MIRA INFORM REPORT
|
Report Date : |
19TH June
2006 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT CRAFT LIMITED |
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Registered Office : |
F-8,
Okhla Industrial Area, Phase- I, New Delhi- 110 020, India |
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Country : |
India
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
28.02.1978 |
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Com. Reg. No.: |
55-8890 |
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CIN No.: [Company Identification No.] |
U74899DL1978PLC008890 |
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TAN No.: [Tax Deduction & Collection Account No.] |
DELO01857C |
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PAN No.: [Permanent Account No.] |
AAAC00068M |
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Legal Form : |
A
closely held Public Limited Liability Company |
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Line of Business : |
Importers,
Exporters and Manufacturers of all kind of
Readymade Garments. |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
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 6425000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The
company can be considered good for any normal business dealings. |
LOCATIONS
|
Registered Office : |
F-8,
Okhla Industrial Area, Phase- I, New Delhi- 110 020, India |
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Tel. No.: |
91-11-26813511/
26818247/ 26818250/ 26818249/ 26389196 |
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Fax No.: |
91-11-26815823/
26814980 |
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E-Mail : |
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Website: |
http://www.orientcraft.com |
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Telex: |
031-75383
OCPL IN |
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Area : |
1200
sq. yards. |
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Location : |
Industrial
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Status: |
Owned
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Head Office : |
Orient House, D-9/1, Okhla Industrial Area, Phase II, New Delhi – 110 020, India |
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Tel. No.: |
Tel.
91-11-26918279 / 26910132 / 26911196 |
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Fax No.: |
Fax.
91-11-26842902 |
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Location : |
Industrial
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Corporate Office : |
F-8,
Okhla Industrial Area, Phase- I, New Delhi- 110 020, India |
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Tel. No.: |
91-11-26813511/
26818247/ 26818250/ 26818249/ 26389196 |
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Fax No.: |
91-11-26815823/
26814980 |
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E-Mail : |
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Website: |
http://www.orientcraft.com |
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Telex: |
031-75383
OCPL IN |
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Area : |
1200
sq. yards. |
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Location : |
Industrial
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Status: |
Owned
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Factory : |
Plot
No. 34A and 34B, Maruti Industrial Complex, Phase- VI, Gurgaon, Haryana,
India |
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Plants/ Warehouses 1 : |
F-8,
Okhla Industrial Area, Phase I, New Delhi - 110 020, India |
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Plants/ Warehouses 2 : |
B-14, Okhla Industrial
Area, Phase II, New Delhi - 110 020, India |
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Tel. No.: |
91-11-26916049
/ 26910655 / 7384 |
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Fax No.: |
91-11-26840670 |
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Plants/ Warehouses 3 : |
B-26,
Okhla Industrial Area, New Delhi - 110 020, India |
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Plants/ Warehouses 4 : |
7-A,
Maruti Industrial Complex , Sector 18, Gurgaon - 122 015, Haryana, India |
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Plants/ Warehouses 5 : |
14,
Maruti Industrial Complex, Sector 18, Gurgaon - 122 015, Haryana, India |
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Plants/ Warehouses 6 : |
14-A,
Maruti Industrial Complex, Sector 18, Gurgaon - 122 015, Haryana, India |
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Plants/ Warehouses 7 : |
68,
Maruti Industrial Complex, Sector 18,
Gurgaon - 122 015, Haryana, India |
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Plants/ Warehouses 8 : |
88,
Maruti Industrial Complex , Sector 18, Gurgaon - 122 015, Haryana, India |
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Plants/ Warehouses 9 : |
Plot
No. 293, Pace City II, Udhyog Vihar, Phase V (Village Khandsa), Gurgaon,
Haryana, India |
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Plants/ Warehouses 10 : |
Plot
No. 136-137, Pace City II, Udhyog Vihar, Phase V (Village Khandsa), Gurgaon,
Haryana, India |
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Plants/ Warehouses 11 : |
Plot
No. 9 To 13, Pace City II, Udhyog Vihar, Phase V (Village Khandsa), Gurgaon,
Haryana, India |
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Plants/ Warehouses 12 : |
B-16, Okhla Industrial
Area, Phase II, New Delhi – 110 020, India |
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Tel. No. |
91-11-26822534
/ 26838749 |
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Fax No. |
91-11-26915860 |
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Plants/ Warehouses 13 : |
7-D, Maruti Industrial
Complex, Sector 18, Gurgaon – 122 015, Haryana, India |
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Tel. No. |
91-124-6342042
– 48 |
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Fax. No. |
91-124-6341110
/ 6342049 |
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DIRECTORS
|
Name : |
Mr.
