MIRA
INFORM REPORT
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Report Date : |
16.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
BPL DISPLAY DEVICES LIMITED |
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Formerly Known As : |
UPTRON COLOUR PICTURE TUBES LIMITED |
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Registered Office : |
Uptron Colour Picture, A/41/42 and 42/1, Site IVINDL Industrial Area,
Sahibabad, Ghaziabad – 201010, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
08.11.1985 |
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Com. Reg. No.: |
7518 |
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CIN No.: [Company
Identification No.] |
L27104UP1985PLC007518 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTB00002C MRTB00265G MRTB00269D |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of Cathode Ray Tubes for Colour T. V. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Sick Company |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Exist |
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Comments : |
Financial position of the company is poor. Ways and means position are difficult. Payments are reported as slow and delayed. The company is a sick unit. It has been referred to Board of Industrial Finance and Reconstruction and whose nominee has been appointed on the Board. Hence, the company can be considered for any business dealings on safe and secured trade terms and conditions. |
LOCATIONS
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Registered Office / Factory : |
Uptron Colour Picture, A/41/42 and 42/1, Site IVINDL Industrial Area,
Sahibabad, Ghaziabad – 201010, Uttar Pradesh, India |
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Tel. No.: |
91-120-2896422/23/24/25/26/27 |
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Fax No.: |
91-120-2896428/ 2896429 |
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E-Mail : |
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Website : |
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Branches : |
D-6, South Extension, Part II, New Delhi – 110 049, India. |
DIRECTORS
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Name : |
Mr. T. P. G. Nambiar |
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Designation : |
Chairman |
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Name : |
Mr. Manish Bahl |
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Designation : |
Special Director (BIFR) |
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Name : |
Mr. Ajit G. Nambiar |
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Designation : |
Vice-Chairman |
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Name : |
Mr. A. Karati |
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Designation : |
ICICI’s Nominee |
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Name : |
Mr. D. G. Chaudhary |
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Designation : |
IFCI’s Nominee |
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Name : |
Mr. H. D. Mahaswari |
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Designation : |
IDBI’s Nominee |
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Name : |
Mr. K. Jayabharat Reddy |
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Designation : |
Director |
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Name : |
Mr. M. K. Narayanan |
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Designation : |
Director |
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Name : |
Mr. S. M. Bathe |
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Designation : |
Director |
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Name : |
Mr. N. V. G. K. Bhat |
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Designation : |
Director and Chief Operating Officer |
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Name : |
Air Cmde. M. K. Chandrasekhar |
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Designation : |
Director (Retired) |
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Name : |
Mr. S K Mandal |
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Designation : |
Nominee Director (IFCI) |
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Name : |
Mr. A M Saleem |
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Designation : |
Director and Chief Executive Officer |
KEY EXECUTIVES
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Name : |
Mr. Parveen Jain |
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Designation : |
Company Secretary |
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Name : |
Mr. Sanjeev Kumar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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BPL limited |
45750000 |
83.18 |
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Directors* |
40 |
-- |
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Government Companies |
1785150 |
3.25 |
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Financial Institutions/ Banks |
6280870 |
11.42 |
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Bodies Corporate |
13320 |
0.02 |
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Non-Resident Indians |
29050 |
0.05 |
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Overseas Corporate Bodies |
621000 |
1.13 |
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Individuals |
519470 |
0.95 |
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Total |
54998900 |
100 |
Note:
* Mr. T P G Nambiar and Mr. Ajit G. Nambiar
are holding 20 equity shares each in the company.
