MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
MARKSANS PHARMA LIMITED |
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Formerly Known As : |
TASC PHARMACEUTICALS LIMITED |
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Registered Office : |
21st Floor, Lotus Business Park, Off New Link Road, Andheri
[West], Mumbai 400053, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.04.1992 |
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Com. Reg. No.: |
11-66364 |
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CIN No.: [Company
Identification No.] |
L24110MH1992PLC066364 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09972E |
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PAN No.: [Permanent
Account No.] |
AAACT3153G |
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Legal Form : |
Subject is a Public Limited Liability Company. The company's shares are listed on the stock exchanges. |
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Line of Business : |
Manufacturer of Bulk Drugs |
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 5000000 |
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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 an established company having fine track. Financial position is
satisfactory. Payments are reported as 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 : |
21st Floor, Lotus Business Park, Off New Link Road, Andheri
[West], Mumbai 400053, Maharashtra, India |
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E-Mail : |
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Website : |
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Corporate Office : |
601-622, 6th floor, Chintamani Plaza, Mohan Studio Compound, Andheri- Kurla Road, Andheri (E), Mumbai 400 099 |
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Tel No.: |
91-22-55021006-09 |
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Fax No.: |
91-22-55021004 |
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Email: |
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Factory 1 : |
Ø L - 82 ft 83,
Verna Industrial Estate, Verna, Goa , 403 722 Ø D-10, Kurkumbh
M.I.D.C., Tal. Daund, Dist. Pune - 413 105. Ø A-88, Kurkumbh M.I.D.C., Tal. Daund, Dist. Pune - 413 105. |
DIRECTORS
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Name : |
Mr. Mark Saldanha |
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Designation : |
Chairman And Managing Director |
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Name : |
Dr. A .V. Sharma |
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Designation : |
Director |
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Name : |
Dr. Kim Tan |
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Designation : |
Director |
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Name : |
Mr. Ajay Mittal |
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Designation : |
Director |
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Name : |
Mr. V. Nagaraj |
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Designation : |
Whole Time Director |
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Name : |
Mr. B.K. Mishra |
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Designation : |
Whole Time Director |
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Name : |
Mr. Vijay P. Thakkar |
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Designation : |
Managing Director |
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Name : |
Mr. Rajesh Maheshwari |
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Designation : |
Director |
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Name : |
Mr. Nitin Parikh |
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Designation : |
Director |
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Name : |
Mr. Kumar Nair |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. H.P. Kanaani |
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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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Shareholding of
Promoter and Promoter Group |
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Indian |
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Individual/Hindu Undivided Family |
17164018 |
47.76 |
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Institutions |
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Mutual Funds/Axis Bank |
863766 |
2.40 |
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Financial Institutions/ Banks |
200 |
0.01 |
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Foreign Institutional Investors |
6330869 |
17.61 |
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Non Institutions
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Bodies Corporate |
5140276 |
14.30 |
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Individual – shareholders holding normal share capital upto Rs. 0.100
Million |
5079637 |
14.13 |
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Individual – shareholders holding normal share capital in excess of
Rs. 0.100 Million |
827945 |
2.30 |
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Clearing Member |
169906 |
0.48 |
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NRI |
359946 |
1.00 |
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Trust |
4000 |
0.01 |
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Total |
35940563 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Bulk Drugs |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Bulk Drug Division |
TPA |
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1140.00 |
960.55 |
GENERAL
INFORMATION
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No. of Employees : |
200 |
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Bankers : |
Ø State Bank Of
India Ø Bank Of India Ø Corporation Bank Ø IDBI Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ø Nitin Pota and
Associates Chartered Accountants Ø N.K. Mittal Chartered Accountants |
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Associates/Subsidiaries : |
Mark Remedies Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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46000000 |
Equity Shares |
Rs. 10/- each |
Rs. 460.000 Millions |
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1400000 |
7% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 140.000 Millions |
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Total |
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Rs. 600.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
35940563 |
Equity Shares |
Rs. 10/-
each |
Rs. 359.405
Millions |
|
1350000 |
7% Redeemable Cumulative Preference Shares |
Rs. 100/-
each |
Rs. 135.000
Millions |
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Total |
