MIRA
INFORM REPORT
|
Report Date : |
20.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
WIMCO LIMITED |
|
|
|
|
Registered Office : |
Indian Merchantile Chambers K Marg, Ballard Estate, Mumbai; 400038,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
07.09.1923 |
|
|
|
|
Com. Reg. No.: |
001082 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U24291MH1923PTCC001082 |
|
|
|
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are Listed on the
stock Exchange |
|
|
|
|
Line of Business : |
Manufacturer of Safety Matches. |
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 : |
|
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. 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 : |
Indain Merchantile Chambers K Marg, Ballard Estate, Mumbai; 400038,
Maharashtra |
|
Tel No: |
91-22-56316600 / 56310828 |
|
Fax No: |
91-22—56314513 |
|
Website : |
DIRECTORS
|
Name : |
Mr. H. N. Sethna |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. R. Gopal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. R. L Auddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. R. Dua |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Dutta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Mathur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. K. Singhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Tandon |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Gopal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. L. B. Singh |
|
Designation : |
Head Of Marketing |
|
|
|
|
Name : |
Mr. C.R. Sivaramakrishnan |
|
Designation : |
Vice President – Finance |
|
|
|
|
Name : |
Mr. A. Saha |
|
Designation : |
Vice President - Human Resources |
|
|
|
|
Name : |
Mr. Subratta Dutta |
|
Designation : |
Vice President - Sales And Marketing |
|
Date of Birth/Age : |
43 Year |
|
Qualification : |
B.Tech Pgdm |
|
Experience : |
17 Years |
|
Date of Appointment : |
20.11.2002 |
KEY EXECUTIVES
|
Name : |
Vikram Jain |
|
Designation : |
Manager - Legal & Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
|
||||||
|
|
|
||||||
|
Products : |
Matches, Wax and Wooden Matches,Packaging Machines
|
||||||
|
|
|
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Matches |
Million Boxes |
5000 |
5000(on 3 Shift
basis 300 working day) |
3319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL
INFORMATION
|
No. of Employees : |
Manufacturer of Safety Matches |
||||||||
|
|
|
||||||||
|
Bankers : |
ABN AMRO BANK N.V. |
||||||||
|
|
|
||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
BSR & Co. Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
Subsidiary : Wimco Seedlings Limited Pavan Poplar Limited Prag Agro Farm Limited Wimco Boards Limited Fellow
Subsidiaries: Swedish Match Consumers Products Limited Swedish Match Lighters BV Swedish Match Arenco AB ITC Infotech India Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
550000000 |
Equity Shares |
Re.1 /- each |
Rs.550.000 Millions |
|
9300000 |
Preference Share |
Rs.100/- each |
Rs.930.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
52000000 |
Equity Shares |
Re.1/- each |
Rs. 52.000
Millions |
|
5200000 |
Preference Shares |
Rs.100/-
each |
Rs. 520.000
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 |
572.000 |
572.000 |
1040.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
757.722 |
688.678 |
444.900 |
|
|
4] (Accumulated Losses) |
(231.210) |
(99.764) |
0.000 |
|
|
NETWORTH |
1098.512 |
1160.914 |
1484.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
258.875 |
266.201 |
289.700 |
|
|
2] Unsecured Loans |
45.000 |
45.000 |
36.400 |
|
|
TOTAL BORROWING |
303.875 |
311.201 |
326.100 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
1402.387 |
1472.115 |
1811.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
959.874 |
894.444 |
1209.000 |
|
|
Capital work-in-progress |
7.476 |
13.599 |
10.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.002 |
4.238 |
41.300 |
|
|
DEFERREX TAX ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
269.658
|
290.031 |
239.800 |
|
|
Sundry Debtors |
102.774
|
78.584 |
160.900 |
|
|
Cash & Bank Balances |
8.728
|
68.605 |
53.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
363.111
|
403.939 |
523.600 |
|
Total
