MIRA
INFORM REPORT
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Report Date : |
22.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
KILITCH DRUGS INDIA LIMITED |
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Registered Office : |
C-301/2, MIDC TTC Industrial Area, Pawane Village, Thane –
400 705, Maharashtra. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.05.1992 |
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Com. Reg. No.: |
066718 |
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CIN No.: [Company
Identification No.] |
L24239MH1992PLC066718 |
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IEC No.: |
0394053435 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMK05523A |
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PAN No.: [Permanent
Account No.] |
AAACK2917R |
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Legal Form : |
A Public Limited Liability Company. Company’s Shares are Listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturers and Suppliers of Pharmaceuticals, mainly of
Injectables. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 680000 |
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Status : |
Satisfactory |
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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. Trade relations are fair. Business is active. Payments
are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED
BY
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Name : |
Mr. Kupp Subramanuam |
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Designation : |
Manager |
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Contact No.: |
Mobile no.91-9333259507 |
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Date : |
16.07.2008 |
LOCATIONS
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Registered Office : |
C-301/2 MIDC TTC Industrial Area, Pawane Village, Thane –
400705, Maharashtra, India |
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Tel. No.: |
91-22-27630518/27680913/27619023/ 27670322/ 65144185 |
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Fax No.: |
91-22-27680912 |
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E-Mail : |
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Website : |
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Corporative Office : |
Village Nihalgarh, Pontasahib, Himachal Pradesh, India |
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Corporate Head Office : |
Unit No.37, 3rd Floor, Sub Plot 2, D W T Patil Marg, Deonar,
Mumbai – 400088, India |
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Tel. No.: |
91-22-67033322 |
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Fax No.: |
91-22-67031658 |
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E-Mail : |
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Website : |
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Factory 1 : |
2, Bahaveshwar, 148/B, Dr. Annie Besant Road, Mumbai – 400018, Maharashtra, India |
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Tel. No.: |
91-22-24951941 |
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Fax No.: |
91-22-24953636 |
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E-Mail : |
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Website : |
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Factory 2 : |
C-301/2, TTC Industrial Area, MIDC, Pawane, Navi Mumbai - 400 707, India. |
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Tel. No.: |
91-22-2768 0913 / 6514 4185 |
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Fax No.: |
91-22-2768 0912 |
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Factory 3 : |
Khasra No. 5/1, 5/2, 5/3, Village: Nihalgarh, Tehsil: Paonta Sahib, Himachal Pradesh - 173 025. India. |
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Tel. No.: |
91-1704 224094 / +91-9816104050/51 |
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Fax No.: |
91-1704 224658 |
DIRECTORS
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Name : |
Mr. Mukund P. Mehta |
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Designation : |
Managing Director |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B. Com |
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Name : |
Mr. Paresh P. Mehta |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
50 Years |
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Qualification : |
B. Form (It is related to Marketing) |
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Name : |
Mr. Bhavin M. Mehta |
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Designation : |
Director |
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Date of Birth/Age : |
32 Years |
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Qualification : |
B. Form (It is related to Marketing) |
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Name : |
Mr. Jagdish Engineer |
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Designation : |
Director |
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Name : |
Mr. Sureshchandra. K.Sharma |
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Designation : |
Director |
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Name : |
Mr. Baburao Sawant |
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Designation : |
Whole Tome Director |
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Name : |
Mr. Dilip Chaudhary |
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Designation : |
Director |
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Name : |
Ms. Nilima Waigankar |
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Designation : |
Director |
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Name : |
Mr. Dinesh Shah |
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Designation : |
Whole Time Director |
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Name : |
