MIRA
INFORM REPORT
|
Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SUNIL KUMAR AND COMPANY |
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Registered Office : |
A – 350 Aggar Nagar, Ludhiana, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2008 [Provisional] |
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Year of Establishment : |
2007 |
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Legal Form : |
Partnership concern with an unlimited liability of the partners |
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Line of Business : |
Manufacturer of Readymade Concrete Mixture |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
New Company |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a new concern and yet to commence commercial operations.
Mr. Sunil Kumar is an experienced person. However, he seems to be unorganized
and took a long time to part with required information. No further
information could be made available. It would be advisable to take adequate securities while dealing with
them. |
LOCATIONS
|
Registered Office : |
A – 350 Aggar Nagar, Ludhiana, Punjab, India |
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Tel. No.: |
91-161-2551199 |
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Fax No.: |
91-9814080088 |
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Area : |
197 Sq. Yards |
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Factory : |
Village Ghumait, P. O. Koom Kalan,
Ludhiana |
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Area : |
1.3 Acres or 6320 sq. yards |
PARTNERS
|
Name : |
Mr. Sunil Kumar |
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Designation : |
Partner |
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Name : |
Mrs. Poonam Goyal |
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Designation : |
Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Readymade Concrete Mixture |
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Products : |
Readymade Concrete Mixture |
PRODUCTION STATUS
|
Particulars |
Unit |
Capacity
in case of manufacture |
|
Readymade Concrete Mixture |
Tons |
7500 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
100 |
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Bankers : |
Corporation Bank, S.C.O. 34, Feroze Gandhi Market, Pakhowal Road,
Ludhiana |
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Facilities : |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Mr. Haripal Chartered Accountants |
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Mobile No.: |
91-9417896517 |
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Associates/Subsidiaries : |
Sunil Kumar
Contractor Activity : Government Contractor Banker : Corporation Bank |
CAPITAL STRUCTURE
AS ON 31.03.2008
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Capital Investment : |
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|
Owned : |
Rs. 1.699 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 1.699 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2008 [Provisional] |
31.03.2007 |
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|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
|
1.699 |
5.136 |
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2] Family Deposits |
|
1.000 |
2.500 |
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3] Reserves & Surplus |
|
0.000 |
0.000 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
2.699 |
7.636 |
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LOAN FUNDS |
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|
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1] Secured Loans |
|
9.671 |
8.110 |
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2] Unsecured Loans |
|
0.000 |
1.000 |
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TOTAL BORROWING |
|
9.671 |
9.110 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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12.370 |
16.746 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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10.300 |
8.853 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Raw Material |
|
0.750 |
2.583 |
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W.I.P. |
|
0.370 |
1.405 |
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Sundry Debtors |
|
0.286 |
3.571 |
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Cash & Bank Balances |
|
0.664 |
0.334 |
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Total
Current Assets |
|
2.070 |
7.893 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
|
0.000 |
0.000 |
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Provisions |
|
0.000 |
0.000 |
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Total
Current Liabilities |
|
0.000 |
0.000 |
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Net Current Assets |
|
2.070 |
7.893 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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12.370 |
16.746 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
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|
31.03.2008 [Provisional] |
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Sales Turnover |
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|
6.000 |
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Other Income |
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|
0.000 |
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Total Income |
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|
6.000 |
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Profit/(Loss) Before Tax |
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|
0.199 |
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Provision for Taxation |
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|
0.000 |
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Profit/(Loss) After Tax |
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|
0.199 |
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Expenditures : |
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Cost of Goods Sold |
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|
5.580 |
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Financial Charges |
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|
0.101 |
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Selling and Administrative Expenses |
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|
0.120 |
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Total Expenditure |
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|
5.801 |
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KEY RATIOS
|
PARTICULARS |
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31.03.2008 [Provisional] |
31.03.2007 |
|
PAT / Total Income |
(%) |
|
3.32 |
-- |
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Net Profit Margin (PBT/Sales) |
(%) |
|
3.32 |
-- |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
1.61 |
-- |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.07 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
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|
3.58 |
1.19 |
LOCAL AGENCY
FURTHER INFORMATION
Introduction
Mr. Sunil Kumar, Partner, aged 42 years is a
Government Contractor and he is approved Government Contractor with P.W.D. and
Punjab Mandi Board. He is doing the same job for the last 20 years. His
turnover was Rs. 1770 Millions, Rs. 36.600 Millions and Rs. 40.700 Millions for
31.03.2004, 31.03.2005 and 31.03.2006 respectively. And net profit was Rs.
