MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
FENOPLAST LIMITED |
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Registered Office : |
306-308, 3rd
Floor, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.10.1975 |
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Com. Reg. No.: |
01-1942 |
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CIN No.: [Company
Identification No.] |
L25209AP1975PLC001942 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDF00369F |
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PAN No.: [Permanent
Account No.] |
AAACF3076C |
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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 : |
Manufacturing of PVC
Leather Cloth and PVC film. |
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 1000000 |
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Status : |
Satisfactory |
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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 satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered
Office : |
306-308, 3rd
Floor, |
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Tel. No.: |
91-40-27840322/27840722/27814651 |
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Fax No.: |
91-40-27721739 |
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E-Mail : |
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Factory : |
Unit-I PlotNo.21/A,
Industrial Development Area, Patancheru, Medak Dist., Andhra Pradesh. Unit-II Survey No. 132
& 133, Unit-III - Survey No. 165
& 166, |
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Branches /
Marketing Office : |
Mumbai A/11, Parle
Colony, CHS, Near Garware House, Hosur 2,3&4, Sri
Lakshmi Narasimhaswamy Complex, Kolkata P-175, Kalindi Housing
Estate, Kolkata - 700 089 Gurgaon Shiv Ashram, Near
Jwalla Mills, 35B & 36, Ahmedabad 544/B, Sitaram Chowk, Moti Hamam Pole, Gheekanta, Ahmedabad - 360001. |
DIRECTORS
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Name : |
Mr. H. Narsaiah |
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Designation : |
Chairman |
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Name : |
Mr. H. Kishen |
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Designation : |
Managing Director |
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Qualification |
B.Com. |
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Date of
Joining |
16.10.1975 |
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Previous
Employment |
Textile Business |
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Name : |
Mr. H. Krishna
Kumar |
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Designation : |
Whole-time
Director |
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Qualification |
M.A. |
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Date of
Joining |
01.09.1982 |
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Name : |
Mr. R.
Shankarnarayanan |
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Designation : |
Director |
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Name : |
Mr. B. Kamalaker
Rao |
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Designation : |
Director |
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Name : |
Dr. K. Malhar Rao |
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Designation : |
Director |
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Name : |
Mr. H. Dayakiran |
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Designation : |
Whole Time Director |
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Qualification |
B.Sc |
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Date of Joining |
10.07.1979 |
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KEY EXECUTIVES
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Name : |
Mr. Sk. Khadar Vali |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters'
holding |
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1. Indian
Promoters |
2635300 |
57.29 |
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Foreign Promoters |
-- |
-- |
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2. Persons acting
in concert |
-- |
-- |
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Sub-Total |
2635300 |
57.29 |
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B.
Non-Promoters' holding |
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3. Institutional
Investors |
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a) Mutual Funds
& UTI |
-- |
-- |
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b) Banks,
Financial Institutions, Insurance Companies |
-- |
-- |
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c) Foreign
Institutional Investors |
-- |
-- |
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4. |
-- |
-- |
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Sub - Total |
-- |
-- |
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Others |
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a) Private
Corporate Bodies |
380938 |
8.28 |
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b) Indian Public |
1417458 |
30.81 |
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c)NRIs/ OCBs |
166304 |
3.62 |
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Sub-Total |
1964700 |
42.71 |
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GRAND TOTAL |
4600000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of PVC
Leather Cloth and PVC film. |
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Products : |
Item Code
No. (ITC Code) Product
Description 59031000 Textile
Fabrics coated with
Plastic (PVC Leather Cloth) 39211200 PVC
Cellular Sheets 39204100 PVC
Film & Sheets (Rigid) 39204200 PVC Film &
Sheets (Flexible) |
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Exports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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PVC Leather Cloth
/ Cellular Sheets |
LLM |
75.00 |
74.64 |
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PVC Film |
MT |
5000.00 |
5360.39 |
GENERAL INFORMATION
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Customers : |
Merck Limited Hindustan Syringes & Medical Devices Limited |
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No. of Employees : |
600 |
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Bankers : |
Ř
Canara Bank Ř
Syndicate Bank Ř
The Lakshmi Vilas Bank Limited Ř
Union Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. Anandam &
Company Chartered
Accountants |
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Address : |
7A, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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60,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
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60,00,000 |
Preference Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
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TOTAL |
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Rs. 120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,600,000 |
Equity Shares |
Rs.
10/- each |
Rs. 46.000 millions |
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Less: |
Calls in Arrears |
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Rs.
