MIRA INFORM REPORT

 

 

Report Date :

19.01.2007

 

IDENTIFICATION DETAILS

 

Name :

FLAT PRODUCTS EQUIPMENTS INDIA LIMITED

 

 

Registered Office :

Mehta House, Plot No 64, Road No 13, MIDC, Andheri (East), Mumbai – 4000893

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

28.05.1986

 

 

Com. Reg. No.:

11-39921

 

 

CIN No.:

[Company Identification No.]

U99999MH1986PTC039921

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMF01348E

 

 

Legal Form :

A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

The company is engaged in the manufacture of cold reduction mills, temper pass mill, aluminium strip foil mills, galvanising lines, stretch lines and corrugating machines.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 2500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Directors are reported as experienced, respectable and resourceful industrialists. Their trade relations are fair. Financial position is good. Payments are correct and as per commitment.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

It can be regarded as a promising business partner in a medium to long run. 

 

LOCATIONS

 

 

Registered Office:

Mehta House, Plot No 64, Road No 13, MIDC, Andheri (East), Mumbai – 4000893

Tel. No.:

91-22-56762727

Fax No.:

91-22-56762737 / 56762738

E-Mail :

sales@flatproducts.com 

Website:

http://www.flatprodcuts.com

 

 

Corporate Office :

43, Sardar Pratap Singh Industrial Estate No.3, L. B. S. Marg, Bhandup (West), Mumbai – 400 078, Maharashtra, India

Tel. No.:

91-22-2561 8943 / 2569 0416

Fax No.:

91-22-2568 1648 / 2564 0239

E-Mail :

fde@giasbm01.vsnl.net.in  

Website:

http://www.flatprodcuts.com

 

 

Middle East Office :

FLAT PRODUCTS EQUIPMENTS (MIDDLE EAST) FZE

LBO 4115, Jafna, Post Box No : 49563, Dubai, UAE

Tel. No.:

971-4-8819624

Fax No.:

971-4-8819657

 

 

Factory:

unit no. i

 

A-84/2,3, M.I.D.C., Taloja Industrial Area, Taluka : Panvel, District : Raigad – 410 208, Maharashtra

 

unit no. ii

 

Survey No. 144/1, 2-3, Village Rakholi, Silvassa Khanval Road, Silvassa – 396 230, Union Territory of Dadra & Nagar Haveli

 

unit no. iiI

 

Shed No. 1 A, Sardar Pratap Singh Industrial Estate, L. B. S. Marg, Bhandup (West), Mumbai – 400 078, Maharashtra

 

 

 

Branch:

Located at Delhi and Kolkata

 

 

 

DIRECTORS

 

Name :

Mr. Tilak Raj Mehta

Designation :

Chairman and Managing Director

Date of Birth/Age :

68 Years

Qualification :

B.Sc. (Engg.), PGDIG

Experience :

38 Years

Date of Appointment :

28.05.1986

 

 

Name :

Mrs. Nishi T. Mehta

Designation :

Director

Date of Birth/Age :

60 Years

Qualification :

B. A.

Experience :

18 Years

Date of Appointment :

28.05.1986

 

 

Name :

Mr. Durgadas Sengupta

Designation :

Director

 

 

Name :

Mr. Ravindra B Shetye

Designation :

Director

 

 

Name :

Mr. S. Ananthapadmanabhan

Designation :

Director

 

 

Name :

Mr. Prashant Kumar Rath

Designation :

Director

 

 

Name :

Mr. Ravindra Nath Tandon

Designation :

Director

 

 

Name :

Mr. Rattan Prakash Chowdhri

Designation :

Director

 

 

Name :

Mr. Krishnamurthi Ramamirtham Iyer

Designation :

Director

 

 

Name :

Mr. Narayan Sitaram Datar

Designation :

Director

 

 

Name :

Mr. Dinesh C. Tripathi

Designation :

General Manager (Finance) and Company Secretary

 

KEY EXECUTIVES

 

 

Name :

Mr. Dinesh C. Tripathi

Designation :

General Manager (Finance) and Company Secretary

 

 

