MIRA
INFORM REPORT
|
Report Date : |
21st June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
THE WESTERN INDIAN PLYWOODS LIMITED |
|
|
|
|
Registered Office : |
Mill Road, Baliapatam, Cannanore – 670010, Kerala State, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
30.09.2005 |
|
|
|
|
Date of Incorporation : |
15.01.1945 |
|
|
|
|
Com. Reg. No.: |
09-1708 |
|
|
|
|
CIN No.: [Company Identification No.] |
L20211KL1945PLC001708 |
|
|
|
|
Legal Form : |
A public limited liability company. The Company’s shares are
listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
The company is engaged in manufacturing of
Plywood, Hardboard, densified wood. The company also manufactures UF & PF
Resins, Resorcinol Formaldehyde, Glass Reinforced Plastics, Prefurnished
Boards, DAP resin and Monomer, UV Top Coat and Base Coat. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 475000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine
track records. Trade relations are fair. Financial position is good. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Mill Road, Baliapatam, Cannanore – 670010, Kerala State,
India |
|
Tel. No.: |
91-497-2778151(4 lines) |
|
Fax No.: |
91-497-2778181 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Shri P. C. D. Nambiar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Shri G. S. A. Saldanha |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri N. L. Vaidyanathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri V. Ramachandran |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri Bhaskar Menon |
|
Designation : |
Director |
|
|
|
|
Name : |
Shri A.J. Pai |
|
Designation : |
Director (Ksidc, Nominee) |
|
|
|
|
Name : |
Shri. N. U. Nampoothiri |
|
Designation : |
Director (Ifci, Nominee) |
|
|
|
|
Name : |
Shri P.K. Mohamed |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Shri P.K. Mayan Mohamed |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Shri. R. Balakrishnan |
|
Designation : |
Company Secretary & Finance
Controller |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
PROMOTER'S HOLDING |
|
|
|
Promoters: |
|
|
|
Indian
Promoters |
345500 |
40.70 |
|
Foreign
Promoters |
Nil |
Nil |
|
Persons acting in Concert |
|
|
|
NON-PROMOTERS HOLDING |
|
|
|
Institutional Investors: |
|
|
|
Mutual
Funds and UTI |
Nil |
Nil |
|
Banks, Financial Institutions, Insurance Companies
(Central/State Govt. Institutions/ Non-Government Institutions) |
103013 |
12.14 |
|
Foreign
Institutional Investors |
Nil |
Nil |
|
Sub-Total |
103013 |
12.14 |
|
Others: |
|
|
|
Private
Corporate Bodies |
12521 |
1.48 |
|
Indian
Public |
387700 |
45.68 |
|
NRIs/OCBs |
Nil |
Nil |
|
Any other (Please specify) |
Nil |
Nil |
|
Sub-Total |
400221 |
47.16 |
|
GRAND
TOTAL |
848734 |
100 |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacturing of Plywood,
Hardboard, densified wood. The company also manufactures UF & PF Resins,
Resorcinol Formaldehyde, Glass Reinforced Plastics, Prefurnished Boards, DAP
resin and Monomer, UV Top Coat and Base Coat. |
|
|
|
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Plywood
(on 3 ply 4 mm basis) |
Millions Sq.Mts. |
3.75 |
7.35 |
|
Hardboard |
M.T. |
52,125 |
43033 |
|
Densified
Wood |
M.T. |
3,000 |
2296 |
|
UF
& PF Resins |
M.T. |
3,600 |
911 |
|
Resorcinol
Formaldehyde |
Kgs. |
75,000 |
10 |
|
Furniture |
Nos. |
N.A. |
10867 |
|
Glass
Reinforced Plastics |
M.T. |
1,200 |
-- |
|
Diallylphthalate Resins and its Moulding Composition
|
Kgs. |
150,000 |
3731 |
|
DAP Resins and Monomer |
Kgs. |
225,000 |
-- |
|
Prefinished
Boards (surface area) |
Millions Sq. Mts. |
1.350 |
1.27 |
|
UV Top Coat and Base Coat |
M.T. |
123.90 |
3.37 |
|
|
|
|
|
GENERAL
INFORMATION
|
No. of Employees : |
400 |
||||||||||||||||||||
|
|
|
||||||||||||||||||||
|
Bankers : |
v State
Bank of India v Dena
Bank v
Punjab National Bank |
||||||||||||||||||||
|
|
|
||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors : |
Varma & Varma Chartered Accountants, Kochi Internal Auditors Krishnamoorthy &
Krishnamoorthy Chartered Accountants, Kochi Legal Advisor Pushya Sitaraman Advocate, Chennai |
|
|
|
|
Subsidiaries : |
v
Kohinoor Saw Mill Company Limited v
Southern Veneers and Woodworks
Limited |
|
|
|
|
Associates: |
Wood
Plast Industries and Western India Cottons Limited |
CAPITAL
STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,000 |
Equity Shares |
Rs. 100/- each |
Rs. 100.000 millions |
|
1, 20,000 |