Sudhir Dhingra |
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Designation : |
Chairman
and Managing Director |
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Date of Birth/Age : |
17.03.1948 |
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Date of Appointment : |
01.07.1988 |
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Name : |
Mr.
K K Kohli |
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Designation : |
Whole
time Director |
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Date of Birth/Age : |
30.10.1950 |
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Date of Appointment : |
03.12.1979 |
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Name : |
Mr.
Ravi Dhingra |
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Designation : |
Director
|
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Date of Birth/Age : |
29.11.1952 |
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Date of Appointment : |
23.09.1993 |
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Name : |
Mr.
Anoop Thatai |
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Designation : |
Whole
time Director |
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Date of Birth/Age : |
02.02.1964 |
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Date of Appointment : |
10.01.1994 |
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Name : |
Mr.
S P
Sood |
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Designation : |
Director
|
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Date of Birth/Age : |
10.06.1927 |
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Date of Appointment : |
05.01.2001 |
KEY EXECUTIVES
|
Name : |
Mr.
Sameer Rai Magoon |
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Designation : |
Company
Secretary |
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Date of Birth/Age : |
27.03.1975 |
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Date of Appointment : |
01.04.2000 |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
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Mr. Sudhir Dhingra |
3,768,906 |
58.94 |
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Mr. K K Kohli |
1,278,747 |
20.00 |
|
Ms. Lalita Nandlal Dhingra |
53,737 |
0.84 |
|
Mr. Sahil Dhingra |
7,801 |
0.12 |
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Mr. Anoop Dhanda |
2,900 |
0.05 |
|
Mr. Annopy Thatai |
1,278,747 |
20.00 |
|
Ms. Manju Dhingra |
2,900 |
0.05 |
|
Total |
6,393,738 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Importers,
Exporters and Manufacturers of all kind of
Readymade Garments. |
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|
|
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Products : |
v
Home Furnishing
Products v
Dresses v
Skirts v
Blouses v
Co-ordinates v
Rompers v
Duvet Cover v
Men’s Shirts v
Knitted Shirts /
T-shirts v
Jacket v
Kids Wear v
Outwear v
Pillow Cover |
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Trade Terms with : |
·
Tommy Hilgfiger Inc.,
USA ·
Gap Stores, USA ·
J. Crew, USA ·
Calvin Klien Jeans,
USA ·
Dillards Inc., USA |
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Exports to : |
USA,
Canada and ECC |
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Imports from : |
Europe,
France |
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Terms : |
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Selling : |
It
sells against L/C or other terms. |
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Purchasing : |
It
purchases against Cash, L/C or Credit (30/60 days) terms. |
PRODUCTION STATUS
|
Particulars |
Unit |
Production Capacity |
Actual Production |
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|
31.03.2005 |
31.03.2003 |
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Readymade Garments |
Nos. |
-- |
11,641,246 |
10,800,500 |
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Home Furnishing Products |
Nos. |
-- |
969,677 |
675,531 |
|
Woven |
Dozen |
21,000 per month |
-- |
-- |
|
Knit |
Dozen |
40,000 per month |
-- |
-- |
GENERAL INFORMATION
|
Suppliers : |
·
Juki, Japan ·
Hashima, Japan ·
Impulsa, Germany ·
Maeir, Germany ·
Eastman, Hong Kong |
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|
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Customers : |
Ř
Dillards Stores Ř
Ann Taylor Ř
Loft Ř
J. G. Hook Ř
J-Crew Ř
Ralph Lauren Ř
Banana Republic Ř
Gap-Kids-Womens-Old
Navy Ř
Liz Clairborne-Liz
Dresses-Liz Wear-Liz Sports Ř
Jones of New York Ř
Susan Bristol Ř
Abarcrombie and Fitch Ř
Next Retail Limited Ř
Oasis Stores Ř
Nike Ř
Levi’s Ř
Dockers Ř
Lands End |
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Affiliates: |
> Orient Clothing Company Private Limited, India > Orient Knitwear, India > Orient Worldwide, India > Orient Collection, India > Orient Knit Apparels, India |
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No. of Employees : |
3000
(including group companies) |
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Bankers : |
·
State Bank of Mysore K. G.