Name:

Mr Gopalchandra Bose

Designation:

Management Executive

 

 

Name:

Mr J H Sachdev

Designation:

Management Executive

 

 

Name:

Mr Dinesh Tripathi

Designation:

Management Executive

 

 

MAJOR SHAREHOLDERS

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters

2,721,637

55.12

Mutual Funds and UTI

200

0.01

Banks, Financial Institutions, Insurance Companies

1,100

0.02

FIIS

3,050

0.06

Private Corporate Bodies

228,715

4.63

Indian Public

1,969,236

39.88

NRIs/OCBs

12,050

0.24

Any other (Please specify) Shares in NSDL transit

1,825

0.04

                                    TOTAL

4,937,813

100.00

 

BUSINESS DETAILS

 

Line of Business :

The company is engaged in the manufacture of cold reduction mills, temper pass mill, aluminium strip foil mills, galvanising lines, stretch lines and corrugating machines.

 

 

Products :

Product Description

Item Code No. (ITC Code)

Metal Cold Rolling Mill

8455.10

Galvanising Line

8479.10

Corrugating Machine

8479.10

 

Cold Riolling Mills and Skin Pass Mills

  • 4-High Cold Rolling Mills
  • 6-High Cold Rolling Mills
  • 20-High Cold Rolling Mills
  • Z-High/ 6- High (Sendzimir)Mills
  • 4-High Skin Pass Mills
  • Aluminum Strip Mills

 

Processing Lines

  • Pickling Lines
  • Electrolytic Cleaning Lines
  • Continuous Hot Dip Galvanised Lines
  • Electrolytic Tinning Lines
  • Tension Levelling Lines
  • Paint Coating Lines
  • Cut to Length Lines
  •  Slitting Lines
  • Corrugating Machines
  • Rewinding Lines

 

 

 

Export to:

China, Korea, Malaysia, Morrocco, Turkey, Colombia, Bangladesh, Egypt, Kenya, Iran, Vietnam, Japan & Ethiopia

 

 

PRODUCTION STATUS

Particulars

Licensed Capacity

CR Mills of Different Types

30 No

 

GENERAL INFORMATION

 

 

Customers :

Domestic Client

 

Cold Rolling Mills and Skin Pass Mills

  • 20-High Cold Rolling Mills
  • 2-High Skin Pass Mills
  • 4-High Cold Rolling Mills
  • 4-High Skin Pass Mills
  • 6-High Cold Rolling Mills
  • Colour Coating Lines
  • Corrugating Machines
  • Cut-to-Length Lines/Sheet Shearing Lines
  • Electrolytic Cleaning Lines
  • Khasti
  • Miscellaneous
  •  Non-Ox Furnace Type Galvanising Lines
  • Pickling Lines
  • Rewinding / Trimming lines
  • Tension Levelling Lines
  • Test Category
  • Wet Flux Galvanising Lines

 

International Client

 

Cold Rolling Mills and Skin Pass Mills

  • 20-High Cold Rolling Mills
  • 2-High Skin Pass Mills
  • 4-High Cold Rolling Mills
  • 4-High Skin Pass Mills
  • 6-High Cold Rolling Mills
  • Colour Coating Lines
  • Corrugating Machines
  • Cut-to-Length Lines/Sheet Shearing Lines
  • Electrolytic Cleaning Lines
  • Khasti
  • Miscellaneous
  • New Inst Cat
  •  Non-Ox Furnace Type Galvanising Lines
  • Pickling Lines
  • Rewinding / Trimming Lines
  • Tension Levelling Lines
  • Test1
  • Wet Flux Galvanising Lines

 

 

No. of Employees :

2500

 

 

Bankers :

Ř            Canara Bank

Ř            Syndicate Bank

Ř            Union Bank of India

 

 

 

Banking Relations :

Good

 

 

Auditors :

Mr. Yogesh B. Mehta

Chartered Accountants

Address:

401/402, Nand Prem Shopping Centre, Nehru Road, Vile Parle (East), Mumbai – 400057,Maharashtra, India

 

 

Solicitors :

