MIRA
INFORM REPORT
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Report Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
SUNIL HEALTHCARE LIMITED |
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Registered Office : |
17/18, Old Industrial Area, Alwar ;301001, Rajasthan |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.02.1973 |
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Com. Reg. No.: |
001478 |
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CIN No.: [Company
Identification No.] |
L24302RJ1973PLC001478 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JPRS04356C |
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PAN No.: [Permanent
Account No.] |
AACCS9198Q |
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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 : |
Manufacturer of Hard Gelatin Capsule Shells. |
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 : |
USD 290000 |
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Status : |
Satisfactory |
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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.
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
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Registered Office/ Factory : |
17/18, Old Industrial Area, Alwar ;301001, Rajasthan, India |
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Tel No: |
91-144-2373829 / 33 |
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Fax No: |
91-144-2373826 |
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E mail: |
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Web site: |
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Head Office : |
73/74, Sheetla House, Nehru Place, New Delhi- 110019 |
DIRECTORS
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Name : |
Mr. Anil Kurharr Khaitan, |
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Designation : |
Chairman Cum Managing Director |
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Name : |
Mr. Anup Singh |
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Designation : |
Director |
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Name : |
Mr. Bodhishwar Rai |
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Designation : |
Director |
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Name : |
Lt Gen. R.N. Mahajan (Retd.) |
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Designation : |
Director |
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Name : |
Mr. Joginder Singh IPS (Retd.) |
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Designation : |
Director |
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Name : |
Mr. Gopi K. Arora |
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Designation : |
Director |
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Name : |
Mr. Sanjay Kumar Kaushik |
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Designation : |
Director |
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Name: |
Mr. S. N. Balasubramanian |
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Designation: |
Director |
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Date Of Birth: |
73 Years |
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Qualification: |
FICWA ( Vast experienced in
Cost and Financial management.) |
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Name: |
Mr. Sanjay Tiwari |
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Designation: |
Manager Marketing |
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Tel No: |
91 - 11 - 2644 7086,
2644 7087 |
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Mobile No: |
91 - 93120 29726 |
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E-mail: |
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Name: |
Mr. Sachin Bhatnagar |
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Designation: |
Sr Manager -
International Marketing |
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Tel No: |
91 - 11 - 2644 7086,
2644 7087 |
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Mobile No: |
91 - 98109 60034 |
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E-mail: |
KEY EXECUTIVES
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Name : |
Mr. Vineet Hartalka - A.C.A., A.C.S. |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters/ Directors & their relatives including associates Companies and Person acting in concert. |
1836000 |
60.86 |
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Banks/Financial Institutions/ Insurance Companies/Mutual Funds etc. |
54525 |
1.81 |
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NRI's and OCB's |
0.000 |
0.000 |
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Other Bodies Corporate |
498140 |
16.51 |
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Indian Public |
627835 |
20.82 |
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Total |
3016500 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Hard Gelatin Capsule Shells. |
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Products : |
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PRODUCTION STATUS
As on 31.03.2006
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Hard Gelatin Shells |
Millions |
-- |
4700.00 |
4115.20 |
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Capsule Making Machine |
Nos |
-- |
2 |
-- |
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GENERAL
INFORMATION
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No. of Employees : |
Around 500 |
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Bankers : |
UCO Bank Pansari Bazar Alwar ICICI Bank HDFC Bank Standard Chartered Bank |
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Facilities : |
Payable within one year Rs. 21.847 Millions Term Loans are Secured by specific moveable Plant & Machinery,
Equipments,Implements and Appliances (except assets having specific charge
against which specific loan is taken) and all stocks of Raw materials, Finished Goods.Consumable Stores, Work in Process , Packing
Materialsand other movable property of the Company.The same is also secured
by additional charge on presentand future fixed assets as collateral. The
same is also personally guaranteed by two directors. Cash Credit is Secured against hypothecation of all present &
future stock of Raw Materials , Packing Material.Stores & Spare
Parts.Finished Goods, Work in Process and Book Debts etc and guaranteed by
two Directorsof the Company.The same is also secured by additional charge on
present and future fixed assets ascollateral security Borrowing under Hire Purchase Agreement are Secured against
hypothecation of specific assets acquired.