0.032 million |
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Total
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Rs. 45.968 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
45.968 |
45.967 |
45.968 |
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3] Reserves &
Surplus |
204.699 |
202.675 |
209.925 |
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NETWORTH
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250.667 |
248.642 |
255.893 |
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LOAN FUNDS |
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1] Secured Loans |
239.451 |
247.925 |
231.001 |
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2] Unsecured
Loans |
3.810 |
4.756 |
23.328 |
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TOTAL BORROWING
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243.261 |
252.681 |
254.329 |
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DEFERRED TAX
LIABILITIES |
24.499 |
26.159 |
27.306 |
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TOTAL
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518.427 |
527.482 |
537.528 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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220.928 |
234.908 |
250.070 |
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Capital work-in-progress
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0.000 |
0.000 |
0.000 |
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INVESTMENT
|
4.672 |
4.672 |
4.672 |
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DEFERREX TAX ASSETS
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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107.716
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78.207
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78.053 |
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Sundry Debtors
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290.137
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278.488
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220.891 |
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Cash & Bank Balances
|
32.866
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25.974
|
20.020 |
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Other Current Assets
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0.000
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0.000
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0.000 |
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Loans & Advances
|
85.786
|
86.393
|
83.667 |
Total Current Assets
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516.505
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469.062
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402.631 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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205.177
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169.021
|
107.969 |
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Provisions
|
18.758
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12.139
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11.918 |
Total Current Liabilities
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223.935
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181.160
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119.887 |
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Net Current Assets
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292.570
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287.902
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282.744 |
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MISCELLANEOUS EXPENSES
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0.257 |
-- |
0.042 |
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TOTAL
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518.427 |
527.482 |
537.528 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
1001.564 |
862.456 |
699.695 |
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Other Income |
1.806 |
1.259 |
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Total Income |
1003.370 |
863.715 |
699.695 |
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Profit/(Loss) Before Tax |
18.755 |
3.802 |
4.383 |
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Provision for Taxation |
17.920 |
1.558 |
3.938 |
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Profit/(Loss) After Tax |
0.835 |
2.244 |
0.445 |
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Earnings in Foreign Currency : |
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Total Earnings |
140.835 |
134.866 |
128.260 |
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Imports : |
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Raw Materials |
95.704 |
87.336 |
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Stores & Spares |
0.000 |
0.028 |
48.725 |
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Others |
0.816 |
0.969 |
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Total Imports |
96.520 |
88.333 |
48.752 |
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Expenditures : |
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Raw Material Consumed |
772.380 |
687.023 |
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Manufacturing, Administrative and
Selling Expenses |
156.070 |
123.758 |
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Interest and Finance Charges |
44.926 |
47.271 |
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Depreciation |
11.240 |
10.861 |
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Total Expenditure |
984.616 |
868.913 |
695.309 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 |
|
Type |
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Full
Year |
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Sales
Turnover |
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|
1005.300 |
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Other
Income |
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|
2.800 |
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Total
Income |
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|
1008.100 |
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Total
Expenditure |
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|
914.800 |
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Operating
Profit |
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|
93.300 |
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Interest |
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|
48.300 |
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Gross
Profit |
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|
45.000 |
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Depreciation |
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|
11.600 |
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Tax |
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|
14.400 |
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Reported
PAT |
|
|
21.200 |
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Dividend
(%) |
|
|
00.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.89 |
2.04 |
2.03 |
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Long Term Debt-Equity Ratio |
0.66 |
0.77 |
0.93 |
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Current Ratio |
1.27 |
1.30 |
1.41 |
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TURNOVER RATIOS |
|
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Fixed Assets |
3.81 |
3.47 |
3.11 |
|
Inventory |
11.89 |
12.23 |
10.65 |
|
Debtors |
3.89 |
3.83 |
3.62 |
|
Interest Cover Ratio |
1.42 |
1.08 |
1.09 |
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Operating Profit Margin(%) |
6.77 |
6.49 |
8.27 |
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Profit Before Interest And Tax Margin(%) |
5.75 |
5.35 |
6.96 |
|
Cash Profit Margin(%) |
2.04 |
1.38 |
1.35 |
|
Adjusted Net Profit Margin(%) |
1.02 |
0.24 |
0.05 |
|
Return On Capital Employed(%) |
16.78 |
13.53 |
14.75 |
|
Return On Net Worth(%) |
8.62 |
1.85 |
0.33 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.28.50/- |
|
Low |
Rs.28.50/- |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated by H Kishan and K Seshagiri Rao as a private limited
company in 1975, Fenoplast was converted into a public company in Aug.'94.
Initially, the company started its operations in 1977 by setting up a PVC
leather cloth unit with an installed capacity of 30 lac sq mtr pa at
Patancheru, Andhra Pradesh. The success of its first unit encouraged the
company to set up a second unit in 1983 at Nandigaon (Medak district) with an
installed capaity of 30 lac mtr pa of PVC leather cloth at a project cost of Rs
12.100 Millions.
The company is presently engaged in the manufacture of PVC leather cloth with
an installed capacity of 60 lac sq mtr pa and PVC calendered film with an
installed capacity of 5000 TPA.
