MIRA
INFORM REPORT
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Report Date : |
27.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
T T ENGINEERING & MANUFACTURING SDN BHD |
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Registered Office : |
1, Jalan 6/1, Lot 3472, Kawasan Seri Kembangan, 43300 Seri Kembangan,
Selangor |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
23/01/1985 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer of Aluminium Product |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
* Adopted
abbreviations : SC - Subject Company ( the company enquired
by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 133967-A
COMPANY NAME : T T ENGINEERING &
MANUFACTURING SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 23/01/1985
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 1, JALAN 6/1, LOT 3472, KAWASAN SERI
KEMBANGAN,
43300
SERI KEMBANGAN, SELANGOR, MALAYSIA.
BUSINESS ADDRESS : 1, JALAN 6/1, LOT 3472 KAWASAN SERI
KEMBANGAN, 43300
SERI
KEMBANGAN, SELANGOR, MALAYSIA.
TEL NO : 03 - 89421977
FAX NO : 03 - 89421970/2582
EMAIL : tteng@tte.com.my
WEB SITE : www.tte.com.my/
CONTACT PERSON : ALEX KHOO TENG HO (EXECUTIVE
DIRECTOR)
INDUSTRY CODE : 28993
PRINCIPAL ACTIVITY : MANUFACTURER OF ALUMINIUM PRODUCT
AUTHORISED CAPITAL : MYR3,000,000.00 DIVIDED INTO ORDINARY
SHARE
3,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR3,000,000.00 DIVIDED INTO ORDINARY
SHARE
3,000,000
CASH OF MYR1.00 EACH.
SALES : MYR15,675,352 [2006]
NET WORTH : MYR10,118,660 [2006]
STAFF STRENGTH : 165
[2007]
BANKER (S) : BANK OF CHINA (MALAYSIA) BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : POOR
PAYMENT : FAIR
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : MARGINAL GROWTH
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of
one and a maximum of forty-nine shareholders. As a private limited company, the
SC must have at least two directors. A private limited company is a separate
legal entity from its shareholders. As a separate legal entity, the SC is
capable of owning assets, entering into contracts, sue or be sued by other
companies. The liabilities of the shareholders are to the extent of the equity
they have taken up and the creditors cannot claim on shareholders' personal
assets even if the SC is insolvent. The SC is governed by the Companies Act,
1965 and the company must file its annual returns, together with its financial
statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturer of
aluminium product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the
Malaysia 1000 (M1000) publication, a directory jointly published by Companies
Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and
Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The immediate and ultimate holding company of the SC is TOTAL
TECHNOLOGIES HOLDINGS SDN BHD, a company incorporated in MALAYSIA.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
TOTAL TECHNOLOGIES 1, JALAN 6/1, LOT 3472, KAWASAN SERI 153306 3,000,000
HOLDINGS SDN BHD KEMBANGAN, 43300 SERI KEMBANGAN,
SELANGOR,
MALAYSIA.
--------------------
3,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. KHOO TENG HO
Address : 18, JALAN 17/4, 46400 PETALING JAYA,
SELANGOR, MALAYSIA.
IC / PP No. : 1075494
New IC No : 430822-10-5291
Date of Birth : 22/08/1943
Nationality : MALAYSIAN CHINESE
DIRECTOR 2
Name of Subject : MR. LOW SAY ANN
Address : 38, JALAN KUDALARI, COUNTRY HEIGHT,
43300 SERI
KEMBANGAN,
SELANGOR, MALAYSIA.
IC / PP No. : 8032719
New IC No : 510331-10-5369
Date of Birth : 31/03/1951
Nationality : MALAYSIAN CHINESE
DIRECTOR 3
Name of Subject : MR. LOW SEN HOE @ LOW SIANG HOE
Address : 76, JALAN SR 8/7, TAMAN PUTRA INDAH,
43300 SERI
KEMBANGAN,
SELANGOR, MALAYSIA.
IC / PP No. : 2985982
New IC No : 500104-10-5917
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : ALEX
KHOO TENG HO
Position : EXECUTIVE DIRECTOR
2) Name of Subject : WELLEY
Position : ACCOUNTANT
AUDITOR
Auditor : DELOITTE KASSIMCHAN
Auditors' Address : UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA
UPTOWN, LEVEL 19,
47400
PETALING JAYA, SELANGOR, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR.
WEE LEE TUAN
IC / PP No. : 5241395
New IC No. : 570428-07-6079
Address : 8, JALAN USJ 1/1F, TAMAN SUBANG MEWAH, USJ 1, 47600
SUBANG
JAYA, SELANGOR, MALAYSIA.
