MIRA
INFORM REPORT
|
Report Date : |
21.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TEMPTATION
FOODS LIMITED |
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Registered Office : |
4,
Unity House, 2nd Floor, 8, Mama Parmanand Marg, Opera House,
Mumbai-400004, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.03.1991 |
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Com. Reg. No.: |
11-60643 |
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CIN No.: [Company
Identification No.] |
L99999MH1991PLC060643 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT06581B |
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Legal Form : |
A
Public Limited Liability Company. Company’s shares are listed on Stock
Exchanges. |
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Line of Business : |
Suppliers
of Frozen Foods |
RATING & COMMENTS
|
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/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow
but correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an old and established company having satisfactory track. Company’s
profitability is under severe pressure. It has some accumulated losses.
Payments are reported as slow but correct. The
company can be considered normal for small business dealings at usual trade
terms and conditions, with slight caution initially. |
LOCATIONS
|
Registered Office : |
4,
Unity House, 2nd Floor, 8, Mama Parmanand Marg, Opera House,
Mumbai-400004, Maharashtra, India |
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Tel. No.: |
91-22-23686030 |
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Fax No.: |
91-22-23695438 |
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E-Mail : |
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Factory
1 : |
Plot
No.C-2, MIDC, Jejuri, Taluka Purandar, District Pune-412302, Maharashtra,
India |
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Tel.
No.: |
91-2115-253372/253610/254166 |
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Fax
No.: |
91-2115-253610 |
DIRECTORS
|
Name : |
Dr.
Kala Pant |
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Designation : |
Director |
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Date of Birth/Age : |
71
years |
|
Qualification : |
Bachelor
of Science, Post Graduate Doctoral Research in the field of Banking and Transport. |
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Other Directorships : |
Chairman
and Member of Audit committee of N.R.B. Bearings Limited |
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Name : |
Mr.
R.V. Joshi |
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Designation : |
Director |
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Date of Birth/Age : |
64
years |
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Qualification : |
M.A.
(Economics) |
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Other Directorships : |
Clear Corp Dealing Systems India Limited |
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Name : |
Mr. G.
Ramchandran |
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Designation : |
Director |
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Date of Birth/Age : |
46
years |
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Qualification : |
Bachelor of Science and Chartered Accountant |
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Other Directorships : |
Kaarrox Tehnologies Limited, Key Profiles Private Limited, Kware
Private Limited, Valecha Engineering Limited, F2 Fun & Fitness Private
Limited, First Fitness Private Limited, Tower Capital & Securities
Limited, Tower Commodities & Derivatives Private Limited, Tower Financial
ft Services Limited, Praxis Advisors Private Limited, Polymath Advisors
Private Limited, Imageads Communications Limited, Brand Vision Private Limited,
and Recouse Substrates Private Limited |
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|
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Name : |
Mr. E.
David Ellington |
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Designation : |
Director |
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Address : |
46
years |
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Qualification : |
M.A. from Harvard University |
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Other Directorships : |
Ankar Capital LLC, USA and San Francisco Retirement Board - Trustee |
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Name : |
Ms.
Bhairavi Goswami |
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Designation : |
Director |
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Date of Birth/Age : |
24
years |
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Qualification : |
B.A. |
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Experience : |
3
years |
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Other Directorships : |
Venture
Business Advisers Private Limited Vergola
India Limited |
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Name : |
Mr.
Ragvinder Singh Rethi |
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Designation : |
Director |
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Date of Birth/Age : |
56
years |
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Qualification : |
Bachelor of Science in Hotel Administration from Cornell University,
New York |
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Other Directorships : |
Radhakrishna Foodland Private Limited |
KEY EXECUTIVES
|
Name
: |
Mr.
Vinit Kumar |
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Designation
: |
Chief
Executive Officer |
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Name
: |
Mr.
Ulhas Joshi |
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Designation
: |
Chief
Operating Officer |
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Name
: |
Mr. N.