Mr. Mukesh Shah |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Jagdish Patel and Company |
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Designation : |
Company Secretary |
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Name : |
Mr. Pratap K. Mehta |
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Designation : |
Chairman |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of
Promoter and Promoter Group |
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Indian Individual/ Hindu Undivided Family |
2773893 |
21.01 |
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Bodies Corporate |
6018242 |
45.59 |
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Public
Shareholding |
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Institutions Financial Institutions |
100 |
0.00 |
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Foreign Institutions Investors |
59280 |
0.45 |
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Non-Institutions Bodies Corporate |
615077 |
4.66 |
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Individual Shareholders Holding Nominal Share Capital up to Rs.0.100
Millions |
2560244 |
19.39 |
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Individual Shareholders Holding Nominal Share Capital in excess of
Rs.0.100 Millions |
1117779 |
8.47 |
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Clearing Member |
21357 |
0.16 |
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Non resident Indians |
36150 |
0.27 |
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Total |
13202122 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Suppliers of Pharmaceuticals, mainly of
Injectables. |
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Products : |
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Exports : |
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Countries : |
Nigeria, Srilanka, Tanzania |
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Imports : |
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Countries : |
China, Italy |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Injectables |
- |
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300000000 |
234332836 |
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Dry Powder |
- |
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90000000 |
9012563 |
GENERAL
INFORMATION
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Bankers : |
Nariman Point, Mumbai – 400 021, Maharashtra, India
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
· R.S. Nagi and Company Chartered Accountants (Andheri) · M. P. Kala and Company Chartered Accountants |
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Address : |
Plot No. 163, Park Street, S.V.P. Road, Andheri (West), Mumbai – 400 053, Maharashtra, India |
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Associates/Subsidiaries : |
NBZ Pharma Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7057122 |
Equity Shares |
Rs.10/- each |
Rs.70.571
Millions |
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Less : Call in arrears Other than Directors |
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Rs.0.134
Million |
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Total |
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Rs.70.437 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 |
70.437 |
67.083 |
63.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
65.407 |
49.654 |
35.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
135.844 |
116.737 |
99.600 |
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LOAN FUNDS |
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1] Secured Loans |
198.062 |
80.362 |
7.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
198.062 |
80.362 |
7.000 |
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DEFERRED TAX LIABILITIES |
4.192 |
2.800 |
0.000 |
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TOTAL |
338.098 |
199.899 |
106.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
433.710 |
288.068 |
56.500 |
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Capital work-in-progress |
66.307 |
0.000 |
27.700 |
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INVESTMENT |
1.998 |
0.923 |
30.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
61.142
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21.765 |
21.400 |
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Sundry Debtors |
101.346
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21.179 |
52.600 |
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Cash & Bank Balances |
8.222
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2.367 |
8.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
22.284
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47.408 |
38.400 |
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Total
Current Assets |
192.994
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92.719 |
120.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
365.302
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188.319 |
134.400 |
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Provisions |
0.000
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0.000 |
2.200 |
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Total
Current Liabilities |
365.302
|
188.319 |
136.600 |
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Net Current Assets |
(172.308)
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(95.600) |
(15.800) |
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MISCELLANEOUS EXPENSES |
8.391 |
6.508 |
7.500 |
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TOTAL |
338.098 |
199.899 |
106.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
323.838 |
244.296 |
263.100 |
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Other Income |
0.566 |
5.895 |
3.400 |
