MIRA
INFORM REPORT
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Report Date : |
21.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
KUNDAN RICE MILLS LIMITED |
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Registered Office : |
Kundan House, D-17, Central
Market, Prashant Vihar, New Delhi – 110085 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.01.1995 |
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Com. Reg. No.: |
55-64113 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PTC064113 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKK01578D |
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PAN No.: [Permanent
Account No.] |
AAACK7098P |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturer and Importer of Polymer, Chemicals
and Food Grains. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 2170910 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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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 company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Kundan House, D-17, Central Market, Prashant Vihar, New
Delhi – 110085, India |
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Tel. No.: |
91-11-27567171 / 27865180 /27865160 |
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Fax No.: |
91-11-27567180 / 27865180 |
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E-Mail : |
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Website : |
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Factory : |
E-4, Industrial Area, Pasina Kalan, Panipat, Haryana |
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Factory : |
12, Pollock Street, Room # 22/23, Second Floor, Kolkata – 700001, West
Bengal, India |
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Tel. No.: |
91-33-22356734 / 32919301 |
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Fax No.: |
91-33-22356734 |
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E-Mail : |
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Factory : |
17, Bhailal Bhawan 1st Floor, 118, Keshv Ji, Naik Road,
Chinch Bunder, Mumbai – 400008, Maharashtra, India |
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Tel. No.: |
91-22-67106212 |
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Fax No.: |
91-22-28389292 |
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E-Mail : |
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Factory : |
78, City Centre, Room No. 22/23, Second Floor, 118, Keshav Ji, Swastik
Char Rasta, Ahmedabad – 380009, Gujarat, India |
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Tel. No.: |
91-79-32995206 |
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Fax No.: |
91-79-26560627 |
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E-Mail : |
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Overseas Office : |
Located at : v China
v Dubai
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Branches : |
Located at : v Mumbai v Ahmedabad
v China
v Kolkata
v Dubai
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DIRECTORS
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Name : |
Mr. Pradeep Garg |
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Designation : |
Managing Director |
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Address: |
B – 324, Sarswati Vihar, Delhi – 110034, India |
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Date of Birth/Age : |
46 Years |
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Qualification : |
Graduate |
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PAN No.: |
ABSPG8903F |
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Other Directorship : |
v Gargi
Overseas (Private) Limited, India v Durga
Rice Mills, Bilaspur, Madhya Pradesh |
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Name : |
Mr. Jai Bhagwan Garg |
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Designation : |
Director |
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Address: |
435 – R, Model Town, Panipat |
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PAN No.: |
ACDPBN5014E |
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Name : |
Mrs. Angoori Devi |
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Designation : |
Director |
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Address: |
435 – R, Model Town, Panipat |
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PAN No.: |
ABUPD6932F |
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Name : |
Mrs. Madhu Garg |
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Designation : |
Director |
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Address: |
B – 324, Sarswati Vihar, Delhi – 110034, India |
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Date of Birth/Age : |
01.08.1963 |
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Date of Resignation: |
11.01.2008 |
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PAN No.: |
ABTPG0991Q |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Mr. Jai Bhagwan Garg |
3224750 |
40.61 |
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Mr. Pradeep Garg |
1050000 |
13.22 |
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Mrs. Madhu Garg |
2725000 |
34.31 |
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Mrs. Angoori Devi |
25500 |
0.32 |
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Ms. Shalini Garg |
450000 |
5.67 |
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Ms. Sushma Goel |
24750 |
0.31 |
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Mr. S. K. Aggarwal |
5000 |
0.06 |
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Mr. Udit Garg |
436500 |
5.50 |
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Total |
7941500 |
100.00 |
Equity share breakup (Percentage of total equity)
As on 31.03.2007
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Sr. No. |
Category |
Percentage |
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1. |
Directors or relatives of director |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Importers, Exporters and Manufacturers of Rice, Food Grains and Chemicals. |
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Products : |
v Rice
in the Husk v Rice
Paraboiled v Basmati
Rice |
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Brand Names : |
"Vikrant" |
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Exports : |
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Countries : |
v China v Middle
East v Far
East v Africa |
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Imports : |
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Products : |
v Chemical and
Polymer v Food Grains |
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Countries : |
v USA v Middle
East v Europe v Malaysia v Indonesia v Argentina v Brazil v Iran v Korea v South
Africa v China v Thailand |
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Terms : |
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Selling : |
Credit ( 30 – 40 – 60 days) |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Suppliers : |
v Sri
Balaji Traders, Kakinada, Andhra Pradesh v Hanuman
Minor Oil Limited v Kancherla
Kameshwara Rice Mills v S.