1 3,5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 12.000 millions |
|
2,50,000 |
1 4.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 25.000 millions |
|
2,50,000 |
Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 25.000 millions |
|
1, 30,000 |
1 2.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 13.000 millions |
|
|
Total |
|
Rs. 175.000 millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
8,63,247 |
Equity Shares |
Rs. 100/-each |
Rs. 86.325 millions |
|
1, 20,000 |
1 3.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 12.000 millions |
|
2,50,000 |
1 4.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 25.000 millions |
|
1, 30,000 |
1 2.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 13.000 millions |
|
|
Total |
|
Rs. 136.325 millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8,48,734 |
Equity Shares |
Rs. 100/-each |
Rs. 84.873 millions |
|
80,000 |
1 3.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 8.000 Millions |
|
2,50,000 |
1 4.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 25.000 millions |
|
1, 30,000 |
1 2.5% Redeemable Cumulative Preference Shares |
Rs. 100/-each |
Rs. 13.000 millions |
|
|
Total |
|
Rs. 130.873 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
30.09.2005 (18 Month) |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
130.873 |
130.873 |
130.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
41.296 |
41.296 |
7.900 |
|
|
4] (Accumulated Losses) |
(52.285) |
(74.138) |
0.000 |
|
|
NETWORTH |
119.884 |
98.031 |
138.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
584.549 |
743.777 |
703.600 |
|
|
2] Unsecured Loans |
10.509 |
6.808 |
6.800 |
|
|
TOTAL BORROWING |
595.058 |
750.585 |
710.400 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
714.942 |
848.616 |
849.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
477.999 |
527.947 |
553.900 |
|
|
Capital
work-in-progress |
40.153 |
2.090 |
2.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.611 |
2.588 |
2.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS
& ADVANCES |
|
|
|
|
|
|
Inventories |
366.324
|
378.623 |
387.700 |
|
|
Sundry Debtors |
80.975
|
71.838 |
72.100 |
|
|
Cash & Bank
Balances |
11.930
|
11.041 |
10.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
37.054
|
64.067 |
182.700 |
|
Total Current Assets |
496.283
|
525.569 |
653.300 |
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
249.398
|
174.234 |
330.600 |
|
|
Provisions |
53.706
|
35.493 |
33.300 |
|
Total Current Liabilities |
303.104
|
209.727 |
363.900 |
|
|
Net
Current Assets |
193.179
|
315.842 |
289.400 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.149 |
0.300 |
|
|
|
|
|
|
|
|
TOTAL |
714.942 |
848.616 |
849.200 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.09.2005 (18 Month) |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
889.866 |
545.376 |
545.900 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
88.820 |
(0.827) |
(57.900) |
|
Provision for Taxation |
|
|
(11.800) |
|
Profit/(Loss) After Tax |
21.853 |
(40.754) |
(46.100) |
|
|
|
|
|
|
Export Value |
150.635 |
73.232 |
NA |
|
|
|
|
|
|
Import Value |
17.577 |
8.107 |
NA |
|
|
|
|
|
|
Total Expenditure |
801.046 |
546.203 |
468.700 |
KEY RATIOS
|
PARTICULARS |
|
30.09.2005 (18 Month) |
31.03.2004 |
31.03.2003 |
|
PAT / Total Income |
(%) |
2.46
|
(7.47) |
(8.44) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.98
|
(0.15) |
(10.61) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.12
|
(0.08) |
(3.82) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.74
|
(0.01) |
(0.42) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.49
|
9.79 |
7.74 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.64
|
2.51 |
1.80 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 725.00/- |
|
Low |
Rs. 725.00/- |
LOCAL
AGENCY FURTHER INFORMATION
FIXED ASSETS
v
Land -Freehold
v
Land - Leasehold
v
Buildings
v
Plant & Machinery
v
Electric Machinery
v
Rolling & Sundry Plant
v
Computer
v
Lab Equipments
v
Furniture & Fittings
v
Vehicles
v
Intangibles-Software
HISTORY
The Kerala
based Western India Plywoods Ltd., is the largest integrated wood processing
complex in the country. and was incorporated in the year 1945. It is engaged in
manufacturing of Plywood, Hardboard, densified wood. The company also
manufactures UF & PF Resins, Resorcinol Formaldehyde, Glass Reinforced
Plastics, Prefurnished Boards, DAP resin and Monomer, UV Top Coat and Base
Coat.