PDS Legal

31, Maker Chambers VI, 3rd Floor, Nariman Point, Mumbai – 400021

 

 

Associates:

Ř            NT Strips & Automation Private Limited

Ř            Network Consultants Private Limited

Ř            Valentine Shoes Private Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

8,000,000

Equity Shares

Rs. 10/- each

Rs. 80.000 Millions

200,000

Preference Shares

Rs. 100/- each

Rs. 20.000 Millions

 

 

Total:

Rs. 100.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

4,937,813

Equity Shares

Rs. 10/- each

Rs. 49.378 Millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

49.378

49.400

49.400

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

631.472

630.400

620.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

680.850

679.800

669.600

LOAN FUNDS

 

 

 

1] Secured Loans

575.765

373.800

559.500

2] Unsecured Loans

141.256

359.000

99.800

TOTAL BORROWING

717.021

732.800

659.300

DEFERRED TAX LIABILITIES

12.693

0.000

0.000

 

 

 

 

TOTAL

1410.564

1412.600

1328.900

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

332.416

269.100

273.900

Capital work-in-progress

7.004

1.500

16.200

 

 

 

 

INVESTMENT

6.263

5.100

5.100

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
699.316
804.200

825.600

 

Sundry Debtors
1155.397
784.800

833.700

 

Cash & Bank Balances
68.665
66.100

101.400

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
453.254
274.300

383.300

Total Current Assets
2376.632
1929.400

2144.000

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
1223.897
722.500

1040.900

 

Provisions
87.854
70.300

70.500

Total Current Liabilities
1311.751
792.800

1111.400

Net Current Assets
1064.881
1136.600

1032.600

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.300

1.100

 

 

 

 

TOTAL

1410.564

1412.600

1328.900

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover [including other income]

2865.135

3563.300

4192.600

 

 

 

 

Profit/(Loss) Before Tax

38.462

47.100

140.700

Provision for Taxation

16.616

31.100

37.800

Profit/(Loss) After Tax

21.846

16.000

102.900

 

 

 

 

Export Value

2086.984

2244.149

N.A.

 

 

 

 

Import Value

469.884

622.681

N.A.

 

 

 

 

Total Expenditure

2826.673

3428.800

3980.900

 

QUARTERLY / SUMMARISED RESULTS

 

PARTICULARS

 

 

30.06.2006

30.09.2006

Type

 

1st Quarter

2nd Quarter

Sales Turnover

 

613.200

910.900

Other Income

 

0.600

2.900

Total Income

 

613.800

913.800

Total Expenditure

 

581.100

873.900

Operating Profit

 

32.700

39.900

Interest

 

11.800

13.100

Gross Profit

 

20.900

26.800

Depreciation

 

9.000

9.700

Tax

 

5.000

6.600

Reported PAT

 

7.500

10.900

 

200606 Quarter 1 --------------- Notes: 1. Segment Reporting: As the Companys business activity fall within a single primary business segment viz., Manufacturing Capital goods for metal processing industry the disclosure requirement of Accounting Standard (AS-17) Segment Reporting is not applicable. 2. Previous years figures have been regrouped & rearranged wherever necessary. 3.The above results were reviewed by the Audit Committee and were thereafter approved by the Board of Directors at its meeting held on July 31, 2006. 4. In terms of amended clause 41 of the listing agreement, details of number of investor complaints for the quarter ended 30st june 2006: beginning-nil,received-4,disposed off-4 and pending-nil.

 

200609 Quarter 2 --------------- NOTES: EPS is Basic & Diluted 1.Segment reporting: As the companys business activity fall within a single primary business segments viz., 'Manufacturing Capital Goods for metal processng industrys the disclosure requirement of Accounting Standard (AS-17) 'Segment Reporting' is not applicable. 2.Previous years figures have been regrouped and rearranged wherever ncessary. 3.The above results were reviewed by the audit committee and were thereafter approved by the Board of Directors at its meeting held on 30.10.2006. 4.In terms of amended clause 41 of the listing agreement details of number of investor complaints for the quarter ended 30.09.2006: Beginning-NIl Received-3 Diosposed-off Pending-NIL