0.463 Million, Rs. 0.849 Million and Rs. 0.622 Million respectively. In view to
expand its activity Mr. Sunil Kumar has decided to form a new firm to install
new hi-tech machinery along with operating accessories to the tune of Rs.
10.400 Millions for which he requires financial assistance from the bank to the
tune of Rs. 7.800 Millions and C/C Limit to the Tune of Rs. 2.000 Millions.
Concern is an SSI unit and registered with district industry centre.
Object of the project
The object of the project is to supply the
construction material to various contractors and Government departments as Mr. Sunil
is already doing contact work for various private, as well as Government
Bodies, he has decided to expand its work by forming a new firm and get more
contracts from government as well as from private sector by installing new
machinery and Mr. Sunil Kumar is hopeful that the by installing the proposed
project he can achieve the sales target of Rs. 75.000 Millions
Product
The product to be manufacture by the proposed
machinery is mixing of crasher with bitchuman and Mechanical Pavar will lay the
mixer on the Road and finish the Road.
Nature of work
The partner of subject, Mr. Sunil Kumar is
Government approved contractor and doing the job of Road making for Government
as well as for Private Firms. He is doing the job for last 20 years and have
very well aware of the Government procedure of allocating the contract. He is
already in hand contract of worth Rs. 40.000 Millions.
Raw Material
The raw material required for the contract is
Sand, Crasher, Bitchuman, Gatka etc. which is easily available in the market.
Labour
The basic labour required is unskilled and is
available in plenty. Only skilled labour required is civil Engineer which he
has already employed. And for the proposed Plant and Machinery the same labour
is sufficient to handle the project.
Plant and Machinery
Mr. Sunil Kumar has decided to Install the
following machinery :
Drum Mix Asphalt Plant [Fully Computerised]
Model HC – 45
Mechanical Paver Finisher
Static Road Roller with 6 Cylinder
Engine
Tendom Viberator Trolley
And for the smooth running and operation of
the machinery following Assets are also required :
Generator 125 KVA complete with all
accessories and diesel tank
Tata Diesel Vehicle Model LPK 2516
CABE
LPK 2516 Complete HYVA TYPER
Building [as per estimate attached]
Market
Mr. Sunil Kumar is in the industry for last 20
years have maintained good relations in the market as well as in the Government
and to sell the product is not major problem as 50 % of the product manufactured
will be consumed by itself and rest 50 % will be sold in the market.
