MIRA INFORM REPORT
|
Report
Date : |
24.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
CIPY
POLYURETHANES PRIVATE LIMITED |
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Registered
Office : |
T –127,
MIDC, Bhosari Industrial Area, Pune – 411026, Maharashtra |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
29.11.1994 |
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Com.
Reg. No.: |
11-83328 |
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CIN
No.: [Company Identification No.] |
U24219PN1994PTC083328 |
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TAN
No.: [Tax Deduction & Collection Account No.] |
PNEC00821C |
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PAN
No.: [Permanent Account No.] |
AAACC7264R |
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Legal
Form : |
Private Limited Liability Company. |
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Line
of Business : |
To manufacture, sell, buy, deal in all kind of chemical
covasive, paints, poly rethanes, water proofing and allied items and to
invent new techniques, formulas in manufacturing the same. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
125000 |
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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 and reputed company having satisfactory track. Financial
position is good. Payments are
correct and as per commitments. The company is doing well. It can be considered good for any normal business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office / Corporate Office / Factory : |
T –127,
MIDC, Bhosari Industrial Area, Pune – 411026, Maharashtra, India |
|
Tel.
No.: |
91-20-27121706 / 27122586 / 27122861 |
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Fax
No.: |
91-20-27120491 |
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E-Mail
: |
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Website
: |
DIRECTORS
|
Name : |
Mr. Subhash Panku Cheralayth |
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Designation
: |
Chairman and Managing Director |
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Address
: |
Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra,
India |
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Date
of Birth/Age : |
16/05/1953 |
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Date
of Appointment : |
29/11/1994 |
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Name : |
Mrs. Sabita Subhash Cheralayth |
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Designation
: |
Director |
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Address
: |
Ritu, 11, Green Park, Baner, Pune – 411007, Maharashtra,
India |
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Date
of Birth/Age : |
06/06/1960 |
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Date
of Appointment : |
29/11/1994 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. Subhash Panku Cheralayth |
18018 |
20.01 % |
|
Mrs. Sabita Subhash Cheralayth |
72018 |
79.99 % |
|
Total |
90036 |
100.00 % |
BUSINESS DETAILS
|
Line
of Business : |
To manufacture, sell, buy, deal in all kind of chemical
covasive, paints, poly rethanes, water proofing and allied items and to
invent new techniques, formulas in manufacturing the same. |
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|
|
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Product
: |
v Polyurethane Products v Floor Coatings v ESD Coatings v Hygienic Coatings v Re Enterable Castings v Adhesives and Sealants v Moisture Curing Urethanes v Clear Coatings v Deck Coatings v Wall Coatings v OEM |
GENERAL INFORMATION
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No. of
Employees : |
350 |
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|
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Bankers
: |
Indian Bank Deccan Gymnkhana, Pune - 411004 |
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Facilities : |
Cash Credit against hypothecation of stock and debtors
& mortgage of building and guaranteed by the directors. |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Shireesh N. Agte Chartered Accountants |
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Address
: |
461/1, Sadashiv Peth, Above Dr. Pathak Hospital, Opp. New
English School, Tilak Road, Pune – 411030. |
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Tel.
No.: |
91-20-24455414/ 24453592 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000 |
Equity Shares |
Rs.100/- |
Rs.10.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90036 |
Equity Shares |
Rs.100/- |
Rs.9.004 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
9.004 |
9.004 |
9.273 |
|
|
2]
Reserves & Surplus |
21.432 |
14.653 |
7.771 |
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NETWORTH
|
30.436 |
23.657 |
17.044 |
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LOAN
FUNDS |
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|
|
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1]
Secured Loans |
31.915 |
32.230 |
30.393 |
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2] Unsecured
Loans |
6.431 |
6.441 |
2.213 |
|
TOTAL
BORROWING
|
38.346 |
38.671 |
32.606 |
|
|
DEFERRED
TAX LIABILITIES |
1.804 |
1.214 |
2.037 |
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|
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|
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TOTAL
|
70.586 |
63.542 |
51.687 |
