MIRA
INFORM REPORT
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Report Date : |
03.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RPG CABLES LIMITED |
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Registered Office : |
Herbal Indstrial area, Belavadi Post, Mysore,:571186, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.03.1982 |
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Com. Reg. No.: |
004679 |
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CIN No.: [Company
Identification No.] |
L85110KA1982LC004679 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PINER06094E |
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PAN No.: [Permanent
Account No.] |
AAABCROO67Q |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
stock Exchange |
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Line of Business : |
Manufacturing and Marketing of jelly filled telephone
cables, optical fibre cables, power cables and wind energy. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
-- |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having moderate track. The company’s profit margin is under severe pressure. Payments are reported as slow by + 30 days on its commitments. However, the company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Hebbal Indusrtial Area, Hootagalli, Belavadi Post, Mysore-571 186, |
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Tel. No.: |
91-821-6553375 / 6553376 |
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Fax No.: |
91-821-2402499 |
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Corporate Office : |
Ceat Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai 400 030 |
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Tel. No.: |
91-22-66670300 / 24937244 / 24938330 |
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Fax No.: |
91-22-24930206 |
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Website: |
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Factory : |
Mysore Hebbal Industrial Area, Hootagalli, Belavadi Post, Mysore 571 186. Thane |
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Factory : |
Siivassa Plot No. 273/4, Demni Road, Silvasa396191 (D. & N.H.) |
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Factory : |
Raebareli* A9/10, UPSIDC Indl. Area No. 2, Amawan Road, Raebareli 229 001 |
DIRECTORS
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Name : |
Mr. R.A Naik |
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Designation : |
Director |
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Name : |
Mr. H.C.Dalal |
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Designation : |
Director |
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Name : |
Mr. M. K. Kumar |
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Designation : |
Director |
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Name : |
Mr. K. Kalyanasundaram, Nominee Director of IFCI |
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Designation : |
Director |
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Name : |
Mr. Nikhil Gupta |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Audit Committee:: |
Mr. R. A. Naik |
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Mr. H. C. Dalal |
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Mr. K. Kalyanasundaram |
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Shareholders/Investors Grievance Committee: |
Mr. H. C. Dalal |
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Mr. M. K. Kumar |
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Mr. Nikhil Gupta |
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Name : |
Mr. Jitin Parekh |
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Designation : |
Company Secretary |
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Management Team: |
Mr. Nikhil Gupta |
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Mr. Rajendra Mishra |
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Mr. C .N. Banerjee |
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Mr. S. Raguraman |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group |
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Indian |
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Individuals/ Hindu Undivided Family |
700 |
0.00 |
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Central Government/ State Government(s) |
-- |
-- |
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Bodies Corporate |
9523604 |
31.47 |
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Financial Institutions/ Banks |
-- |
-- |
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Any Others(Specify) |
-- |
-- |
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Sub Total(A)(1) |
9524304 |
31.47 |
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Foreign |
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Individuals (Non-Residents
Individuals/ |
-- |
-- |
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Bodies Corporate |
-- |
-- |
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Institutions |
-- |
-- |
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Any Others(Specify) |
-- |
-- |
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Sub Total(A)(2) |
0.00 |
0.00 |
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Total Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2) |
9524304 |
31.47 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
2809 |
0.01 |
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Financial Institutions / Banks |
103013 |
0.34 |
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Central Government/ State Government(s) |
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Venture Capital
Funds |
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Insurance Companies |
1438505 |
4.75 |
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Foreign Institutional Investors |
16961 |
0.56 |
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Foreign Venture Capital Investors |
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Any Other (specify) |
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Sub-Total (B)(1) |
1714018 |
5.66 |
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Non-institutions |
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Bodies Corporate |
1732804 |
5.73 |
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Individuals |
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Individuals –i. Individual shareholders holding nominal
share capital up to Rs 1 lakh |
13323860 |
44.03 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh. |
3946675 |
13.04 |
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Any Other (specify) |
20100 |
0.07 |
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Sub-Total (B)(2) |
19.23439 |
62.86 |
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Total Public
Shareholding (B)= (B)(1)+(B)(2) |
20737457 |
68.53 |
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TOTAL (A)+(B) |
30261761 |
100.00 |
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Shares held by Custodians and against which Depository Receipts have been
issued |
-- |
-- |
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GRAND TOTAL (A)+(B)+(C) |
30261761 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of jelly filled telephone
cables, optical fibre cables, power cables and wind energy. |
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Products : |
Turnkey Solutions Power Cables House Wiring Telecommunication New Products |
GENERAL
INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
State Bank of India Canara Bank Bank of India |
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Facilities : |
NOTES: 1. FROM BANKS a. Working Capital Borrowings are secured by way of first charge on
hypothecation of inventories & book debts and by way of a second charge on all immovable properties of respective
units. b. Term Loans of Rs.32.900 Millions (Previous year Rs. 32.900 Millions)
from State Bank of India are secured by first charge on the company's
specific assets and pari-passu second charge on inventories, book debts and
other liquid assets. c. Term loan from ICICI Bank of Rs.249.700 Millions (Previous year: Rs.