*Guaranteed by Chairman cum Managing Director and a third party in
personal capacity and corporate guarantee of third party. Payable within one
year Rs. 6.201 Millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s Singhi & Co. Chartered Accountants |
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Address : |
New Delhi |
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Name : |
M/s SS Kothari & Co. Chartered Accountants |
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Address : |
Jaipur |
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Associates/Subsidiaries : |
Shalimar Industries Limited Satya Sons Services Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9800000 |
Equity Shares |
Rs.10/- each |
Rs.98.000 Millions |
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20000 |
Preference Shares |
Rs.100/- each |
Rs.2.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3016500 |
Equity Shares |
Rs. 10/-
each |
Rs.30.165
Million |
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 |
30.166 |
20.110 |
20.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
44.652 |
57.491 |
49.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
74.818 |
77.601 |
69.400 |
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LOAN FUNDS |
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1] Secured Loans |
155.261 |
118.947 |
37.700 |
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2] Unsecured Loans |
42.310 |
51.038 |
12.500 |
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TOTAL BORROWING |
197.571 |
169.985 |
50.200 |
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DEFERRED TAX LIABILITIES |
17.766 |
15.774 |
0.000 |
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TOTAL |
290.155 |
263.360 |
119.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
199.654 |
181.243 |
70.000 |
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Capital work-in-progress |
10.749 |
13.158 |
2.800 |
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INVESTMENT |
0.010 |
2.760 |
2.800 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Interest Receivables |
0.202
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0.149 |
0.000 |
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Inventories |
29.264
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24.452 |
27.000 |
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Sundry Debtors |
71.898
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54.954 |
30.400 |
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Cash & Bank Balances |
11.259
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14.478 |
3.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
34.254
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22.667 |
20.500 |
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Total
Current Assets |
146.877
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116.700 |
81.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
67.136
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50.501 |
32.300 |
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Provisions |
0.000
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0.000 |
5.700 |
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Total
Current Liabilities |
67.136
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50.501 |
38.000 |
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Net Current Assets |
79.741
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66.199 |
43.700 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.300 |
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TOTAL |
290.155 |
263.360 |
119.600 |
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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 |
214.570 |
179.710 |
171.900 |
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Other Income |
3.8801 |
0.835 |
6.700 |
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Decreased/Increased in stock |
10.622 |
(0.575) |
4.300 |
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Total Income |
229.072 |
179.970 |
182.900 |
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Profit/(Loss) Before Tax |
3.413 |
21.364 |
25.700 |
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Provision for Taxation |
3.192 |
10.768 |
8.600 |
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Profit/(Loss) After Tax |
0.221 |
10.596 |
17.100 |
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Earnings in Foreign Currency : |
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FOB value of Exports |
59.324 |
87.496 |
0.000 |
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Total Earnings |
59.324 |
146.820 |
0.000 |
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Imports : |
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Raw Materials |
0.430 |
0.597 |
0.000 |
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Stores & Spares |
0.017 |
0.131 |
0.000 |
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Capital Goods |
16.715 |
61.476 |
0.000 |
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Total Imports |
17.162 |
62.204 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
47.168 |
34.954 |
0.000 |
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Raw Material Consumed |
77.156 |
52.148 |
53.600 |
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Excise Duty |
0.000 |
0.000 |
0.000 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
17.300 |
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Payment to Provision for Employees |
23.025 |
19.005 |
17.500 |
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Miscellaneous Expenses |
0.000 |
0.000 |
4.500 |
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Managerial Remuneration |
1.679 |
1.161 |
0.000 |
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Selling Expenses |
12.213 |
12.431 |
21.400 |
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Interest |
17.373 |
4.340 |
0.000 |
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Power & Fuel |
29.266 |
21.690 |
18.600 |
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Depreciation & Amortization |
17.129 |
0.138 |
0.000 |
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Total Expenditure |
225.009 |
145.591 |
132.900 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2006 |
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Type |
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1st
Qtr |
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Sales
Turnover |
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62.400 |
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Other
Income |
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00.900 |
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Total
Income |
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63300 |
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Total
Expenditure |
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50..000 |
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Gross
Profit |
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08.700 |
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Depreciation |
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|
05.000 |
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Tax |
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|
01.300 |
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Reported
PAT |
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|
02.000 |
200606: 1. The operations of the
Company represent a single primary business segment realing to pharmacuticals
Secandary segment reporting is performed on the basis of location of the customers
export Sales Rs 168.45 lacs and Domestic Sales Rs 455.10 Lacs 2. No Investors
Complaint was received during the quarter ended 30th June 2006 and there was no
complaint pending on 1st April 2006. 3. Previous period figures have been
regrouped, wherever necessary. 4. The above financial results have been taken
on record by the Board of Directors in their meeting held on 29th July, 2006.
