MIRA
INFORM REPORT
|
Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
NAGREEKA EXPORTS LIMITED |
|
|
|
|
Registered Office : |
18 R N Mukherjee Road, 6th Floor, Kolkata – 700 001, West Bengal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
06.03.1989 |
|
|
|
|
Com. Reg. No.: |
46387 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L1810WB1989PLC046387 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CALN02503E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACN9999A |
|
|
|
|
Legal Form : |
Public limited liability Company. The company’s shares are listed on
the stock exchanges. |
|
|
|
|
Line of Business : |
Manufacturers, Exporters and Marketers Cotton Yarn and Knitted Fabrics. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 3000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and reputed company having fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Business is active. Payments are usually correct
and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
18 R N Mukherjee Road, 6th Floor, Kolkata – 700 001, West Bengal, India |
|
Tel. No.: |
91-33-2486990/2108786/8827/828 |
|
Fax No.: |
91-33-2481693 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
7, Kala Bhavan, 3 Mathew Road, Mumbai – 400 004, Maharashtra |
|
Tel. No.: |
91-22-23670365 |
|
Fax No.: |
91-22-23612579 |
|
|
|
|
Administrative Office: |
21/22 Kala Bhawan 3 Mathew Road, Mumbai – 400 004, Maharashtra, India |
|
|
|
|
Factory : |
Village Yavluj, Taluka Panhala, District Kolhapur, Maharashtra |
DIRECTORS
|
Name : |
Mr. Ishwar Lal Patwari |
|
Designation : |
Director cum Chairman |
|
|
|
|
Name : |
Mr. Sunil Kumar Patwari |
|
Designation : |
Director cum Vice Chairman |
|
|
|
|
Name : |
Mr. Dwarka Prasad Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kashmiri Lal Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kailash Chandra Purohit |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mohan Kishen Ogra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mahendra Patwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sushil Patwari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bibhuti Charan Talukdar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. J Tiwari |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter Holding |
|
|
|
Promoter |
|
|
|
Indian Promoter |
5926086 |
51.4% |
|
Non Promoter
Holding |
|
|
|
Institutional
Investor |
|
|
|
Mutual Fund and UTI |
2400 |
--- |
|
Banks, Financial Institutions Insurance Companies , Central
Government, Institutions |
10040 |
--- |
|
FIIs |
500300 |
4.4% |
|
Others |
0.000 |
--- |
|
Private Corporate Bodies |
1683126 |
14.6% |
|
Indian Public |
3021455 |
26.21% |
|
NRI / OCBs |
384293 |
3.33% |
|
Total
|
11527700 |
100.00% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers, Exporters and Marketers Cotton Yarn and Knitted Fabrics. |
||||||
|
|
|
||||||
|
Products : |
|
PRODUCTION STATUS as on 31.03.2007:
|
Particulars |
|
|
Unit |
Quantity
|
|
Licensed Capacity / Registered
Capacity |
|
|
Spindle |
56784 |
|
Installed Capacity |
|
|
Spindle |
55440 |
|
Actual
Production |
|
|
|
|
|
- Cotton Yarn |
|
|
Kg |
7507463 |
|
- Knitted
Fabrics |
|
|
Kg |
16659 |
GENERAL INFORMATION
|
No. of Employees : |
600 |
|||||||||||||||
|
|
|
|||||||||||||||
|
Bankers : |
· Canara Bank, Overseas Branch, Kolkata, West Bengal · ING VYSYA Bank Limited, Overseas Branch, Mumbai, Maharashtra · Oriental Bank of Commerce, Overseas Branch, Kolkata, West Bengal · State Bank of Patiala, Commercial Branch, Mumbai |
|||||||||||||||
|
|
|
|||||||||||||||
|
Facilities: |
|
|||||||||||||||
|
|
|
|||||||||||||||
|
Banking
Relations : |
Satisfactory |
|||||||||||||||
|
|
|
|||||||||||||||
|
Auditors : |
|
|||||||||||||||
|
Name : |
Das and Prasad Chartered Accountants |
|||||||||||||||
|
Address : |
9, Jagmohan Mullick Lane, Kolkata – 700 007, West Bengal |
|||||||||||||||
|
|
|
|||||||||||||||
|
Associates/Subsidiaries : |
· Nagreeka Foils Limited · Nagreeka Software Technologies Limited · Nagreeka Synthetics (Private) Limited · Nagreeka Capital and Infrastructure Limited |
|||||||||||||||
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity shares |
Rs. 5/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11538000 |
Equity shares |
Rs. 5/- each |
Rs.57.690
millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11527700 |
Equity shares |
Rs. 5/- each |
Rs.57.638
millions |
|
Add: |
10300 Equity Shares Forfeited (Amount originally paid up ) |
|
Rs.0.051
millions |
|
|
|
Total |
Rs.57.689 millions |
Note:
1. During the year
978000 Equity shares were allotted on preferential basis on the exercise of
option to convert from Equity Share Warrant.