The Hardboard plant with an installed capacity of 12.5 tonnes was set up
in 1959-60 with West German technical collaboration. Now this division with an
total installed capacity of 34750 MTPA is the market leader in
Hardboards.
In 1978, WIP has set up a plant for manufacturing Di-allyl Phthalate
(DAP) Moulding powder, a thermoset which had to be imported until then, The technology
was developed in-house with support from Shree Ram Institute of Industrial
Research, Delhi.
In 1989, the company put up a pre-finishing plant for direct printing
wood grains and plain colours onto hardboards and plywoods using UV radiation
cured surface finishes. The pre-finishing plant is the only one of its kind in
the country and one of the few in the World.
WIP is the first company to obtain ISO 9002 certification for Hardboards
and pre-finished boards. In May,2003 there was major fire accident in the
factory which had destroyed substantial portion of the financial products and
the machinery items and equipments. The company is taking severe steps in
formulating aggresive marketing strategy especially for its premium products.
OPERATIONS
:
The financial year of the Company was extended by six months from 31st
March 2005 to 30th September 2005 with permission from the Registrar of
Companies. The Company could achieve a turnover of Rs.858.200 Millions during
the year 2004-05 (18 months) as compared to Rs.499.300 Millions during the year
2003-04 (12 months). The Company's exports during the year were Rs.15.06
Millions on FOB basis. Taking into account the exports, the Company became
entitled to One Star Export House Certificate from the Ministry of Commerce,
Govt. of India. The steep increase in price of veneers, oil, diesel etc had
adversely affected the working of the Company. The Company could not increase
the price of its finished products correspondingly due to stiff competition in
the market.
The Company had submitted proposal to IFCI for settlement of dues IFCI
accepted the proposal and agreed to settle the account for Rs.312.300 Millions
by payment of Rs.220 Millions in cash and balance by issue of preference
shares. An amount of Rs.147.800 Millions already debited as interest has been
written back and included in 'Other Income' in the Profit and Loss
account.
After providing for depreciation and other adjustments the Net Profit for
the 18 months period was Rs.21.853 Millions as against loss of Rs.40.754
Millions reported in previous 12 months.
FUTURE PLANS :
The Company has already chalked out action plans to improve performance.
Various value added products are being introduced to compensate for the lower
income from the traditional products.
Simultaneously, the Management has taken several steps to exercise strict
control on various items of expenses. The Company was able to save a
substantial amount in fuel cost by using agro firewood instead of the costly furnace
oil. There was an increase of Rs.3.67/ ltr.in the price of furnace oil from 1st
April 2004 to 30th September 2005. Some reduction in the cost of fuel was
achieved by judicious use of the furnace oil in spite of the increase in price
of the item.
DIVIDEND :
In view of the lack of profits, the Directors are unable to recommend any
dividend for the accounting year ending 30.9.2005.
SUBSIDIARY
COMPANIES :
The Annual Audited Accounts of the subsidiary companies viz. M/s.Southern
Veneers and Woodworks Limited and The Kohinoor Saw Mill Company Limited for the
period ended 30th September 2005 together with enclosures and other reports are
attached, as required under Section 212 of the Companies Act. Also the Audited
consolidated financial statements as per accounting standard 21 are also
attached.