Current Assets |
744.271
|
841.159 |
978.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
270.990
|
279.195 |
320.500 |
|
|
Provisions |
38.246
|
48.049 |
168.000 |
|
Total
Current Liabilities |
309.236
|
327.244 |
488.500 |
|
|
Net Current Assets |
435.035
|
513.915 |
489.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
45.919 |
60.600 |
|
|
|
|
|
|
|
|
TOTAL |
1402.387 |
1472.115 |
1811.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
1403.684 |
1319.269 |
1690.000 |
|
|
Other Income |
22.820 |
31.552 |
56.600 |
|
|
Total Income |
1426.504 |
1350.821 |
1746.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(125.300) |
(41.300) |
(71.500) |
|
|
Provision for Taxation |
6.100 |
1.400 |
0.000 |
|
|
Profit/(Loss) After Tax |
(131.400) |
(42.700) |
(71.500) |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Traveling |
0.028 |
0.190 |
0.000 |
|
|
Commission Earnings |
4.371 |
8.268 |
0.000 |
|
|
Other Earnings |
0.000 |
0.000 |
0.000 |
|
Total Earnings |
4.399 |
8.458 |
0.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
25.288 |
20.012 |
0.000 |
|
|
Stores & Spares |
0.000 |
0.000 |
0.000 |
|
|
Capital Goods |
0.000 |
9.382 |
0.000 |
|
|
Others |
0.000 |
0.000 |
0.000 |
|
Total Imports |
25.288 |
29.394 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Trading Product |
35.412 |
84.022 |
0.000 |
|
|
Raw Material Consumed |
683.664 |
632.881 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
52.154 |
(32.985) |
0.000 |
|
|
Employee Costs. |
340.972 |
312.232 |
0.000 |
|
|
Other cost |
406.794 |
411.950 |
0.000 |
|
|
Interest |
21.964 |
23.628 |
0.000 |
|
|
Depreciation & Amortization |
23.502 |
20.961 |
0.000 |
|
|
Raw
Materials |
0.000 |
0.000 |
797.100
|
|
|
Excise
Duty |
0.000 |
0.000 |
105.800
|
|
|
Power
& Fuel Cost |
0.000 |
0.000 |
73.000
|
|
|
Other
Manufacturing Expenses |
0.000 |
0.000 |
51.700
|
|
|
Employee
Cost |
0.000 |
0.000 |
342.100
|
|
|
Selling
and Administration Expenses |
0.000 |
0.000 |
298.700
|
|
|
Miscellaneous
Expenses |
0.000 |
0.000 |
168.800 |
|
Total Expenditure |
1564.462 |
768.771 |
1837.200 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.75 |
0.64 |
0.46 |
|
Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
1.23 |
1.23 |
1.28 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.29 |
1.22 |
1.42 |
|
Inventory |
5.59 |
5.58 |
7.39 |
|
Debtors |
17.26 |
12.34 |
12.51 |
|
Interest
Cover Ratio |
(4.64) |
(3.10) |
0.20 |
|
Operating
Profit Margin(%) |
(5.09) |
(3.61) |
1.63 |
|
Profit
Before Interest And Tax Margin(%) |
(6.59) |
(5.03) |
0.25 |
|
Cash
Profit Margin(%) |
(6.89) |
(5.23) |
0.34 |
|
Adjusted
Net Profit Margin(%) |
(8.40) |
(6.65) |
(1.03) |
|
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.10.00 |
|
High |
Rs.51.50 |
|
Low |
Rs.50.10 |
LOCAL AGENCY
FURTHER INFORMATION
Directors Report:
Company Performance
During the year, the Company has recorded a turnover of Rs. 1426.500
Millions (previous year - Rs. 1350.800 Millions) and incurred a net loss of Rs.
131.400 Millions (previous year - Rs. 42.700 Millions). The increase in loss is
mainly on account of substantial decrease in service income and change in
policy relating to amortization of voluntary retirement expenses.
The income from Match business has increased to Rs. 1321.900 Millions
from Rs. 1187.900 Millions as a result of increase in volume by 14%. The income
from Engineering business increased by 6% to Rs. 67.000 Millions as compared to
Rs.63.000 Millions last year.
In view of the emerging market opportunities in the Match and
Engineering segments, the Company is engaged in sharpening its focus on these
businesses.
During the year, the Company has streamlined its selling and marketing
activities to achieve overall efficiencies,
the benefits of which are evident in the last quarter of the financial year
under review.
With the progressive realisation of synergies in sales, distribution and
operations, the Company is poised for an improved performance.
Dividend
In view of accumulated losses, the Directors are unable to recommend a
dividend.
Delisting of Shares and Exit Offer
During the year, Russell Credit Limited (Russell), a wholly owned
subsidiary of ITC Limited, acquired majority shareholding in the Company.