Marg, New Delhi - 110 001, India |
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Facilities : |
Credit
Limit: Rs. 152.500 millions |
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Bankers : |
·
Corporation Bank Greater Kailash II, New Delhi – 110 048,
India |
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Facilities : |
Credit
Limit: Rs.415.000 millions |
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Bankers : |
·
State Bank of
Travancore R. K.
Puram, New Delhi- 110 023, India |
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Facilities : |
Credit
Limit: Rs.252.500 millions |
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Bankers : |
·
Bank of Baroda Overseas
Branch, Parliament Street, New
Delhi – 110 001, India |
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Facilities : |
Credit
Limit: Rs. 147.500 millions |
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Bankers : |
·
Standard Chartered
Bank
H-Block, Connaught Place, New
Delhi-110 001, India |
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Facilities : |
Credit
Limit: Rs. 160.000 millions |
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Bankers : |
·
Bank of Nova Scotia
Connaught Place, New Delhi - 110 001 |
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Facilities : |
Credit
Limit: Rs. 162.500 millions |
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Bankers : |
·
HSBC Bank K. G.
Marg, New Delhi - 110 001, India |
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Facilities : |
Credit
Limit: Rs. 120.000 millions |
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Bankers : |
·
Andhra Bank
Connaught Place, New Delhi - 110 001 |
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Facilities : |
Credit
Limit: Rs. 170.000 millions |
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Bankers : |
·
Citi Bank |
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Facilities : |
Credit
Limit: Rs. 90.000 millions |
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Bankers : |
·
BNP Paribas |
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Facilities : |
Credit
Limit: Rs. 90.000 millions |
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Bankers : |
·
ABN Amro Bank |
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Facilities : |
Credit
Limit: Rs. 90.000 millions |
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Banking Relations : |
The
Banks gives Secured Loan facility for packing credit/ post shipment credit/
STL: secured
against stores, raw materials, semi-finished and finished goods/ book debts The
Bank gives Term Loan facility for secured against Plant and Machinery,
Building and Vehicles. The
Bank gives Demand Loan facility for secured against charges on Current
Assets. |
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Auditors : |
V.
