasing : |
Credit (60 days) |
GENERAL
INFORMATION
|
Customers : |
Retailers, Wholesalers, OEM’s |
|
|
|
|
No. of Employees : |
50 |
|
|
|
|
Bankers : |
·
State Bank
of India Address :Overseas Branch, Savitri complex,
Ludhiana-141001 Punjab, India ·
Small
Industries Development Bank of India Address: SIDBI Tower, 15 Ashoka Marg,
Lucknow – 226 001, Uttar Pradesh, India |
|
|
|
|
Banking Relations
: |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
R. D. Khanna Chartered Accountant |
|
Address : |
Dass Khanna and Company B-XX-771, First Floor, Gurdev Nagar, Pakhowal Road, Ludhiana:141001
Punjab, India |
|
|
|
|
Associates/Subsidiaries
: |
Eastman Cast Industries Limited , Ludhiana - 141001 Punjab, India |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/-(each) |
Rs.15.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs.10/-(each) |
Rs.15.000 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 |
15.000 |
15.000 |
15.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
90.812 |
63.589 |
44.169 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
105.812 |
78.589 |
59.169 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
167.439 |
105.293 |
85.264 |
|
|
2] Unsecured Loans |
37.500 |
6.000 |
1.500 |
|
|
TOTAL BORROWING |
204.939 |
111.293 |
86.764 |
|
|
DEFERRED TAX LIABILITIES |
7.598 |
5.614 |
4.160 |
|
|
|
|
|
|
|
|
TOTAL |
318.349 |
195.496 |
150.093 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
79.114 |
51.308 |
38.519 |
|
|
Capital work-in-progress |
15.527 |
0.287 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
130.640 |
84.030
|
76.809 |
|
|
Sundry Debtors |
154.282
|
107.730
|
87.071 |
|
|
Cash & Bank Balances |
13.917
|
15.952
|
12.211 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
33.319
|
28.950
|
18.658 |
|
Total
Current Assets |
332.158
|
236.662
|
194.749 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
95.345
|
82.411
|
78.935 |
|
|
Provisions |
13.105
|
10.350
|
4.240 |
|
Total
Current Liabilities |
108.450
|
92.761
|
83.175 |
|
|
Net Current Assets |
223.708
|
143.901
|
111.574 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
318.349 |
195.496 |
150.093 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
623.340 |
482.663 |
396.811 |
|
|
Other Income |
17.647 |
14.580 |
12.887 |
|
|
Total Income |
640.987 |
497.243 |
409.698 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
41.974 |
31.386 |
12.551 |
|
|
Provision for Taxation |
14.751 |
11.965 |
4.672 |
|
|
Profit/(Loss) After Tax |
27.223 |
19.421 |
7.879 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
89.822 |
73.409 |
71.309 |
|
|
Purchases made for re-sale |
243.167 |
181.688 |
141.108 |
|
|
Consumption of stores and spares parts |
99.100 |
52.917 |
51.932 |
|
|
Salaries, Wages, Bonus, etc. |
54.653 |
39.310 |
37.878 |
|
|
Managerial Remuneration |
1.279 |
1.379 |
0.859 |
|
|
Payment to Auditors |
0.168 |
0.116 |
0.102 |
|
|
Interest |
10.504 |
8.817 |
4.635 |
|
|
Insurance Expenses |
2.255 |
1.911 |
1.589 |
|
|
Power & Fuel |
26.412 |
25.520 |
20.508 |
|
|
Depreciation & Amortization |
5.738 |
4.563 |
3.857 |
|
|
Other Expenditure |
65.915 |
76.227 |
63.370 |
|
Total Expenditure |
599.013 |
465.857 |
397.147 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
4.25
|
3.90
|
1.92 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.73
|
6.50
|
3.16 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.83
|
10.89
|
5.38 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.39
|
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.96
|
2.59
|
2.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.06
|
2.55
|
2.34 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Name of the
company |
EASTMAN CAST AND FORGE LIMITED |
|
Presented By |
Mr. Jagdish Rai Singhal , Director |
|
1) Date and
description of instrument creating the change |
07.01.2005 Deed of hypothecation
executed by the company in favour of Small Industries Development Bank of
India (hereinafter referred to as
SIDBI ) A certified copy of the said deed of hypothecation is enclosed |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
The term loan of
Rs. 4.274 millions by way of
loan including Rs. 0.480
millions by way of credit linked
capital subsidy under CLCSS agreed to be lent and advanced by SI DBI to the company under together with interest, further interest, liquidated
damages, costs, charge, charges, expenses, and all other moneys payable by
the company to SIDBI in terms of the
loan Agreement dated 07.01.2005
(hereinafter referred to as “loan Agreement”) between the company of the one
part and SIDBI of the other part. |
|
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 |
All equipment
plant and machinery and other assets acquired by the company out of the loan
together with all spares, tools, and accessories and whether installed or
not and whether installed
or not and whether now lying loose or in cases or which are now lying
or stored in or about or shall hereafter from time to time during the
continuance of the security of theses
presents be brought into or upon or be stored or be in or about all the
company factories, premises and Godown
or wherever else the same may be or be held by any party to or the order or disposition of the
company or in the courses of transit
or on high seas or on order, or delivery, howsoever and whosesoever in
the possession of the company. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
The charge operates
as executive first charge to secure the due repayment and discharge by the
company to SIDBI of its term loan of
Rs. 4.274 millions by way of loan
including Rs. 0.480 millions by way
of credit linked capital Subsidy
under CLCSS together with interests, further interest, liquidated damages,
costs, charges, expenses and all other moneys payable by the company under
the said loan Agreement. The company has
undertaken to keep the hypothecation goods in marketable and good condition at its own costs and to
insure the same in the joint names of the company and SIDBI. All goods
hypothecated and all realizations and insurance proceeds thereof and all
documents in respect of the said security are to kept distinguishable and
held as the exclusive property of SIDBI. The security
created under the said Deed of hypothecation is to be a continuing security. |
|
5) Name and
Address and description of the person entitled to the charge. |
Small Industries
Development Bank of India Address : SIDBI
towers, 15 Ashok Marg, Lucknow – 226 001 |
|
Corporate
identity number of the company |
U27109DL1986PLC024925 |
|
Name of the
company |
EASTMAN CAST AND
FORGE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
RB-06, Inderpuri New Delhi, Delhi-110012, India |
|
This form is for |
Creation of
charge |
|
Type of charge |
Immovable
property Book Debts |
|
Particular of
charge holder |
SBI Factors and Commercial
Services Private Limited Address: 61
Sakhar Bhavan , 6th Floor, Nariman Point, Mumbai – 400 021,
Maharashtra, India E-mail: sbifactors@hathway.com
|
|
Nature of
instrument creating charge |
·
Receivable
factoring agreement dated 30.05.2007 ·
Hypothecation
of book debts and assets dated 30.05.2007 |
|
Date of
instrument Creating the charge |
30.05.2007 |
|
Amount secured by
the charge |
Rs. 12.500
millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest : FC : FPLR – 1.25%
Effective 11.50% p.a with monthly rests. Terms of Repayment : Payments in
respect of invoices should be made only to SBI Factors and commercial services
Private Limited in accordance with irrevocable arrangement of assignment.
