MIRA
INFORM REPORT
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Report Date : |
15.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
PARACOAT
PRODUCTS LIMITED |
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Formerly Known As : |
PARAGON
PAINTS PRIVATE LIMITED |
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Registered Office : |
Trust House, 4th Floor, 32-A, Chittarangan Avenue, Kolkata
– 700 012, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.01.1989 |
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Com. Reg. No.: |
21-46056 |
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CIN No.: [Company
Identification No.] |
U24121WB1989PLC046056 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALP02865C |
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PAN No.: [Permanent
Account No.] |
AABCP7033J |
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Legal Form : |
Closely held public limited liability
company |
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Line of Business : |
Manufacturers of paints, thinners and
primer |
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
375000 |
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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/ Head Office : |
Trust House, 4th Floor, 32-A, Chittarangan Avenue, Kolkata
– 700 012, West Bengal, India |
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Tel. No.: |
91-33-22373066/8023 |
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Fax No.: |
91-33-22155154 |
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E-Mail : |
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Website : |
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Area : |
1200 sq. fts. |
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Location : |
Rented |
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Corporate
Office : |
E-1225, RIICO Industrial Area, Phase -1 Ext. Ghatal,
Bhiwadi-301019 Rajasthan, India |
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Tel.
No.: |
91-1493-222830 |
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Fax
No.: |
91-1493-223950 |
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E-Mail
: |
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Factory
1 : |
Bipranpara, Andul,
Begri – 711411, Howrah District, West Bengal, India |
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Tel.
No.: |
91-33-27093087 |
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Area : |
100000 sq. fts. |
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Location : |
Owned |
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Branches
: |
Located
at :- Delhi |
DIRECTORS
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Name : |
Mr. Atma Ram Poddar |
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Designation : |
Director |
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Address : |
103, Sova Bazar Street, Kolkata-700005, West Bengal |
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Date of Birth/Age : |
04.04.1944 |
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Date of Appointment : |
24.01.1989 |
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Name : |
Mr. Bhagirath Mal Poddar |
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Designation : |
Director |
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Name : |
Mr. Bimal Kumar Poddar |
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Designation : |
Director |
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Address : |
103, 3rd Floor, Sova Bazar Street, Kolkata-700005, West Bengal |
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Date of Birth/Age : |
07.04.1958 |
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Date of Appointment : |
17.06.1991 |
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Name : |
Mr. Rajesh Poddar |
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Designation : |
Director |
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Address : |
103, Sova Bazar Street, Kolkata – 700 005, West Bengal, INDIA |
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Date of Birth/Age : |
26.11.1968 |
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Qualification : |
B. Com |
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Experience : |
12 years |
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Date of Appointment : |
17.06.1991 |
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Name : |
Mr.
Virendra Poddar |
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Designation : |
Director |
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Address : |
BH-189,
Sector 2I, Salt Lake City, Kokata-700091, West Bengal |
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Date of Birth/Age : |
14.10.1972 |
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Date of Appointment : |
08.02.2002 |
KEY EXECUTIVES
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Name
: |
Mf.
Naveen Banka |
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Designation
: |
Company
Secretary |
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Address
: |
62, 1st
Floor, 7th Main BTM Layout, 2nd Stage,
Bangalore-560076, Karnataka |
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Date
of Birth/Age : |
11.01.1967 |
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Date
of Appointment : |
19.03.2001 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of paints, thinners and
primer |
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Products : |
v Paints v Thinners v Primers |
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Exports to : |
Switzerland |
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Imports from : |
Thailand |
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Terms : |
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Selling : |
Contract or Credit (up to 60 days) |
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Purchasing : |
Contract, L/C or Credit (up to 60 days) |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Sound Deadner Pads |
Pcs. |
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12760000 |
7389442 |
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Plastic Membrane |
Pcs. |
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1000000 |
815579 |
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Anti vibration/ Epoxy |
Pcs. |
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3000000 |
2250440 |
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Dash Insulator |
Pcs. |
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220000 |
242733 |
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Septem Sheet |
Pcs. |
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600000 |
311004 |
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Paints and Thinners |
Pcs. |
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700000 |
523187 |
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Pad Roof |
Pcs. |
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300000 |
158788 |
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Anti vibration compound |
Pcs. |
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400000 |
67489 |
GENERAL
INFORMATION