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|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
26.437 |
26.324 |
23.580 |
|
Capital work-in-progress
|
0.224 |
0.000 |
0.472 |
|
|
|
|
|
|
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
18.015
|
17.436 |
10.314 |
|
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Sundry Debtors
|
69.288
|
52.964 |
43.906 |
|
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Cash & Bank Balances
|
9.750
|
6.956 |
4.445 |
|
|
Loans & Advances
|
3.212
|
2.271 |
3.033 |
Total Current Assets
|
100.265 |
79.627 |
61.698 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
55.118
|
41.382 |
34.075 |
|
|
Provisions
|
1.222
|
1.027 |
0.000 |
Total Current Liabilities
|
56.340 |
42.409 |
34.075 |
|
Net
Current Assets
|
43.925
|
37.218 |
27.623 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.012 |
|
|
|
|
|
|
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TOTAL
|
70.586 |
63.542 |
51.687 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
237.454 |
181.936 |
138.977 |
|
|
|
|
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Profit/(Loss) Before Tax
|
13.268 |
10.546 |
5.491 |
Provision for Taxation
|
5.188 |
2.639 |
2.066 |
Profit/(Loss) After Tax
|
8.080 |
7.907 |
3.425 |
|
|
|
|
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Export Value
|
0.132 |
NA |
0.543 |
|
|
|
|
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Import Value
|
NA |
NA |
1.873 |
|
|
|
|
|
Total Expenditure
|
224.186 |
171.391 |
143.391 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
3.40
|
4.35 |
2.46 |
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Net Profit Margin
(PBT/Sales) |
(%) |
5.59
|
5.80 |
3.95 |
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Return on Total Assets
(PBT/Total
Assets} |
(%) |
10.47
|
9.95 |
6.43 |
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|
|
|
|
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Return on Investment (ROI)
(PBT/Networth) |
|
0.44
|
0.45 |
0.32 |
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|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
3.11
|
3.43 |
3.91 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
0.78
|
1.88 |
1.81 |
LOCAL AGENCY FURTHER INFORMATION
Website details attached :
OVERVIEW
Cipy Polyurethanes, the pioneer in urethane and epoxy
coating in India, was founded with a vision “Innovation and Versatility” in mid
70’s.
From a very modest beginning they have grown rapidly in
recent years into a globally recognized and respected producer of specialty
coatings for diverse market needs.
Headquartered in Pune, India, this technology driven company
was the first to introduce polyurethane coatings in India. Cipy, with more than
100 products and brands, now stands at the forefront of technology, with the
latest addition of hybrid epu, water borne urethanes and epoxies to their
product portfolio.
Today, Cipy “Coatings from Cans” are being supplied to major
Asian countries for a wide variety of applications.
Products introduced in
the current millennium include Rust-O-Thane, a moisture curing urethane coating
for corrosion control, Durathane 100, 100% elastomeric, solventless PU coating,
PUD based coatings, EPU hybrid system, the chemical combination of epoxy and
urethane among the various others.
They stand
to put their three decades of rich experience and expertise to work, to set
highest standards in surface care.
Established
in 1976, Cipy has over the last few decades expanded its product portfolio to
institute new trends in C.A.S.E ( Coatings, Adhesives, Sealants, Elastomers )
segments.
What remains
unaltered since their inception is their commitment to offer quality products
and technical service to their esteemed customers.
An ISO 9001
accredited company since 1998, their philosophy is to produce urethane, epoxy
and acrylic coatings in solvented, solventless and aqueous media to conform to
true international standards for use across a wide range of application areas.
The unique
combination of world class manufacturing facilities, focused technical
expertise, flexible and responsive service, inventive research and development
and zeal to create value addition for their customers puts Cipy in a class of
its own.
Their mission is to
set new standards in surface care and to remain the technology leaders in high
performance coatings, specifically in niche markets.
Cipy pioneered the development of polyurethane technology more than 29
years ago to provide a new breed of coatings- from glass hard to rubbery,
elastomeric coatings.This innovative research led to a new coating market
segment based on the synergy of toughness and flexibility to cater to varied
surface coating requirements such as floor coatings, spray applied coatings,
adhesives, sealants, membranes, wall coatings, metal coatings, wood coatings.
Achievements
1976 : The
first baby of Cipy : ‘U-Coat’, the two component PU clear coating
1978 : Introduction
of second product, now obscure, Urelac.
1980 : The
launch of the first MCU of the country : Duraseal
1982 : The
commission of the first plant at J-62 in MIDC , Pune
1984 : The
take off of complete range of PU anti corrosive systems.
1985 : The
very first product of Floor coat was emerged.
1988 : Flocking
adhesives were launched
1991 : The
firm became a Corporate entity
1995 : The
second plant at J-446, MIDC was commissioned
1996 : The
continuous R&D brought in novel products : Adhesives, sealants and OEM
paints
1998 : Became
an ISO 9001 accredited company.