H. Datanwala |
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Designation
: |
Chief
Financial Officer and Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
Group |
5287462 |
62.34 |
|
Financial
Institutions and Banks |
930000 |
10.96 |
|
Mutual
Funds |
103900 |
1.23 |
|
NRI/OCB |
2000 |
0.02 |
|
Private
Bodies Corporate |
178500 |
2.11 |
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Indian
Public |
1979638 |
23.34 |
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Total |
8481500 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Suppliers
of Frozen Foods |
||||||
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Products : |
v
IQF
Deep Frozen Fruits v
Block
Frozen Fruit Purees v
IQF
Deep Froz v
IQF
Deep Frozen Ethnic Indian Vegetable v
Frozen
Ready to Serve Meals
|
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
IQF Frozen |
MT |
4000 |
4000 |
2901.68 |
GENERAL
INFORMATION
|
Bankers : |
v
ICICI
Bank Limited v
Bank
of Baroda |
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Facilities : |
SECURED LOANS (Rs. In Millions)
UNSECURED LOANS
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Banking Relations : |
Satisfactory |
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Auditors : |
Haribhakti
& Company Chartered
Accountants |
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Holding Company : |
Venture
Business Advisors Private Limited |
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Associates : |
v
Micro Plantae
Limited v
Vergola India
Limited v
Delika Foods
Private Limited v
Calypso Agro
& Engineering Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity
Shares |
Rs.10/- each |
Rs.200.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
8481500 |
Equity
Shares |
Rs.10/- each |
Rs.84.815 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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|
SHAREHOLDERS FUNDS |
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|
|
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1] Share Capital |
|
84.815 |
84.815 |
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2] Share Application Money |
|
103.750 |
0.000 |
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3] Reserves & Surplus |
|
76.846 |
2.613 |
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4] (Accumulated Losses) |
|
(123.431) |
(302.256) |
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NETWORTH |
|
141.980 |
(214.828) |
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.100 |
299.381 |
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2] Unsecured Loans |
|
0.086 |
1.719 |
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TOTAL BORROWING |
|
0.186 |
301.100 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
142.166 |
86.272 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
69.106 |
75.590 |
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Capital work-in-progress |
|
0.000 |
0.000 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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|
Inventories |
|
28.664 |
32.186 |
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Sundry Debtors |
|
43.999 |
4.347 |
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Cash & Bank Balances |
|
32.618 |
0.870 |
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Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
4.972 |
4.608 |
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Total Current Assets |
|
110.253 |
42.011 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
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Current Liabilities |
|
36.574 |
31.168 |
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|
Provisions |
|
0.619 |
0.161 |
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Total Current Liabilities |
|
37.193 |
31.329 |
|
|
Net Current Assets |
|
73.060 |
10.682 |
|
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
|
142.166 |
86.272 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
165.667 |
101.667 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
17.355 |
(5.005) |
|
Provision
for Taxation |
|
0.988 |
1.390 |
|
Profit/(Loss)
After Tax |
|
16.367 |
(6.395) |
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|
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Export
Value |
|
37.854 |
28.190 |
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|
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Total
Expenditure |
|
148.312 |
106.671 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Sales Turnover |
72.700 |
84.600 |
119.800 |
|
Other Income |
0.500 |
0.400 |
1.800 |
|
Total Income |
73.200 |
85.000 |
121.600 |
|
Total
Expenditure |
64.800 |
63.400 |
101.400 |
|
Operating
Profit |
8.400 |
21.600 |
20.200 |
|
Interest |
0.000 |
0.000 |
0.100 |
|
Gross Profit |
8.400 |
21.600 |
20.100 |
|
Depreciation |
1.700 |
1.800 |
1.900 |
|
Tax |
0.000 |
0.200 |
0.100 |
|
Reported PAT |
6.700 |
19.600 |
18.100 |
.
200606 Quarter
NOTES:
1. The figures tot the
corresponding periods have been restated, wherever necessary, to make them
comparable. 2. The above unaudited financial results of the Company were taken
on record in the Board of Directors meeting held on July 25, 2006. 3. The above
results are subject to limited review by the auditors of the company. 4. The
Company bas currently only one reportable segment of activity namely ' Frozen
foods'. 5. There were no investor complaints received and pending during the
period. 6.The Qualifications in the last audited financial results and their
impact on the current period's unaudited results Qualification Impact Non
crediting of will back of interest and principal under No impact an current One
Time Settlement Scheme to Profit & Loss Account period's results.
200609 Quarter 2
Notes
Total Expenditure
Includes (Increase)/Decrease in Stock Rs (6.128) million Consumption of RM
& PM Rs 47.623 million Manufacturing Expenses Rs 13.496 million General
Admin & Personnel Expenses Rs 6.282 million Selling & Distribution
Expenses Rs 1.607 million EPS is Basic Status of Investor Complaints for the
quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 03 Complaints disposed off
during the quarter 03 Complaints unresolved at the end of the quarter Nil 1.
The figures for the corresponding periods have been regrouped & restated,
wherever necessary. 2. The above unaudited financial results have been reviewed
and approved by the Audit Committee and have been taken on records by the Board
of Directors at their meeting held on October 28, 2006. 3. The above results
are subject to limited review by the Statutory Auditors of the Company. 4. The
Company has only one reportable segment of activity, namely Frozen foods. 5.