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Suppliers : |
v Bharat Petroleum Corporation Limited v Indian Oil Corporation Limited |
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Customers : |
v Hindustan Motors Limited v Siemens Limited v Texmaco Limited |
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No. of Employees : |
40 |
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Bankers : |
v Canara Bank, Princep Street Branch, 25, Princep Street, Kolkata – 700 072, West Bengal v Indian Bank, C.R. Avenue, Kolkata v State Bank of Bikaner and Jaipur, Bhiwandi v Canara Bank, Hosur v Canara Bank, Bhiwandi v HDFC Bank Limited, Main Branch, Kolkata v ICICI Bank, Cannaught Place, New Delhi v ICICI Bank, Hosur Branch v
Canara
Bank, Jeet Singh Branch, Delhi v
Canara
Bank, BTM Layout Branch, Bangalore v
Standard
Chartered Bank, Delhi v
ABN
Amro Bank, New Delhi v Kotak Mahindra Bank |
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Facilities : |
Secured Loans (Rs. In millions) :
Unsecured Loans :
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Banking Relations : |
Satisfactory |
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Auditors : |
Manoj Saraf & Associate Chartered Accountants 40, Strand Road, 3rd Floor, Room No.12/3, Kolkata-700001 |
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Tel. No.: |
91-33-22432591 |
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Fax No.: |
91-33-22432591 |
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E-Mail : |
CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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3500000 |
Equity
Shares |
Rs.10/- each |
Rs.35.000 millions |
Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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3067900 |
Equity
Shares |
Rs.10/- each |
Rs.30.679 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
30.679 |
27.679 |
24.354 |
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2] Share Application Money |
20.000 |
9.000 |
9.585 |
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3] Reserves & Surplus |
45.011 |
26.915 |
20.816 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
95.690 |
63.594 |
54.755 |
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LOAN FUNDS |
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1] Secured Loans |
108.648 |
59.340 |
51.021 |
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2] Unsecured Loans |
0.000 |
0.667 |
1.088 |
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TOTAL BORROWING |
108.648 |
60.007 |
52.109 |
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DEFERRED TAX LIABILITIES |
3.467 |
1.300 |
0.973 |
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TOTAL |
207.805 |
124.901 |
107.837 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
91.652 |
66.870 |
54.645 |
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Capital work-in-progress |
29.755 |
1.499 |
6.128 |
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INVESTMENT |
0.006 |
0.034 |
0.034 |
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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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Inventories |
50.252
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40.635 |
29.471 |
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Sundry Debtors |
38.380
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33.278 |
24.190 |
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Cash & Bank Balances |
3.587
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1.057 |
1.836 |
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Other Current Assets |
0.000
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0.000 |
1.695 |
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Loans & Advances |
40.422
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13.108 |
3.517 |
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Total Current Assets |
132.641
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88.078 |
60.709 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
42.723
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30.474 |
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Provisions |
3.574
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1.128 |
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Total Current Liabilities |
46.297
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31.602 |
19.023 |
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Net Current Assets |
86.344
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56.476 |
41.686 |
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MISCELLANEOUS EXPENSES |
0.048 |
0.022 |
5.344 |
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TOTAL |
207.805 |
12.901 |
107.837 |
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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 [including other income] |
360.654 |
318.924 |
212.440 |
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Profit/(Loss)
Before Tax |
17.725 |
7.301 |
4.249 |
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Provision
for Taxation |
3.999 |
0.899 |
(0.164) |
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Profit/(Loss)
After Tax |
13.726 |
6.402 |
4.413 |
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Export
Value |
4.200 |
3.250 |
3.450 |
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Import
Value |
NA |
32.242 |
4.814 |
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Total
Expenditure |
342.929 |
311.623 |
208.191 |
KEY
RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.80
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2.01 |
2.08 |
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Net
Profit Margin (PBT/Sales) |
(%) |
4.91
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2.29 |
2.00 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
7.90
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4.71 |
3.68 |
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Return
on Investment (ROI) (PBT/Networth) |
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0.18
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0.11 |
0.08 |
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Debt
Equity Ratio (Total
Liability/Networth) |
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1.62
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1.44 |
1.30 |
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Current
Ratio (Current
Asset/Current Liability) |
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2.86
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2.79 |
3.19 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of
charges
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Name of the company |
PARACOAT
PRODUCTS LIMITED (hereinafter
referred to as the company) |
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Presented By |
Canara Bank,
Princap Street Branch, 25, Princap Street, Kolkata-700072. |
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1) Date and description of instrument creating the change |
