MIRA
INFORM REPORT
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Report Date : |
13th
January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SUPER TANNERY LIMITED |
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Formerly
Known As : |
SUPER TANNERY (INDIA) LIMITED |
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Registered Office : |
187/170, Jajmau Road, Kanpur-208 010, Uttar
Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.02.1984 |
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Com. Reg. No.: |
20-6421 |
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CIN No.: [Company
Identification No.] |
U19131UP1984PLC006421 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPS01360C |
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Legal Form : |
Public Limited Liability Company. The company's
shares are listed on Stock Exchanges. |
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Line of Business : |
Manufacturing and marketing of leather sole, leather
chrome, leather garments, leather shoe uppers, leather full shoe, unit sole,
leather cut sole and other leather goods. |
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
1250000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Slow
but correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track. Trade relations are
fair. Financial position is satisfactory. Payments are reported as slow but
correct. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office / Factory
: |
187/170, Jajmau Road, Kanpur-208 010, Uttar
Pradesh, INDIA |
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Tel. No.: |
91-512-460137 / 2138 /2122 / 1450 / 1079/
2461 |
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Fax No.: |
91-512-460792 / 451227 / 460792 / 2227 |
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E-Mail : |
supertannery@lw1.sancharnet.in Tannery Division Footwear Division Sales Department |
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Website : |
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Overseas
Office : |
UNITED KINGDOM Super Tannery (UK) Limited Registered Office 17 Leeland Mansion, Leeland Road, Ealing London W 13 94B, U.K. Operational Office 19 Hewlett Road, Luton, Bedfordshire, LU3 2RP, U.K. Tel No. : 44 1582 575559 Email : sales@supertannery.co.uk UNITED ARAB EMIRATES Super Tannery Limited Warehouse No.- A3-101, Post Box – 8290, Saifzone, SHARJAH Tel No.: 00971 6 5572326 Fax No.: 00971 6 5572327 |
DIRECTORS
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Name : |
Mr. Iftikharul Amin |
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Designation : |
Managing Director |
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Name : |
Mr. Iqbal khsan |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Veqarul Amin |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Imran Siddiqui |
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Designation : |
Whole-time Director |
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Name : |
Mr. Arshad Khan |
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Designation : |
Whole-time Director |
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Name : |
Mr. Mohd. Imran |
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Designation : |
Whole-time Director |
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Name : |
Mr. Mohsin Sharif |
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Designation : |
Director
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Name : |
Mr. Nafees Ahmad |
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Designation : |
Director
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Name : |
Kumud Behari Seth |
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Designation : |
Director
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Name : |
Dr. Nafis Ahmad |
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Designation : |
Director
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Name : |
Dr. Subhash Awasthi |
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Designation : |
Director
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Name : |
Dr. Mohd. Izhar |
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Designation : |
Director
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KEY EXECUTIVES
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Name
: |
Mr. Gyanendra Singh |
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Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
promoters'
holdings
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Indian Promoters |
1941977 |
53.96 % |
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Persons Acting in Concert |
960 |
0.03 % |
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Sub Total |
1942937 |
53.98 % |
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non
promoter's holdings
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Mutual
Funds and UTI |
138300 |
3.84 % |
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Banks, Financial Institutions and Insurance Companies |
100 |
0.0 % |
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Sub Total |
138400 |
3.85 % |