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Stock Adjustment |
0.000 |
0.000 |
0.800 |
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Total Income |
324.404 |
250.191 |
267.300 |
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Profit/(Loss) Before Tax |
13.373 |
6.677 |
5.200 |
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Provision for Taxation |
1.930 |
2.410 |
0.900 |
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Profit/(Loss) After Tax |
11.443 |
4.267 |
4.300 |
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Export Value |
38.828 |
16.413 |
NA |
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Expenditures : |
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Cost of Goods Sold |
220.042 |
201.428 |
191.800 |
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Employee Cost |
9.542 |
5.571 |
16.000 |
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Manufacturing Expenses |
28.288 |
18.284 |
6.700 |
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Administrative Expenses |
25.068 |
12.061 |
12.700 |
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Raw Material Consumed |
0.000 |
0.000 |
5.700 |
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Selling Expenses |
1.189 |
0.690 |
21.300 |
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Interest |
0.000 |
0.000 |
1.100 |
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Power & Fuel |
0.000 |
0.000 |
1.300 |
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Depreciation & Amortization |
26.902 |
5.481 |
5.500 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
311.031 |
243.515 |
262.100 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th Quarter |
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Sales Turnover |
239.100 |
274.700 |
328.200 |
330.600 |
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Other Income |
0.000 |
0.000 |
0.000 |
1.400 |
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Total Income |
239.100 |
274.700 |
328.200 |
332.000 |
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Total Expenditure |
201.700 |
220.400 |
271.400 |
256.100 |
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Operating Profit |
37.400 |
54.300 |
56.800 |
75.900 |
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Interests |
3.200 |
8.700 |
9.600 |
18.600 |
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Gross Profit |
34.200 |
45.600 |
47.200 |
57.300 |
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Depreciation |
11.200 |
11.300 |
11.300 |
29.100 |
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Tax |
2.100 |
3.100 |
3.000 |
6.700 |
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Reported PAT |
20.900 |
31.000 |
32.600 |
21.500 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Debt-Equity Ratio |
1.10 |
0.40 |
0.05 |
0.02 |
0.03 |
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Long Term Debt-Equity Ratio |
0.89 |
0.35 |
0.02 |
0.02 |
0.03 |
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Current Ratio |
0.47 |
0.63 |
0.97 |
1.54 |
2.51 |
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TURNOVER RATIOS |
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Fixed Assets |
1.04 |
2.28 |
2.73 |
2.19 |
1.20 |
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Inventory |
7.81 |
11.31 |
13.06 |
11.75 |
8.62 |
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Debtors |
5.28 |
6.62 |
5.78 |
4.79 |
3.14 |
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Interest Cover Ratio |
2.34 |
1.67 |
2.91 |
12.00 |
8.67 |
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Operating Profit Margin(%) |
15.47 |
3.27 |
3.31 |
5.06 |
8.34 |
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Profit Before Interest And Tax Margin(%) |
7.16 |
1.02 |
1.22 |
2.00 |
2.78 |
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Cash Profit Margin(%) |
11.40 |
2.46 |
2.74 |
4.28 |
7.81 |
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Adjusted Net Profit Margin(%) |
3.09 |
0.20 |
0.65 |
1.22 |
2.25 |
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Return On Capital Employed(%) |
8.99 |
1.73 |
3.44 |
4.31 |
3.16 |
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Return On Net Worth(%) |
7.92 |
0.46 |
1.77 |
2.42 |
2.34 |
LOCAL AGENCY
FURTHER INFORMATION
TRUSTSEAL ACCEPTANCE CHART:
|
Parameters |
Detail |
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Existence
Verification |
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Name |
KILITCH DRUGS INDIA LIMITED |
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Statutory
Approvals |
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Income Tax
Registration |
AAACK2917R |
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Import Export
Code |
0394053435 |
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Credibility Factors |
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India Mart
Client Since |
9 Years |
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Years Of
Establishment |
1992 |
TRADE REFERENCES:
·
Xanbaxy Laboratories
·
Sandoz Laboratories
·
Emcure Pharmaceuticals
REVIEW
OF PERFORMANCE AND BUSINESS PROSPECTS
Directors' report it was mentioned that manufacturing
facility at Himachal Pradesh will commence shortly. They are pleased to inform
that the new facility commenced production in November'06 and is the main
reason for increase in turnover by 30% and quantum jump in net profit after tax
which grew by 2.68 times.
The first quarter of 2007-08 continued the trend. The
quarter the utilization of capacity at new plant was about 20%. The profit for this
quarter surpassed the net profit for the whole year ended on 31st March 2007.
The company continues to enjoy good business relationship
with leaders in pharma industries like Ranbaxy, Nicholas Piramal, Zydus-
Cadila, Emcure, Zuventus, fvierck, Tablet India, Unichem, Sandoz, Ferring etc.