The company received awards as the second best exporter in the PVC leather
cloth Industry for two consecutive years in 1991-92 and 1992-93 from the
Plastic and Linoleum Export Council (PLEXOCIL). In 1991-92, the company under
the diversification programme, took up the manufacture of 5000-tpa PVC calender
film which was part financed through a public issue in Oct.'94. Commercial
production commenced in Aug.'93.
FINANCIAL
RESULTS :
The Company earned a Profit of Rs.18.755 Millions during the year under review.
The Company achieved growth of 16% over the previous year on account of
enlarging the customer base and increasing the volumes with the existing
customers due to fair growth in the passenger automobile industry and
pharmaceutical industry.
The directors are pleased to inform that the Company is having maximum capacity
utilization for PVC Leather Cloth Plants and for PVC Film Plants on Installed
capacity during the current financial Year 2005-06.
OPERATIONS:
For the year under review production of PVC Leather Cloth was 74.64 lakh Ln.
Mtrs, as against the previous year's production of
MARKETING:
It is heartening to state that the demand for PVC Leather Cloth and PVC Film
are showing healthy signals, as both automobile and pharmaceutical industry are
doing well. Efforts are being made to increase the Company's share in both the
segments.
EXPORTS:
During the year 2005-2006, the Company made exports to various countries
aggregating to Rs.143.854 Millions as against the previous year's exports of
Rs.140.719 Millions.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
Industry Structure and
developments:
The company products are predominantly used in the automobile and
pharmaceutical industry. Both automobile and pharmaceutical industries are
doing well. In the PVC Leather Cloth industry, the Company continue to be the
leader position and in the PVC Film industry, the company is one amongst the
three leading manufacturers.
Opportunities and Threats:
The company is very close to achieving the optimum Installed Capacity levels
and the company proposes to increase the capacities by minor alterations in
existing equipment, more efficient production planning and better
productivity.
The automobile industry is doing very well and the company intends to add new
customers and increase the business with existing customers. The installed
production capacity of cars in their country in the year 2006 is about 15.5
lakhs per annum, which is expected to grow to 32.0 lakhs per annum by the year
2010. The company hopes to capture a major chunk of this growth.
Imports from
PVC Film finds its demand majorly in blister packaging for the pharma industry.
The country has now become a major hub for global pharma industry with a boom
in pharma production. The demand for PVC Film is only bound to increase.
Non-Pharma applications like blister packaging for confectionery, stationery,
consumable products and toys is on an increase. The company hopes garner this
growth by more efficient production planning and better productivity.
Segment-wise
or product-wise performance:
The two segments - productwise are PVC Leather Cloth and PVC Film. The
performance of both the segments has been encouraging and with the growth of
the both Automobile and Pharma Industries. The future looks good.
Outlook:
The Outlook of the Company is quite bright with additional and alternative uses
found for its products. Many new applications in the packaging and seating
systems are an assurance for the future.
Risks
and Concerns:
The fluctuation in crude oil prices have a bearing on the principal raw
material prices.
Internal control systems and their
adequacy:
The company is having adequate internal control procedures commensurate with
the size and nature of its operations. The audit committee constituted by the
Board of Directors is functioning effectively. All significant audit
observations were discussed in the audit committee, which met five times during
the year under review.
The Company was certified for its ISO 9001-2000 Quality Systems. Documentation
systems are established. These have been designed to provide reasonable
assurance with regard to maintaining proper accounting control and efficiency
of operations and to ensure reliability of financial and operational
information.
The company’s fixed assets of important value include Land
and Land Development, Buildings, Plant & Machinery, Electrical
Installations, Office Equipments, Furniture & Fixtures, Bore Well, Motor
Vehicle, Factory Equipment.
AS PER
WEBSITE
Fenoplast-The
name behind the finest automotive upholstery
Often,
the elegance and comfort of an automobile is best reflected in its upholstery.
Whether it is a tiny two-wheeler or powerful four-wheeler, among all the parts
of an automobile, what lends easily for an aesthetic touch is the upholstery
with which people are in intimate touch.
For
decades now, Fenoplast is a name that has been at the core of the finest
automotive upholstery. Known for making world-class quality PVC Leather Cloth,
Fenoplast has been preferred by many Indian as well as International
automobile majors for automotive upholstery. Today, Fenoplast has a formidable
presence far and wide - in over 20 countries, including
Fenoplast - The genesis of Growth
1976 -- Fenoplast begins manufacture of PVC
Leather Cloth
Investment
: Rs. 7 million
Production
Capacity : 3 million square meters per annum
Technology : Direct Coating
1983 -- Fenoplast new unit setup
Production Capacity : 3 million square
meters per annum
Technology : Transfer coating using Release Paper
Machinery : imported from
1987 -- First plant modernized assimilating
the Transfer Coating technology.