2. Out of the
above subscribed and paid up Capital 1500000 Equity shares of Rs. 5/- each (Previous
year Rs. 10/- each) were allotted as fully paid up Bonus shares by way of
capitalization of General Reserve.
3. Equity Shares
Warrant are subject to option to exercise equity conversion on or before 9th
July, 2007.
4. Pursuant to the
Scheme of Arrangement and Demerger having become effective on and from
12.02.2007:
a) Authorized
Share Capital re-organised to 30000000 of Rs. 5/- each from 15000000 of Rs.
107- each.
b) The Issued,
Subscribed and Paid up shares capital of the Company has been re-organised by
reducing the face value of equity shares from Rs. 10/- each to Rs. 5/- each.
c) The amount of
Rs. 57638500 arising on reduction in face value has been adjusted with the net
assets transferred to transferee
Company Nagreeka Capital
and Infrastructure Limited. (Formerly Nagreeka Software Technologies Limited).
Consequent upon re-organisation of Capital, Company subscribed and paid up
share capital other then forfeited shares is Rs. 57638500/-.
d) 1500000 fully
paid up Bonus Shares issued earlier by way of capitalization of General Reserve
has also been re-organised to face value of Rs. 5/- each from Rs. 10/- each.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
63.740 |
117.681 |
97.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
591.484 |
945.316 |
569.400 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
655.224 |
1062.997 |
666.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
876.845 |
819.300 |
152.300 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
876.845 |
819.300 |
152.300 |
|
|
DEFERRED TAX LIABILITIES |
130.437 |
98.049 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1662.506 |
1980.346 |
818.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
928.666 |
703.627 |
349.800 |
|
|
Capital work-in-progress |
31.355 |
191.277 |
34.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
2.558 |
526.983 |
255.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
167.234
|
116.227 |
126.300 |
|
|
Sundry Debtors |
347.382
|
347.383 |
68.00 |
|
|
Cash & Bank Balances |
67.618
|
31.862 |
13.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
257.083
|
180.940 |
141.600 |
|
Total
Current Assets |
839.317
|
676.412 |
349.700 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
139.390
|
117.953 |
157.200 |
|
|
Provisions |
0.000
|
0.000 |
13.000 |
|
Total
Current Liabilities |
139.390
|
117.953 |
170.200 |
|
|
Net Current Assets |
699.927
|
558.459 |
179.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1662.506 |
1980.346 |
818.700 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2632.341 |
1755.515 |
1241.700 |
|
|
Other Income |
9.044 |
303.589 |
9.500 |
|
|
Increase (Decrease) in stock |
22.994 |
[16.543] |
[5.300] |
|
|
Total Income |
2664.379 |
2042.560 |
1245.900 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
113.511 |
367.184 |
50.000 |
|
|
Provision for Taxation |
12.950 |
5.040 |
11.800 |
|
|
Profit/(Loss) After Tax |
100.561 |
362.144 |
38.200 |
|
|
|
|
|
|
|
|
Export value |
2080.347 |
1387.375 |
NA |
|
|
|
|
|
|
|
|
Import Value |
32.601 |
376.240 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchases |
1492.971 |
1047.383 |
0.000 |
|
|
Raw materials |
0.000 |
0.000 |
914.600 |
|
|
Excise duty |
0.000 |
0.000 |
9.000 |
|
|
Power and Fuel |
0.000 |
0.000 |
63.600 |
|
|
Other manufacturing expenses |
0.000 |
0.000 |
26.300 |
|
|
Employees cost |
0.000 |
0.000 |
33.900 |
|
|
Selling and administration Expenses |
0.000 |
0.000 |