Their receipt alone will constitute valid discharge of this debt and they
must notified immediately of any dispute regarding this invoice. Margin : 20% Extent and Operation of the charge : · Receivable factoring facility : Undated cheques of Rs. 10.000 millions with suitable covering letter. · Assignment of specific debts through LON Others : Equitable
mortgage of Flat No. 302, Building, No. G – 5, Vastu, Heights Co-op Hsg
Limited, Sundervan Complex, Off Lokhandwala Road, Andheri (West), Mumbai –
400 053, Area – 582 Sq.ft Of built up , belonging to Mr. Jagdish Rai Singal. |
|
Short Particulars
of the present modification |
All present and
future book debts of the clients in respect of agreed customers shall started
hypothecated to the factor by way of first charge (subject, however to any
charge in favour of any third party which may have been notified by the
Client and accepted by the Factor as having priority over its own charge). |
OTHER INFORMATION:-
The registered office of the company has been
shifted from A 3 Marble Arch Apartments 9 Prithvi Raj
Road, New Delhi: 110011 Delhi India to the
present address w.e.f 01/12/2006
Eastman Industries Limited has been recognized as Trading House
(Exports) by ministry of Commerce, government of India. As per para 12.5 of
EXIM policy of Government of India, FOB value of USS 24 million in Preceding
financial is required to become a trading house (Exports). The Group :Eastman
Cast and Forge Limited.
FIXED ASSET:
- Land
- Building
- Plant and Machinery
- Furniture and Fixture
- Vehicle
- Trade Mark
TRADE REFERENCES:-
· Parikh Company, Mumbai, Maharashtra, India
· Mehta Distributors, Bangalore, Karnataka, India
WEBSITE DETAILS: -
Company Profile
Subject is a Twelve
year old company with a manufacturing facility on sprawling 70,000 sq ft.
covered area. The ECFL plant in Ludhiana, manufacturers a wide range of Carbon
Steel and Chrome Vanadium Hand-Tools.
An ISO-9001:2000 certified facility to manufacture, the company started with an
edge when it bagged prized O.E. accounts like Mahindra and Mahindra, Bajaj Auto - World's largest manufacturers of
scooters having collaboration with Kawasaki of Japan for Motor Cycles, Hero
Honda Ltd., New Holland Tractors-(India), a unit of world known Ford Tractors,
H.M.T., TAFE, Swaraj Tractors, Kirloskar, Birla Yamaha and others. In a
nut shell ECFL is fully equipped to satisfy all kind of customers.
Besides O.E.M. Supplies, Tools are widely accepted across the Nation and in
International Markets.
The company takes pride in declaring that it has also earned "German
Product Safety Standard" Certification by TUV Rheinland, and other step
forward on its path of continual improvement towards total customer
satisfaction.
A great deal of customization, tailored packaging and professional services
place Eastman in a selected Brand of vendors for host of buyers
across the globe.
Eastman Industries
Limited was incorporated in the year 1982 by Mr. J.R. Singal. Ever since, its
establishment the company has moved itself to the position of an ISO 9002
company, certified by KPMG world wide quality registars. The simple
entrepreneurial Philosophies and integrated corporate policies have mobilized
the company to become a government approved Training House, entirely focusing
on international trade.
Product Profile
Eastman industries
Limited is a manufacturer exporter of a diversified range of bicycles,
components and accessories, suitable to both conventional and contemporary
bicycles. The company delivers complete bicycle, single speed and multispeed
chain wheels, free wheels, axels, hubs, pedals, chains, cframes, and other
parts and accessories.
Business
Structure and The Market Presence
The company has its
own established brand 'Eastman' in Latin America countries including
Panama.Eastman maintains pace with the technological development , changing consumer
behaviour, marketing and distributing strategies, to remain a competent brand
in the international market. For its excellent quality and time management
along with price actualization, Eastman has become a naturalm preference in the
territories of Latin America, Europe(encircled Mediterranean region ), and
Middle East. The company forsees to deliver the same or better, in a much wider
market.
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.43.21 |
|
UK Pound |
1 |
Rs.85.72 |
|
Euro |
1 |
Rs.67.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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 |
|