Laxmi Ganpathi Traders v Sathi
Rama Reddy |
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Customers : |
v Punjab
Trading Inc., Canada v Payaha
Market, Bahrain v Office
of Supply Republic of Korea (OSROK), Korea v Ministry
of Food, Government of Bangladesh v Foodworld
Stores, South Africa v Wholesalers v End
Users |
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No. of Employees : |
Total : 53 ( Office : 50, Factory : 3) |
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Bankers : |
v Canara
Bank Overseas Branch, Connaught
Place, New Delhi - 110 001 v Bank
of Baroda, Panipat, Haryana v Allahabad
Bank v Bank
of Punjab Limited v ABN
Amro Bank, Delhi v HDFC
Bank, Panipat v IDBI,
Delhi v Central
bank of India, Karnal v Corporation
Bank, Hyderabad v Indian Overseas
Bank, Delhi v Punjab National
Bank, Delhi v Oriental Bank of
Commerce, Kolkata and Delhi v State Bank of
Bikaner and Jaipur v United Bank of
India, Kolkata v State Bank of
India |
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Facilities : |
CC Limit |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
S. Lall and Company Chartered Accountants |
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Address : |
15 Arya School Shopping Complex, Opposite Civil Hospital, G T Road,
Panipat – 132103, Haryana, India |
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Tel. No.: |
91-130-2630840 / 2630723 |
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Associates/Subsidiaries : |
v J.
B. Overseas Activity – Purchase of Wax,
Rice and Pulses v Kundan
Edible Production Limited Activity – Sale of CPC v Kundan
Fats and Proteins Limited Activity – Sale of Edible Oil v Durga
Rice Mills Activity – Purchase of Rice v Gari
Overseas Private Limited Activity – Sale of CPC v Lala
Munna Lal Paradeep Kumar Activity – Sale Pulses and
Commission Agent |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 120.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,941,500 |
Equity Shares |
Rs. 10/- each |
Rs. 79.415 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
79.415 |
79.415 |
79.415 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
354.767 |
308.667 |
305.216 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
434.182 |
388.082 |
384.631 |
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LOAN FUNDS |
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1] Secured Loans |
302.077 |
191.062 |
238.267 |
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2] Unsecured Loans |
8.884 |
7.759 |
12.905 |
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TOTAL
BORROW38ING |
310.961 |
198.821 |
251.172 |
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DEFERRED TAX LIABILITIES |
5.082 |
5.325 |
6.024 |
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TOTAL |
750.225 |
592.228 |
641.827 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
33.134 |
32.237 |
33.089 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
29.002 |
60.134 |
115.427 |
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DEFERREX TAX ASSETS |
0.000 |
0.540 |
0.540 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
843.500
|
322.365 |
711.360 |
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Sundry Debtors |
413.589
|
244.389 |
597.135 |
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Cash & Bank Balances |
21.349
|
26.298 |
26.014 |
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Other Current Assets |
276.111
|
120.097 |
275.501 |
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Loans & Advances |
112.428
|
92.374 |
20.920 |
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Total
Current Assets |
1666.977
|
805.523 |
1630.930 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
959.138
|
303.560 |
1128.773 |
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Provisions |
19.750
|
2.646 |
9.386 |
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Total
Current Liabilities |
978.888
|
306.206 |
1138.159 |
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Net Current Assets |
688.089
|
499.317 |
492.771 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
750.225 |
592.228 |
641.827 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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|
31.03.2005 |
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Sales Turnover |
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2416.475 |
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Other Income |
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24.349 |
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Total Income |
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2440.824 |
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Profit/(Loss) Before Tax |
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26.549 |
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Provision for Taxation |
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|
9.225 |
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Profit/(Loss) After Tax |
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|
17.324 |
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Earnings in Foreign Currency : |
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FOB Export Value |
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64.573 |
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Total Earnings |
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64.573 |
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Imports : |
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CIF Value |
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|
2444.000 |
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Total Imports |
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2444.000 |
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Expenditures : |
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Cost of Goods Sold |
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2306.776 |
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Manufacturing Expenses |
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|
17.821 |
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Administrative Expenses |
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|
22.218 |
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Selling Expenses |
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|
19.057 |
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Preliminary Expenses |
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|
0.000 |
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Financial Charges |
|
|
37.392 |
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Depreciation & Amortization |
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|
2.617 |
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Other Expenditure |
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|