256.000 Millions) is secured by mortgage and charge on immovable properties
both present and future and charge on movables both present and future
subject to prior charges in favour of banks for .Working Capital requirement
and in favour of Financial institutions for specific machinery.
Notes 1. Fixed Deposits includes deposits matured but not paid Rs. 204.600
Millions (Previous year Rs. 126.300 Millions).Fixed Deposits repayable within
one year Rs 48.027 Millions.(Previous year Rs. 82.358 Millions) 2. Short Term Loans and Advances from other than Banks comprises of
Rs. 67.900 Millions (previous year Rs. 67.900 Millions) from Industrial Development Bank of India and Rs. 0.228 Millions (previous
year Rs. 0.800 Millions) from companies repayable on demand. 3. Other loans and advances from bank include Nil (Previous Year Rs.
0.734 Millions) from Sarswat Co-operative Bank Ltd. The loan is repaid in the
current year. 4. Other loans and advances from other than bank includes a. Sales Tax deferment loan of Rs. 259.098 Millions (Previous year :
Rs. 260.234 Millions) repayable on completion of 8 years from the date of
sanction over a period of 5 years. Out of this Rs 57.442 Millions (Previous
year : Rs 81 .755 Millions) is due or repayable in one year. b. Unsecured Loan of Rs. 35.000 Millions (Previous year :Rs. 35.000
Millions) from IL & FS. c. Sales Tax Deferment amount of Rs. 8.765 Millions(Previous year:
Rs.7.629 Millions) pending conversion into loan. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
N. M. Raiji and company Chartered Accountant |
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Associates/Subsidiaries : |
Associates: Ceat Limited CESC Limited Ceat Financial Services Limited Fujitsu ICIM Limited Saregama India Limited Gramophone Company of India Limited Harrisons Malayalam Limited Phillips Carbon Black Limited Spencer & Company Limited KEC International Limited RPG Transmission Limited RPG Cellular Services Limited RPG Cellcom Limited Searle India Limited (RPG Healthscience Limited) RPG Satellite Communication Limited RPG Communication Holding Limited RPG Life Sciences Limited Subsidiaries: KTL Industrial Finance Company Limited Blue Niles Holdings Limited Concepta Cables Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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21239900 |
Equity Shares |
Rs.10/- each |
Rs.212.399
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
212.399 |
212.399 |
212.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
356.670 |
358.329 |
(290.000) |
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4] (Accumulated Losses) |
(1470.128) |
(1074.793) |
0.000 |
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NETWORTH |
(901.059) |
(504.065) |
(77.600) |
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LOAN FUNDS |
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1] Secured Loans |
2022.033 |
1795.228 |
1202.900 |
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2] Unsecured Loans |
741.367 |
657.463 |
703.700 |
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TOTAL BORROWING |
2763.400 |
2452.691 |
1906.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1862.341 |
1948.626 |
1829.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
463.085 |
507.977 |
562.000 |
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Capital work-in-progress |
0.633 |
0.000 |
02.400 |
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INVESTMENT |
879.488 |
932.188 |
987.600 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
64.540
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56.074 |
152.800 |
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Sundry Debtors |
229.891
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259.101 |
286.500 |
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Cash & Bank Balances |
45.957
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37.286 |
57.900 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
611.404
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601.034 |
845.500 |
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Total
Current Assets |
951.792
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953.495 |
1342.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
413.649
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402.594 |
1020.900 |
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Provisions |
19.008
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42.440 |
44.800 |
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Total
Current Liabilities |
432.657
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445.034 |
1065.700 |
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Net Current Assets |
519.135
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508.461 |
277.000 |
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MISCELLANEOUS EXPENSES |
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TOTAL |
1862.341 |
1948.626 |
1829.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1259.250 |
886.432 |
1146.600 |
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Other Income |
79.422 |
107.644 |
98.100 |
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Stock Adjustments |
0.000 |
0.000 |
(38.600) |
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Total Income |
1338.672 |
994.076 |
1206.100 |
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Profit/(Loss) Before Tax |
(409.784) |
(424.510) |
(1335.000) |
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Provision for Taxation |
(14.449 |
-- |
(26.000) |
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Profit/(Loss) After Tax |
(395.335) |
(424.510) |
(1309.000) |
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Expenditures : |
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Raw Materials |
881.083 |
524.792 |
646.800 |
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Personal Expenses |
120.420 |
137.618 |
0.000 |
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Other Expenses |
388.356 |
460.296 |
0.000 |
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Excise Duty |
0.000 |
0.000 |
125.500 |
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Power & Fuel Cost |
0.000 |
0.000 |
33.700 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
137.300 |
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Employee Cost |
0.000 |
0.000 |
225.200 |
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Selling and Administration Expenses |
0.000 |
0.000 |
132.400 |