BANKING
Banking relations are maintained principally with :
1) Banker Name : BANK
OF CHINA (MALAYSIA) BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 19 Nov 2001
Description of Charge : DEBENTURE AND 1ST LEGAL CHARGE
Amount Secured : RM 6,200,000.00
Description of Property Affected : A 1ST FIXED CHARGE OVER PROPERTY
HS(M) 13710, PT
3472,
MUKIM AND DAERAH PETALING, SELANGOR AND 1ST
FLOATING
CHARGE
Name & Address of Chargee : BANK OF CHINA (MALAYSIA) BHD
PLAZA
OSK, 25 JALAN AMPANG, MEZZANINE FLOOR, 50450
KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 26 Nov 2001
Registered and Numbered 9 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 19 Nov 2001
Description of Charge : MEMO OF CHARGE (3RD PARTY AND 2ND
LEGAL CHARGE)
Amount Secured : RM 900,000.00
Description of Property Affected : ALL THAT PIECE OF LAND HELD UNDER
HS(M) 13710, PT
3472,
MUKIM AND DAERAH PETALING, SELANGOR
TOGETHER
WITH AN INDUSTRIAL PREMISES ERECTED
THEREON
AND BEARING POSTAL ADDRESS LOT 3472,
JALAN
RAYA 3, KAWASAN PERUSAHAAN SERI
KEMBANGAN,
43300 SERI KEMBANGAN, SELANGOR DARUL
EHSAN
Name & Address of Chargee : BANK OF CHINA (MALAYSIA) BHD
PLAZA
OSK, 25 JALAN AMPANG, MEZZANINE FLOOR, 50450
KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 14 Jan 2002
Registered and Numbered 10 In
The Register of Charges
ENCUMBRANCE 3
Date of Creation : 19 Nov 2001
Description of Charge : MEMO OF CHARGE 3RD PARTY 3RD LEGAL
CHARGE
Amount Secured : RM 700,000.00
Description of Property Affected : ALL THAT PIECE OF LAND HELD UNDER
HS(M) 13710, PT
3472,
MUKIM AND DAERAH PETALING, SELANGOR
TOGETHER
WITH AN INDUSTRIAL PREMISES ERECTED
THEREON AND
BEARING POSTAL ADDRESS LOT 3472,
JALAN
RAYA 3, KAWASAN PERUSAHAAN SERI
KEMBANGAN,
43300 SERI KEMBANGAN, SELANGOR DARUL
EHSAN
Name & Address of Chargee : BANK OF CHINA (MALAYSIA) BHD
PLAZA
OSK, 25 JALAN AMPANG, MEZZANINE FLOOR, 50450
KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 14 Jan 2002
Registered and Numbered 11 In
The Register of Charges
ENCUMBRANCE 4
Date of Creation : 07 Oct 2005
Description of Charge : 1ST PARTY 4TH LEGAL CHARGE AND
DEBENTURE
Amount Secured : RM 1,600,000.00
Description of Property Affected : ALL THAT PIECE OF LAND HELD UNDER
HS(M) 13710, PT
3472,
MUKIM AND DAERAH PETALING, SELANGOR
TOGETHER
WITH AN INDUSTRIAL PREMISES ERECTED
THEREON
AND BEARING POSTAL ADDRESS NO.1, JALAN
6/1,
LOT 3472, KAWASAN PERINDUSTRIAN SERI
KEMBANGAN,
43300 SERI KEMBANGAN, SELANGOR DARUL
EHSAN
Name & Address of Chargee : BANK OF CHINA (MALAYSIA) BHD
PLAZA
OSK, 25 JALAN AMPANG, MEZZANINE & 1ST FLOOR,
50450
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 11 Nov 2005
Registered and Numbered 12 In
The Register of Charges
LEGAL CHECK AGAINST THE SC
* A check has been
conducted in our databank against the SC whether the subject has been
involved in any litigation.
Our databank consists of 99% of the wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 60%
Overseas : YES Percentage : 40%
Import Countries : ASIA.
The SC refused to provide any name of trade/service supplier and we are
unable to conduct any trade enquiry. However, from financial historical data we
conclude that :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ ] Average [ ]
Fair [ X ] Poor [ ]
CLIENTELE
Local : YES Percentage : 60%
Domestic Markets : MALAYSIA.
Overseas : YES Percentage : 40%
Export Market : CHINA , FRANCE , HONG KONG ,
INDONESIA , PHILIPPINES , PORTUGAL,
SINGAPORE
, TAIWAN , THAILAND , UNITED STATES , UNITED KINGDOM.
Credit Term : 30 DAYS.
Payment Mode : CHEQUES , LETTER OF CREDIT (LC).
Type of Customer : END USERS .