8.394 |
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Total Expenditure |
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|
2414.275 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
--
|
-- |
0.71 |
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Net Profit Margin (PBT/Sales) |
(%) |
--
|
-- |
1.10 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
--
|
-- |
1.09 |
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Return on Investment (ROI) (PBT/Networth) |
|
--
|
-- |
0.07 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.25
|
0.79 |
2.96 |
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Current Ratio (Current Asset/Current Liability) |
|
1.70
|
2.64 |
1.43 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
v
LG Chemicals – Korea
Tel No.: +82-2-3773927
v
Kumho P and P – Korea
v
SHPO (USA) Shanghai Limited – China
Form 8
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Name of the company |
KUNDAN RICE MILLS LIMITED |
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Presented By |
Canara Bank, Overseas Branch, K G Marg, New
Delhi – 110027, India |
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1) Date and description of instrument creating the change |
Hypothecation agreement of goods and book debts dated 08.04.1997 Regd. On 29.04.1997 modified on various dates and finally on 30.05.2002 to enhance FLC (DA) limit from Rs. 975.000 millions to Rs. 1075.000 millions and extension of collateral security of all plant and machinery, motor vehicles and tools and accessories of the company to the enhanced FLC (DA) limit of Rs. 1075.000 millions last modification Regd. On 19.06.2002 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 1.500 millions |
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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 |
Hypothecation of stocks rice, paddy, silver and any other commodity acceptable to the Bank now lying or hereafter stored at company’s premises or at any other places including those in transit and all book debts, outstandings, monies, receivables, claims and bills arising out of the sale, disposal of the goods received under FLC (DA) limit – both present and future. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
All amounts payable under the said limit shall carry interest @ 21.25% p.a. payable on demand. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Overseas Branch, K G Marg, New
Delhi – 110027, India |
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6) Date and brief description of instrument modifying the charge |
Bank’s letter dated 30.06.2004 and supplemental collateral security agreement dated 30.06.2004 |
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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. |
The FLC (DA / DP) limit stands reduced to Rs. 850.000 millions with BG as a sub limit of Rs. 0.500 million. The collateral security of all plants, machineries, motor vehicles and tools accessories of the company as described in annexure to schedule ‘A’ of the agreement and also machineries and motor vehicles etc to be purchased / acquired hereinafter particulars of which will be furnished later erected / kept/ parked to be kept or in transit to company’s premises at E – 4, Industrial Area, Panipat, Pasinba Road, Pasina Kalan, Panipat, D 0 16 / 17, Citry Chambers, Central Market, Prashant Vihar, Delhi or any other places belonging to the company and acceptable to the Bank shall continue to be available to secure all amounts payable under the reduced FLC (DA/DP) limit of Rs. 850.000 millions with BG as a sub-limit of Rs. 0.500 millions together with all interests, costs, charges, expenses, commission etc. |
Form 8
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This form is for |
Modification of charge |
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Charge Identification (ID) number of the charge to be modified |
80026182 |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U74899DL1995PTC064113 |
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Name of the company |
KUNDAN RICE MILLS LIMITED |
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Address |
D-16 & 17, City Chambers, Central Market, Prashant
Vihar, New Delhi – 110085, India |
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Type of Charges |
v Immovable property |
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Particular of the charge holder |
Name : Canara Bank Address: Overseas Branch, B – 39, 1st Floor, Con. Circus City: New Delhi ISO country code: IN Pin code: 110001 e-mail ID: delhi1588@canbank.co.in |
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Nature or description of the instrument creating or modifying the charge |
Letter Evidsencing Deposit of Title Deeds. |
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Date of the instrument creating charge |
20.02.2007 |
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Amount Secure by the charge |
Rs. 65.000 millions |
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Brief particulars of the principal terms and conditions and extent and operation of the charge |
Rate of Interest Interest at or such other rates as may be supplied by the Bank from time to time. Terms of repayment On Demand Margin As Per Agreement Extent and operation of the charge The charge shall rank pari passu. |
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Short particulars of the Property charged |
EMT of property under Khasra No. 34/37, Khatoni No. 50 Rect No. 26, Killa 42/00, 19/8-0 measuring 14 kanal and kewat no. 391/337, Khatoni No. 477 Rect No. 26, Killa No. 2/8/0: Kewat No. 187/ 180, Khatoni No. 232 Rect No. 26, Killa No. 9/8-0: Kewat No. 143/131, Khatoni No. 175 Min Rect No. 26, Killa No. 12/80, 22/6-13, Khatoni No. 176/ Min Rect No. 26, Killa No. 11/80, 20/8-0: Kewat No. 391/337, Khatoni No. 477 Rect No. 26, Killa No. 21/6-13 Measuring 53 Kanal 6 Marla, Pasina Kalan, Panipat. |
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Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
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Particulars of the present modification |
Extent of operation of Pari Passu charge over EMT of Property situated at Pasina Kalan Panipat as described in Schedule – ‘B’ of led to stands extended for working capital limits of Rs. 650.000 millions sanctioned by Canara Bank. |
As Per Website
Details
Incorporated in January 1995 the subject is engaged in the business of
Manufacturers, Importers and Exporters of Rice and Chemicals. The subject is a Government
of India Certified Golden Status Star Trading House holding as ISO 9002
Certification for Quality Management has ventured into Chemical Sector through
its Chemical Division. The Chemical Division of the Group deals with the
hundreds of Industrial Users by Importing / Storing various Chemicals and
Solvents.
