MIRA
INFORM REPORT
|
Report Date : |
23.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SUBHASH
PROJECTS AND MARKETING LIMITED |
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Registered Office : |
F
27/2, Phase 2, Okhla Industrial Area, New Delhi-110020 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
27.08.1981 |
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Com. Reg. No.: |
55-12228 |
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CIN No.: [Company
Identification No.] |
L99999DL1981PLC012228 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS03339A |
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Legal Form : |
Public
Limited Liability Company. Company’s shares are listed on the Stock
Exchanges. |
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Line of Business : |
Execution
of Water related Turnkey Projects |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
3250000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having fine track. Directors are
reported as experienced, respectable and having satisfactory means of their
own. Their trade relations are reported as fair. Business is active. Payments
are reported as usually correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
F
27/2, Phase 2, Okhla Industrial Area, New Delhi-110020, India |
|
Tel. No.: |
91-11-26387091 |
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Fax No.: |
91-11-26386003 |
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E-Mail : |
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Corporate
Office : |
22,
Camac Street, Block-A, 3rd Floor, Kolkata-700017, West Bengal, India |
|
Tel.
No.: |
91-33-40091200/1/2/3/4 |
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Fax
No.: |
91-33-40091303 |
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E-Mail
: |
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Engineering
Office : |
113,
Park Street, Poddar Point, South Block, 3rd Floor, Kolkata-700016,
West Bengal, India Tel.
No.: 91-33-22293882 Fax
No.:91-33-22293883 VIIPS
Centre, 2nd Floor, 2, LSC, Masjid Moth, Greaterkailash-II, New
Delhi-110048 Tel.
No.: 91-11-41435000 Fax
No.: 91-11-41435005 |
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Regional
Offices : |
Bangalore 8/2, Ulsoor Road,
Bangalore - 560 042 E-Mail : blr@blr.spml.co.in Tel.
No.: 91-80-41859500 Fax
No.: 91-80-25595580 Guwahati Fancy Bazar,
Guwahati 781 001 Tel.
No.: 91-361-2544106/ 2542194/
2543971 Fax
No.: 91-361-2544106 Jaipur Om Tower, 3rd Floor,
Church Road, M I Road, Jaipur - 302 001 Tel.
No.: 91-141-2371887 Fax
No.: 91-141-2371887 E-Mail : Jaipur.ro@del.spml.co.in Patna Hem Plaza, 305-A,
Fraser Road, Patna-800001 Tel.
No.: 91-612-2205378 Fax
No.: 91-612-2205378 E-Mail : patna@kol.spml.co.in Bhopal C, Kanha - Nirupam
Tower, 62, Malviya Nagar, Bhopal - 462 003 Tel.
No.: 91-755-4294411/ 4224656 91-755-4224656 E-Mail : bhopalro@kol.spml.co.in Mumbai No.101, Arvind
Chambers Premises Co-operative Society Limited, Western Express Highway,
Andheri (East), Mumbai-400069 |
DIRECTORS
|
Name : |
Mr.
Anil Kumar Sethi |
|
Designation : |
Chairman |
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|
Name : |
Mr.
Subhash Chand Sethi |
|
Designation : |
Vice
Chairman and Managing Director |
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|
Name : |
Mr. R.
L. Gaggar |
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Designation : |
Director |
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Name : |
Mr.
B.B. Chakraborty |
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Designation : |
Director |
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|
Name : |
Mr.
Deepak Sethi |
|
Designation : |
Director |
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|
Name : |
Mr. K.
Mukhopadhyay |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A.
Bhattacharjee |
|
Designation : |
Director |
|
Date of Appointment : |
08.11.2005 |
KEY EXECUTIVES
|
Name
: |
Mr. B.
N. Choudhary |
|
Designation
: |
Executive
Vice President and Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters |
23517460 |
75.48 |
|
Mutual
Funds |
1013000 |
3.25 |
|
Non
resident Indians |
50668 |
0.16 |
|
Banks
and Financial Institutions |
2000 |
0.01 |
|
Corporate
Bodies |
3378645 |
10.85 |
|
Public |
3194627 |
10.25 |
|
Total |
31156400 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Execution
of Water related Turnkey Projects |
GENERAL
INFORMATION
|
Bankers : |
Ř
Canara Bank Ř
Andhra Bank Ř
Bank of Baroda Ř
State Bank of
Travancore Ř
State Bank of
Hyderabad Ř
State Bank of
My sore Ř
State Bank of
Bikaner and Jaipur Ř
Punjab National
Bank Ř
Oriental Bank
of Commerce Ř
Syndicate Bank Ř
Union Bank of
India Ř
IDBI Bank
Limited |
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Facilities : |
Secured Loans :
Unsecured Loans :
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Banking Relations : |
Satisfactory |
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Auditors : |
Sunil Kumar Gupta
& Company Chartered
Accountants B-2, Magnum House –
1, Karampura Commercial Complex, New Delhi-110 015 |
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|
|
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Group Companies : |
Ř
Subhash
Utility Management Services Limited Ř
Senmati
Homes Private Limited Ř
Binwa
Hydro Electric Power Company Private Limited |
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|
|
|
Associates/Subsidiaries : |
Subsidiaries Ř
Neogal Power
Company Private Limited Ř
Awa Power
Company Private Limited Ř
Luni Power
Company Private Limited Ř
IQU Power
Company Private Limited Associates Ř
Subhash Kabini
Power corporation Limited Ř
Subhash Pipes
Limited Ř
Tones Valley
Power Company Private Limited Ř
Abhinandan
Enterprises Private Limited Ř
Rishab
Commercial Private Limited Ř
Rupin Tones
Power Private Limited Ř
Uttarrkashi
Tones Hydro Power Private Limited Ř
Binwa Power
Company Private Limited Ř
Delhi Waste
Management Private Limited Ř
Bharat Hydro
Power Corporation Private Limited Ř
Pondichary Port
Limited Ř
Subhsh Systems
Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
200000000 |
Equity
Shares |
Rs.2/- each |
Rs.400.000 millions |
|
1000000 |
Preference
Shares |
Rs.100/- each |
Rs.100.000 millions |
|
|
Total |
|
Rs.500.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
31156400 |
Equity
Shares |
Rs.2/- each |
Rs.62.313 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 |
62.313 |
62.313 |
62.300 |
|
|
2] Share Application Money |
.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
749.524 |
567.469 |
544.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
811.837 |
629.782 |
606.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
528.979 |
309.757 |
247.100 |
|
|
2] Unsecured Loans |
720.341 |
205.847 |
63.900 |
|
|
TOTAL BORROWING |
1249.320 |
515.604 |
311.000 |
|
|
DEFERRED TAX LIABILITIES |
110.113 |
129.112 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
2171.270 |
1274.498 |
917.300 |
|
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|
|
|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
409.180 |
397.952 |
405.600 |
|
|
Capital work-in-progress |
97.199 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
242.736 |
168.658 |
167.700 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
746.189
|
376.810 |
163.200 |
|
|
Sundry Debtors |
1245.370
|
807.058 |
497.300 |
|
|
Cash & Bank Balances |
422.701
|
245.842 |
176.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
428.927
|
206.397 |
92.700 |
|
Total Current Assets |
2843.187
|
1636.107 |
930.000 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1365.492
|
904.515 |
585.700 |
|
|
Provisions |
55.540
|
24.847 |
2.900 |
|
Total Current Liabilities |
1421.032
|
929.362 |
588.600 |
|
|
Net Current Assets |
1422.155
|
706.745 |
341.400 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
1.143 |
2.600 |
|
|
|
|
|
|
|
|
TOTAL |
2171.270 |
1274.498 |
917.300 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
3976.072 |
2512.110 |
1195.000 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
214.260 |
58.262 |
2.200 |
|
Provision
for Taxation |
(0.113) |
23.796 |
(3.100) |
|
Profit/(Loss)
After Tax |
214.373 |
34.466 |
5.300 |
|
|
|
|
|
|
Total
Expenditure |
3761.812 |
2453.848 |
1192.800 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Sales Turnover |
|
1051.800 |
1936.500 |
|
Other Income |
|
65.100 |
7.800 |
|
Total Income |
|
1116.900 |
1944.300 |
|
Total
Expenditure |
|
951.700 |
1728.400 |
|
Operating
Profit |
|
165.200 |
215.900 |
|
Interest |
|
16.600 |
35.500 |
|
Gross Profit |
|
148.600 |
180.400 |
|
Depreciation |
|
15.700 |
79.400 |
|
Tax |
|
15.500 |
14.300 |
|
Reported PAT |
|
114.900 |
100.600 |
200606 Quarter 1
Notes
EPS is Basic and Diluted. 1. The above results were reviewed by Audit Committee & Approved by the Board of Directors of the company at its meeting held on 31.07.2006 and have been subjected to 'Limited Review'. 2. During the quarter, there were two complaints received and disposed off from the investors and there was no complaint pending at the beginning of the quarter. 3. The Company has made provision for minimum alternate tax under section 115JB of the Income Tax Act 1961. The benefit u/s 80-IA and the effect on deferred tax on same will be considered at the Year end. 4. Other Income include Rs.70.9 millions are interest received against settlement which clients and Rs.5.9 millions being loss on sale of Plant & Machineries. 5. Previous Period figures have been regrouped wherever necessary.
200609 Quarter 2
Notes:
EPS is Basic &
Diluted 1.The above results of the company were reviewed by the Audit Committee
and taken on record by the board of directors at their respective meetings held
on 31.10.2006 and have been subjected to limited review by the statutory
auditors. 2. The company has determined the effective tax rate for the financial
year 2006-07. The rate so determined has been applied on the 'Profit Before
Tax' for the current period and segregated between current and deferred tax in
the same ratio as they would have been at the year end. 3. Other income
includes interest Rs.70.9 millions (Rs. NIL for the quarter) being the amount
received on settlement of claims with the customers. 4. The auditors in their
report on the accounts for the year ended March 31 2006 had commenced upon the
non provision of interest on loan to a lender due to a dispute against which
appeal is pending with Honarable Court of Barasat, West Bengal and the Debt
Recovery Tribunal, Delhi. As per the management the above interest liability
being presently unascertainable would be considered in the accounts on disposal
of the legal case. 5. The Number of investor complaints pending at the
beginning of the quarter-NIL, Received-1, Disposed-1, and lying unresolved at
the end of the quarter-NIL. 6. Previous period figures have been
regrouped/rearranged wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.22 |
0.67 |
0.50 |
|
Long Term Debt-Equity Ratio |
0.79 |
0.38 |
0.26 |
|
Current Ratio |
1.39 |
1.28 |
1.24 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.82 |
3.16 |
1.69 |
|
Inventory |
6.55 |
8.52 |
8.46 |
|
Debtors |
3.58 |
3.53 |
2.36 |
|
Interest Cover Ratio |
3.51 |
1.88 |
0.74 |
|
Operating Profit Margin(%) |
10.08 |
7.44 |
7.56 |
|
Profit Before Interest And Tax Margin(%) |
8.16 |
4.50 |
2.39 |
|
Cash Profit Margin(%) |
7.76 |
4.18 |
5.02 |
|
Adjusted Net Profit Margin(%) |
5.83 |
1.25 |
(0.16) |
|
Return On Capital Employed(%) |
18.71 |
10.05 |
3.18 |
|
Return On Net Worth(%) |
29.74 |
4.64 |
(0.31) |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.250.00 |
|
Low |
Rs.249.95 |
LOCAL AGENCY
FURTHER INFORMATION
Company’s
fixed assets include Land, Building, Office Equipments, Furniture and Fixture,
Vehicles, Plant and Machinery, Computer, Temporary Site Shed and Shuttering
Material.
Operating Results
The Company has been able to capitalize on the sustained growth in the
Indian Economy as a whole and Infrastructure Industry in particular. The
operations of the Company show a significant improvement both in terms of top
line and bottom line over the previous year. The turnover of the Company has
increased by Rs.1376.809 millions during the year, showing an increase of
59.88%. The Profit after tax during the period has gone up by 5.6 times to
Rs.210.476 millions compared to Rs.37.521 millions during the preceding year.
Management Discussion and Analysis of Financial condition and
Operational Performance of the Company for the year under review, as stipulated
in Clause 49 of the Listing Agreement with the Stock Exchanges in India, is
given as a separate statement in the Annual Report.
CONTINGENT
LIABILITIES
A major part of contingent liabilities of subject is the performance and
advance bank guarantees given by the bankers to the clients under the terms of
contract. These are issued on the strength of counter-indemnities of subject.
Keeping in view the track record of subject in meeting its contractual
performance, the chances of contingent liabilities becoming real liabilities
are remote. Due to an increased order book, the bank guarantee utilization with
Banks has increased from Rs.1228.778 millions to Rs.3248.420 millions during
the year.
OPPORTUNITIES AND
FUTURE OUTLOOK
The Infrastructure Sector has emerged as India's single biggest change —
driver over the last few years, raising the quality of life, creating
employment and driving GDP growth. The Indian Construction Industry accounts
for more than 5% of India's GDP and is the second largest after agriculture,
employing nearly 32 million people. India is investing more than ever before in
its infrastructure - water, electrification, roads, ports, power and railways
to facilitate its prospective growth. The Government of India has planned
investment of over Rs.130 billion in the Infrastructure development over the
next 5 years.