OPERATIONS
Products Manufactured : ALUMINIUM PRODUCTS - CARRIERS, TUBES,
TRAYS & OTHERS
Competitor(s) : FUJISASH (MALAYSIA) SDN BHD
HYDRO
ALUMINIUM MALAYSIA SDN BHD
LB
ALUMINIUM BHD
SHOWA
DENKO HD (MALAYSIA) SDN BHD
TOYO-MEMORY
TECHNOLOGY SDN BHD
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS
(FMM)
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 165 160 157
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development
was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : 89421977
Current Telephone Number : 03-89421977
Match : YES
Address Provided By Client : 1, JALAN 6/1, LOT 3472 KAWASAN SERI
KEMBANGAN,
43300, SERI KEMBANGAN, SELANGOR.
Current Address : 1, JALAN 6/1, LOT 3472 KAWASAN SERI
KEMBANGAN,
43300 SERI KEMBANGAN,
SELANGOR,
MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with the SC's staff from Account Dept, Ms
Jamilah. She furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 12.03% ]
Profit / ( Loss ) before tax : Increased [ 390.81% ]
Return on Shareholder Funds : Unfavourable [ 2.98% ]
Return on Net Assets : Unfavourable [ 7.07% ]
The higher turnover could be attributed to the favourable market condition
and the SC could be gaining the market share progressively. The higher profit
could be attributed to the increase in turnover. The unfavourable return on
shareholders' funds and net assets could indicate that the SC's management was
inefficient in utilising its assets to generate returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 89 Days ]
Debtors Ratio : Unfavourable [ 78 Days ]
Creditors Ratio : Favourable [ 11 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. The high debtors' ratio could
indicate that the SC was weak in its credit control. However, the SC could also
giving longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. The SC had a favourable creditors' ratio as
evidenced by its favourable collection days. The SC could be taking advantage
of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity :
Liquid Ratio : Unfavourable [ 0.39 Times ]
Current Ratio : Unfavourable [ 0.74 Times ]
A low liquid ratio means that the SC may be facing working capital
deficiency. If the SC cannot obtain additional financing or injection of fresh
capital, it may face difficulties in meeting its short term obligations.
Solvency :
Interest Cover : Unfavourable [ 2.61 Times ]
Gearing Ratio : Favourable [ 0.32 Times ]
The SC's interest cover was low. If its profits fall or when interest
rate rises, it may not be able to meet
all its interest payment. The SC was lowly geared thus it had a low financial
risk. The SC was mainly financed by its shareholders' funds and internally
generated funds. In times of economic slowdown / downturn, the SC being a lowly
geared company, will be able to compete better than those companies which are
highly geared in the same industry.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and
profit. Due to its weak liquidity position, the SC will be faced with problems
in meeting all its short term obligations if no short term loan is obtained or
additional capital injected into the SC. If there is a fall in the SC's profit
or any increase in interest rate, the SC may not be able to generate sufficient
cash-flow to service its interest. The SC as a lowly geared company, will be
more secured compared to those highly geared companies. It has the ability to
meet all its long term obligations.
Overall financial condition of the SC: POOR
COMMENTS
Established in 1985, the SC is principally engaged as a manufacturer of
aluminium product. Having been in the industry for more than two decades should
have enabled the SC should have built up a certain goodwill with its clients
over times. With RM3 million in issued and paid up capital, the SC has the
potential of capturing a higher market shares as it is competing aggressively
in the market. Being backed by the holding company allows the SC to enjoy the
benefit of timely financial assistance if the needs arise. With these
favourable conditions, the SC has minimised its risk in the industry compared
to other players.
Throughout its years of establishment, the SC has built up a wide and
stable clientele base. The SC has expanded steadily in the international arena.
Our investigation revealed that the SC's products are exported to China,
France, Hong Kong and etc. In view of its wider market segment, the SC has a
moderate commercial risk and it is unlikely to be affected by the uncertainties
in the local economy. The management of the SC is headed by Executive Director
Alex Khoo Teng Ho and assisted by 165 staffs.
Overall the management capability of the SC is average.
During the financial year 2006, turnover of the SC grew by 12.03% to
RM15.67 million in 2006. The SC recorded a pre-tax profit of RM622,440 for the
year. Return on shareholders' funds of the SC is relatively low, indicating
that the SC did not generate an acceptable amount of profits based on its
existing shareholders' funds. Due to its weak liquidity position, the SC will
face problems in meeting all its short term obligations if no short term loan
is obtained or additional capital injected into the SC. However the SC posted a
low gearing ratio. With the comfortable networth standing at RM10.11 million,
the SC is able to sustain its business performance in the near terms.
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk.
Based on the historical data we concluded that the payment habit of the
SC is FAIR.
The potential growth for the industry is marginal and it is quite
competitive. It is much dependent on the SC's capacity in sustaining its
performance in the market. As the SC is long presence in the market, it should
have acquired competitive edge against other players in the same fields.
In view of the above we recommend credit be granted to the SC normally.