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Miscellaneous Expenses |
0.000 |
0.000 |
743.300 |
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Interest
& Financial Charges |
319.765 |
253.024 |
405.100 |
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Depreciation
|
38.606 |
42.855 |
91.800 |
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Total Expenditure |
1748.23 |
1418.585 |
2541.100 |
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QUARTERLY / SUMMARISED
RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales Turnover |
1st Qtr |
2nd Qtr |
3rd Qtr |
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Other Income |
373.100 |
433.500 |
506.100 |
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Total Income |
42.100 |
01.900 |
03.100 |
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Total Expenditure |
415.200 |
435.400 |
509.200 |
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Operating Profit |
397.300 |
398.700 |
484.500 |
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Interest |
17.900 |
36.700 |
24.700 |
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Gross Profit |
87800 |
84.700 |
80.500 |
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Depreciation |
-69.900 |
-48.000 |
-55.800 |
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Tax |
09.800 |
08.600 |
08.500 |
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Reported PAT |
00.100 |
00.200 |
00.300 |
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|
-79.800 |
-56.800 |
-64.600 |
Notes:
200606 Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (12.50) million Consumption of Raw Materials Rs 310.40 million Staff Cost Rs 26.10 million Other Expenditure Rs 73.30 million Tax Indicates Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above results have been subjected to a 'Limited Review' by the Auditors of the Company as per the listing agreements the Stock Exchanges and have been taken on record by the Board of Directors at its meeting held on July 31, 2006. 2. A Scheme of Arrangement for conversion of dues of fixed depositors to equity shares has been approved by the High Court at Karnataka by order dated June 9, 2006. The Company is taking necessary steps to allot the shares. 3. The results of 'Turnkey contracts' segment have been merged with 'Others' segment in the current quarter. on account of reduction in the revenue from the sales below the reportable levels as per Accounting Standard 17. 4 Other Income includes Rs 40.6 million of interest reversed during the quarter on crystlisation of interest payable on certain loans. 5. Figures of corresponding previous period have been regrouped, wherever considered necessary.
200609 Expenditure Includes (Increase) / Decrease in Stock in Trade Rs 12.50 million Consumption of Raw Materials Rs 322.90 million Staff Cost Rs 27.10 million Other Expenditure Rs 36.20 million Tax Indicates Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 01 Complaints disposed off during the quarter 01 Complaints unresolved at the end of the quarter Nil 1. The above results have been subjected to a 'Limited Review' by the Auditors of the Company as per the listing agreements the Stock Exchanges and have been taken on record by the Board of Directors at its meeting held on October 30, 2006. 2. A Scheme of Arrangement for conversion of dues of fixed depositors to equity shares has been approved by the High Court at Karnataka by order dated June 09, 2006 and filed with Registrar of Companies in July 2006. The Company has alloted and issued 9023375 equity shares as per the Scheme. 3. Figures of corresponding previous period have been regrouped, wherever considered necessary.
200612: Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (16.20) million Consumption of Raw Materials Rs 419.30 million Staff Cost Rs 29.70 million Other Expenditure Rs 51.70 million Tax Indicates Fringe Benefit Tax EPS is Basic and Diluted Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 21 Complaints disposed off during the quarter 21 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the Audit Committee and subjected to a Limited Review by the Auditors of the Company as per the listing agreements the Stock Exchanges. The same have been taken on record by Board of Directors at its meeting held on January 31, 2007. 2. The Board of Directors have approved issue of Securities to certain Investors / Promoters for an amount not exceeding Rs 1530 million, subject to necessary approvals. The proceeds of this issue are planned to be used for a one time settlement of dues to the lenders and for working capital requirements. 3. Figures of corresponding previous period have been regrouped, wherever considered necessary.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.00 |
0.00 |
3.60 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
2.34 |
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Current Ratio |
0.63 |
0.70 |
1.10 |
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TURNOVER RATIOS |
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Fixed Assets |
0.56 |
0.38 |
0.43 |
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Inventory |
23.78 |
9.49 |
6.61 |
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Debtors |
5.87 |
3.63 |
2.24 |
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Interest Cover Ratio |
-0.23 |
-0.83 |
-1.57 |
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Operating Profit Margin(%) |
-2.73 |
-18.29 |
-47.49 |
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Profit Before Interest And Tax Margin(%) |
-5.42 |
-22.61 |
-55.49 |
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Cash Profit Margin(%) |
-24.87 |
-45.53 |
-80.55 |
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Adjusted Net Profit Margin(%) |
-27.56 |
-49.85 |
-88.56 |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.42.25 |
|
Low |
Rs.40.05 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE
Despite adverse financial position the performance of the Company during the year under report has shown marked improvement in terms of turnover. The turnover of the Company increased by 38% from Rs. 1095.4 Millions to Rs. 1513.6 Millions. The Company was able to reduce the operational losses by substantial cost reduction measures and improve in market conditions. The Operational loss was reduced by 60% to Rs.51.4 Millions as compared to Rs. 128.6 Millions in previous year. The net loss for the year was Rs. 395.4 Millions compared to Rs. 424.5 Millions in previous year.