CORPORATE
GOVERNANCE :
Pursuant to clause 49 of the Listing agreement with Stock Exchanges,
Management Discussion and Analysis, Corporate Governance Report and Auditors
Certificate regarding compliance of Conditions of Corporate Governance have
been incorporated in the Annual Report.
Plywood
The Misunderstood Building Panel
Plywood,
despite being an important structural/decorative building material is denied
it’s due importance by home owners and people furnishing new homes.More often
or not, the decision regarding the brand to purchase is left to the carpenter
or the site supervisor.This kind of low involvement in the purchase of plywood
has resulted in the degradation of the product’s status as the better
alternative to solid timber.
Sadly, manufacturers with questionable business ethics have
exploited the situation and garnered market share using a combination of low
price/low quality products and generous handouts to the decision maker in the transaction
i.e., unscrupulous carpenters or other middlemen.
The low quality plywood panels will understandably fail to
meet the expectations of the home owner and put him through all kinds of
diffculites owing to "powdering problems" (borer attack) delamination
(structural collapse and poor stability (warp and twist).
Here are some of the attributes of quality plywood :-
Uniform Strength - Owing to its cross grained construction (the grain
direction of adjacent layers or piles are perpendicular to each other) the
strength properties are equitably distributed in all the four directions of the
plywood panel, unlike solid timber where the strength lies essentially ‘along
the grain’. When manufactured using a selected mix of timber species, plywood
can economically replace solid wood of higher thickness in most applications.
Eco-friendly-Plywood saves upto 60% of timber Strange as it may sound, furniture made with
quality plywood requires upto 60% less timber when compared to manufacture of
the same design with solid timber.
This is due to the wastage involved when using solid timber coupled with the
almost complete utilization of timber in modern plywood processing lines.
Above all, plywood is made using full renewable forest resources unlike many of
its supposedly eco-friendly plastic and metal based substitutes.
Physical & Mechanical Properties
Quality plywood possesses significantly superior mechanical & physical
properties in comparsion to other wood based panels like MDF and particle
board.
There is no peer for quality plywood in the family of composite wood panels
when it comes to attributes like water resistance, dimensional stability, nail
and screw holding strength and other basic mechanical properties.
Since it is difficult to assess the quality of a plywood panel by its
appearance we would like to explain the problems associated with poor quality
plywood so that the required thought is given during next purchase of plywood.
Delamination : When the bonding between the plies in a plywood panel is poor there is
a tendency for the plies to come unstuck or separate from each other. This will
result in loss of structural strength.
It is due to poor control of quality-affecting variables
during the manufacturing process.
Samples drawn from every batch of plywoods and block boards should be tested
for the conformance of its bonding strength (between the plies in the panel) to
the relevant IS specification.
The tests are conducted by Government recognised R&D to ensure that
customers get what they pay for.
2. Warpage :
Due to poor dimensional stability the plywood panels will twist and bend ofen
assuming
grotesque shapes. This will mar the overall appearance of
carefully planned interiors and create all kinds of fixing problems.
It is due to varied reasons like poor mositure control, incompatible mix of
species or an unbalanced construction of the plies in a plywood panel. The
plywood produced should be made with carefully moisture controlled veneers (8%
at the time of manufacture) and with a balanced construction using species that
are found to be compatible with each other. Additionally, every panel is
humidified and mositure balanced before it is despatched to customers.
3. Termite and borer attack : Plywood panels made with veneers of poor quality timber are
sooner or later attacked by wood destroying beetles and termites.
Termite attack can be identified by the characteristic mud ‘tunnels’ leading to
the attacked areas of the panel. Borer attack can be identified by mounds of
fine or granular powder deposited under panels infested with the borer beetles.
All panels must undergo a twin stage "anti-pest" treatment to prevent
the possibility of attack from wood destroying borer beetles and termites. As
an active safety measure only timbers that have good resistance to
bio-degrading organisms are used in the manufacture of plywood panels. So the
next time you are faced with the requirement of plywood, please see that
purchases are made from technically competent manufacturer. It will save you a
lot of money and hassles in the long run.
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. 46.20 |
|
UK Pound |
1 |
Rs. 84.57 |
|
Euro |
1 |
Rs. 58.12 |
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 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational
base are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/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 |