Following the aforesaid acquisition, Russell made an offer to acquire
the remaining public shareholding of the Company through the book building
process under the Securities and Exchange Board of India
(Delisting of Securities) Guidelines, 2003 (Guidelines) at the Exit
Price of Rs. 53/- per equity share. In accordance with the Guidelines, Russell
is required to purchase, at the Exit Price of Rs. 53/-, all
equity shares that may be tendered by the remaining shareholders of the
Company till IS*1
June, 2006.
Pursuant to the approval of the Members at the Extraordinary General
Meeting of the Company held on 1st August,
2005 and following the aforesaid acquisition, the equity shares of the Company
were delisted from Bombay Stock Exchange Limited (BSE) and National Stock
Exchange of India Limited (NSE) with effect from 141" December, 2005.
The shareholding of Russell in the Company presently stands at 93.57 %
of Paid up Equity Share Capital.
Subsidiaries
Particulars as required under Section 212 of the Companies Act, 1956, in
respect of Company's subsidiaries viz., Wimco Boards Limited and Wimco
Seedlings Limited and its subsidiaries, Pavan Poplar Limited and Prag Agro Farm
Limited, have been annexed to the Accounts of the Company.
Fixed Assets:
Intangible Assets
Leasehold Land
Tangible Assets
Freehold Land
Buildings
Plant and Machinery
Factory Equipments
Railway Sidings
Furniture and fitting
Computers/ Office Equipments
Motor Cars, Lorries,
Tractors and Launches
- Parties
exercising control over the Company:
Upto June 30,2005
|
Related Party |
Relationship |
|
Swedish Match AB, Sweden Haravon Investments Re. Ltd. Seed Trading Re. Ltd. Swedish Match Singapore Re. Ltd. |
Ultimate Holding Company # Held 46.18% of the Equity Share Capital # Held 5.93% of the Equity Share Capital # Held 21 .89% of the Equity Share Capital # |
From July 1,2005
|
Related Party |
Relationship |
|
ITC Ltd. Russel Credit Ltd. |
Ultimate Holding Company Holds 93.48% of the Equity Share Capital # |
Incorporated in 1923 as The Western India Match Company,
Wimco got its present name in 1973 when it diversified into other areas.
In Feb.'89, Wimco came out with a Rs 45.700 Millions rights issue of
4.574 Millions equity shares at par to augment its long-term resources. Its
product portfolio includes safety matches and machines. Its subsidiaries are
Wimco Boards Limited, Wimco Seedlings Limited, Pavan Poplar Limited, Prag Agro
Farm Limited.
The Company has the factories located at Ambarnath-Maharashtra, Bareilly-
Uttar Pradesh, Tiruvottiyur-Chennai and Alambazar-West Bengal. During 2000-01,
Ambarnath factory obtained ISO 9002:1994 Certification by KEMA.
The company also has a sizeable export turnover through exports to
Africa, South America, West Asia, Japan, Europe, Australia, and other
countries. It tied up with Heinz India Pvt Ltd to produce tomato paste. It also
undertook a Rs 2800.000-Millions diversification in 1994-95 to manufacture
medium-density fibre boards and oleoresins and implemented a backward
integration programme for its match division. During 2002-03, The company
launched 'Homelites' brand mosquito coils to add to the portfolio of matches
and also entered into arrangements of third party products.
The authorised share capital of the company was increased from Rs.550.000
Millions to Rs.1480.000 Millions in addition thereto of 700000 0.05% RCP shares
of Rs.100 each were issued and allotted to Svenska Tandsticksbbolaget
Forsaljningsaktiebolag, a subsidiary of Swedish Match AB Sweden. Consequently
the paid up capital of the company stands increased to Rs.104 Millions. In
2000-01, the management of the company has been changed from the Jatia Group to
Swedish Match AB,Sweden. During 2004-05, Swedish Match Singapore Pte Ltd with Swedish
Match AB (Publ), Haravon Investment Pte Ltd and Seed Trading Pte Ltd acquired
13,517,719 Equity Shares of Re.1/- each representing 26% of total equity share
capital of the company.