FINANCE
The Company has availed financial Facilities from State Bank
of India, ICICI Bank Limited and The Shamrao Vithal Co-Op Bank Limited in
multiple banking arrangements.
The paid up capital as at March 2007 has increased by 335412
equity shares of Rs.10/- each fully paid up as result of preferential allotment
of shares to the promoters during the year under review. The paid capital of
the company as the date of report stands at 1,32,02,122 equity shares of Rs.107-
fully paid up. The increase is mainly due to preferential allotment of
60,00,000 Equity shares to NBZ Pharma Limited, a company owned by the promoters
of the Company. As required by the SEBI Guidelines, NBZ Pharma Limited is in
the process of taking steps to make an open offer to the public shareholders of
the company. The Funds raised from the shares allotted on preferential basis
are being used for working capital and normal capital expenses for on going
project at Himachal and partly for repayment of high cost debts.
The
Management discussion and Analysis Report
Industry
Structure and Development, Opportunity, Threats and Concern
Indian Pharmaceutical Industry is emerging as one of the
fastest growing industry in the world with wide ranging capabilities in the
complex field of drug manufacture and technology, having locational advantages,
tax free zones, and low wage rate along with strong GDP and healthy FDI policy
of the Government.
- Opportunities
The Company has set up ultra modern High Tech Pharmaceutical
Formulation manufacturing unit at Paonta Sahib in the sate of Himachal Pradesh,
excise and tax free zone.
This state of art facility is likely to qualify for
obtaining US FDA approval in due course.
The above facility is spread over 13.5 Acres with a separate
building for Cephalosporin and General in jectible. This facility has been
visited and audited by many MNC Pharma Companies and many of them have accorded
approval for the same. The Company is confident of getting mandate from them
- Threats and concern:
It is widely reported in the newspapers that Government is
considering a proposal to bring Thrid party and contract manufacturing of
Pharmaceuticals in Himanchal Pradesh under excise ambit. This backward step, if
taken, may hamper the profitability of the Company.
The sudden increase in activity level of Pharma Industry in
Himachal Pradesh has created acute shortage of skilled man power. The Company
has countered this concern by deploying the some of the key personnel from its
Mumbai Plant to Himachal Pradesh.
OUTLOOK:
The Company proposes to focus to get Paonta Sahib Facility
audited by UK MHRA, TGA and US FDA in coming year and after the approval the
company is hopeful to get MNC as well Indian Pharma giants manufacturing
activities for exports.
The Company expects very encouraging response form clients
during the year and this would result in higher capacity utilization of new
plant. The Company a proposal to develop 22.8 Bega land adjacent to the
existing Plant at Paonta Sahib for Oncology, Hormone, Betalactum etc. is under
consideration.
Fixed Assets:
- Land
- Factory
Building
- Office
Equipments
- Plant and
Machinery
- Furniture and
Equipment
- Computer
- Motor Car
- Air
Conditioner
- Electrical
Installation
- Laboratory
Equipment
- Pager
- Mobile Phone
History:
Subject was incorporated on 12th May 1992 at Thane in Maharashtra having Company Registration Number 11-66718.
Incorporated in May '92 as a public limited company, the Company went public in February 94 to set up a pharmaceutical formulation plant at Thane to manufacture pharmaceutical products in the form of tablets, capsules,liquid orals, ointments, creams and injectables. Even before the plant was commissioned, the company came out with a rights issue in October '95 to expand the injectible capacity. Commercial production at the plant at Thane commenced in 1996. The company has two divisions - O T C and ethical.
A Pharmaceutical formulation plant at Sana'a Republic of Yemen was set up at a
cost of Rs150 millions by entering into an agreement with Al-Fath Trading
Corporation. It also entered into an agreement with a Miami company for the
export of their medicine to West Indies, south and Central America.
The company entered into a contract with one of the leading companies in the
Republic of Yemen which it had set up at a cost of Rs.25 millions tanning unit,
which was implemented in the year 1995-96. The company had set up a bulk drug
unit at Patalganga, Maharashtra for producing raw materials for formulations.
The company exports to Sudan, Yemen, Middle East, Miami and Certain South
American companies.
Management:
Their presence carved by the company is credited to the
young and dynamic work force, led under the cohesive direction of a visionary management
- taking the company to greater heights.
Mr. Pratap K. Mehta
Chairman
Aged 70 years is Pharmacist having an experience of 50 years
in the pharmaceutical line. He began his career in the year 1951 by setting up
a small Retail Chemist Shop, which are today now multi location modern
manufacturing facilities. All due to his relentless efforts.
A strict discipliner he would chime the whole day
"First Deserve than Desire" which he not only preached but also
practiced himself. He was associated with various pharmaceutical organizations.
Ex-Secretary - Small Drug Manufacturers Association Of
India, Mumbai.
Ex-Vice President - Retail Drug and Chemist Association,
Mumbai.
Ex-Member - Indian Drug Manufacturers Association, Mumbai.
Mr. Mukund P. Mehta
Managing Director
Aged 55 years is a Commerce and Law graduate and has a rich
experience of banking and other related financial matters. He was instrumental
in signing a joint venture MOU with the largest trade Organization in Yemen,
Sudan and U.A.E. to set up an Ultra Modern manufacturing facility in Sanaa,
Khartoum and Dubai for manufacturing of pharmaceutical formulations.
Sublimed from his vision subject today has multi location
manufacturing facilities. A network of distribution system throughout India
with a well-established team of Professional Marketing representative's team.
This glorious achievement singularly stands testimony to his entrepreneurship.
It was his vision and efforts which have made subject capture market of over
Rs.2600.000 Millions on BSE Stock Exchange. This glorious achievement
singularly stands testimony to his entrepreneurship. Member - Indian Drug
Manufacturers Association, Mumbai.
Mr. Paresh P. Mehta
Joint Managing Director
Aged 45 years is a Pharmacy graduate from Bombay University
having 25 years of experience in pharmaceutical formulation technology. An
academician, he craves for details of every minute single entity, be it a
requirement of paper pins for a small office or power plants for multi
projects.
Timely implementation of any project is his motto and he
goes to its logical end that resulted in the completion of Sibject in a record
time of 330 days from grass root level to commissioning. The largest, latest
and the most prestigious project executed by him in last 3 years, has set an
example of his ability to showcase the world what an entrepreneur can envision.
The Kilitch Paonta Sahib 3.5 Lac sq. ft. sprawling facility built was earlier a
free green field. Member - Indian Drug Manufacturers Association, Mumbai.
Mr. Bhavin M. Mehta
Technical Director
He is a pharmacy graduate from M.E.T's Institute of
pharmacy. He entered business at a young age learned all the tricks of trade
and soon metamorphosed to a torchbearer when he was just 26. He brought about
outstanding results for the company.
Mr. Bhavin Mehta took the challenges of subject
wholeheartedly and has steered it to the present position with several unique
advantages. His ability to perceive and decisive approach to business situation
backed by his untiring commitment for achieving excellence has few parallels.
He is modelling Kilitch to attain a world-class benchmark with support from his
young, energetic and dedicated team.
His vision is to attain a world-class benchmark for Kilitch.
His crave for achieving excellence in manufacturing has lead Kilitch to be the
first pharma company in India to implement "Kaizen" (Japanese for
"Change for the better").
Advisory Member as Industrialist - M.E.T's Institute of
Pharmacy, Mumbai.
News
and Events:
Kilitch
has signed an agreement with US based company
Kilitch has signed an agreement with us based pharmaceutical
company for manufacturing of their Generic Molecules for the period of 2 year
which will be starting in mid 2008 would like to expand our business thereon.
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.42.71 |
|
UK Pound |
1 |
Rs.85.11 |
|
Euro |
1 |
Rs.67.73 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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. |
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 |
|