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others
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Private Corporate
Bodies |
352550 |
9.80 % |
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Indian Public |
1117828 |
31.06 % |
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NRIs/OCBs |
18688 |
0.52 % |
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Others (Clearing
members) |
28709 |
0.80 % |
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Sub Total |
1517775 |
42.17 % |
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Grand Total |
3599112 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of leather sole, leather
chrome, leather garments, leather shoe uppers, leather full shoe, unit sole,
leather cut sole and other leather goods. |
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Products : |
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Exports to : |
European countries, U.S.A., Canada, Hongkong, Singapore |
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Imports from : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C, D/A and D/P terms |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Leather Sole |
Hides |
NA |
120000 |
99359 |
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Leather Chrome |
Hides |
NA |
250000 |
297257.5 |
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Goat Skins |
Pairs |
NA |
1500000 |
1271506 |
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Leather Shoe Uppers |
Pairs |
600000 |
500000 |
418597 |
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Leather Full Shoe |
Pairs |
720000 |
720000 |
256671 |
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Other Leather Goods |
Nos. |
250000 |
250000 |
182520 |
GENERAL
INFORMATION
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No. of Employees : |
4000 |
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Bankers : |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Kapoor Tandon and Company Chartered Accountants Kanpur, Uttar Pradesh, INDIA |
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Associates/Subsidiaries : |
Ø
Super Shoes (India) Limited Ø
Super Technochem Private Limited Ø
Super House Leathers Limited Ø
Super House Overseas Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1000.000 Millions |
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Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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3599112 |
Equity
Shares |
Rs. 10/- each |
Rs. 35.991 Millions |
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Less :
Calls Unpaid Others |
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Rs. 0.220 Millions |
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Total |
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Rs. 35.771
Millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
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 |
35.771 |
35.764 |
35.700 |
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2] Reserves & Surplus |
318.548 |
314.842 |
299.200 |
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NETWORTH |
354.319 |
350.606 |
334.900 |
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LOAN FUNDS |
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1] Secured Loans |
361.961 |
237.100 |
186.700 |
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2] Unsecured Loans |
37.177 |
28.207 |
0.000 |
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TOTAL BORROWING |
399.138 |
265.307 |
186.700 |
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TOTAL |
753.457 |
615.913 |
521.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
328.819 |
314.832 |
250.500 |
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Capital work-in-progress |
1.515 |
0.882 |
4.400 |
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INVESTMENT |
10.767 |
6.527 |
6.600 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
446.703
|
363.390 |
232.700 |
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Sundry Debtors |
200.872
|
154.861 |
197.000 |
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Cash & Bank Balances |
14.524
|
7.885 |
10.100 |
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Other Current Assets |
18.128
|
13.430 |
0.000 |
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Loans & Advances |
28.934
|
20.158 |
31.100 |
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Total Current Assets |
709.161
|
559.724 |
470.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
283.173
|
251.423 |
196.600 |
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Provisions |
13.632
|
14.629 |
14.200 |
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Total Current Liabilities |
296.805
|
266.052 |
210.800 |
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Net Current Assets |
412.356
|
293.672 |
260.100 |
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TOTAL |
753.457 |
615.913 |
521.600 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1343.713 |
1096.989 |
948.400 |
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Profit/(Loss)
Before Tax |
20.426 |
30.189 |
19.000 |
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Provision