The Qualifications in the last audited financial results and their impact on
the current period's unaudited results: a. Qualification: Non Crediting of
w/back of interest and principal under One Time Settlement Scheme to Profit
& Loss Account Impact : No impact on current periods results. b.
Qualification: Non confirmation of balances in respect of advances receivable
in cash or in kind and of amounts due from / to Sundry Debtors / Creditors and
in respect of certain balances which have written back / off during the
Financial Year 2005-06. Impact : Impact, if any, not yet ascertained
200612 Quarter 3
Notes
Total Expenditure
Includes (Increase)/Decrease in Stock Rs 2.200 million Consumption of RM &
PM Rs 72.824 million Other Expenses Rs 16.604 million General Admin &
Personnel Expenses Rs 7.867 million Selling & Distribution Expenses Rs
1.914 million EPS is Basic Status of Investor Complaints for the quarter ended
December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 01 Complaints disposed off during the
quarter 01 Complaints unresolved at the end of the quarter Nil 1. The figures
for the corresponding periods have been regrouped & restated, wherever
necessary. 2. The above unaudited financial results have been reviewed and
approved by the Audit Committee and have been taken on records by the Board of
Directors at their meeting held on January 29, 2007. 3. The above results are
subject to limited review by the Statutory Auditors of the Company. 4. The
Company has only one reportable segment of activity, namely Fresh & Frozen
foods. 5. The Qualifications in the last audited financial results and their impact
on the current period's unaudited results: a. Qualification: Non Crediting of
w/back of interest and principal under One Time Settlement Scheme to Profit
& Loss Account Impact : No impact on current periods results. b.
Qualification: Non confirmation of balances in respect of advances receivable
in cash or in kind and of amounts due from / to Sundry Debtors / Creditors and
some other balances. Impact : Impact, if any, not yet ascertained. 6. In view
of the brought forward losses, no provision for Income Tax is required. 7. a)
On April 27, 2006, the Company allotted 15,00,000 Equity Shares of Rs 10/-
each, fully paid up to IDBI pursuant to one time settlement. b) On November 11,
2006, the Company allotted 28,64,000 Equity shares of Rs.10/- each, fully paid up,
and 4971600 Convertible Warrants to preferential allottees. c) Warrant-holders
holding 40,71,600 Warrants exercised their option to convert the warrants into
Equity shares @ one fully paid up Equity shares of Rs 10/- each for one warrant
held and the Company allotted 40,71,600 Equity Shares to the Warrant holders on
November 11, 2006.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.82 |
0.94 |
1.11 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.02 |
0.55 |
0.79 |
|
Inventory |
5.12 |
3.35 |
6.73 |
|
Debtors |
6.46 |
8.57 |
10.12 |
|
Interest Cover Ratio |
56.33 |
(9.67) |
(2.05) |
|
Operating Profit Margin(%) |
15.19 |
1.08 |
2.09 |
|
Profit Before Interest And Tax Margin(%) |
10.83 |
(6.94) |
(3.43) |
|
Cash Profit Margin(%) |
14.87 |
0.36 |
0.42 |
|
Adjusted Net Profit Margin(%) |
10.51 |
(7.66) |
(5.11) |
|
Return On Capital Employed(%) |
13.63 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
(61.54) |
0.00 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.2.00/- |
|
Low |
Rs.2.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Company’s
fixed assets include leasehold land, building, computer, plant and machinery,
furniture and fixture and vehicles.
OPERATIONS:
During the year under review, the Company successfully turned around its
operations. After the years of strenuous efforts, the Company, for the first
time, has reported a profit of Rs. 17.355 million for the year. The Company has
achieved turnover of Rs.153.395 million as compared to Rs.82.234 million in the
previous year, registering a growth of 86.53%. The Company has also achieved
highest ever production of 2900 tons of frozen fruits and vegetables.
FINANCIAL
RESTRUCTURING:
To put back the Company on track, the exercise of financial
restructuring was taken up during the year. The Company successfully completed
a One Time Settlement (OTS) with the term lending institutions, namely,
Industrial Development Bank of India Limited, (IDBI) and Bank of Maharashtra
(BOMf and settled all their liabilities.
As a part of settlement, IDBI and BOM agreed to accept Rs.50 million and
Rs.12.50 million as against the
principal outstanding of Rs.83.76 million and Rs.52.973 million
respectively and waived the interest due as on 1st June, 2005, the cut-off date
for OTS. IDBI and BOM also waived part of the principal amount for Rs.33.760
million and Rs.40.473 million respectively as a part of settlement. The amount
due to BOM was settled in cash. In case of IDBI, out of the total amount of
Rs.50 million due to IDBI, Rs.35 million was settled in cash and balance of
Rs.15 million was converted into Equity Shares of Rs.10/- each at par, as
agreed with IDBI.