K. Dhingra and Company Chartered
Accoutants |
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Address: |
1-E/15,
Jhandewalan Extension, New Delhi- 110 055, India |
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Tel. No.: |
91-11-23528511/
23638325/ 23536857/ 23550475 |
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Fax No.: |
91-11-23549789 |
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E-Mail : |
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Subsidiaries : |
·
O C Fashion Apparel
Private Limited Legal Form: Private Limited Company Date of Incorporation: 17th December,
2002 Line of Business: Manufacturers of Readymade
Garments Financials : The details of financials as on 31.03.2004 as
follows: Paid –up Capital Rs.0.500
million Reserves and Surplus Rs.4.518 million Secured Loan
Rs.2.074 million Unsecured Loan Rs.0.039 million Net Current Assets Rs.3.911 million Deferred Tax Liabilities Rs.3.062 million Miscellaneous Rs.0.137 million P and L A/c (Accumulated Loss) Rs.0.021 million Turnover Rs.34.617 million Expenses Rs. 28.435 million Profit Before Tax Rs.6.182 million Profit After Tax Rs.4.919 million ·
O C Collection Private
Limited Legal Form: Private Limited Company Date of Incorporation: 17th December,
2002 Line of Business: manufacturers of Readymade
Garments Financials: The details of financials as on 31.03.2004 as
follows: Paid –up Capital Rs. 0.500 million Reserves and Surplus Rs. 3.730 million Secured Loan Rs. 2.876 million Unsecured Loan Rs. 0.039 million Investment Rs. 8.045 million Net Current Assets Rs. 1.269 million Deferred Tax Assets Rs. 0.349 million Miscellaneous Rs. 0.021 million Turnover Rs. 20.598 million Expenses Rs. 19.629 million Profit Before Tax Rs. 1.094 million Profit After Tax Rs. 0.969 million ·
Orient Design Private
Limited Legal Form: Private Limited Company Date of Incorporation: 7th June, 2001 Line of Business: manufacturers of Readymade
Garments Financials: The details of financials as on 31.03.2004 as
follows: Paid –up Capital Rs. 0.500 million Net Current Assets Rs. 0.300 million Miscellaneous Rs. 0.172 million P and L A/c (Accumulated Loss) Rs. 0.028 million ·
Orient Craft USA Inc.,
Rs. 100 million Commercial Paper Programme
P1+(Reaffirmed) The rating continues to reflact Orient Craft Limited
( Orient Craft) strong business profile as one of the country’s leading
manufacturers and exporters of readymade garments. The company high-end
company profile and the substantial opportunities arising with the
dismantling of export quotas from January, 2005 as per the World Trade
Organization (WTO) agreement will enable it to register steady volume growth,
going forward. These strengths are, however, partly offset by
Orient Craft high geographical concentration with the US market alone
accounting for over 80 percent of its sales, which renders it vulnerable to
exchange rate fluctuation. The company’s operating margins** too are under
pressure because of the significant appreciation of the rupee against the US
dollar, the intense competition in the sector and the increase in cotton
prices over the past few years. Further, its gearing rose to nearly 1x as at
March31,2004, from its 0.8x level since 1999-00. This was primarily due to
the small but consistent additions to its debt to found its incremental
working capital needs and to meet the capex needed to sustain its high growth
levels. |
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|
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Group Companies: |
1.
Orient Clothing
Private Limited 2.
Avees Apparel Private
Limited 3.
K K Farms Private
Limited 4.
Kanshi Steel Works Private Limited 5.
Raj Bhawan Trust 6.
Sinkap India Private
Limited 7.
Collections 8.
K K Kohli and Sons,
HUF 9.
Orient Knit Apparel 10.
Fashion Express
Company 11.
Orient Knitwear 12.
Orient Worldwide Inc.,
13.
Fashion Accessories 14.
O C Crochets Private
Limited 15.