During 2001-02, The company divested its entire equity stake comprising
50000 shares of Singapore $1 each, which amounts to Rs.13,04,000/- in the
wholly owned subsidairy, Wimco International Pte Ltd, Singapore. Wimco
Greenbelts Limited and Gladhill Trading Limited amalgamated with Wimco
Seedlings Ltd, a subsidiary of the company with effect from April 1,
2001.
During 2004-05, The company has subdivided the value of equity shares
from Rs.10/- to Re.1/- in the ratio 1:10.
As per Web Site:
The company is the single largest safety matches manufacturer in India and is widely present in the Indian market through various brands of matches like - Ship, Homelites, Tekka, Horsehead, Three Mangoes, Cheeta Fight, Kapas and Arrow, to name a few. It is the first company in India, to introduce 'Karborised' safety matches, which leave no 'after-glow'. The company also exports its safety matches to various countries.
THE COMPANY is an ITC Company. Established on 7th September 1973, it began its
operation at Ambernath in Maharashtra and expanded its production facilities to
Chennai (Tamil Nadu), Bareilly (Uttar Pradesh) and Kolkata (West Bengal). In
1975 the company was rechristened The company.
With its wide distribution network as well as being synonymous with quality,
safe and and consumer friendly goods, The company has in recent times
distributed products of other companies, which include Shampoos, Throat Drops
and Chewing Gumlets.
The company also has an Engineering Division and an Agro Forestry business -
"The company Seedlings Ltd."Primary
Competitive Advantage for The company Safety matches Machine Made -
Gives consistent quality, lights easily, does not get damp even during rainy
seasons.
Carborised - gets extinguished with a single puff - no after glow, no fear of burning tips falling on clothes. Fully mechanized production in all their factories. Backed by the expertise of Swedish Match. 80 years of manufacturing experience in India.
Product Range
Cardboard matches
40 matchsticks of 42mm/matchbox
50 matchsticks of 42mm/matchbox
50 matchsticks of 47mm/matchbox
240 matchsticks of 47mm/matchbox
Veneer matches
50 matchsticks of 42mm/matchbox
Matchbox with Veneer Inners
Matchbox with Cardboard Inners
40 matchsticks of 38mm/matchbox
Matchbox with Veneer Inners
Wax matches
40 matchsticks of 29mm/matchbox.
40 matchsticks of 32mm/matchbox.
50 matchsticks of 32mm/matchbox.
35 matchsticks of 27mm/matchbox.
THE COMPANY ENGINEERING
The company Engineering manufactures Tube Filling Machines,
Jar Filling Machines, Cartoning Machines and Powder Filling Machines. It is
also the sole selling agent in India for ARENCO (which is a part of the Swedish
Match Group), Shrinkwrapping Machines, Stretchwrapping Machines, Carryline
Conveyors and Pillow Pack Machines.
Its clientele in India includes Hindustan Lever, Dabur, Balsara, Glaxo
Smithkline, Johnson & Johnson, Glenmark, Pidilite, Emami, Cavinkare & J
L Morrison.
The company's export markets include UK, Singapore, Malaysia, UAE, Tanzania,
Myanmar, Syria, Jordan, Sri Lanka, Nepan and Iran.
Primary Competitive Advantage for The company Engineering
Sole selling agent for Arenco Machines
Integrated packaging solutions
Company
Profile
Business Type Exporter , Manufacturer
Year of Establishment 1973
No of Production Lines 4 factories of Match & 1 Factory for
Engineering products
Export Markets Worldwide
OEM Service Provided No
Production Type 100% machine made
Monthly Production Capacity : 36 crore match boxes per month and 11
machines per month for engineering
division.
Product
Range
Cardboard matches
- 40 matchsticks of 42mm/matchbox
- 50 matchsticks of 42mm/matchbox
- 50 matchsticks of 47mm/matchbox
- 240 matchsticks of 47mm/matchbox
Veneer matches
- 50 matchsticks of 42mm/matchbox
- Matchbox with Veneer Inners
- Matchbox with Cardboard Inners
- 40 matchsticks of 38mm/matchbox
- Matchbox with Veneer Inners
Wax matches
- 40 matchsticks of 29mm/matchbox.
- 40 matchsticks of 32mm/matchbox.
- 50 matchsticks of 32mm/matchbox.
- 35 matchsticks of 27mm/matchbox.
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.41.99 |
|
UK Pound |
1 |
Rs.84.22 |
|
Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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 |
|