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Rs. 494.405 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 |
494.405 |
494.405 |
494.406 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
771.180 |
701.921 |
526.839 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1265.585 |
1196.326 |
1021.245 |
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LOAN FUNDS |
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1] Secured Loans |
1007.680 |
806.682 |
833.643 |
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2] Unsecured Loans |
2179.500 |
2231.950 |
42.000 |
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TOTAL BORROWING |
3187.180 |
3038.632 |
875.643 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
42.128 |
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TOTAL |
4452.765 |
4234.957 |
1939.016 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1385.185 |
1248.659 |
1016.354 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
26.879 |
0.050 |
2.550 |
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DEFERREX TAX ASSETS |
[84.985] |
[56.881] |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1234.580
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789.075 |
485.230 |
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Sundry Debtors |
533.350
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506.966 |
572.038 |
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Cash & Bank Balances |
1584.489
|
1976.070 |
95.084 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
203.517
|
129.445 |
126.415 |
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Total
Current Assets |
3555.936
|
3401.556 |
1278.767 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
449.257
|
377.428 |
379.634 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
449.257
|
377.428 |
379.634 |
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Net Current Assets |
3106.679
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3024.128 |
899.133 |
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MISCELLANEOUS EXPENSES |
19.007 |
19.002 |
20.979 |
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TOTAL |
4452.765 |
4234.958 |
1939.016 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
2398.873 |
2974.071 |
2479.867 |
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Other Income |
105.029 |
47.117 |
0.000 |
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Total Income |
2503.902 |
3021.188 |
2479.867 |
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Profit/(Loss) Before Tax |
95.616 |
314.061 |
248.634 |
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Provision for Taxation |
26.357 |
85.147 |
44.578 |
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Profit/(Loss) After Tax |
69.259 |
228.914 |
204.056 |
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Earnings in Foreign Currency : |
NA |
NA |
447.066 |
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Total Imports |
274.556 |
NA |
212.872 |
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Expenditures : |
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Cost of Goods Sold |
1956.780 |
2291.535 |
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Administrative Expenses |
228.483 |
190.449 |
2231.233 |
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Research and Development Expenses |
54.184 |
50.040 |
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Interest |
114.980 |
105.659 |
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Exchange Loss/Gain |
[27.779] |
[21.782] |
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Loss on sale of Fixed Assets |
0.000 |
4.023 |
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Depreciation & Amortization |
73.231 |
80.477 |
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Miscellaneous Expenditure Written off |
8.407 |
6.726 |
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Total Expenditure |
2408.286 |
2707.127 |
2231.233 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
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Sales Turnover |
476.400
|
544.100
|
581.400
|
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Other Income |
20.100
|
19.600
|
17.900
|
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Total Income |
496.500
|
563.700
|
599.300
|
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Total Expenditure |
416.300
|
472.100
|
465.300
|
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Operating Profit |
80.200
|
91.600
|
134.000
|
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Interest |
33.700
|
36.200
|
31.000
|
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Gross Profit |
46.500
|
55.400
|
103.000
|
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Depreciation |
20.200
|
20.400
|
22.600
|
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Tax |
3.500
|
0.100
|
10.300
|
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Reported PAT |
22.800
|
34.900
|
70.100
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
2.53 |
1.77 |
1.23 |
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Long Term Debt-Equity Ratio |
2.26 |
1.53 |
0.88 |
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Current Ratio |
4.17 |
3.38 |
1.55 |
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Fixed Assets |
1.44 |
2.11 |
2.21 |
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Inventory |
2.37 |
4.67 |
5.97 |
|
Debtors |
4.61 |
5.51 |
4.56 |
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Interest Cover Ratio |
1.83 |
3.97 |
3.14 |
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Operating Profit Margin(%) |
11.83 |
16.82 |
17.63 |
|
Profit Before Interest And Tax Margin(%) |
8.78 |
14.12 |
14.81 |
|
Cash Profit Margin(%) |
5.94 |
10.40 |
11.10 |
|
Adjusted Net Profit Margin(%) |
2.89 |
7.70 |
8.28 |
|
Return On Capital Employed(%) |
4.87 |
13.78 |
22.65 |
|
Return On Net Worth(%) |
6.32 |
23.51 |
37.33 |
LOCAL AGENCY
FURTHER INFORMATION
The
company's fixed assets of important value include Land, Building, Plant &
Machinery, Office Equipment, Furniture & Fittings, Motor Car, Leased
Assets, Plant & Machinery and Vehicles.
CONTINGENT
LIABILITIES:
|
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As on 31.03.2007 [Rs. in Millions] |
|
[a] In respect of Letters of Credit and Bank Guarantees issued by the
Company’s Bankers |
170.862 |
OPERATIONS:
During the year ended 31.03.2007, total turnover achieved by the Company
was Rs. 2398.900 Millions.
During the year under
review, the Formulation division registered a growth of 0.58% by achieving
turnover of Rs. 1363.000 Millions as compared to Rs.1355.200 Millions in the
previous year.
During the year, the API
division achieved turnover of Rs. 1035.900 Millions as compared to Rs. 1618.800
Millions in the previous year, registering a de-growth of 36.01%.