81.900 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
21.700 |
|
|
Interest and Financial charges |
0.000 |
0.000 |
16.000 |
|
|
Manufacturing expenses |
691.578 |
413.238 |
0.000 |
|
|
Selling and Distribution |
179.934 |
95.316 |
0.000 |
|
|
Establishment and other Expenses |
81.804 |
66.053 |
0.000 |
|
|
Interest |
51.212 |
21.975 |
0.000 |
|
|
Depreciation |
53.366 |
31.409 |
28.900 |
|
|
Other Expenditure |
0.000 |
0.000 |
0.000 |
|
Total Expenditure |
2550.865 |
1675.374 |
1195.900 |
|
QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
|
Type
|
2nd Quarter
|
1st
Quarter |
|
Sales Turnover |
635.100 |
590.800 |
|
Other Income |
0.400 |
1.100 |
|
Total Income |
635.500 |
591.900 |
|
Total Expenditure |
568.400 |
530.800 |
|
Operating Profit |
67.100 |
61.100 |
|
Interest |
16.700 |
14.400 |
|
Gross Profit |
50.400 |
46.700 |
|
Depreciation |
16.100 |
15.700 |
|
Tax |
4.100 |
3.700 |
|
Reported PAT |
30.200 |
27.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
3.77
|
17.72 |
3.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.31
|
20.91 |
4.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.30
|
23.36 |
6.81 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.34 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.55
|
0.88 |
0.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.02
|
5.73 |
2.05 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was incorporated on 6th March, 1989 at Kolkata in West Bengal having company registration number 46387.
Subject was promoted by Chairman Ishwarlal Patwari. It was
started to set up a 100% export-oriented spinning unit for cotton yarn. This
unit has an installed capacity of 26208 spindles and is located in Kolhapur
district of Maharashtra.
Commercial production commenced in Mar.'95, after a delay of 6 months, which
was caused by the delay in the delivery of machinery by the manufacturers, for which
the company came out with a Rs. 139.900 millions public issue at a premium of
Rs. 20/-, in Jan.'94. Subject signed a
MoU with Globex Pvt Ltd to market cotton yarn in Singapore, Malaysia,
Indonesia, the Philippines, etc. Its products are single and double, carded and
combed hosiery and weaving cotton yarn. The company has taken up the necessary
steps for the implementation of a silk fabric project. The land has already
been allocated.
During 1998-99, the company received ISO 9002 certification in respect of yarn
and knitted fabric. The company had plans to set up a captive power plant to
achieve cost advantage on power consumption.
The Company is still awaiting certain clearance to implement the captive power
project. The company has also proposed to further upgrade existing equipments
while also adding capacity for yarn and down stream value added products. The
additions would be done under Textile Upgradation Fund Scheme.
The company also proposes to augment spinning capacity to achieve economy of
scale together with more value-added production under the Technology
Upgradation Fund Scheme.
DIRECTOR REPORTS:
The Company's tax never from operations for the year ended 31st March, 2007 is Rs.2632.341 millions (previous year Rs.1755.515 millions) showing an increase of 49.95%.
Profit after tax, from operations, for the year under review is Rs.66.454
millions as against Rs. 49.526 millions during the previous year (the total
profit after tax during previous year was Rs. 345.396 millions, inclusive of
Rs.295.870 millions income from investment division), thus recording an
increase of 34.18%, inspire of higher income tax and deferred tax liabilities
compared to the previous year.