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cathode Ray Tubes for Colour T. V. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Colour Picture Tubes |
Nos. |
1400000 |
1252126 |
GENERAL
INFORMATION
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Suppliers : |
v Amar Packaging
Industries v Anabond Limited v Atul Sales
Corporation v Evans India v Gaurav Engineers v Grover and
Company v Intek Tapes
Private Limited v K K Industries v Maha Laxmi Press
Tools v New India
Polymers and Engineers v Noble Biotech
Limited v Perfect Pac
Limited v Rasayana v Sahni Industries v Sanjay Engineering
Works v Saptshati
Enterprises v Shital India v Shiva Packaging
Industries v Shri Cauvery
Industries v South East
Electric Company Limited |
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No. of Employees : |
1200 |
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Bankers : |
v Canara Bank, Nehru Place, New Delhi – 110 019, India v State Bank of India, Sahibabad, Ghaziabad, Uttar Pradesh, India v ICICI Bank, Pragti Tower, New Delhi – 110 003, India v Punjab National Bank, Kanpur, Uttar Pradesh, India |
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Facilities : |
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Banking
Relations : |
Unknown |
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Auditors : |
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Name : |
Jassal Ranganathan and Associates Chartered Accountants |
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Address : |
B-22, Ground Floor, Pamposh Enclave, Greater Kailash – 1, New Delhi – 110 048, India |
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Associates/Subsidiaries : |
v Electronic Research Limited v BPL Euro Trade Limited v Bharat EPDC Private Limited v Kleer Industries Inc, USA v BST Limited v BS Appliances Limited v Merino Finance Private Limited v Dynamic Electronics Limited v Oriental Transport Limited v ER Computers Private Limited v Phoenix Holdings Private Limited v Stallion Computers Private Limited v BPL Soft Energy Systems Limited v Bharat Energy Ventures Limited |
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Holding Company: |
BPL Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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55000000 |
Equity shares |
Rs. 10/- each |
Rs. 550.000 millions |
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4500000 |
1% Cumulative redeemable preference shares |
Rs. 100/- each |
Rs. 450.000 millions |
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Total |
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Rs. 1000.000
millions |
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Issued & Subscribed Capital:
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No. of Shares |
Type |
Value |
Amount |
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55000000 |
Equity shares |
Rs. 10/- each |
Rs. 550.000 millions |
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4500000 |
1% Cumulative redeemable preference shares |
Rs. 100/- each |
Rs. 450.000 millions |
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Total |
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Rs. 1000.000
millions |
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Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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54998880 |
Equity shares |
Rs. 10/- each |
Rs. 549.989 millions |
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4500000 |
1% Cumulative redeemable preference shares |
Rs. 100/- each |
Rs. 450.000 millions |
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Total |
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Rs. 999.989
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 (12 months) |
31.03.2006 (18 months) |
30.09.2004 (18 months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
999.988 |
999.988 |
1377.100 |
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2] Loans Convertible into Equity |
377.100 |
377.100 |
0.000 |
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3] Advances from Promoters |
0.000 |
757.038 |
0.000 |
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4] (Accumulated Losses) |
(1901.326) |
(1520.867) |
(1152.600) |
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NETWORTH |
(524.238) |
613.259 |
224.500 |
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LOAN FUNDS |
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1] Secured Loans |
787.110 |
944.509 |
1027.500 |
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2] Unsecured Loans |
1265.690 |
1201.598 |
909.100 |
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TOTAL BORROWING |
2052.800 |
2146.107 |
1936.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1528.562 |
2759.366 |
2161.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1963.207 |
2074.373 |
2090.700 |
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Capital work-in-progress |
7.222 |
70.280 |
32.900 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
641.807
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496.921 |
398.600 |
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Sundry Debtors |
33.412
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701.690 |
763.500 |
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Cash & Bank Balances |
9.693
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9.980 |
13.600 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
84.003
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58.625 |
42.600 |
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Total
Current Assets |
768.915
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1267.216 |
1218.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1165.248
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613.467 |
1147.300 |
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Provisions |
45.529