COST OF PROJECT AND MEANS OF FINANCE
Rs in Millions
|
A. Cost of Project |
Qty. |
Rate |
Amount |
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Plant and Machinery |
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|
Drum Mix Asphalt Plant [Fully Computerised] Model HC – 45 |
1.00 |
1.950 |
1.950 |
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Mechanical Paver Finisher |
1.00 |
0.850 |
0.850 |
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Static Road Roller with 6 Cylinder Engine |
2.00 |
0.500 |
1.000 |
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Tendom Viberator Trolley |
1.00 |
1.900 |
1.900 |
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Total |
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|
5.700 |
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Vat @ 4 % |
|
|
0.228 |
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Total Cast of Machinery |
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|
5.928 |
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Generator 125 KVA complete with all
accessories and Diesel Tank |
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|
0.350 |
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Tata Diesel Vehicle Model LPK 2516 CABE |
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|
1.413 |
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LPK 2516 Complete HYVA TYPER |
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|
1.739 |
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Building |
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|
1.000 |
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TOTAL COST OF THE PROJECT |
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|
10.430 |
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B. MEANS OF FINANCE |
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Own sources [25%] |
|
|
3.390 |
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Bank finance [75 %] |
MTI |
7.800 |
|
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|
CC |
2.000 |
9.800 |
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|
|
|
13.190 |
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C. Bank Finance Requirement |
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For Working Capital |
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|
2.000 |
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For MTL |
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|
7.800 |
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Total Need of Bank Finance |
9.800 |
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PROJECTED PROFITABILITY STATEMENT FOR THE YEAR ENDED
Rs. In Millions
|
Particulars |
Projected |
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|
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
A. Income |
|
|
|
|
|
Sales |
75.000 |
80.000 |
85.000 |
90.000 |
|
Other Income |
|
|
|
|
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Total [A] |
75.000 |
80.000 |
85.000 |
90.000 |
|
B. Cost of Production |
|
|
|
|
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Purchases |
61.743 |
62.895 |
67.013 |
70.904 |
|
Consumable Stores |
0.045 |
0.055 |
0.060 |
0.065 |
|
Direct Wages |
9.000 |
9.600 |
10.200 |
10.800 |
|
Other Manufacturing Expenses |
0.040 |
0.043 |
0.045 |
0.048 |
|
Power and Fuel |
0.190 |
0.203 |
0.215 |
0.228 |
|
Repair and Maintenance |
0.200 |
0.260 |
0.300 |
0.450 |
|
Depreciation |
1.447 |
1.231 |
1.045 |
0.889 |
|
|
72.665 |
74.287 |
78.878 |
83.384 |
|
Add : Opening Stock of raw Material |
0.750 |
2.583 |
2.642 |
2.833 |
|
Work in Process |
0.370 |
1.405 |
1.441 |
1.538 |
|
|
73.785 |
78.275 |
82.962 |
87.755 |
|
Less : Closing Stock of Raw Material |
2.583 |
2.642 |
2.833 |
3.000 |
|
Closing Stock W.I.P. |
1.405 |
1.441 |
1.538 |
1.625 |
|
C. Cost of Production |
69.797 |
74.192 |
78.591 |
83.130 |
|
Add : Opening Stock of Finished goods |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
69.797 |
74.192 |
78.591 |
83.130 |
|
Less : Closing Stock of Finished Goods |
0.000 |
0.000 |
0.000 |
0.000 |
|
D. Cost of Sales |
69.797 |
74.192 |
78.591 |
83.130 |
|
|
0.093 |
0.093 |
0.092 |
0.092 |
|
E. Gross Profit |
5.203 |
5.808 |
6.409 |
6.870 |
|
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F. Financial Expenses |
|
|
|
|
|
Interest Bank Loan [MTL] |
0.850 |
0.663 |
0.476 |
0.289 |
|
Interest on Bank Loan [C/C] |
0.270 |
0.270 |
0.270 |
0.270 |
|
Other Interest |
|
|
|
|
|
|
|
|
|
|
|
G. Selling and Administrative Expenses |
1.500 |
1.650 |
1.815 |
2.150 |
|
|
2.620 |
2.583 |
2.561 |
2.709 |
|
H. Net Profit Before Tax |
2.582 |
3.225 |
3.848 |
4.161 |
|
Less : Provision For Tax |
0.646 |
0.806 |
0.962 |
1.040 |
|
Net Profit After Tax |
1.937 |
2.419 |
2.886 |
3.121 |
PROJECTED BALANCE SHEET AS ON
Rs. In Millions
|
Particulars |
Projected |
||
|
|
31.03.2009 |
31.03.2010 |
31.03.2011 |
|
A. Liabilities |
|
|
|
|
Opening Balance |
5.136 |
7.455 |
10.191 |
|
Add : Additions during the year |
|
|
|
|
Add : Net profit during the year |
2.419 |
2.886 |
3.121 |
|
|
7.555 |
10.341 |
13.312 |
|
Less : Withdrawals Closing Balance |
0.100 |
0.150 |
0.200 |
|
|
7.455 |
10.191 |
13.112 |
|
|
|
|
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|
Family Deposits |
1.500 |
1.000 |
0.500 |
|
Unsecured Loans |
1.000 |
1.000 |
0.000 |
|
Secured Loans |
|
|
|
|
Bank Finance for MTL |
4.550 |
2.990 |
1.430 |
|
Bank Finance for C-C |
2.000 |
2.000 |
2.000 |
|
Current Liabilities |
|
|
|
|
S. Creditors |
0.000 |
0.000 |
0.000 |
|
Other Liabilities |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
Total |
16.505 |
17.181 |
17.042 |
|
|
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B. Assets |
|
|
|
|
Fixed Assets |
|
|
|
|
Gross Block |
10.430 |
10.430 |
10.430 |
|
Additions |
|
|
|
|
Less : Depreciation |
2.808 |
3.853 |
4.742 |
|
|
7.622 |
6.577 |
5.688 |
|
Current Assets |
|
|
|
|
Closing Stocks |
|
|
|
|
Raw Material |
2.642 |
2.833 |
3.000 |
|
W. I. P. |
1.441 |
1.538 |
1.625 |
|
Finished goods |
0.000 |
0.000 |
0.000 |
|
Sundry Debtors |
3.810 |
4.048 |
4.286 |
|
Misc. Advances |
|
|
|
|
Cash and Bank Balance |
0.991 |
2.186 |
2.443 |
|
|
16.505 |
17.181 |
17.042 |
PROJECTED CASH FLOW STATEMENT
Rs in Millions
|
Particulars |
Projected |
||||
|
|
31.03.2008 |
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
A. SOURCES OF FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Profit before Interest and Taxes |
0.300 |
3.703 |
4.158 |
4.594 |
4.720 |
|
Add : Depreciation |
0.130 |
1.447 |
1.231 |
1.045 |
0.889 |
|
|
|
|
|
|
|
|
Bank Finance MTL |
7.800 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Bank Finance C/C |
2.000 |
|
|
|
|
|
Increase in Capital |
1.500 |
1.500 |
0.000 |
0.000 |
0.000 |
|
Increase in Family Deposit |
1.000 |
1.500 |
[1.000] |
[0.500] |
[0.500] |
|
Increase in Sundry Creditors |
0.000 |
1.000 |
0.000 |
0.000 |
0.000 |
|
Others pl. Specify |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
12.730 |
9.150 |
4.389 |
5.139 |
4.109 |
|
|
|
|
|
|
|
|