MANAGEMENT DISCUSSION AND ANALYSIS RISKS, CONCERNS AND THREATS
INDUSTRY STRUCTURE
The Company today mainly operates in two segments viz., Power Cables and Telecommunication Cables. The respective industry scenario is as under :
Power Cables
The demand for Power Cables continues to remain buoyant in view of the restructuring of the State Electricity Boards, increased focus and addition to generating capacity and industrial infrastructure growth in the country. Per capita availability of power is also improving substantially. The growth in the housing and construction industry has also resulted in an increasing demand for house wiring cables.
Telecom Cables
There has been an improvement in the off-take of both Jelly Filled and Optical Fibre Telecom Cables. This is mainly due to the expansion in the networks of the State owned Telecom companies, as well as the private operators. However, the demand is still a fraction of the installed capacity of the industry, resulting in low margins for all players.
The above trends are likely to continue in the near future, resulting in substantive growth, particularly for Power Cables.
Fixed Assets:
Land-Freehold
Land-Lease Hold
Buildings
Plant and Machinery
Furniture and Fixture
Office Equipments
Vechicles
RPG Telecom, formerly Karnataka Telecables, was jointly promoted by KSIIDC (Karnataka State Industrial Investment & Development Corporation) and Asian Cables Corporation (ACCL). It later changed its name to RPG Cables (RPGCL) on 21 Sep.'92.
RPGCL, a major player in the jelly-filled cable industry, set up a
project with an installed capacity to manufacture 0.625 Millions sophisticated
equipments for Maillerfer, Switzerland; ETS Pourtier Pere Fils, France; DCM
International, US; and Dussek Cambel, UK. The project was completed in 1987. It
entered into a technical collaboration with Pheeps Dodage International
Corporation (PDPC), US, for technical know-how to manufacture telephone cables.
The plant was commissioned in Mar.'87 and commercial production commenced in
1987. The DoT successfully completed manufacturing processes in 1986-87 and
quality assurance programmes in 1987-88 (15 months).
RPGCL promoted a joint venture - Sprint RPG India - which, in technical
and financial collaboration with Sprint Mail, US, has launched E-mail services
in eight major cities in India. It has entered into a tie-up with BICC, UK, to
manufacture optical fibre cables in Mysore (inst. cap. : 40,000 fibre kmpa).In
2000-01 the company bagged orders from MTNL & BSNL.
In the OFC segment the prospects looks promising where the company has
already has expanded its capacity to 444,000 FKM. The Power Cables division has
expanded its capacities at the new plant at Silvassa from 2000 Km to 3000 Km.
The company restructured its business into SBU's and in each sector viz Telecom
Cables,(JFC) Power Cables(HT & LT cables) and a new business called Telenet
Solutions which will undertake all activity relating to laying of cables,
erecting towers and providing turnkey solutions for setting up communicating
networks.
RPGCL has expanded the installed capacity of Jelly Filled Telephone
Cables, Optical Fibre Cables & Power Cables during the year 2002-03 by
2637000 CKM, 235000 FKM & 34680 KM respectively.
The company has expanded the installed capacity of Power Cables during
the year 2003-04 by 600 KM and with this expansion the total capacity of Power
Cables has risen to 41016 KM.
About the Company
RPG Cables Limited came into being in 1996 with the merger of three Companies;
Upcom Cables (Rae Bareli), RPG Telecom (Mysore) & Asian Cables &
Industries Limited (Thane). RPG cables is a part of the well known RPG Group of
Companies.
The Company manufactures four types of Cables - Power & Control Cables, Jelly Filled Telephone Cables, Optical Fibre Cables and Housewiring Cables.
Today RPG Cables is operating through four manufacturing units
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Mysore |
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Raebareli |
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Silvassa |
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Thane |
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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.43.15 |
|
UK Pound |
1 |
Rs.85.22 |
|
Euro |
1 |
Rs.57.63 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
7 |
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PAID-UP CAPITAL |
1~10 |
8 |
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OPERATING SCALE |
1~10 |
-- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
9 |
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--PROFITABILIRY |
1~10 |
-- |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
9 |
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--CREDIT LINES |
1~10 |
9 |
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--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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