The amount waived by IDBI and BOM towards interest aggregating to Rs.
162.458 million as provided in
the books has been adjusted against the brought forward deficit in the
Profit & Loss Account and the amount waived by them towards term
liabilities aggregating to Rs.74.233 million has been shown as addition to the
Capital Reserve.
To strengthen the capital base and to provide funds to repay the amount
due to IDBI and BOM, the Company raised Rs.71.600 million by issuing shares at
Rs.25/- per share on a preferential basis to a Foreign Hedge Fund and other
investors.
The Company also raised Rs.10 million by issuing 4,00,000 Equity Shares
at Rs.25/- per share to the promoters as a part of Preferential Issue.
The Company also issued 900,000 warrants, convertible into equal number
of Equity Shares at a minimum base price of Rs.35/- per warrant to the Foreign
Hedge Fund and 40,00,000 warrants to the promoters at Rs.10/- each. These warrants
are convertible into Equity Shares within 18 months from the date of allotment.
Pending re listing of shares and "in principle" approval by
BSE, the allotment in respect of the above shares/warrants by way of
preferential issue is pending, except allotment of 15,00,000 Equity Shares to
IDBI which was completed on receipt of approval from BSE in April 2006.
The members are aware that the Honorable Board for Industrial &
Financial Reconstruction (BIFR) Bench had recommended winding up of the unit earlier
and the appeal filed by the Company before the Appellate Authority for
Industrial 6 Financial Reconstruction (AAIFR) was also dismissed ex-parte
during the year under review. The Company has approached AAIFR for
reinstatement of the appeal and granting opportunity for hearing. In the
meantime, the Company has successfully taken number of steps to revive the
Company and made the net worth positive and has informed BIFR and AAIFR that as
a consequence of financial restructuring as mentioned herein, the Company was
out of the purview of BIFR.
During the year under review, on purchase of 3,00,000 Equity Shares by
the promoter company, viz. Venture Business Advisers Private Limited (VBAPL)
from IFCI Venture Funds Limited (formerly : Risk Capital & Technology
Finance Corporation Limited) under a buy back arrangement, the Company has
become a subsidiary company of VBAPL with effect from September 2005. However,
on allotment of 15,00,000 Equity Shares to IDBI as a part of One Time
Settlement (OTS) in April, 2006, the Company no longer remains a subsidiary of
VBAPL.
BUSINESS PROSPECTS :
The Company uses Individual Quick Freezing (IQF) method to process
fruits and vegetables and exports
the same to leading users in developed markets of USA, UK, Europe and
Middle East. To broaden the market, the Company has started manufacturing and
marketing 'ready to eat' foods.
The Company now seeks to take advantage of opportunities offered by the
Agricultural and Processed Food Sector in both domestic and international markets.
With the thrust given by the Government to Food and Agriculture
Industry, the Company is now poised for growth and expects to consolidate its
operations in the coming years.
Website Details :
Fresh
frozen foods from the fruit and vegetable bowl of India.
Ripe,
luscious fruit, crisp, crunchy vegetables - a temptation no one has been able
to resist since the days of the apple.
Now , an
Indian based company offers new temptations all the year round by bringing the
best tropical fruits and vegetables to the world markets.
Subject
uses the latest IQF technology and equipment sourced from world class suppliers
for preserving the fresh flavours of exotic India.
Subject
has located the sophisticated processing plant in the midst of fruit and
vegetable growing country at Jejuri, near Pune in India for deep freezing
mangoes, pineapples, papayas, melons, grapes, strawberries. Also a variety of
vegetables like green beans, green peas, cauliflower, okra, corn, carrots,
chillies (red and green), ginger-garlic cubes, samosas, parathas, paneer
products and a host of Indian ready to serve meals.
Consistent
freshness, flavour and quality is ensured from the TFL unique system.
Their Plant
Versatile
v
Handles
almost any type of fruit and vegetables from heavy weight corn on the cob to
soft and sensitive strawberries.
v
Also
capable of freezing fruit pulps.
Hygienic
v
Fully
automated right up to the packing line to keep products untouched by hands.
v
Stainless
steels contact parts, from washers, cutters to freezers and packaging machines.
v
Purified
air blown continuously into a dust-free plant with positive pressure maintained
inside.
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 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
35 |
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 |
|