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39.035 |
33.500 |
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Total
Current Liabilities |
1210.777
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652.502 |
1180.800 |
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Net Current Assets |
(441.862)
|
614.714 |
37.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1528.562 |
2759.366 |
2161.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 (12 months) |
31.03.2006 (18 months) |
30.09.2004 (18 months) |
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Sales Turnover |
1660.135 |
2951.513 |
3312.900 |
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Other Income |
0.124 |
0.328 |
265.000 |
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Total Income |
1660.259 |
2951.841 |
3577.900 |
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Profit/(Loss) Before Tax |
(379.827) |
(366.678) |
(189.000) |
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Provision for Taxation |
0.630 |
1.587 |
0.000 |
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Profit/(Loss) After Tax |
(380.458) |
(368.265) |
(189.000) |
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Earnings in Foreign Currency : |
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Technical Know-how and Supervision fee |
NA |
4.843 |
NA |
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Travelling and Other Earnings |
0.079 |
1.628 |
NA |
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Total Earnings |
0.079 |
6.471 |
NA |
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Imports : |
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Raw Materials |
455.719 |
747.579 |
NA |
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Capital Goods |
0.086 |
8.699 |
NA |
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Total Imports |
455.805 |
756.278 |
NA |
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Expenditures : |
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Manufacturing Expenses |
397.953 |
820.496 |
45.000 |
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Raw Material Consumed |
1481.735 |
2216.114 |
2168.300 |
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(Increase)/ decrease in stock |
(81.214) |
(7.559) |
31.700 |
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Financial Expenses |
44.222 |
66.645 |
57.400 |
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Depreciation & Amortization |
197.390 |
222.824 |
224.300 |
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Other Expenditure |
NA |
NA |
1240.200 |
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Total Expenditure |
2040.086 |
3318.519 |
3766.900 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 (12 months) |
31.03.2006 (18 months) |
30.09.2004 (18 months) |
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Debt Equity Ratio |
0.00
|
50.59 |
5.69 |
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Long Term Debt Equity Ratio |
0.00
|
0.00 |
0.00 |
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Current Ratio |
0.54
|
0.64 |
0.68 |
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TURNOVER RATIOS |
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Fixed Assets |
0.52
|
0.62 |
0.61 |
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Inventory |
3.45
|
5.14 |
4.70 |
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Debtors |
5.35
|
3.14 |
2.74 |
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Interest Cover Ratio |
(7.59)
|
(4.51) |
(2.29) |
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Operating Profit Margin (%) |
(7.03)
|
(2.24) |
2.80 |
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Profit Before Interest and Tax Margin(%) |
(17.08)
|
(8.69) |
(3.97) |
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Cash Profit Margin(%) |
(9.31)
|
(4.21) |
1.07 |
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Adjusted Net Profit Margin(%) |
(19.36)
|
(10.66) |
(5.70) |
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Return on Capital Employed(%) |
0.00
|
0.00 |
0.00 |
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Return On Net Worth(%) |
0.00
|
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 8th November 1985 at Ghaziabad in Uttar Pradesh having Company Registration Number 7518.
Subject incorporated as a public limited company in November 1985, as Uptron Colour Picture Tubes (UCPTL), a sick industrial unit referred to the Board for Industrial and Financial Reconstruction (BIFR), was promoted by the UP Electronics Corporation (UPTRON), a wholly-owned undertaking of the UP Government.
UCPTL signed a tripartite technical collaboration agreement with Toshiba
Corporation and Mitsubishi Corporation (both of Japan) in July 1985 for
technical know-how, basic design engineering documents, instrumentation and
other engineering requirements. All the proprietary equipments were also to be
specially manufactured for the plant. The foreign collaborators participate in
the company's venture by contributing to the equity capital in Japanese yen
equivalent to Rs 62.100 millions.
UCPTL came out with a public issue of shares to set up a plant to manufacture
colour television picture tubes (inst. cap. : 7,50,000 pa) at its Sahibabad
plant in Ghaziabad, Uttar Pradesh.
In 1999-2000, the company was successful in its efforts for the localisation of
parts. It started identifying local subsitutes for some of imported components
of the CPT's , which have also been approved for safety standards and quality
by VDE. During 2001-02 the company entered into technical collaboration with
Tosiba Corporation, Japan to set up facilities for production of 21"
Perfectly Flat picture tubes. The installed capcaity of CPT were increased to
14,00,000 nos as against the previous year of 12,00,000 nos.
OPERATIONS
The year 2006-2007
was the difficult one of the Company. The Company reported net loss of Rs.