 

KEY RATIOS

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Debt-Equity Ratio

1.08

1.03

0.86

Long Term Debt-Equity Ratio

0.08

0.06

0.02

Current Ratio

1.24

1.27

1.24

TURNOVER RATIOS

 

 

 

Fixed Assets

4.74

6.37

7.63

Inventory

3.93

4.40

5.95

Debtors

3.04

4.43

5.15

Interest Cover Ratio

1.57

1.86

4.33

Operating Profit Margin(%)

4.62

3.75

5.53

Profit Before Interest And Tax Margin(%)

3.56

2.84

4.78

Cash Profit Margin(%)

1.79

1.36

3.44

Adjusted Net Profit Margin(%)

0.74

0.45

2.69

Return On Capital Employed(%)

7.53

7.44

15.74

Return On Net Worth(%)

3.24

2.37

16.41

 

STOCK PRICES

 

Face Value

Rs. 10.00 /-each

High

Rs. 129.50

Low

Rs. 127.05

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

Subject was incorporated on 28th May, 1986 at Mumbai in Maharashtra having Company Registration Number 39921.

 

The subject was promoted by Mr. T. R. Mehta. It came out with a rights issue in December, 1995 to increase the manufacturing capacity to construct industrial sheds at Taloja and factory at Andheri, Mumbai, to construct full-fledged factory at Silvassa in the Union Territory at Dadra & Nagar Haveli, to set up offices at Delhi and Kolkata to meet working capital requirements.

 

Subject is engaged in the manufacture of cold reduction mills, temper pass mills,  aluminium strip foils mills, galvanising lines, stretch levelling lines and corrugating machines.   It has technical collaboration with Durmech Engineering, UK, for the manufacture of paint coating lines.   The company also received export orders from Ishikawajima Harima Heavy Industries company, the giant in Japanese Steel Industry.

 

The company was awarded ISO-9001 Certification for their quality of systems in 1999-2000.

 

OPERATIONS

 

During the year under review your Company achieved turnover of Rs.2952.700 Millions against the preceding years level of Rs.3586.700 Millions. The Sales includes export sales of Rs.2110.900 Millions against previous years Rs.2551.800 Millions. The company's main thrust have been exports and have exported to countries like China, Korea, Malaysia, Morrocco, Turkey, Colombia, Bangladesh, Egypt, Kenya, Iran, Vietnam, Japan & Ethiopia during the year. The profit aftertax for the year is Rs.21.800 Millions against Rs.15.900 Millions for the previous year.

 

The company has technical collaboration with :-

 

Ř            T. Sendzimir, U.S.A

Ř            Bliss Salem, U.S.A

Ř            Griset Engineering, France

Ř            Redex, France

 

The company has been accredited with ISO 9001 Certification for their quality of systems in 1999-2000.

 

Secured Loans

 

 

 

As at

31.03.2006

 

As at

31.03.2005

LONG TERM LOANS

 

 

 

 

 

 

 

 

 

FINANCIAL INSTITUTIONS AND OTHERS

 

 

 

 

Machinery / Car Finance from Bank, Financial Institution and others

 

43.088

 

2.824

 

 

 

 

 

SHORT TERM LOAN FROM BANK

 

 

 

 

Packing credit / bills discounted

392.418

 

238.822

 

Cash Credit

140.258

 

532.676

132.145

370.967

Total

 

575.765

 

373.791

 

 

 

Unsecured Loans

 

 

As At

31.03.2006

As at

31.03.2005

Intercorporate Deposit

From Bank / Bodies Corporate

129.939

303.792

Loan from Directors

0.425

20.500

Demand Promissory Notes

10.892

14.644

Bill Discounting

0.000

20.117

 

141.256

359.053

 

 

 

 

Loans and Advances given to associates

Name of the company

Relationship

Amount outstanding as on 31.03.2006

 

(Rs in Millions)

Maximum balance outstanding during the year

(Rs in Millions)

S V Steel and Alloy Private Limited

Key Management

Personnel and Relatives

1.722

1.722

 