Hypothecation agreement for goods and book debts (for DALC/DPG/Guarantee) dated 07.08.2000. Agreement re : Collateral security : Machinery: Vehicles : Dated 07.08.2000 Modified on 18.07.2001 for creation of equitable of immovable property at Hosur, Tamilnadu. Modified on 07.12.2001 to Rs.3.000 millions Modified on 09.09.2004 to Rs.11.000 millions. The charge was registered on 05.10.2004. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.1.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The borrower hereby hypothecates in favour of the Bank by way of first charge the raw material in the form of synthetic chemicals, car accessories, safety assets etc. to be purchased under the said (FLC) credit facilities and the borrower’s present and future book debts. The FLC limit of Rs.1.000 millions shall also be collaterally secured by all plant machinery, tools and accessories namely Sigam Mixer, Double roller machine, Hopper, Thermic Flud Heads, Conveyor System, Curring machine, Edge Runner and entire fixed assets of the company stored installed at Plot No.E-1225, Taluk Bhiwadi, District Alwar, Rajasthan or any other place including those in transit. No instrument was executed. The fresh FLC liit of Rs.1.000 millions shall also be collaterally secured by : Equitable mortgage by deposit of title deeds in respect of company’s immovable property being all that piece and parcel of land admeasuring 4000 Sq. Mtrs. located at Plot No.E-1225, Taluk Bhiwadi, District Lawar, Rajasthan and building existing and/or to be constructed thereon together with appurtenants thereto |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest shall be charged at the rate f 18.25% per annum with quarterly rests. Margin 25% Repayable on demand |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Princep Street Branch, 25, Princep Street, Kolkata-700072. |
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6) Date and brief description of instrument modifying the charge |
Common hypothecationagreement dated 13.09.2005 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
By the present modification the over all limit is enhanced to Rs.107.000 millions. The details of the total revised limit of Rs.107.000 millions advanced by the bank as follows :
Overall limit Rs.107.000 millions The company declares that whole of the stock and book debts of the company is hypothecated by way of 1st charge in favour of the Bank. The company hereby reiterates that the all present and future movable platn and machinery spares, tools and accessories, electrical and other equipments and vehicles and also other movable fixed assets whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about the borrower’s factories and/or premises and/or godowns at Domjur, Howrah, Bhiwadi, Rajasthan and Hosur, Tamilnadu Factory and which shall hereafter from time to time during the continuance of these presents be brought into upon or be stored or about the borrower’s said factories, godowns and/or premises or wherever else also the same may be or in disposition of the company or in course of transit or otherwise or on delivery howsoever and where so ever in the possession of the borrower and either by way of substitution or addition all documents of title, policies of insurance, negotiable instruments and other documents relating there to all of which are hereinafter for sake of brevity collectively called the movable assets are charged by way of first charge. Interest and other charges are to be paid as or terms to sanction, however the same is subject to charge from time to time. Further the company has to maintain stipulated margin. Other terms and conditions are as per sanction letter and above letters/agreements. Other terms and conditions save as above modified above remain in full force. |
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Name of the company |
PARACOAT PRODUCTS LIMITED (hereinafter referred to as the company) |
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Presented By |
Canara Bank, Princep Street Branch, 25, Princep Street,
Kolkata-700072. |
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1) Date and description of instrument creating the change |
Letter evidencing deposit of title deeds dated 18.03.1999. Rs.
In Millions
23.05.2001 for creation of EM of immovable property at Hosur, Tamilnadu
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.6.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
No instrument was executed. The borrower created security by way of equitable mortgage by deposit of title deeds in favour of bank the following properties to secure the total credit facilities sanctioned by the bank to the borrower to the extent of Rs.6.500 millions. All that piece of land admeasuring 4000 Sq. mtrs. located at Plot No.E-1225 Taluk Bhiwandi, District Alwar, Rajasthan and buildings existing and/or to be constructed thereon together with appurtenants thereto. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The properties are mortgaged in favour of the Bank within the meaning of section 58(f) of Transfer of property Act 1882, by the borrower to secure the term loan of Rs.4.500 millions and OCC limits of Rs.2.000 millions sanctioned by the Bank. |
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5) Name and Address and description of the person entitled to the charge. |
Canara Bank, Princep Street Branch, 25, Princep Street, Kolkata-700072. |
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6) Date and brief description of instrument modifying the charge |
Letter evidencing deposit of title deeds of property at Domjur, Howrah dated 13.09.2005 Letter evidencing deposit of title deeds of property at Bhiwadi, Rajasthan dated 13.09.2005 Letter evidencing deposit of title deeds of property at Hosur, Tamilnadu dated 13.09.2005. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
No instrument was executed. However the borrower created additional security by way of equitable mortgage by deposit of title deeds vide above LEDs dated 13.09.2005 in favour of the Bank the following 3 immovable properties to secure the total enhanced credit facilities advanced by the bank to the extent of Rs.107.000 millions. The details of the total revised limit of Rs.107.000 advanced by the bank as follows :
Description
of property at Howrah All that piedce and parcel of land and building admeasuring 34 Satak bearing Dag No.4530 under Khatian No.1142 and admeasuring 27 Satak bearing Dag No.4470 under Khatian No.620 situated at Birpanpara, P.O. Domjur, NH-6, Howrah. Descripotion
of property at Bhawadi All that piece and parcel of land and building admeasuring 4000 Sq. mtrs. situated at Plot No.1225, RIICO, Industrial Area, Bhiwadi, Rajasthan Description
of Property at Bhawadi All that piece and parcel of land and buildings admeasuring 1.67 acres situated at Plot No.43C, Phase No.1, SIPCOT Industrial Complex, Hosur, District Dharmpuri, Tamilnadu. Other terms and conditions are as per sanction letter and above letters/agreements. Other terms and conditions save as above modified above remain in full force. |
HISTORY
Subject was incorporated on 24.01.1989 at Kolkata in West Bengal under the name and style of Paragon Paints Private Limited having Company Registration Number 46056. The company's name was changed to present w.e.f. 16.05.1996. Subsequently it was converted into a closely held public limited company.