380.500 millions. The operations of the Company deteriorated, despite the best
efforts put in by the Management.
The production and
sales during the year 2006-2007 was to the tune of 9,66,791 CPTs and 9,34,403
CPTs as against the last year (18 months period) figure of 14,17,956 CPTs and
14,01,117 CPTs respectively.
The turnover of the
Company declined to Rs. 1964.700 millions from Rs. 2303.200 millions achieved
during the last year (12 months period) witnessing the annualized fall of
14.70% and resulting net loss of 380.500 millions.
INDUSTRIAL SCENARIO & FUTURE OUTLOOK
As per report
released by Federation of Indian Chamber of Commerce and Industry (FICCI) on
the Indian entertainment and India industry, India is the 5lh largest market
globally for CTVs. FICCI projects that the CTV market will grow at an average
rate of 10% - 12% per annum reaching 15 million CTVs by 2010. The number of CTV
owing households is projected to grow from 112 million currently to 130 million
in 2011.
With the consumer
preference shifting to flatter displays, the Flat TV contribution is expected
to be around 60 percent of the total market in 2007. Better technology
resulting in improved Picture quality and a diminishing price difference
between the traditional curved CTVs and flat TVs are the primary reasons for an
increase in the latter's popularity. However, the prices of flat CPTs are
consistently under pressure due to the following reasons:
a) Decrease in
demand for CRT based TVs across the globe and increase in demand for LCD/Plasma
Displays.
b) Import prices of
CPTs from China and other Asian countries are consistently declining due to
higher inventory at their end.
c) Increase in
imports due to strengthening of Rupee against Dollar.
d) Low Import Duty
Structure, with Nil duty under FTA with Thailand has also resulted in lower
sale value of flat CPTs in India.
e) Decrease in
Selling Price without corresponding proportionate decrease in Raw Material
Cost.
Due to the above
factors, gross margins of the company have considerably declined, resulting in
negative cash flows and operational losses.
EXPORT
The Company could get
only one order during the year to export 640 Colour Picture Tubes to Nepal.
FUTURE PLAN
In view of the present Indian market scenario, Company is evaluating the possibility of manufacturing 14" CPTs on the existing line. Company can achieve a production level of upto 7000 nos. CPTs, per day. Since manufacturing of 14" CPTs is easier in comparison of 21" Flat CPTs and resultant process wastage is lessor in the case of 14" CRTs.
At present the market demand of 14" is comparatively better. Besides, regular market share of 15 -17%,Tamil Nadu Government's decision to distribute 7.5 million 14" CTVs free in the State during next three years, has enhanced the demand for 14" CPTs. Since the capacity of 14" manufacturing are limited, there is a scope of ready market for 14" CPT. In view of this, Company is evaluating the possibilities of switch over to the production of 14" CPTs in place of 21" Flat CPTs.
BIFR STATUS
In lieu of the original sanctioned scheme of 1996, Hon'ble BIFR vide its
order dated 12.03.2004 had asked the company to submit the revised
rehabilitation scheme to the Monitoring Agency (ICICI Bank), for restructuring
of debts. Company had submitted the revised scheme on 31st October, 2006 to
ICICI Bank and the same is under its consideration.
In lieu of its original sanction scheme of 1996, hon'ble BIFR, vide its order dated 12 March 2004 has asked the company to submit a revised scheme for restructuring of debts. Company has submitted the same to the monitoring agency, ICICI Bank and pending approval of the scheme, company has maintained status quo in the treatment of Loans Convertible into Equity (Rs. 377.100 millions) and other liabilities towards lenders.
The company has adjusted during the year overdue trade receivables amounting to Rs. 690.176 millions from M/s BPL Limited (Holding company) with the contribution received from time to time amounting to Rs. 757.038 millions (over and above the share capital of Rs. 907.500 millions contributed by promoters). The balance outstanding amount of Rs. 66.861 millions after above adjustment is now being shown in Liabilities under "Unsecured Loans - from others". This realignment of figures in the Balance Sheet has, no impact on the profitability (or loss) of the company.