REASONS FOR DE-GROWTH IN API BUSINESS:
Several external factors
like severe pricing pressures and competition from China adversely affected the
API business culminating in price erosions and margin pressures during the
year. During the year average Ciprofloxacin price realization per kg. dipped to
Rs. 950/975 per kg. from Rs.1250/1300 per kg. The prices of Ranitidine also
took a fall from Rs.625/- per kg. to Rs. 525/- per kg. Thus prompting them to
reduce the production for these APIs. These factors cumulatively resulted in a
de-growth in the API business.
STEPS INITIATED TO REDUCE DEPENDENCY ON CIPROFLOXACIN &
RANITIDINE:
·
Steps
initiated to tap the lucrative regulated markets of US and Europe for the API
business.
·
Steps
initiated for speedy backward integration of the API business with their
Formulation business.
·
Filed
DMF for Metformin Hydrochoride with USFDA authorities.
·
Construction
of the ambitious Pilot Plant at Kurkumbh - Pune begun with earnest.
·
Total
number of COS filed with European Health Authority increased to three.
·
Increased
their basket of offerings by New Product Launches-Losartan Potassium
(Cardiovascular), Metformin Hydrocloride (Anti - Diabetic).
FORMULATIONS - GLOBAL:
·
With a
strong focus on the US markets, they have entered into an Agreement with
Pharmgen LLC, US for the development and filing of 11 ANDAs. The envious
product list boasts of a mix of off-patent and patent protected molecules with
cumulative annual sales of about USD 17 billion in the US.
·
Adhering
to the set international guidelines and compliances and readying the Goa
facility for South Africa MCC audit which is expected anytime during
2007-2008.
·
Initiated
the CRAMS offerings to capitalise on the US markets. This would bear healthy
results in the near future with the US revenues slated to start by the year
2008-2009.
·
Consolidating
the operations of NOVA - Australia and initiating more filings with TGA
authorities, all directed at achieving sustainable growth.
FORMULATIONS - DOMESTIC:
Scaled
up the value chain through New Product Launches - Critical Care Division -
Oncology Division.
·
GCSF
·
Docetaxel
Inj (120, 80, 20 mg)
·
Placitaxel
Inj (260, 100, 30 mg)
·
Oxaliplatin
(100, 50 mg)
·
EGF
Awaiting the clinical trials / DCI approval for the
following ambitious products namely,
·
Interlukin
2
·
Erythropoietin
RESEARCH AND DEVELOPMENT:
In today's world of rapid
technological advancements, the Company has always kept abreast with the latest
developments across the globe. With a strong emphasis on their Research and
Development capabilities they have always been prepared for new technological
challenges, thereby ensuring a continuous move up the value chain.
QUALITY ASSURANCE:
Quality Assurance department
has initiated a process of quality harmonization across various manufacturing
facilities in line with the current regulated market standards and its mission
to become a key world player in the field of CRAMS. To further its endeavour in
globalizing quality norms across the development and manufacturing facilities,
quality manual, policies and guidelines have been framed and implemented to
have uniformity in systems. A strong cross functional team of QA, project,
manufacturing and R & D has been formed on the initiative of this
department for all manufacturing facility to achieve global standards in all
aspects.
AMALGAMATION:
As approved by the shareholders at the Court conveyed meeting held on 28th
September, 2006, Company has successfully completed the process of Amalgamation
of its 100% subsidiary Company, Mark Remedies Limited, with the Company
pursuant to High Courts order dated 9th February, 2007.
SUBSIDIARY:
As required under the provisions of Section 212 of the Companies Act, 1956
the audited accounts together with Director's Report and Auditor's Report of
the subsidiary namely M/s. Nova Pharmaceuticals Australasia PTY Limited, made
out in accordance with the requirements of the Companies Act, 1956 are appended
to and form part of the Annual Report. For the Financial Year 2006-07, M/s.
Nova Pharmaceuticals Australasia PTY Limited achieved a turnover of Rs.212.03
lacs and net profit (before tax) of Rs. (23.29) lacs.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN
EXCHANGE EARNINGS AND OUTGO:
The information required
under Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988
is annexed hereto and forms part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Global Pharmaceutical Market
The Economic, Structural,
Political and Health dynamics that impact growth are rebalancing the worldwide
pharmaceutical market, driving global growth of 5-6% for 2007, according to IMS
Health. This Compares to 6-7% in 2006 and will see global pharmaceutical sales
reach $665-685 billion in 2007.
·
In
2006, North America grew 8.3%, to US $ 290.1 billion, which accounts for 45% of
global pharmaceutical sales.
·
Sales
in Latin America grew an exceptional 12.7% to US $33.6 billion.