 

(1.722)

(1.722)

 

 

Fixed Assets

 

  • Freehold Land
  • Leasehold Lands
  • Flats
  • Goodwill
  • Design and Drawings
  • Factory Building
  • Office Building
  • Plant and Machinery
  • Electrical Installations
  • Quality Control Equipments
  • Office Equipments
  • Computers
  • Furniture
  • Motor Car
  • Computers (Lease Asset)

 

Contingent Liabilities

 

31.03.2006

(Rs in Millions)

31.03.2005

(Rs in Millions)

Bank Guarantee

654.987

143.606

Letter of Credit

185.094

43.541

Total

840.081

187.147

 

 

Incorporation Details    

 

Flat Products Equipments (I) Limited, now a public limited company, traces its origins to a proprietary organisation established in 1978 by Mr T. R. Mehta, a Gold Medallist in Metallurgy, and also a recipient of India's prestigious Metallurgist Award "India's Man of Metal", Mr T. R. Mehta established this company with an initial name 'Precision Equipments' to manufacture cold rolling mills and its related equipments. The company speeded up the cold rolling industry in India through development of indigenous and appropriate technology which otherwise would have depended on imports at prohibitive cost.

Flat Products Equipments Pvt. Ltd. was incorporated in 1986 and earned a reputation for itself in its field and went public in the year 1993.

 

While searching for new technology and know-how FPE believed in partnership with foreign technology suppliers to enable itself to effect necessary modifications and improvements to suit different conditions. As the industry grew in size and complexity, the company redefined its business to include broader spectrum of cold rolling mills, processing lines and auxiliary equipments.

 

Today, Flat Products has grown to a multi-product, designing, manufacturing and contracting organisation with a turnover of Rs.1800 Million ( US $ 39 Million ), employing about 350 people.

 

Flat products Equipment (I) Pvt. Ltd became the first and only company in India to export cold rolling mills to Europe, USA, Korea, China, Mexico. and other developing countries of the world - not only earning valuable foreign exchange but also saving the outflow of foreign exchange by import substitution and working towards making India self reliant and proud in the international market. This success is the result of the ceaseless pursuit of excellence in our endeavour and painstaking efforts of our team, earning a credible reputation for our organisation in the international market.

 

Milestone

1978 : Cold rolling mills with electormechanical screwdown. 

1982 : Cold rolling mills with hydraulic screwdown and automatic gauge control systems.

1982 : 2-high skin pass mill with hydraulic pressure control.

1984 : 20-high Sendzimir cold rolling mills with hydraulic AGC for narrow widths.

1987 : Galvanising lines wet flux type.

1989 : Stretch levelling machine.

1989 : 20-high Sendzimir cold rolling mills with hydraulic AGC for wider widths.

1989 : 6- high Sendzimir cold rolling mills with "Mill Management system".

1989 : 4-high skin pass mill with stretcher leveller for wider strip width.

1993 : 6-high Sendzimir cold rolling mill with "Mass Flow AGC System" integrated with "Mill Management   System".

1994 : 4-high aluminium cold rolling mill with "Flatness Control System" 1700 mm wide at 800 mpm (widest mill built in India).

1995 : 4-high cold rolling mill 1270 mm wide 1200 mpm with constant mass flow hydraulic AGC and mill management system. (Fastest mill built in India).

1995 : 4-high skin pass mill 1270 mm wide 400 mpm with hydraulic load control with elongation measurement & control.

1996 : 6-high cold rolling mill 1000 mm wide, 1000 mpm with hydraulic AGC and intermediate roll shifting arrangement. (Designed and manufactured in India).

1999 : L shaped non ox furance type continuous galvanising line for 1250 mm wide, 2mm maximum thickness HR & CR galvanising 2,50,000 tpa capacity. (Largest line designed and built in India).

2000 : Horizontal non ox furnance type continuous galvanising line. 2003 - High speed Galvanising, Galvalume & Colour Coating Lines.

 

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.44.21

UK Pound

1

Rs.87.30

Euro

1

Rs.57.39

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--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

NO

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

54

 

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

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions