MIRA INFORM REPORT
|
Report
Date : |
20th
January, 2007 |
IDENTIFICATION DETAILS
|
Name : |
INDIA
FOILS LIMITED |
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Registered
Office : |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
08.11.1960 |
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Com.
Reg. No.: |
21-24870 |
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CIN
No.: [Company
Identification No.] |
U27203WB1960PTC024870 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
CALI00085B |
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PAN
No.: [Permanent
Account No.] |
AAACI6257Q |
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Legal
Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacture
of Aluminium Foils and also Laminated Flexible Packing with Plastic and
Laminated Flexible Packaging with Paper. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ca |
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum
Credit Limit : |
-- |
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Status
: |
Sick |
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Payment
Behaviour : |
Slow and
delayed |
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Litigation
: |
Exist |
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Comments
: |
Subject is a sick company and its net worth has been
eroded. Financial position of the company is poor. Payments are reported as
slow and delayed. The company can be considered for any business dealings on
safe and secured trade terms and conditions. |
LOCATIONS
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Registered
Office : |
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Tel.
No.: |
91-33-5636718/5632229
/ 5532317/5634751/5832289 |
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Fax
No.: |
91-33-5636716
/ 5834419 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
27, Shakespeare Sarani, Kolkata – 700 017, West |
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Tel.
No.: |
91-33-2473672 / 0858 / 7424 / 7639 |
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Fax
No.: |
91-33-2470658 |
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Telex
: |
021 7224 TIPS IN |
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Factory
1 : |
HOERA Village
& P.O. Hoera, Dist. Hooghly, |
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Tel.
No.: |
91-33-846252 / 590 / 551 |
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Telex
: |
021 5459 IFL IN LMI |
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Factory
2 : |
TARATALA P-35, |
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Tel.
No.: |
91-33-478 40698 / 4070 / 71 |
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Fax
No.: |
91-33-4784783 |
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Factory
3 : |
1, |
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Tel.
No.: |
91-33-553 1119 / 2317 / 1317 / 1277 / 2936 |
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Fax
No.: |
91-33-5530142 |
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Branches
: |
Located
at |
DIRECTORS
|
Name : |
Mr. Navin
Agarwal |
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Designation
: |
Director |
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Age : |
42 years |
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Name : |
Mr. Agnivesh Agarwal |
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Designation
: |
Director |
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Name : |
Mr. Tarun
Jain |
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Designation
: |
Director |
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Name : |
Mr. S. C.
Krishan |
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Designation
: |
Director |
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Name : |
Mr.
Aditya Khaitan |
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Designation
: |
Director |
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Age : |
35 years |
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Name : |
Mr. Ashok
Alladi |
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Designation
: |
Director (Nominee
of ICICI Bank Limited) |
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Name : |
Mr. Deb
Bandyopadhyay |
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Designation
: |
Director |
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Age : |
61 years |
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Experience : |
40 years |
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Name : |
Mr.
Biswajit Sarkar |
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Designation
: |
Whole
Time Director |
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Name : |
Mr. R
Kannan |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
Mr Ashok
Panjwani |
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Designation
: |
Chief Executive Officer |
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Name : |
Mr. Rahul
Gupta |
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Designation
: |
Manager |
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Name : |
Mr. Sandeep K. Agarwal |
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Designation
: |
Director and Company Secretary |
MAJOR SHAREHOLDERS
|
Category |
No. of
Shares Held |
Percentage
of Holding |
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PROMOTER’S HOLDING |
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Promoters |
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Indian Promoters |
12153193 |
42.87 |
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Sub Total |
12153193 |
42.87 |
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NON-PROMOTER’S HOLDING |
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Institutional
Investors |
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Mutual Funds and UTI |
7169 |
0.03 |
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Banks, Financials Institutions & Insurance Companies
(Central/State Government Institutions/Non Government Institutions) |
1165643 |
4.11 |
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Others |
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Private Corporate Bodies |
1992189 |
7.03 |
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Indian Public |
12926978 |
45.60 |
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NRI’s / OCB’s |
102191 |
0.36 |
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Sub Total |
16194170 |
57.13 |
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Grand Total |
28347363 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacture
of Aluminium Foils and also Laminated Flexible Packing with Plastic and
Laminated Flexible Packaging with Paper. |
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Exports
to : |
Australia,
Bangladesh, Brazil, Ghana, Indonesia, Iran, Kenya, Malaysia, Pakistan,
Philippines, Russia, Saudi Arabia, Singapore, South Africa, Sri Lanka, Syria,
Thailand, Turkey, USA, China, UAE and Egypt |
PRODUCTION
STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
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Aluminium
Foil including Polycoated Cable Wrap |
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Tonne |
19000 |
7803 |
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Laminated
Flexible Packages (Non Foil) |
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Tonne |
2600 |
-- |
GENERAL INFORMATION
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Suppliers
: |
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Customers
: |
Pharmaceuticals v
GlaxoSmithKline v
Hoechst v
John Wyeth v
Reckitt and Coleman v
Novartis v
Pfizer v
Boots v
Ranbaxy v
Cipla v
Geoffrey Manners Tobacco v
Godfrey Philips India Limited v
GTC v
ITC Limited Confectionery v
Cadbury v
Nestle Aseptic Packaging v
Tetra Pak Bare Foils v
Positive Packaging v
Paper Products Limited v
Essel Propack |
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No. of
Employees : |
1800 |
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Bankers
: |
Ø
Standard Chartered Grindlays Bank Ø
State Bank of Ø
American Express Bank Limited Ø
United Bank of Ø
Bank of Ø
Indian Overseas Bank Ø
Deutsche Bank Ø
Citibank N.A. Ø
ABN Amro Bank N.V. Ø
Canara Bank Ø Bank of |
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Facilities : |
Secured Loan ( Rs. In millions )
Notes: 1. The
Rupee Term Loans, Foreign Currency Term Loan and Demand Loan are secured by
way of a first charge, ranking pari passu, on all the immovable assets of the
Company and hypothecation of Company's movable assets, both present and
future [save and except book debts], subject to prior charges created in
favour of Company's bankers on inventories for borrowings in the ordinary
course of business. 2.
Working Capital Demand Loans and Bank Overdrafts are secured by hypothecation
of stock of raw materials, work-inprogress, finished goods, other materials
and book debts of the Company. 3. A sum
of Rs.455.98 Lacs due for payment in respect of principal and interest on
account of a Foreign Currency Term Loan, were repaid on behalf of'the Company
by a Public Financial Institution (being the guarantor). This amount now
payable to the aforesaid Public Financial Institution has been disclosed as
Demand Loan. Unsecured Loan ( Rs. In millions )
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Banking Relations : |
Satisfactory |
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Auditors
: |
Price
Waterhouse and Company Chartered Accountants |
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Associates
: |
Ø
Williamson Financial Services Limited Ø
Eveready Industries ( Ø
Williamson Magor & Company Limited Ø
WPIL Limited Ø
Kilburn Engineering Company Limited Ø
Kilburn Chemicals Limited Ø
Kilburn Electricals Limited Ø
Macneill Engineering Limited Ø
Macneill Electricals Limited Ø
Dewrance Macneill Company Limited Ø
Macneill International Limited |
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Group
Companies : |
Ø
Sterlite Optical Technologies Ø
Sterlite Industries ( Ø
Madras Aluminium Company Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
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|
80000000 |
Equity Shares |
Rs.10/- |
Rs.800.000 millions |
|
5000000 |
Preference share |
Rs.100/- |
Rs.500.000 millions |
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Total |
|
Rs. 1300.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1400000 |
Equity Shares allotted as fully paid pursuant to a
contract without payment being received in cash |
Rs.10/- |
Rs.14.000 millions |
|
475005 |
Equity Shares allotted as fully paid Bonus Shares by
capitalization of Reserve |
Rs.10/- |
Rs.4.750 millions |
|
15793893 |
Equity Shares fully paid up in cash |
Rs. 10/- |
Rs.157.939 millions |
|
10678465 |
Equity Shares allotted as fully paid up pursuant to scheme
of amalgamation without any payment being received in cash |
Rs. 10/- |
Rs. 106.785 millions |
|
Add: |
Forfeited Share Warrants |
|
Rs. 23.500 millions |
|
2400000 |
8%
Cumulative Redeemable Preference Shares fully paid up in cash |
Rs. 100/- |
Rs. 240.000 millions |
|
350000 |
8%
Cumulative Redeemable Preference Shares allotted as fully paid up pursuant to
contracts without payments being received in cash |
Rs. 100/- |
Rs. 35.000 millions |
|
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TOTAL |
|
Rs. 581.974 millions
|
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 (12 Months) |
31.03.2005 (18 Months) |
30.09.2003 (18 Months) |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
581.974 |
581.974 |
581.974 |
|
|
2]
Reserves & Surplus |
867.897 |
891.652 |
928.156 |
|
|
3]
(Accumulated Losses) |
(2349.954) |
(2219.046) |
(1355.054) |
|
NETWORTH
|
(900.083) |
(745.420) |
155.076 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
1889.367 |
1831.262 |
1804.909 |
|
|
2]
Unsecured Loans |
554.210 |
543.465 |
250.000 |
|
TOTAL
BORROWING
|
2443.577 |
2374.727 |
2054.909 |
|
|
DEFERRED
TAX LIABILITIES |
210.262 |
195.813 |
174.813 |
|
|
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|
|
|
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TOTAL
|
4103.710 |
4044.166 |
2384.798 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1661.833 |
1832.287 |
2086.619 |
|
Capital work-in-progress
|
1.939 |
0.059 |
0.242 |
|
|
|
|
|
|
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INVESTMENT
|
0.000 |
0.000 |
0.104 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
-- |
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
219.852
|
183.043 |
166.313
|
|
|
Sundry Debtors
|
238.460
|
210.272 |
339.574
|
|
|
Cash & Bank Balances
|
14.234
|
2.351 |
6.832
|
|
|
Loans & Advances
|
123.420
|
89.870 |
139.638
|
Total Current Assets
|
595.966 |
485.536 |
652.357 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
522.698 |
530.279 |
384.610
|
|
|
Provisions
|
18.597
|
18.421 |
32.171
|
Total Current Liabilities
|
541.295 |
548.700 |
416.781 |
|
Net
Current Assets
|
54.671 |
(63.164) |
235.576 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
35.313 |
55.938 |
62.257 |
|
|
|
|
|
|
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TOTAL
|
4103.710 |
4044.166 |
2384.798 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 (12 Months) |
31.03.2005 (18 Months) |
30.09.2003 (18 Months) |
Sales Turnover [including other income]
|
1732.598 |
2152.953 |
2893.702 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
130.225 |
863.992 |
(437.904) |
Provision for Taxation
|
0.683 |
0.000 |
(228.900) |
Profit/(Loss) After Tax
|
130.908 |
863.992 |
(666.804) |
|
|
|
|
|
Export Value
|
263.486 |
419.159 |
672.834 |
|
|
|
|
|
Import Value
|
44.003 |
113.492 |
100.826 |
|
|
|
|
|
Total Expenditure
|
1833.556 |
2787.805 |
3095.416 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
30.09.2006 2nd Qtr |
30.06.2006 1st Qtr |
|
Sales Turnover |
|
539.400 |
498.700 |
|
Other Income |
|
2.000 |
2.100 |
|
Total Income |
|
541.400 |
500.800 |
|
Total Expenditure |
|
531.600 |
502.200 |
|
Operating Profit |
|
9.800 |
(1.400) |
|
Reported PAT |
|
(74.500) |
(80.400) |
200606 Quarter 1 :-- Expenditure Includes
(Increase)/Decrease in finished & Processed Stock Rs 8.90 million
Consumption of Raw Materials Rs 406.40 million Staff Cost Rs 26.30 million
Other Expenditure Rs 57.20 million Miscellaneous Expenses written off Rs 3.40
million Provision for tax indicates Fringe Benefit Tax.
200609 Quarter 2 :-- Expenditure Includes
(Increase)/Decrease in finished & Processed Stock Rs 14.40 million
Consumption of Raw Materials Rs 424.90 million Staff Cost Rs 24.80 million
Other Expenditure Rs 64.10 million Miscellaneous Expenses written off Rs 3.40
million Provision for tax indicates Fringe Benefit Tax.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 (12 Months) |
31.03.2005 (18 Months) |
30.09.2003 (18 Months) |
|
Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.50 |
0.53 |
0.84 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.53 |
0.45 |
0.55 |
|
Inventory |
9.42 |
9.17 |
8.48 |
|
Debtors |
8.46 |
5.82 |
4.78 |
|
Interest Cover Ratio |
(0.53) |
(1.12) |
(0.16) |
|
Operating Profit Margin (%) |
3.33 |
(9.49) |
6.09 |
|
Profit Before Interest and Tax Margin (%) |
(4.58) |
(19.03) |
(2.12) |
|
Cash Profit Margin (%) |
(5.34) |
(26.43) |
(14.96) |
|
Adjusted Net Profit Margin (%) |
(13.25) |
(35.97) |
(23.17) |
|
Return on Capital Employed (%) |
0.00 |
0.00 |
0.00 |
|
Return on Net Worth (%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs. 10.00 |
|
High |
Rs. 10.00 |
|
Low |
Rs. 9.55 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY :
Subject was
incorporated in the
Subject was
incorporated in 1960 under the Indian Companies Act and operated as the Indian
Branch of India Foils Limited,
The company
is the largest manufacturer of aluminium foil in
The company
also manufactures aluminium foil at its mother plant at
During
1995-96, the company commissioned an European coating-cum-lamination machine at
Heora,
The company
expanded and modernised its production capacity of aluminium foil during
1996-97. The company also replaced old machinery with state-of-the-art
equipment. Company’s
BUSINESS
:
The company
is one of the largest producer of Aluminium Foil in
Generic
Names of the Principal Products of the Company (As per monetary terms) as
under:
|
Product Description |
Item Code No. (ITC Code) |
|
Aluminium Foils |
Chapter 76.07 |
|
Laminated
Flexible Packaging |
Chapter 39.20 |
|
Laminated
Flexible Packaging with Paper |
Chapter 48.71 |
Subject is
in trade terms with :
v
Beam
Pharmachem
v
Shree
Krishna Packaging Company Private Limited
v
Goyal
Brothers
v
United
packagers
v
D.D>
Chopra & Company Private Limited
v
Kundu
Packaging
v
Sigma
Packaging Corporation
v
M
G Industries
The Scheme
of Amalgamation of Light Metal Industries Limited with the subject company was
approved by the respective Shareholders of the two companies in separate
meetings under the direction of High Court at Kolkata. The Scheme received sanctions of High Court
on 10th March, 1998.
Technical
service agreement with
Strategic Alliance
The company
has entered into a strategic alliance with the Sterlite Group consequent upon
which The Madras Aluminium Company Limited (MALCO), a Group company of Sterlite acquired
38.80% of shares in the company.
Consequent
upon the subscription agreement, The Madras Aluminium Company Limited has been
allotted 11000000 equity shares of Rs. 10 each at a price of Rs. 23.50 per
share and 10% of 10000000 warrants with an option to convert the same into
equal number of equity shares of Rs. 10 each at a price of Rs. 23.50 per share.
During the
year under report, the company had already developed and started marketing a
wide range of extrusion coated laminates, ultra light gauge foil and laminates
and cold formed laminates for packaging of pharmaceutical formulations.
The company
operates within a framework dictated by an effective quality policy which has
as its corner stone the promptness to deliver world class service and provide
optimum customer satisfaction.
Ensuring
continuous improvement of product quality through feedback, analysis,
innovation and corrective measures, the
company implement and maintain a Quality System Standard as per ISO 9002,
amended from time to time.
The company
introduced new products and applications in
è
Spectrometer
for chemical composition analysis
è
Instron
Universal Testing m/c
è
Gas
Liquid Chromatograph
è
Micro-hardness
Tester
è
Ericsson
cup depth tester
è
A
range of paper testing equipment
è
Melt
flow index tester
The
Research and Development of the company will develop new products and processes
in line with the state-of-art technology related to foil and foil related
products of the company.
The
company’s process of the “Quality Assurance System” is as under:
è
Trial
approval and contract review
è
Specification
finalization for individual products
è
Raw
material checks
è
Process
inspection and Control
è
Final
Inspection
è
Corrective
and preventive action and feedback
Considering
this as a guideline for superior performance, the company geared up to meet the
demand and intend to remain as leaders and the lowest cost producer of
aluminium foil in the industry.
The company’s
fixed assets of important value include goodwill, freehold land, building
(freehold and leasehold), plant and machinery, furniture and fittings and motor
vehicles.
Operational Performance :
The period under review
has been a year of consolidation for single plant operation. During the current
year aluminium foil, industry was badly affected due to unexpected and frequent
serial increase in LME prices worldwide particularly in the second half of the
year. Further, not only metal but also other raw material prices were also in
their highs. The increase was so sudden and fast that Company and foil industry
in general were unable to pass on in full, these increases to its customer. As
a result the sales realization has not improved in the desired proportion of
the increase in the raw material prices. The sales of the
With the increase capacity utilization and sales, the Company has been able to
reduce its losses from Rs.645.300 millions to Rs.130.900 millions for the year
under review. Company is continuously focusing on the cost reduction for
achieving the desired result.
Future Outlook :
The financial result of the Company for the year under review was better
compared to last couple of years. Though the Company is still making losses but
the same has come down and Company has started showing operational profit in
the year under review. The concept of working under single plant with the lower
manpower and operating cost from last few years has started yielding results. The
margin is always an area of concern in the foil business therefore, Company has
given absolute focus on cost reduction with success.
Domestic Aluminium Foil sector outlook remains good and Company expects to
increase its market share by catering to new customers both domestic and export
front. The global Aluminium Foil outlook is steady and Company is taking
opportunities to enter new export markets in Asia, Africa, and
Erosion Of Net Worth :
The company
had made a reference under section 15(1) of the Sick Industrial Companies
(Special) Provision Act, 1985 to Board for Industrial and Financial
Reconstruction (BIFR). Subsequently, the Hon'ble Bench of BIFR vide its letter
9th May 2006 declared the company a sick industrial company in terms of Section
3(1)(o) of the Act.
Business Review :
Foils:
The Foil and packaging business continues to reel under excess capacity, low
demand and lower realization leading to a fierce price war, which severely
impacted volumes, realization and margins. The continued intense price
competition from small producers and the substitution in the high value
segments dampened prospect for this business. This had a telling effect on the
overall profitability of the foil and packaging business. However, the Company
mitigated the impact, at least partially, by improving utilization of the key
converting equipment to enhance market share in certain high value added products.
The Company’s Fixed Assets of important value includes:
n
n
n
n Plant and
Machinery
n Office
Equipment
n Furniture
and Fittings
n Motor
Vehicles
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public
Notice information has been collected from various sources including but not
limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No 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 |
|
|
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.34 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
2 |
|
OPERATING
SCALE |
1~10 |
2 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT
LINES |
1~10 |
2 |
|
--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 |
|
21 |
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 |
|