The implementation of the expansion and modernisation scheme has led to higher
volumes and cost reduction. The volume of merchant exports of cotton yarn and
raw cotton has also grown during the year.
FUTURE PROSPECTS:
During the year, the expansion cum modernisation scheme under the TUFS has been implemented. The production capacity stands increased from 26208 spindles to 55440 spindles. The same would give better economies of scale, greater flexibility in product mix which Would enable the company to deal better with the developing market conditions and ensure sustained profitability in the face of ever increasing competition. Benefits of expansion and modernisation programme are partially visible in Financial Year.
2006-07 and the full effect of the same is expected to be seen in Company's performance in .Financial Year 2007-08.
Raw cotton is the single largest cost for the Company. The price and the
quality of cotton have a huge bearing on the performance of the operations.
As such, the company proposed to focus on this area through new initiatives such as contract farming, and exclusive arrangements with few ginning factories. It is expected that this will result in quantum improvement in the quality of the cotton procured and will also result in Cost saving.
The vision statement of the Textile Industry envisages the growth in the total
market size for textiles and garments from 52 billion USD in 2006 to 110
billion USD by March 2012, the terminal year of the Eleventh Five Year Plan. To
achieve this target, the Vision Statement has, among other things, estimated
that 29 million additional spindles would required - 20 million for capacity
expansions and 9 million for modernisation. Therefore, the future scope for
capacity expansion and modernisation is promising.
The Company has finalised a project for further growth with an estimated
capital outlay of Rs.2300.000 millions. The Company proposes to set up a new
spinning unit (62,400 spindles) with a Yarn dyeing (3000 MT/year) and garment
making unit (1.5 million pcs/year) spread over 33 acres of land at Five Star
Industrial area at MIDC Kagal in district Kolhapur, Maharashtra.
The Company is predominantly export oriented and major portion of Company's
turnover is from exports and as such the profitability to some extents depends
on movement in exchange rate of various currencies. The sudden and sharp
movement in exchange rate during March/April 2007 was unprecedented and despite
the Company's hedging policy being in place, there is likely to be some impact
on the sales realisations and profitability. The company is taking all possible
steps to mitigate the adverse impact.
FIXED ASSETS:
· Land and Site Developments
· Office Premises
· Factory Building
· Plant and Machinery
· Furniture and Fixtures
· Air Conditioners
· Vehicles
· Computers
· Office Equipments
· Labour Quarter
· Refrigerator
· Old Machine In Hand
WEBSITE DETAILS:
The Nagreeka group was founded by Mr. I. L. Patwari, in the year 1955
and started with modest trading operations and today it is a leading
manufacturer and exporter of yarns, textiles and aluminium laminates. Of their
annual turnover of US$ 60 Million exports account for US$ 35 Million. With four
decades of experience the Nagreeka group has carved a niche for itself in the
world of exports and manufacturing
Textiles Division
Subject is a 100% export oriented unit (EOU) and caters to the
requirement of its valued customer. Subject has set up its own manufacturing
facilities cotton yarn and knitted fabrics.
Subject has the rare distinction of winning the President's award for
outstanding export performance and also the Cotton Textile Export Promotion
Council award for the exports to non quota countries.
Foils Division
Nagreeka Foils Limited. (NFL) is an established manufacturer of aluminum
foil laminates. Its main products are plastic clad metal tapes for Cable
wrapping i.e. plastic clad Aluminum, Steel and Stainless steel tapes used in
jelly filled telephonic cables, optic fiber cables, coaxial and copper pair
cables.
Heat Shrink Product Division
Mala Overseas Private Limited has been established for manufacturing
Heat Shrink products like telephone cable joint closure/kit and wrap around
sleeves. These products have been approved by BSNL, Government of India as per
D.O.T (Department Of Telecom) specifications. These jointing kits/wrap around
sleeves are supplied for telephone cable from 5 to 1200 pair.
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.39.36 |
|
UK Pound |
1 |
Rs.80.31 |
|
Euro |
1 |
Rs.57.79 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|