The U.P. government has allowed the company exemption of sales tax payment vide order no. 1583 (5) dated 27.07.2002 for the period from 2000-01 to 2014-15. However, deferment of Sales Tax Liability for the period from 1998-99 and 1999-2000 still prevails and payable from 2006-07. To that extent adequate provision has been made in the accounts for this liability.
Contingent
Liabilities
|
|
31.03.2007 (Rs.
in millions) |
31.03.2006 (Rs.
in millions) |
|
a. Estimated value of Contracts remaining to be executed on Capital account and not
provided for (more than Rs.0.500 millions) |
3.000 |
1.300 |
|
b. Dividend on 1% Cumulative Preference Shares |
24.800 |
20.300 |
|
c. Estimated interest on Loans, submitted for debt restructuring |
280.000 |
199.400 |
|
d. Bank Guarantees outstanding |
41.400 |
41.400 |
|
e. Others |
42.400 |
42.400 |
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Total |
391.600 |
304.800 |
Fixed assets
v
Leasehold Land
v
Building
v
Plant and
Machinery
v
Furniture and
Fixtures
v
Office
Equipment
v
Computers
v
Vehicles
v
Library Books
As Per Website Details
Profile
Subject is formerly known as Uptron Colour Picture Tubes
Limited (UCPTL) was originally promoted by U.P. Electronics Corporation Limited,
Uttar Pradesh, India, in technical and financial collaboration with Toshiba
Corporation of Japan.
UCPTL set up its plant at Sahibabad (U.P.), near New Delhi, for manufacture of
0.70 million Colour Picture Tubes (CPTs) per annum, by importing all major
machinery from Toshiba Corporation, Japan and started its commercial operation
in the year 1989.
In the year 1996, the management of UCPTL was taken over by BPL Limited and
name of the Company was changed to BPL Display Devices Limited (BDDL).
After the said takeover, the production capacity of the plant was increased
from 0.70 Million CPTs per annum to 1.40 Million CPTs per annum for
manufacturing of 20’’ and 21’’ Colour Picture Tubes.
With the emergence of Flat TV market in India, Company entered into a Technical
Collaboration Agreement with LG Philips of Netherlands for providing Technical
Know-how for the manufacture of 21" Real Flat Colour Picture Tubes.
Subject has successfully absorbed the Real Flat manufacturing technology from
its collaborators and has stabilized the production levels of 1,25,000 to
1,30,000 CPTs per month.
Subject sells its Colour Picture Tubes to almost all the top manufacturers of
Colour Televisions in India and its clientele includes names like Videocon,
Sanyo-BPL, Sansui, Haier, Akai, Onida, TCL, Texla, Dixon, Beltek and other
small regional players.
Company has already established an enviable position as a manufacturer of
21" Real Flat Colour Picture Tubes in India and has plans to increase the
production quantities to 1,50,000 units per month by suitable de-bottlenecking
of its manufacturing process.
Subject also proposes to add Slim Flat Picture Tubes
to its portfolio in the near future.
CERTIFICATION / ACHIEVEMENTS
v 1st prize for excellence in Electronic Component and
Materials for Financial Year 2000-01 from Ministry of Communication and
Information Technology, Government of India.
v Rajiv Gandhi National Quality Award for 2000-01.
v Implemented Total Productivity Maintenance (TPM)
activities throughout the plant and has attained international standards in
plant yields and picture tube quality.
v Member of TPM Club of India .
v ISO-14001 : 2004 (Environmental Certification) from
KPMG besides having ISO-9001 : 2000 and other quality certificates.
v UL Certification for its Cathode Ray Tubes.
v STQC Certification (Safety Certification of ‘S'
Mark) from Department of Information and Technology.
v The Company also has VDE Certification for its
product.
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 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. 42.90 |
|
UK Pound |
1 |
Rs. 83.76 |
|
Euro |
1 |
Rs. 65.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
-- |
|
--LEVERAGE |
1~10 |
-- |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
16 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|