Super Connections
India Private Limited |
|
|
|
|
Memberships: |
v
Apparel Export
Promotion Council |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,000,000 |
Equity
Shares |
Rs.10/- |
Rs.100.00 million |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63,937,380 |
Equity
Shares |
10/- |
Rs.63.937 million |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
63.937 |
63.937 |
63.937 |
|
|
2] Reserves &
Surplus/(Accumulated Losses) |
1381.840 |
1244.386 |
1057.081 |
|
NETWORTH
|
1445.777 |
1308.323 |
1121.018 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1297.453 |
1084.745 |
776.736 |
|
|
2] Unsecured Loans |
94.475 |
37.852 |
44.196 |
|
TOTAL
BORROWING
|
1391.928 |
1122.597 |
820.932 |
|
|
DEFERRED TAX LIABILITIES |
21.053 |
19.184 |
-- |
|
|
|
|
|
|
|
TOTAL
|
2858.758 |
2450.104 |
1941.950 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1053.024 |
982.501 |
706.059 |
|
Capital work-in-progress
|
176.375 |
44.826 |
129.099 |
|
|
|
|
|
|
|
INVESTMENT
|
21.022 |
41.708 |
11.798 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
1227.608
|
1139.937 |
751.938 |
|
|
Sundry Debtors
|
774.742
|
642.902 |
583.518 |
|
|
Cash & Bank Balances
|
60.856
|
67.887 |
39.719 |
|
|
Other Current Assets
|
128.924
|
74.230 |
147.408 |
|
|
Loans & Advances
|
220.533
|
161.052 |
112.781 |
Total Current Assets
|
2412.663
|
2086.008 |
1635.364 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
758.684
|
649.854 |
506.540 |
|
|
Provisions
|
45.789
|
55.379 |
34.272 |
Total Current Liabilities
|
804.473
|
705.233 |
540.812 |
|
|
|
|
|
|
|
Net Current Assets
|
1608.190
|
1380.775 |
1094.552 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.147 |
0.294 |
0.442 |
|
|
|
|
|
|
|
TOTAL
|
2858.758 |
2450.104 |
1941.950 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
Sales Turnover [including other income]
|
5233.064 |
4462.700 |
3892.300 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
183.609 |
252.100 |
284.300 |
Provision for Taxation
|
22.609 |
37.200 |
16.000 |
Profit/(Loss) After Tax
|
161.000 |
214.900 |
268.300 |
|
|
|
|
|
Export Value
|
4760.169 |
16.967 |
29.331 |
|
|
|
|
|
Import Value
|
1154.785 |
3.887 |
1.679 |
|
|
|
|
|
Total Expenditure
|
4896.718 |
4053.800 |
3471.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
PAT / Total Income
|
(%)
|
3.08
|
4.82 |
6.89 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
3.74
|
6.04 |
7.81 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
5.01
|
7.99 |
11.45 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.13
|
0.19 |
0.25 |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
1.52
|
1.40 |
1.21 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
3.00
|
2.96 |
3.02 |
LOCAL AGENCY FURTHER INFORMATION
PROFILE
The
company is one of the lading Garment Manufacturer and Exporter and is Recipient
of “Gold Trophy” by Government of India for its highest global export for 1997
and 1998.
The
company spread manufacturing facilities over 460,000 sq. ft. area with twelve
factories in and around Delhi. Company has the most modern manufacturing plants
in the country with over 1,40,000 sq.ft. of covered area in one location. The
company deploys over 4800 importer sewing and finishing machines for its
manufacturing operations in Woven and Knit units. The subject has in-house lab
testing for garments, fabrics and trims. Our labs are well equipped to best for
all parameters including Colour-Fastness to Light, OCL also has several
in-house latest Computerized Embroidery machines, Washing Plants and Perk Dry
cleaning Units.
About
Group Company:
Orient
Craft Limited:
Press
Clippings: Source from BBC dated March2, 2005
Orient
Craft had a turnover of $ 118m last year and this year is expected to cross $
160m. While the Gurgaon factory I
visited is one of India’s largest, to take full advantage of scale factories
need to be several times its size. To achieve this , government has to play an
important coordinating flexible labour markets. For a product to travel from
factory in India to retail outlet in New York takes around 30 days. Most East
Asian countries take half that time.
This
is where the port come in. Indian port are small and riddle with bureaucratic
delays. Large liners do not come here. Most export have to go out on “feeder
vessels” to be transferred to a “mother vessels” in some other port.
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.45.89 |
|
UK
Pound |
1 |
Rs.84.65 |
|
Euro |
1 |
Rs.57.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
6 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
This score serves as a reference to assess SC’s credit risk and to set
the amount of credit to be extended. It is calculated from a composite of
weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses
an extremely sound financial base with the strongest capability for timely
payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses
adequate working capital. No caution needed for credit transaction. It has
above average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial
& operational base are regarded healthy. General unfavourable factors
will not cause fatal effect. Satisfactory capability for payment of interest
and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable
& favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse
factors are apparent. Repayment of interest and principal sums in default or
expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute
credit risk exists. Caution needed to be exercised |
Credit not recommended |