These opportunities will accelerate over the coming decade as the
country's policy makers target a ten percent growth over the long term. Subject
is attractively positioned to accelerate its growth. In tune with the sustained
growth in the Indian Economy, the year ahead looks promising for the industry
as a whole, and Subject in particular. The Company has a very strong order book
of more than Rs.25000 millions as on date. The Company bagged total Projects
worth Rs.18000 millions during the year. Further, orders worth Rs.80000
millions are awaiting final award. Major Projects secured during the year under
review are:
Power Grid Corporation of India Limited (Rs.4350 Millions), West Bengal
State Electricity Board (Rs.260 Millions), Damodar Valley Corporation (Rs.640
Millions), Public Health Engineering. Dept., Rajasthan (Rs.2700 Millions),
Hydel Projects in Himachal Pradesh (Rs.1100 Millions), Neyveli Lignite
Corporation (Rs. 400 Millions), Karnataka Urban Water Supply & Sewage Board
(Rs. 230 Millions), Karnataka Neeravari Nigam Limited (Rs.1570 Millions),
Kerala Water Board (Rs.1770 Millions), Cauvery Neeravari Nigam Limited (Rs.170
Millions), Govt. of A.P. (Rs.990 Millions), Bangalore Electricity Supply
Company Limited (Rs.1440 Millions),
Gulbarga Electricity Supply Company Limited (Rs.1860 Millions), Hubli
Electricity Supply Company Limited (Rs.230 Millions), Karnataka Power
Transmission Company Limited (Rs.280 Millions)
The Subhash Projects
group is one of the fastest growing multi-disciplinary engineering groups. The
flagship of the group, Subhash Projects & Marketing (SPML), established
more than two decades ago, is a leader in the execution of water-related
turnkey projects.
The company has successfully implemented a large number of projects which cover
areas like pumping waters from rivers, lakes and underground deep tube wells,
transportation of water in large-diameter pre-stressed concrete, mild steel and
cast iron pipes, water treatment plants, elevated water storage tanks,
underground sewage pumping stations, barge-mounted river pumping stations,
etc.
In 1994, the company ventured into energy generation, pioneering the concept of
wind farms. It is actively targeting south India for wind power generation. In
addition to setting up manufacturing facilities for products such as LT
distribution boards and PSC pipes, SUBJECT has diversified into hydel power
generation to set up its own plants. It also offers its skill to execute mini
hydel projects on a turnkey basis.
The company has promoted Bharat Hydro Power Corporation in the joint
sector with the Assam State Electricity Board to set up a 100-MW hydel power
project. Some of its important clients are Mather & Platt (India), Voltas,
Uranium Corporation of India, Gas Authority of India, Best & Crompton
Engineering, Steel Authority of India and South Eastern Coalfields, among
others.
The Company has developed "Core Competency" in lumpsum Turnkey
Contracts in Key Areas such as Water Environment as well as Infrastructure.
With the increase in infrastructure activities, the order book position of
company is healthy & job pending execution is more than Rs.6500 millions as
on March 2000. It has also floated a new IT company, Christened InfraInfotec,
which would be spun off as a separate unit.
The company has been awarded the turnkey package of supply and erection of
Sub-Transmission & Distribution Improvement Project in Urban area of
Jamshedpur and Ghatsila under Jamshedpur Electrical Circle of Jharkhand State
under APDRP scheme for an amount of Rs.450.8 millions by the Jharkhand State
Electricity Board. With this order, the company is having unexecuted order in
hand worth Rs.6800 millions as on 04.01.2005.
Website Details :
Profile
Subject
is India’s leading ISO 9001:2000 certified engineering, construction and
project management company with more than 25 years of experience in large-scale
turnkey projects in the public and private sector.
A
Rs.4000 million group company, they are today one of the major national
players. With offices in Kolkata, Delhi, Bangalore, Mumbai, Jaipur, Bhopal,
Patna and Guwahati, they are strategically located to cover the length and
breadth of the nation, with access to remote cities and territories. Which is
why, they have been able to successfully execute projects across the country
from Kanyakumari to Kashmir and from Itanagar to Kutch.
Services Offerings
Ř
Water
Management
Ř
Eco-friendly
Power Generation
Ř
Power
Transmission and distribution
Ř
Environmental
Engineering
Ř
Infrastructural
Development
Ř
Engineering
consultancy and Services
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.44.24 |
|
UK
Pound |
1 |
Rs.86.95 |
|
Euro |
1 |
Rs.57.33 |
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 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
62 |
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 |
|