·
The
five major European markets [France, Germany, Italy, Spain and U.K.]
experienced 4.4 percent growth to $ 123.2 billion.
·
Pharmaceutical
sales in China grew 12.3 percent to US $ 13.4 billion in 2006, compared with a
20.5 percent pace the prior year due to the government's introduction of a
campaign to limit physician promotion of pharmaceuticals.
·
The
Asia Pacific (excluding Japan) and Africa market grew 10.5% to US $ 66 billion.
Japan, the world's second largest market, which has historically posted slower
growth rates, performed strongly in 2005, decline 0.4 percent to $ 64.0 billion
due to government's biennial price cuts.
IMS
forecasts reveal that the total pharmaceutical market is expected to expand at
a compounded annual growth rate of 5-8% over the next five years. Projected growth of North America at 4-5%
and Europe at 3-4%; Japan at 5-6%. While emerging markets including China and
India are expected to growing by more than 10 % in 2006 and will do so again in
2007, largely due to their expanding economies and broader access to
medications. Growth in China will be 15-16% and the market size will reach $
15-16 billion in 2007.
Selected pockets of the
market will experience high level of demand and rapid expansion in 2007. Key
amongst these will be biotechnology products, with estimated growth of 13-14%,
generics with 13-14% growth, and specialist-initiated products with 10-11%
growth. Generic growth will stem from opportunity in several key therapeutic
areas and from increased volume as cost control efforts intensify as per IMS.
(* IMS Health Reports &
World Markets)
Indian Pharmaceutical Market:
Today, the Pharmaceutical
industry in India is estimated to be over a US $ 5 billion. The year 2005-06 is
marked the beginning of an era in the Indian pharmaceutical Industry with the
introduction of the product patent regime.
The Patent bill not only provided the confidence to multinational
companies to bring in their research molecules but it also gave Indian
companies reason to focus on developing brands and exploring in licensing and
marketing alliances. The Indian pharmaceutical market continued to grow in
size, powered by 9% value and 7% volume growth respectively.
The Knowledge based Indian
Pharmaceutical industry has acquired capabilities in the complex field of drug
manufacture and technology. It is escalating up the value chain from being a
pure reverse engineering industry focused on the domestic market, to a research
driven, export oriented industry.
Indian Pharmaceutical
Companies today offer formulations ranging from simple paracetamol to
sophisticated antibiotic and complex cardic compounds.
The Pharma industry is fast
assimilating latest technologies and its strengths include sturdy
entrepreneurship, low cost of production, proficient workforce, qualitative
research at low cost, proper legal framework and world class manufacturing
opportunities in a big way.
ORG IMS forecasts that with
buoyant market conditions continuing, the Indian Pharma Industry should
outperform itself as compared to last year with a double-digit growth
rate.
OPERATIONAL OVERVIEW:
Marksans constantly reviews
its product-market portfolio with a view to strength sustainable growth.
Marksans has worked towards strengthening its competitive status by investing
in long-term value assets.
Likewise, research
continues to remain an area of focus. Similarly, manufacturing facilities
across their three Plants have been upgraded or expanded to cater to the
regulated market needs.
To ensure superior control
of operations, the Company has been able to better monitor its operations and
costs.
MERGER:
During the year, the Company has successfully merged its wholly owned
subsidiary, Mark Remedies Limited as per order of Bombay High Court dated 9th
February, 2007.
THREATS:
Two years after the implementation of the new patent laws, the government is
yet to address important issues like ever greening of patents and compulsory
licensing. Unless Government takes some decisive steps, these can have serious
adverse effect on the functioning and future of the Indian pharmaceutical
industry.
The steady appreciation of the rupee against all major currencies is bound to
have an adverse impact on realizations.
OUTLOOK:
Marksans short term and long term outlook appears encouraging for the
following:
- An integrated
approach with presence in R & D, bulk actives and formulation along
with an increasing coverage of regulated markets.
- A strong
focus on establishing each element in its integrated chain as a revenue
generators commitment to expand to new global markets with customised
strategies.
- A horizontal
and vertical expansion in therapeutic segments in all target
markets.
- A variety of
investments ranging from upgrading manufacturing capabilities,
understanding regulatory requirements, allowances and building IPR assets
like new drugs and delivery systems for the future.
AMALGAMATION:
As approved by the shareholders at the Court conveyed meeting held on 28th
September, 2006, Company has successfully completed the process of Amalgamation
of its 100% subsidiary Company, Mark Remedies Limited, with the Company
pursuant to High Courts order dated 9th February, 2007.
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. 40.34 |
|
UK Pound |
1 |
Rs. 79.81 |
|
Euro |
1 |
Rs. 62.01 |
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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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. |
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 |
|