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
2.56 |
1.60 |
0.69 |
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Long
Term Debt-Equity Ratio |
1.95 |
1.20 |
0.31 |
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Current
Ratio |
1.10 |
1.25 |
1.28 |
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TURNOVER
RATIOS |
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Fixed
Assets |
0.82 |
0.90 |
1.22 |
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Inventory |
8.90 |
7.53 |
7.36 |
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Debtors |
3.77 |
4.54 |
6.07 |
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Interest
Cover Ratio |
1.28 |
7.02 |
8.56 |
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Operating
Profit Margin(%) |
16.42 |
19.86 |
21.06 |
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Profit
Before Interest And Tax Margin(%) |
9.28 |
15.58 |
16.93 |
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Cash
Profit Margin(%) |
7.44 |
11.04 |
14.08 |
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Adjusted
Net Profit Margin(%) |
0.29 |
6.76 |
9.95 |
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Return
On Capital Employed(%) |
8.69 |
16.90 |
29.79 |
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Return
On Net Worth(%) |
0.98 |
19.03 |
29.48 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.57.00 |
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Low |
Rs.57.00 |
LOCAL AGENCY
FURTHER INFORMATION
Operations:
During 2005-06 the production of Hard Gelatin Capsule Shells was 40.73%
higher at 4115 Million against
2924 Million in the previous year. Capsule Sales are also 23.39% higher
at Rs. 239.300 Millions against Rs193.900 Millions in the previous year.
Profit during the year was low mainly due to high Interest cost, Higher
Depreciation and lower sales realization.
However this was the first year of operations after commissioning of new
machines. The management of the
Company is optimistic about the current fiscal and the future prospects
of the Company.
Management of the Company is committed to improve the performance
further in the coming year and to
achieve higher profitability by optimizing product mix and exploring new
avenues to achieve overall growth
of the Company
Expansion Project
Directors of the Company are pleased to inform the Shareholders of the
Company that one more Automatic
Capsule making Machines was installed and commissioned during the
Financial Year 2005-06. As a result
of this Expansion Programme the installed capacity of the Company has
increased to 4700 million Capsules
p.a.
MANAGEMENT DISCUSSIONS & ANALYSIS REPORT:
1. OVERVIEW:
The Company, having its state of art plant is situated at Alwar,
Rajasthan for manufacture of Empty Hard Gelatin Capsule Shells commenced its
manufacturing operation in 1976 with installed capacity of 200 million Empty
Hard Gelatin Capsule Shell. With gradual expansion, now the installed capacity
is 4700 million capsules pa
2. INDUSTRY OUTLOOK:
The product of the company Empty Hard Gelatin Capsule Shell is used by
Pharmaceutical and Food supplement companies as a container for administering
various medicines and food supplements. Therefore, the growth of the industry
is dependent on the growth of pharmaceutical and food supplement companies
domestically and
globally.
The India Pharmaceutical industry is estimated to grow by about 11% from
over Rs.390000.000 Millions
in 2004-05 to Rs.60,0000.000 Millions in 2007-08 (ASSOCHEM)
The Indian Pharmaceutics.-.! expost will have the potential to grow
around 18 % by 2007-08 to take its total export volume to about Rs,300000.000
Millions from the existing export volume of 160000.000 Millions during 2004-05.
Therefore, the company fore-Kses a good growth in the demand of Empty
Hard Gelatin Capsules in
the Indian market if the same trend continues in the coming year.
The Indian Capsuios e;re competitive in International Market and their
acceptability is increasing.
Even developing rnarKfets which are quite conservative in accepting
pharma products from developing
countries are opening up, which w offering good opportunities in export
market.
3. OPPORTUNITIES:
Even as the Indian Pharmaceutical industry is grouping with the product
parent resume in force the domestic companies could fiie emerging opportunities
in the change scenario to evolve into the global Pharma Outsourcing wend
capital in the near by future.
India currently leads US $ 6 billion of US $ £50 billion global
pharmaceutics1 Industry but its share
is increasing by 10 % when compared to 7 % growth of the world markets
over all, this speaks of
the promising scenario.
Source : RNCOS
Domestic Pharma Companies will increasingly be looking to consolidate across
the value chain by
partner ship or merging with companies that have complimentary strength
The thrust of the company is to increase its exports to the maximum
extent and establish our
Empty Hard Gelatin Capsule in global arena. It has started its exports
to South Eastern & South
American market in the recent past and is now looking forward to
increase its export in developed
countries.
4. CHALLENGES:
Competition in the global market is a common phenomenon for any
industry. The company is also facing the same but is quite competent to handle
the competition successfully. In the domestic the number of players are
increasing and the capacity is also increasing, but besides the fact the demand
is also gradually increasing. The major pressure is on the price.
5. COMPANY OUTLOOK:
With the increase of installed capacity and exports of the product of
the company the management is optimistic about the future outlook of the
company in short, medium and long-term basis.
(i) Sales
There was a increase of 36% in the Sales volume, whereas Turnover
increased by 19.42%. The higher turnover was on account of higher Sales
quantity.
(ii) Profit before interest, Depreciation and Tax
PBIDT was same as last year despite increase in sales volume due to low sales
realization.