Company’s
fixed assets include factory building, leasehold land, site development, plant
and machineries, furniture and fixtures, lab development, electrical fittings,
fax machine, computer, air condition machine, technical know how, D.G. set,
Motor vehicle, dies and tools, mobile phone, motor lorries, stacker and office equipments.
Operations :
The
company ahs registered increase in the turnover of 54.98% correspondence to
previous year. In the future years the company will continue in its efforts to
improve its operations, reduce costs and thereby improve the overall performance
of the company. The company expects to bag good orders in current year and
expect to generate growth in turnover.
Website Details :
History
Subject started in 1974 with manufacturing of underbody sound Deadener at
Kolkata and started supplying to Hindustan Motors Ltd. PCP during 1980 also
started making insulations based on rubber laminated with Jute/cotton for
floor, bonnet, and rear seat. In 1984 subject started with paints, sealers, and
sealants in the name of Paragon Paints for automotive, railways, and other
engineering industries. During 1984 subject started manufacturing Melt Sheets
(Asphalt Sheets) for HM's Contessa, based on the requirements of Vauxhall of
GM.
In 1998 PCP signed technology transfer agreement with Asahi Rubber Company
Limited of Japan. Asahi is one of the pioneer company in japan making Asphalt
Sheets, Visco foam, Sealers and sealant and having 35% market share in Japan.
Subject in order to make itself a "Consumer Delight" company started
its Northern India plant at Bhiwadi, Rajasthan and its souhern India plant at
Hosur and is going to setup its Western India plant in Pune.
Subject has localized its manufacturing activities near its customers for
giving them "JIT" delivery and less lead time for development. PCP
with inner thrust for up gradation of technology started making insulation
based on barrier (EVA/EPDM) with PU foam.
Chronology
1974
1st plant
for sound deadener undercoat at Kolkata in the name of Pyne chemical products
1979
2nd plant
for manufacture of paints at Kolkata in the name of Paragon Paints
1986
Development
of asphalt sheet and opening 3rd plant for anti-corrosive paints : Paracoat
Products Limited
1998
Technical
tie-up signed with Asahi Rubber Company Limited of Japan and inauguration of
4th plant at Bhiwadi
2000
Certification
of quality system QS 9000
2001
Inauguration
of 5th plant at Hosur
2002
Initiated
relations with Bo-Kwang corporation S. Korea, Dominion Sureseal Canada
2003
Certification
of ISO/TS 16949 for quality management and ISO 14001 for environment
export orders from GM and Advent of Designing Total Acoustic Solutions
2004
Received
Zero PPM award from Toyota, silver award from Honda and appreciation
certificate from Hyundai
2005
Received
gold award from Honda, Ohsas 18001 certification, foundation stone laying of
new manufacturing facilities at Bhiwadi for EPP and Pune for moulded carpets
Inspiration of the Chairman
Since their foundation
is over 30 years ago, subject has introduced high value added products and
technology to Indian Automotive Industry from all over the world. They have
utilized their expertise to contribute Energy Saving, Recycling innovation to
the Industry.
Their objective is not just delivering the products but to develop New Products
and Technology with close cooperation with their customers.
Subject promise to the customer:
v
With Utmost
respect to the Human Values
v
They promise to
serve their
v
Customer with Integrity
v
Through a variety
of Innovative
v
Value for Money, Products
and Services
v
By Applying Thought day after day
Associations
Technical Partners
Subject also gains strength from a multitude of World leaders in their
respective areas of expertise
v Asahi
Rubber Company Limited, Japan
v JSP
Corporation, Japan
v Aksys
GmbH, Europe
v Bokwang
Corporation, South Korea
v Temi
SRL, Italy
Clientele
v
Caterpillar
v
Ford
v
GM
v
Hitachi
v
HM
v
Hongo
v
Honda
v
National
v
General
v
Reva
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.44.25 |
|
UK
Pound |
1 |
Rs.86.41 |
|
Euro |
1 |
Rs.58.10 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
|