1999 : Ventured
in to complete range of epoxy based coatings under the brandname : Cipoxy
2000 : The
emergence of India’s first hybrid epoxy-pu system: EPU. Protective coatings got
approval from Engineers India
2001 : Silver
jubilee year. The launch of spray applied, elastomeric PU coatings, water
dispersible epoxy and PU, ESD floorings,, MCU’s
2002 : Shifted
to the current location, T-127, MIDC, Bhosari, Pune
2003 : Completes
25 million sq.ft. of Floor coat installations
2004 : Developed
PU based self levelling floorings : Floor coat SL
2005 : Developed
hybrid polyurea coatings ; three component waterborne PU self levelling
floorings.
|
Name
of the company |
CIPY POLYURETHANES
PRIVATE LIMITED |
||||||||
|
Presented By |
Mr. Subhash Panku Cheralayth Chairman and Managing Director |
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|
1) Date
and description of instrument creating the change |
Agreement of hypothecation of moveable dated 29.03.1996 |
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2) Amount
secured by the charge/amount owing on the securities of charge |
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3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation
of Stocks, Plant and Machinery and Book Debts |
||||||||
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4) Gist
of the terms and conditions and extent and operation of the charge. |
Rate of Interest @ 20.75 % p.a. Repayable on Demand |
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5) Name
and Address and description of the person entitled to the charge. |
Indian Bank Deccan Gymkhana Branch Pune – 411004 |
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6)
Date and brief description of
instrument modifying the charge |
Agreement
of hypothecation of movables dated 17.08.2002 |
||||||||
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Agreement of
hypothecation of Moveable, Stocks, Hypothecation of Book debts and
Hypothecation of Plant and Machinery
or company dated 28.10.1999 and Extension of EM Rol 16.83 % Margin 25 % on Stock Margin 50 % on Book debts less than 60 days First modification was made on 30.03.1996 which was
registered on 18.06.1996 at S. No. 10, whereby the charge by way of EM of
Plot No. J 446, MIDC, Bhosari, Pune has been registered to cover the total
limit of Rs. 6.000 Millions Second modification was made on 31.12.1996 which was
registered on 03.04.1998 at S. No. 14, whereby the CC limit of Rs. 1.5
Millions to Rs. 2.00 Millions Third modification was made on 18.05.1998 which was
registered on 16.06.1998 at S. No. 1173 covering the OD limit of Rs. 1
Millions against hypothecation of Book debts. Forth modification was made on 18.05.1998 which was
registered on 21.09.1998 at S. No. 4335,thereby the OD limit was raised from
Rs. 1 millions to 2 millions Fifth modification was made on 06.01.1999 which was
registered on 02.02.1999 and registered on 02.06.1999 at S. No. 20, thereby
fresh MTL limit given for Rs. 1.1 millions against hypothecation of imported
Machinery and CC limit raised from Rs. 2 millions to Rs. 3 Millions Sixth modification to cover the CC limit of Rs. 10
Millions as a substitute for OCC limit of Rs. 3 Millions ODBO Limit of Rs. 2
millions Bill purchased limit of Rs. 3 millions. Total limit Rs. 8 millions
enhanced by Rs. 2 millions against hypothecation of RM, WIP, FG and Book
debts. The coverage under LC and guarantee has been retained at Rs. 1
millions each respectively. The overall limit charge is raised from Rs. 11.1
millions to Rs. 13.1 millions. This modification was registered with the
register of the companies on 01.12.1999. Seventh was modification dated 06.06.2000 making
modification from Rs. 13.1 millions to Rs. 13.805 millions Term loan limit reduced to Rs. 0.805 millions Guarantee limit raised to Rs. 0.2 millions Hence the present limits are as under : OCC : Rs. 10.000 Millions MTL Rs. 80.5 Millions LC Rs. 1.000 Millions Guarantee : Rs. 2.000 Millions Against furniture, lights, colours, cabins, tables,
chairs, A/c etc. Rate of Interest PLR 3 % For OCC Margin Money 25 % For MTL Margin Money 25 % For Book Debts 20 % This modification was made on dated 17.08.2002 making
modification from Rs. 13.805 millions to Rs. 29.8 millions Which include modification of OCC limit from Rs. 10
millions to Rs. 24 millions so modification by Rs. 10 millions, guarantees
limit modifying from Rs. 2.000 millions to Rs. 3.00 millions so modification
by Rs. 1.00 millions and additional Int LC / DA Rs. 5.00 millions and MTI 1
& 2 there was no change. For OCC limit against stock, Book debts and receivables
WIP, Finished goods including present and future Rate of interest PLR + 3 % Maximum 18 % Margin 25 % |
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Name
of the company |
CIPY POLYURETHANES
PRIVATE LIMITED |
||||||||
|
Presented By |
Mr. Subhash Panku Cheralayth Chairman and Managing Director |
||||||||
|
1) Date
and description of instrument creating the change |