for Taxation |
11.470 |
10.237 |
3.800 |
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Profit/(Loss)
After Tax |
8.956 |
19.952 |
15.200 |
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Export
Value |
834.614 |
[655.126] |
NA |
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Import
Value |
91.879 |
[129.779] |
NA |
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Total
Expenditure |
1323.288 |
1066.800 |
929.400 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.06.2006 |
|
Type |
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|
1st
Quarter |
|
Sales
Turnover |
|
|
436.800 |
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Other
Income |
|
|
0.600 |
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Total
Income |
|
|
437.400 |
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Total
Expenditure |
|
|
415.400 |
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Operating
Profit |
|
|
22.000 |
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Interest |
|
|
7.800 |
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Gross
Profit |
|
|
14.200 |
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Depreciation |
|
|
4.700 |
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Tax |
|
|
1.600 |
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Reported
PAT |
|
|
5.700 |
200606 Quarter 1 –
Expenditure Includes Increase/(Decrease) in Stock in Trade Rs
(1.046) million Consumption of Raw Material Rs 355.911 million Staff Cost Rs
16.456 million Other Expenditure Rs 44.140 million Tax Includes Provision for
Current Tax Rs 1.400 million Fringe Benefit Tax Rs 0.150 million Deferred Tax
Rs 2.239 million EPS is Basic & Diluted 1. The above results were taken on
record by the Board of Directors at its meeting held on July 31, 2006, reviewed
by the audit committee and subject to Limited Review by Statutory Auditors of
the Company. 2. Figures for the previous year have been regrouped / rearranged
wherever considered necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.91 |
0.66 |
0.50 |
|
Long
Term Debt-Equity Ratio |
0.19 |
0.12 |
0.07 |
|
Current
Ratio |
1.15 |
1.21 |
1.37 |
|
TURNOVER
RATIOS |
|
|
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Fixed
Assets |
2.44 |
2.16 |
2.76 |
|
Inventory |
2.77 |
2.92 |
3.80 |
|
Debtors |
6.31 |
4.95 |
5.23 |
|
Interest
Cover Ratio |
1.61 |
2.24 |
1.96 |
|
Operating
Profit Margin(%) |
6.48 |
8.03 |
5.69 |
|
Profit
Before Interest And Tax Margin(%) |
4.83 |
6.27 |
4.38 |
|
Cash
Profit Margin(%) |
2.46 |
4.04 |
3.02 |
|
Adjusted
Net Profit Margin(%) |
0.80 |
2.29 |
1.71 |
|
Return
On Capital Employed(%) |
8.61 |
10.26 |
8.40 |
|
Return
On Net Worth(%) |
2.72 |
6.22 |
4.95 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.47.05/- |
|
Low |
Rs.44.10/- |
LOCAL AGENCY
FURTHER INFORMATION
The company's fixed assets of important value include
land, building, plant & machinery, furniture & fixtures, vehicles,
plant & machinery on lease and vehicles on lease.
History
Super Tannery Limited (formerly Super Tannery (India) Limited),
promoted by Ehsan Kareem and family in 1984 is engaged in leather tanning by
taking over Super Tannery, a partnership concern.
A Government of India recognised Export House the company has separate
divisions for finished leather, shoe uppers, complete shoes and leather
garments. In Mar.'93, it came out with a public issue to part-finance an
expansion-cum-modernisation programme at its plant in Kanpur, which involved
the expansion of the installed capacity of the shoe unit from 0.24 Millions
pairs pa to 0.72 Millions pairs pa and the modernisation of its vegetable sole
tanning division.
The company exports to various European countries, the US, Canada, Hong Kong,
Singapore, etc. For its safety shoes, it has a full buy-back arrangement with H
H Brown Shoe Company, US.
To promote existing tanneries for undertaking modernisation programme the GOI
ministry of Commerce and Industry has launched a Tannery Modernisation Scheme.
Accordingly the company has successfully achieved the Schedule of
Implementation approved for the said scheme. During 2000-01 M/s Super
Shoes(India) Limited has become subsidiary of the company.
The company is in trade terms with:
- Associated
Chemicals Private Limited
- Aplus
Components
- Vertex
Chemical Industries
- Abdullah
Trading Company
- Avadh
Engines and Machines (Private) Limited
- Gopi
Engineering and Sons
- Dhupar
Shoe Aid Private Limited
- Excel
Packagers
- Fibre
Leather Private Limited
- H.M.
Plastics
- Auchtel
Products Limited
- Gopi
Engineering Works
- Manjusha
Packagers Private Limited
- K.A.
Graphics
- Kurt
O John Shoe Com.(Private) Limited
- Little
Craft
- AUromac
International
- Metro
Thread Works
- R.K.
Traders (Parade)
- Harris
Leather Finishers
- Rubberage
(India)
- Swastik
Dyes and Moulds
- Shanghai
Shoe Accessories
- Aarifl
Tanners (Private) Limited
- Avery
India Limited
- Khanna
Brothers
- Bharat
Chemical Udyog
- Kisan
Trading Corporation
- Bharat
Udyog
- Kumar
Rubber Works
- Central
Leather Finishers
- M.L
Engineering Works
- Irfan
Tanners
- Meraj
Tannlng Industries
- AKI
Leather Ind. (Private) Limited
- N.T.C
Leathers
- Elegant
Fashion Fibre Chemicals Limited
- K.N.