(iii) Interest
There was a substantial increase of Rs.13.400 Millions in the interest
cost during the year mainly on account of Term Loan taken for expansion project
of the Company.
Fixed assets:
Land (Lease Hold)
Land (Freehold)
Building
Plant and Machinery
Electrical Installations
Furniture and Fixture
Office Equipments, Fire fighting Equipments, And Improvement on Rented
Premises
Vehicles
Tools and Dies
As Per Web Site:
The Company is manufacturer of Hard Gelatin Capsule Shells.
They were the first to introduce self locking capsules in India way back in
1976. Today the Company's customer list consists of "who's who" of
the Indian Pharmaceutical Industry. It ventured into exports about 11 years ago
and exports its capsules to Middle East, South Africa & West Africa and
Europe. Exports accounts for about 30% of its turnover.
Company Profile:
History : They are one of the oldest and leading WHO GMP
certified manufacturer of Empty Hard Gelatin Capsules SUNLOCTM in India, commissioned on 23rd April 1976. They were
the first to introduce the concept of Self Locking Type Capsules in India in
late Seventies.
Location
: The state of art manufacturing
premises is 160 Kilometers (99.5 Miles) south of National Capital, Delhi, at
Alwar in Rajasthan State.
Production
Capacity : They have 13 automatic
capsule manufacturing machines having a production capacity of 4,700 million
capsules per annum. At present, they are manufacturing capsules of size 00,
0-EL, 0, 1, 2, 3 and 4.
Machine
Suitability : SUNLOCTM
Capsules are suitable for filling on various types of automatic high speed
filling machines i.e. 1,50,000 capsules per hour.
Customer
base : Their major customers in India
include leading multi- national as well as Indian companies such as ; Pfizer,
Glaxo, Ranbaxy, Dabur, Solvay, Cadila, Sun Pharma, Wyeth Ltd., Intas, Alembic,
Panacea Biotech etc.
For the last few years they have been supplying SUNLOCTM capsules to their buyers in Middle East, South Africa,
West Africa and Europe
Description: The SUNLOCTM hard gelatin
capsule shells consist of two cylindrical, telescoping pieces (cap and body),
where one end of each is rounded and closed and the other open. Each piece can be
transparent, partially opaque or completely opaque; if colored, of identical or
different colors; and be unprinted, printed, or bear other surface markings.
The cap overlaps the body and maintains a tight friction closure. The closure
may be strengthened by additional means. Contact Sunil Healthcare if you have
requirements for customized capsule shapes.
Odor: SUNLOCTM do not develop
any foreign odor when kept in a well-closed bottle for 24 hours at a
temperature between 30° and 40° Celsius
Identification: Boil one capsule shell with 20 ml of water, allow to
cool and centrifuge. To 5 ml of the supernatant liquid add 1 ml of picric acid
solution and to another 5 ml add 1 ml of tannic acid solution; a precipitate is
produced in each case.
Disintegration:
SUNLOCTM capsule disintegrates
within 8 minutes.
Microbial
limits: Total microbial count, not more
than 200 CFU per gram. Their capsules are free from Escherichia coli,
Salmonellae, Staphylococcus aureus and Pseudomonas auroginosa.
Loss
of drying: Between 13.5 and 15.5 %.
|
Size |
Powder filled
density |
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|
0.6 gm / ml |
0.8 gm / ml |
1.0 gm / ml |
1.2 gm / ml |
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|
00 |
546 |
728 |
910 |
1092 |
|
0-EL |
468 |
624 |
780 |
936 |
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0 |
400 |
533 |
667 |
800 |
|
1 |
300 |
400 |
500 |
600 |
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2 |
220 |
293 |
367 |
440 |
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3 |
170 |
227 |
283 |
340 |
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4 |
120 |
160 |
200 |
240 |
Process:
They
procure high quality Pharmaceutical grade Gelatin and food grade colorants from
internationally renowned manufacturers. They meet current Pharmacopoeia requirements
and health regulatory aspects. They are subjected to stringent quality tests in
their modern Quality Control Laboratory prior to release for production.
Homogenous
quality of gelatin solution is prepared which is the key to high and consistent
quality of capsules.
Then color
matching is done as per customer's requirement. Any capsule with specific color
required can be tailor made to suit their customer's requirement. To
manufacture SUNLOCTM Capsules, first, stainless
steel mould pins are dipped into the gelatin solution. The two halves so
formed, make up the body and cap of the capsules. These are then dried,
individually stripped and joined together with self-locking systems.
Manufacturing
is carried out in clean areas where ambient temperature is controlled within 20
- 25 °C and the relative humidity within 45 - 65%.
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.40.78 |
|
UK Pound |
1 |
Rs.81.79 |
|
Euro |
1 |
Rs.55.66 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
49 |
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 |
|