Agreement of hypothecation of moveable dated 29.03.1996 Agreement for ADD collateral security of lot at T – 127
MIDC Bhosari, dated 18.06.2002 |
||||||||
|
2) Amount
secured by the charge/amount owing on the securities of charge |
|
||||||||
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation
of Stocks, Plant and Machinery and Book Debts additional CD lateral security of T – 127 MIDC Bhosari
Pune |
||||||||
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
Rate of Interest @ 20.75 % p.a. Repayable on Demand |
||||||||
|
5) Name
and Address and description of the person entitled to the charge. |
Indian Bank Deccan Gymkhana Branch Pune – 411004 |
||||||||
|
6)
Date and brief description of
instrument modifying the charge |
Agreement
of Extension of hypothecation of movables, immovable property at T – 127 MIDC
Bhosari dated 07.03.2005 |
||||||||
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Amount increased form Rs. 37.942 Millions to Rs. 44.9
Millions as under :
Agreement of
hypothecation of Moveable, Stocks, Hypothecation of Book debts and
Hypothecation of Plant and Machinery
or company dated 28.10.1999 and Extension of EM Rol 16.83 % Margin 25 % on Stock Margin 50 % on Book debts less than 60 days First modification was made on 30.03.1996 which was
registered on 18.06.1996 at S. No. 10, whereby the charge by way of EM of
Plot No. J 446, MIDC, Bhosari, Pune has been registered to cover the total
limit of Rs. 6.000 Millions Second modification was made on 31.12.1996 which was
registered on 03.04.1998 at S. No. 14, whereby the CC limit of Rs. 1.5
Millions to Rs. 2.00 Millions Third modification was made on 18.05.1998 which was
registered on 16.06.1998 at S. No. 1173 covering the OD limit of Rs. 1
Millions against hypothecation of Book debts. Forth modification was made on 18.05.1998 which was
registered on 21.09.1998 at S. No. 4335,thereby the OD limit was raised from
Rs. 1 millions to 2 millions Fifth modification was made on 06.01.1999 which was
registered on 02.02.1999 and registered on 02.06.1999 at S. No. 20, thereby
fresh MTL limit given for Rs. 1.1 millions against hypothecation of imported
Machinery and CC limit raised from Rs. 2 millions to Rs. 3 Millions Sixth modification to cover the CC limit of Rs. 10
Millions as a substitute for OCC limit of Rs. 3 Millions ODBO Limit of Rs. 2
millions Bill purchased limit of Rs. 3 millions. Total limit Rs. 8 millions
enhanced by Rs. 2 millions against hypothecation of RM, WIP, FG and Book
debts. The coverage under LC and guarantee has been retained at Rs. 1
millions each respectively. The overall limit charge is raised from Rs. 11.1
millions to Rs. 13.1 millions. This modification was registered with the
register of the companies on 01.12.1999. Seventh was modification dated 06.06.2000 making
modification from Rs. 13.1 millions to Rs. 13.805 millions to cover CC limits
Combined working capita of Rs. 10 Millions B G of Rs. 2.000 Millions. This
modification was register with the registrar of companies on 11.02.2002 OCC Limits were increased from Rs. 10 millions tp Rs. 24
Millions thereby making modification of Rs. 14 millions Bank guarantee limits were modified from Rs. 2 Millions to
Rs. 3 Millions thereby making as increase of Rs. 1 Millions An additional limits for Interest LC / DA Rs. 1.00
Millions MTL 1 & 2 there was no change. Ninth modification was made on 31.01.2004 as under S/L OD BD limits are increased from Rs. 17.5 Millions to
Rs. 20 Millions alongwith extension of facility to the Book debts upto 120
days from Existing 90 days further the margin is increase to 25 % from
existing 20 % Inland and foreign letter of credit limits of Rs. 6
millions are remained same however earlier criteria regarding its has been
moved. Rate of Interest PLR 3 % For OCC Margin Money @ 25 % For MTL Margin Money @
25 % For Book Debts @ 20 % Now tenth modification in respect of various facilities
availed by the company are made as under. Extension in respect of equitable mortgage is made FDR
Plot at T – 127 MIDC Bhosari for facilities up to maximum of Rs. 44.9
millions OCC limits have been increased from Rs. 24 millions to Rs.
30 Millions @ 2 % interest spread p a over banks benchmark prime lending
rate subject to minimum of 13 % Letter of credit and bank guarantee limits have been
rearranged from Rs. 9 millions to Rs. 11.5 millions now company will enjoy
Rs. 7 millions facility at any one time towards letter of credit and limit of
Rs. 4.5 millions has been sanctioned rewards performance bank guarantee at
any one time. Medium term loan
at any one time will be up to Rs. 3.4 millions reducing earlier limit of Rs.
4.942 Millions on account of repayment. |
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.44.64 |
|
UK Pound |
1 |
Rs.86.51 |
|
Euro |
1 |
Rs.58.62 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|
NR |
In view
of the lack of information, we have no basis upon which to recommend credit
dealings |
No Rating |
|