Chemicals
- Associated
Chemicals Private Limited
- R.A.
Chemicals
- Espiem
Engines and Machines Private Limited
- Murari
Petrochemical Corporation
- K.
Thangamuthu Gounder and Sons
- R.K.Traders
(Juhi)
- Pee
Aar Organics and Chemicals Private Limited
- Ram
Industries and Mill Stores
- Shahzaman
Leather Finishers
- Yamaan
Leather International
OPERATIONAL REVIEW
During the year under review, the income from operation stood at Rs.1281.983
Millions as against Rs. 980.398 Millions during the last financial year,
showing an impressive growth of 30.76%. Despite this, the company recorded a
Net Profit before Tax of Rs. 20.426 Millions as compared to Rs. 30.188
Millions during the last financial
year. Interest stood at Rs. 28.765 Millions as against Rs.20.071 Millions for
the previous year. Depreciation amount; to Rs. 186.22 during the period under
consideration while it was Rs.153.02 during the last Financial Year. The
international business has recorded am impressive growth of 27.40% during the
year as against an increase of 1.56% during the previous year. It being first
year of operation and lower capacity utilization, unit-3 (Goat Tanning
Division) of the company suffered some losses. However, now the unit came out
of loss.
EXPANSION AND MODERNISATION
The company has proposed to set up another DESMA PU injection Moulding Machine,
for which L/C has already been opened. Machine is expected to be commissioned
by October 2006. With the installation of the Machine, the installed capacity
of the company will be increased by 2,50,000 pair of leather safety shoes per
annum.
SUBSIDIARY COMPANY
As required under Section 212 of the Companies Act, 1956, Annual Report of
Super Shoes Limited and Super Tannery (U.K.) Limited for the year ended 31st
March 2006, are annexed herewith. Super Shoes Limited has ceased to be
subsidiary of the company w.e.f. 13th May 2006.
INDUSTRIAL RELATIONS
During the period industrial relations have been extremely cordial. Employees'
cooperation and co-ordination had been an important factor in the growth of the
organization.
Industry Structure and Development
The Indian Leather Industry plays a significant role in the Indian Economy in
view of its substantial export earnings, employment generation and growth
opportunities. The export of leather and leather products has been increased
over past few years.
The Company is striving high to capture over Global Market in respect of
Leather and Leather Products. The Company has taken various steps to promote
company's products all over the world and it is being done in line with global
trends to enhance scale, global competitiveness and financial flexibility and
also to contribute towards achievement of company's objective and to increase
revenue, production volume, market shares and shareholder's returns.
The company in view of the competitive scenario has taken various steps to meet
these challenges and also capitalise on budding opportunities available. The
Company is regularly carrying out detailed analysis of leather industry and has
been making all possible efforts to understand the various minutiae of the
emerging market scenario. The company has been investing considerable amount of
funds on its Research & Development programmes in order to enrich and
improve the quality of products.
Opportunities
Company has gained reputation and established itself globally as Supplier of
quality products.
The company has demonstrated global competitiveness and has achieved
international standards for the quality of its products and its immense
capabilities provide massive opportunities in the foreign market.
Company's overall strategy is to enhance shareholder value by receiving better
returns through a long-term investment.
Threat:
The company is fully aware of the factors dictating competition and has been
investing with the ups and downs through its various effective measures like
cost optimization, competitive pricing, improved production process and
enhanced customer satisfaction.
Even under difficult operating conditions, company has been consistently
performing its best. It is expected that company's Sound policies, competitive
cost position will enable the company to lead the market effectively.
To exist in the competitive market and improve the value of shareholder,
company is consistently considering all the significant factors, which provide
sharp edges that enable company to enhance the margin.