THE FINANCIAL STATEMENTS WERE
PREPARED
IN ACCORDANCE WITH MALAYSIA
ACCOUNTING
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
T
T ENGINEERING & MANUFACTURING SDN BHD
2006 2005
MYR MYR
TURNOVER 15,675,352 13,992,292
=========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 622,440 126,820
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 622,440 126,820
Taxation <320,652> <444,631>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 301,788 <317,811>
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 301,788 <317,811>
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 301,788 <317,811>
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As previously
reported 2,784,225 3,102,036
------------------- -------------------
As restated 2,784,225 3,102,036
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 3,086,013 2,784,225
DIVIDENDS -
Ordinary (paid & proposed) <500,000> -
------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 2,586,013 2,784,225
=========== ===========
RETAINED
BY: The Company 2,586,013 2,784,225
------------------- -------------------
2,586,013 2,784,225
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Bank
overdraft 187,163 184,231
Hire purchase 84,096 104,133
bankers'
acceptance 115,606 87,462
------------------- -------------------
386,865 375,826
=========== ===========
BALANCE SHEET
As
At 31-December-2006
T
T ENGINEERING & MANUFACTURING SDN BHD
2006 2005
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 17,239,372 14,810,477
LONG TERM
INVESTMENTS/OTHER ASSETS
------------------- -------------------
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 17,239,372 14,810,477
CURRENT
ASSETS
Stocks 3,828,196 3,677,471
Trade debtors 3,360,332 3,103,804
Other
debtors, deposits & prepayments 354,889 488,880
Items in transit between head
office & branches
Amount due
from related companies 28,886 25,565
Cash &
bank balances 636,153 300,427
tax
recoverable 35,622 34,944
------------------- -------------------
TOTAL CURRENT
ASSETS 8,244,078 7,631,091
CURRENT
LIABILITIES
Trade
creditors 452,864 594,075
Other
creditors & accruals 888,196 786,671
Hire purchase
& lease creditors 264,692 802,516
Bank
overdraft 2,801,884 1,844,793
Bill &
acceptances payable 1,961,000 2,202,000
Amounts owing
to holding company 661,638 668,798
Amounts owing
to related companies 4,182,144 4,632,245
------------------- -------------------
TOTAL CURRENT
LIABILITIES 11,212,418 11,531,098
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) <2,968,340> <3,900,007>
------------------- -------------------
TOTAL NET
ASSETS 14,271,032 10,910,470
=========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 3,000,000 3,000,000
------------------- -------------------
TOTAL SHARE
CAPITAL 3,000,000 3,000,000
RESERVES
Revaluation
reserve 4,532,647 1,910,166
Retained profit/(Accumulated loss)
carried
forward 2,586,013 2,784,225
------------------- -------------------
TOTAL
RESERVES 7,118,660 4,694,391
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 10,118,660 7,694,391
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 131,292 396,063
Deferred
taxation 4,021,080 2,820,016
------------------- -------------------
TOTAL LONG TERM & DEFERRED LIABILITIES
&
PROVISIONS 4,152,372 3,216,079
------------------- -------------------
14,271,032 10,910,470
=========== ===========
FINANCIAL RATIOS
As
At 31-December-2006
T
T ENGINEERING & MANUFACTURING SDN BHD
2006 2005
MYR MYR
TYPES OF FUNDS
Cash 636,153 300,427
Net Liquid
Funds <2,165,731> <1,544,366>
Net Liquid
Assets <6,796,536> <7,577,478>
Net Current
Assets/(Liabilities) <2,968,340> <3,900,007>
Net Tangible
Assets 14,271,032 10,910,470
Net Monetary
Assets <10,948,908> <10,793,557>
BALANCE SHEET
ITEMS
Total
Borrowings 3,197,868 3,043,372
Total
Liabilities 15,364,790 14,747,177
Total Assets 25,483,450 22,441,568
Net Assets 14,271,032 10,910,470
Net Assets
Backing 10,118,660 7,694,391
Shareholders''
Funds 10,118,660 7,694,391
Total Share
Capital 3,000,000 3,000,000
Total
Reserves 7,118,660 4,694,391
LIQUIDITY
(Times)
Cash Ratio 0.06 0.03
Liquid Ratio 0.39 0.34
Current Ratio 0.74 0.66
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 89 96
Debtors Ratio 78 81
Creditors
Ratio 11 15
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.32 0.40
Liabilities
Ratio 1.52 1.92
Times
Interest Earned Ratio 2.61 1.34
PERFORMANCE
RATIO (%)
Operating
Profit Margin 3.97 0.91
Net Profit
Margin 1.93 <2.27>
Return On Net
Assets 7.07 4.61
Return On Capital
Employed 5.82 3.71
Return On
Shareholders'' Funds/Equity 2.98 <4.13>
Dividend Pay
Out Ratio (Times) 1.66 0
NOTES TO
ACCOUNTS
Contingent
Liabilities 0 0
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. |
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 |
|
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%)