In 1984 they began with a small scale trading unit, which dealt in rice.
Today the subject is one of the biggest manufacturing companies in India.
With a capacity of producing two hundred and twenty matric tons of
Vanaspati, Shortening, Margrines and Mustard Oil in northern India. Their
products are manufactured in their plant imported fro Germany, spread over 20
acres of land and situated in the industrial town of Bhiwadi, near the National
Capital Territory of Delhi. The Unit is headed by Mr. Pradeep Garg, Managing
Director.
The Bulk Storage Terminals have been Leased by the company at all the
major Ports like Kandla, Mumbai and Kolkata
The subject is having their offices in Dubai, Singapore and London.
CMIE [Council for Monitoring Indian Economy] conducted a survey in which
‘Kundan Rice Mills Limited’ placed on No. 10 rank among top 100 unlisted
companies of India on turnover basis.
Introduction and History
Subject has a history that dates back
to the early eighties when one man set out on a mission with a venture of small
scale unit of Rice Mill in Haryana (India).
Business gradually grew and became global in Nineties. The Company added
diversified trading activities of various commodities and became 10th largest
closely held Company in the country. It received the various export performance
award and got status of "Golden
Status Star Trading House".
The group has interest in manufacturing as well as domestic and international
trading activities.
Subject deals in International
trading and distribution activities of various products including edible oils,
Pulses, Chemicals, waxes etc. Subject has made tie-ups with International Major
and Domestic consumers to minimize the hassles that ultimately result in cost
advantage to everyone. The supplies are regular from reputed manufacturers in
Iran, Qatar, Oman, UAE, USA, Europe, South Africa, UK, Singapore, Malaysia,
Indonesia, Libya, Russia, Romania, Ukraine, Uzbekistan, Korea & China. In
Short, Kundan is becoming the most trusted name in the World of 24/7 global
Economy.
Subject’s Corporate Office is in
New Delhi. The branch offices are located at Mumbai, Kolkata, Ahmedabad &
Hyderabad and has a vast network of 26 offices in all major cities of the
country. Kundan also own active offices abroad for various operational
activities.
Kundan Group - The
Chemical Division deals with the number of Industrial Users by importing,
Storing and distributing various Chemicals, Solvents & Polymers. KUNDANis
active and has become most trusted name in the supply & service amongst the
Major chemical users all over the lenght and breath of India. The customers'
chain includes various e.g. Drugs & Pharmaceuticals, Plywood &
Laminates, Formaldehyde, Soaps & Detergents, Pains & Thinners, Resins
& Plasticizers, Footwear, Cosmetics & Toiletries etc.
Subject is expanding beyond its
traditional core business of Global trading of agro-commodities to utilize the
company's long-standing, close working relationships with some of the best
Professionals and Industrial Houses around the world.
Subject has made tie-ups with
International Majors of Chemical Industry to minimize the hassles and
ultimately cost advantage to everyone.
Subject is dedicated to :
v Reduction of cost without
compromising on quality.
v Maintain leadership in Chemical
Sales and Marketing, Logistics and Excel in Supply Chain Management.
Subject is confident and looking
ahead to explore every opportunity in the growing Global Economy.
Manufacturing
Refined Oil :
v
Refined Oils : The group is manufacturing various refined oils namely
Soyabean, Corronseed, Sunflower and Groundnut under the brand name ‘Kundan’
v
Vanaspati : The Kundan group is manufacturing Vanaspari in the Brand
Name of ‘Jumbo’
v
Milk Products : Producers of ghee from fresh Milk procured from the best
of the dairies. They are also producing Skimmed Milk Powder is the bye products
of the production of Pure Ghee.
v
Laundry Soap : They are manufacturing washing soap under the brand name
Jumbo
Bakery Shortening and Margarines : Manufacturing Bakery Shortening under
the brand name Kundan separately for Biscuit and Puff and Kundan Bakery
Margarine separately for Puff, cakes and icing.
Mustard Oil : It is produced Mustard
Oil and being marked in the brand name of “Taj Mahal”
Imports
The supplies are regular and are in bulk from reputed manufacturers in
Iran, Qatar, Oman, UAE, USA, Europe, South Africa, UK, Singapore, Malaysia,
Libya, Russia, Rumania, Ukraine, Uzbekistan, Korea and China
Edible Oil [Mainly CPO and Soya Degummed Oil] in India, with an average
of 40,000 MT approx. every month, from Malaysia, Brazil, Indonesia, Brazil and
Argentina.
Products Range – Crude Vegetable Oil, Refined Edible Range,
Mustard Oil, Chemicals, Dairy Products, Wax, Rice, Pulses, 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 :
The 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.
The 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. 42.71 |
|
UK Pound |
1 |
Rs. 85.11 |
|
Euro |
1 |
Rs. 67.73 |
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 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
|
63 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|