B. APPLICATION OF FUNDS |
|
|
|
|
|
|
Additions in Fixed Assets |
10.430 |
|
|
|
|
|
|
|
|
|
|
|
|
Inc. in Raw Material |
0.750 |
1.833 |
0.059 |
0.191 |
0.167 |
|
Inc. in W.I.P. |
0.370 |
1.035 |
0.036 |
0.097 |
0.087 |
|
Inc. In Finished Goods |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Inc. Sundry Debtors |
0.286 |
3.286 |
0.238 |
0.238 |
0.238 |
|
Inc. Misc. Advances |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Interest |
0.101 |
1.120 |
0.933 |
0.746 |
0.559 |
|
Withdrawls |
0.000 |
0.000 |
0.100 |
0.150 |
0.200 |
|
Repayment of Bank Finance |
0.130 |
1.560 |
1.560 |
1.560 |
1.560 |
|
Others if any |
0.000 |
0.646 |
0.806 |
0.962 |
1.040 |
|
Total B |
12.066 |
9.480 |
3.732 |
3.944 |
3.851 |
|
|
|
|
|
|
|
|
Opening Cash Balance |
|
0.664 |
0.334 |
0.991 |
2.186 |
|
Surplus / [Deficit] |
0.664 |
[0.330] |
0.657 |
1.195 |
0.258 |
|
Closing Cash Balance |
0.664 |
0.334 |
0.991 |
2.186 |
2.443 |
DEBT SERVICE COVERAGE RATIO
Rs in Millions
|
Particulars |
Projected |
||||
|
|
31.03.2008 |
31.03.2009 |
31.03.2010 |
31.03.2011 |
31.03.2012 |
|
|
|
|
|
|
|
|
Net Profit Before Tax |
0.199 |
2.582 |
3.225 |
3.848 |
4.161 |
|
Add : Interest |
0.101 |
1.120 |
0.933 |
0.746 |
0.559 |
|
Depreciation |
0.130 |
1.447 |
1.231 |
1.045 |
0.889 |
|
Total A |
0.430 |
5.149 |
5.389 |
5.639 |
5.609 |
|
|
|
|
|
|
|
|
Repayment Obligation |
|
|
|
|
|
|
Term Loan Installment |
|
|
|
|
|
|
Interest |
0.101 |
1.120 |
0.933 |
0.746 |
0.559 |
|
Provision for Tax |
0.000 |
0.646 |
0.806 |
0.962 |
1.040 |
|
Total B |
0.101 |
1.766 |
1.739 |
1.708 |
1.599 |
|
|
|
|
|
|
|
|
D.S.C.R. [A/B] |
0.428 |
0.292 |
0.310 |
0.330 |
0.351 |
|
|
|
|
|
|
|
|
Average DSCR |
0.342 |
|
|
|
|
Mr. Sunil Kumar
|
Particular |
Rs in Millions |
||
|
Total assets |
|
|
|
|
Moveable Property |
|
|
|
|
Capital in Business |
2.500 |
|
|
|
FDR in Corporation bank |
0.500 |
|
|
|
Life Policy |
|
|
|
|
Sum Assured |
Surrender Value |
|
|
|
10 |
3 |
|
|
|
KVP |
0.300 |
|
|
|
Machinery |
0.120 |
|
|
|
Zen Car |
2.500 |
|
|
|
Jewellery |
0.200 |
|
|
|
|
0.500 |
6.620 |
|
|
|
|
|
|
|
Immovable Property |
|
|
|
|
Residential House Property |
8.000 |
|
|
|
Plot |
2.200 |
|
|
|
Plot |
3.000 |
|
|
|
Plot |
2.600 |
15.800 |
|
|
Total Assets |
|
22.420 |
|
|
|
|
|
|
|
Less : Total Liabilities |
|
|
|
|
Corporation Bank OD |
2.100 |
|
|
|
Corporation Bank Housing Loan |
1.998 |
|
|
|
Corporation Bank Housing Loan |
0.126 |
4.224 |
|
|
Net Assets |
|
18.196 |
|
Mrs. Poonam Goyal
|
Particular |
Rs in Millions |
|
|
Total assets |
|
|
|
Moveable Property |
|
|
|
FDR in Corporation Bank |
0.500 |
|
|
Loan to Sunil Kumar Contractor |
0.100 |
|
|
Jewellery |
1.000 |
1.600 |
|
|
|
|
|
Immovable Property |
|
|
|
Plot |
2.000 |
2.000 |
|
Total Assets |
|
3.600 |
|
|
|
|
|
Less : Total Liabilities |
|
Nil |
|
Net Assets |
|
3.600 |
Details of Fixed Assets
Land and Building Rs. 1.000 Million
Plant and Machinery Rs. 5.900 Millions
Furniture and Fixture Rs. 0.020 Million
Other Assets Rs.
3.500 Millions
PERSONAL ASSETS OF THE PARTNER
|
Description of the Asset owned by them |
Amount [Rs. In
Millions] |
|
A – 350 Aggar Nagar, Ludhiana, Punjab, India |
8.00 |
|
Plot No. 2, Roj Gurumpal, Extension,
Ludhiana |
2.200 |
|
Plot at Threekay Road, Ludhiana |
1.500 |
|
Village Ghumait, P. O. Koom Kalan,
Ludhiana |
4.800 |
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 :
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.42.84 |
|
UK Pound |
1 |
Rs.84.78 |
|
Euro |
1 |
Rs.67.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
|