Outlook:
Company's maximum operational income is based on the margin on export of
leather and leather products. As most of part of the earning is realized from
Export, out look depends upon the global economic scenario, global demand and
supply and International product prices. Above all the performance of the
company is largely depends on the Exim policy of the Union Government. Looking
at the overall development of the Indian economy and the efforts of the Central
Government to achieve higher GDP, Board of directors of the company is very
much optimistic to the future of the Company.
As per website
Safety shoes, military boots or specialty leather for industrial
application and upholsteries Super
Tannery second nature is to lead from the front in the innovative
ventures.
Past five decades have recorded the company's growth on a 40,000 sq. m plot of
land. Not just in terms of sheds, yards, machines and structures but with in
the form of pioneers who build goodwill for leather ware internationally.
Super Tannery standard of building
customitized select list as per market demands hold it apart to reign supreme.
Uninterrupted production flow and effective management features help it bear
the hallmark company seal.
The eco friendly site at Banther having proximity and connectivity
for customer convenience location wise covers a huge working area of 80000 sq.
feet was developed for goat leather production. A focal venture of the
dedicated, professional shared and sharpened experience holders in management
of international acumen in leather standard.
Good quality, sole and harness leather made impressive with innovative designs
and advanced technology at Super
Tannery believes in giving excellent output cementing the aspiration by
building the inspirations.
Profile
Super Tannery the buyer driven organization,
was founded by Ch. Ehsan Kareem
with a convection to bring distant people closer, promotes understanding,
friendship and co-operation among nations. This name is reckoned in the
international leather forums for fusing new knowledge and technologies to
create new products for the benefit of all mankind.
He promoted foreign corporation and understanding, laying
foundation of the company with the vision and principal for generations to follow
steadfastly.
Working harmoniously with the environment ever alert to concerns
of pollution and always promoting a clean and healthy way of life.
Their ability to relate to a customer's requirements and respond
with the flexibility of a products made-to-order-and-deliver
capability is a definite edge they enjoy over their competition. Combining them
with state-of-the-art machinery,
the company is engaged in a constant endeavour to set the highest standards in
quality, performance, reliability and professionalism.
Dynamic hands-on leadership and unswerving dedication of
individual consisting of Mr. Iftikharul Amin, Managing Director, Mr Iqbal
Ahsan, JMD, Mr Vequarul Amin, JMD, Mr Imran Siddiqui, Mr Arshad Khan, Mr Mohd
Imran, Mr Mohsin Sharif, Mr Altaf Hussain Parpia, Mr Sujit Kumar Sil.
Capitalizing on skills and expertise acquired over five decades of chrome and
vegetable tanning experience. They maintain quality and standards are assured
to meet customer satisfaction. Flexibility and innovative approach helps build
a competitive edge over other. The mark of excellence is at their doorsteps.
The global client they target under their previe.
Product
- Footwear
products of Super Tannery Limited
- Goodyear Welted
- PU Injected
- Stuck-on
- Stitched Down
- DMS
Leather products of Super Tannery Limited:
Buffalo
- Printed
Upper Leather/ Split Leather available in the following prints:
- Barton
- New Barton
- Booty
- Lunar
- Haircell
- Zuggrain
- Rambler
- Rancher
- Mustang
- Alabama
(Apollo)
- Oily Nubuck
- Dry Nubuck
- Full Grain
Upper
- Crazy Horse
- Suede Upper
- Suede
Splits
- Lining for
Tongue
- Printed
Tumbled
Above mentioned leathers can be made to order according to DIN
S-1, S-2, S-3 and S-4 standards.
Cow
- Burnishable
- Drymilled
- Nubuck
- Lining for
Tongue
- Printed for
Shoe Upper
- Full Grain
- Nappa for
Collar
Goat
- Polished
Kid
- Imitation
Glazed
- Real Glazed
- Lining
- Sandal Kid
- Milled
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.44.31 |
|
UK
Pound |
1 |
Rs.86.82 |
|
Euro |
1 |
Rs.57.29 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |
|