1988 -- Fenoplast new unit setup to
manufacture PVC Rigid/Soft Film
Investment : Rs. 150 million
Technology : Calendering with two stage planetary
extrusion.
Machinery : from Battenfeld Extrusions
Technic
It is
to the credit of Fenoplast to acquire and adopt, for the first time in
Fenoplast
- The plants & Products Presently, the Fenoplast Group has
five manufacturing units in its ambit, each producing a specialized range of
PVC and PVC - related products. Together, the five units of Fenoplast
constitute an integrated facility, enabling the company reap rich economies of
scale in production and ensure excellent quality in its products, which in turn
get passed on to the end-users.
Fenoplast
- The Quality Control Fenoplast places special accent on the quality of its
products. Fenoplast has adopted a comprehensive quality control process to
ensure excellence at every stage of production, The 8 - stage quality control
system leaves virtually no aspect to chance.
PRODUCT.
PROCESS. TECHNOLOGY
THE
I. PVC LEATHER CLOTH
II. PVC FILM
I. PVC (Poly Vinyl Chloride) Leather Cloth
This product is internationally classified under Chapter No. 59.03
of the Harmonised System of Nomenclature.
Indian trade jargon for this product is "Rexine" - which is
similar to how copiers are mentioned as "Xerox".
I. PVC Leather Cloth can be made by direct coating process, transfer coating
process or by lamination with a calendered flexible film. The product PVC
Leather Cloth is also referred to as expanded vinyl Artificial Leather Cloth or
Synthetic Leather.
The original technology to manufacture PVC Leather Cloth was by
direct coating method, where the backing fabric is usually woven fabric. In
direct coating method, at three different stations, the Plastisol is directly
coated on to the fabric and passed through ovens simultaneously and later
embossed in line for the end product. But the application for direct coated
product was limited - was extensively and mostly used for travel bags and
luggage industry.
In the early 70s, there was a demand for a more supple and softer PVC Leather
Cloth, which can be used in wider applications such as domestic upholstery,
automobile upholstery, ladies bags, footwear industry, garment lining, belts,
etc. This gave birth to a new technoloy called transfer coating technology by
release paper method. In the transfer coating technology, the coating is done
on a release paper and different substrates (backing fabric) can be used and
not just fabric. The substrates in the transfer coating technology is usually
knitted fabric. Since the knitted fabric did not have the dimensional
stability, coatings were done on release paper and later on, the film was
released by the release paper and laminated on to the fabric. This product
finds wide applications such as upholstery, ladies bags, foot wear, etc.
Today most of the coaters in the world over, use transfer coating
method using release paper for the manufacture of PVC Leather Cloth. Modifications
to this technology has mostly been subtle and are more in terms of having
better coating heads at different stations, different surface finish machines,
various types of release paper and a whole new family of additives which
enhance the life and finish of PVC Leather Cloth, such as those which help
incorporation of properties such as flame retardancy, cold flex, anti oxidants,
UV stability , anti fog agents, micro biocides and other processing aids which
can sustain this product to extreme weatherable conditions.
Fenoplast limited, based at
Fenoplast limited has imported a state-of-the-art coating head,
fully automatic, in the year 1996 and has kept itself abreast of the latest
techniques of production in transfer coating technology.
APPLICATIONS OF PVC LEATHER CLOTH
Domestic upholstery
Automobile upholstery for
Cars
Two wheelers
Tractor seats
Footwear industry for
Ladies sandals
Gents footwear
Children shoes
Sports shoes
Ladies bags
Leather lining
Garments
The
Present OEM Customers Of The Company Directly Or Through Their OEM
Vendors :
Harita Grammer Limited
Tvs Suzuki Limited
Mahindra & Mahindra Limited
Lml Limited
Hyundai Motor Company Limited
Eicher Limited
T.I.Cycles Of India Limited
Hindustan Motors Limited
Piaggio Greaves Vehicles Limited
Ashok Leyland Limited
General Motors Limited
Lear Seating Private Limited
Kodak India Limited
Titan Industries
Tata Johnson Controls (For Telco Vehicles)
Bata India Limited
FOR PVC FILM ( BLISTER)
E.Merck India Limited
Eastern Medikit Limited
Cadila Pharmaceuticals
Eveready Industries (I) Limited
Lyka Labs Limited
Nicholas Piramal (I) Limited
Cipla Limited
German Remedies
Britannia Industries Limited
Smithklime Beecham Limited
Parke Davis Limited
Pfizer Limited
Bpl (Pti) Limited
Lakhanpal National Limited
Cadila Health Care Limited
Hindustan Lever Limited
FOR PVC FILM ( SOFT/OPAQUE )
Hyundai Motor Company Limited
Toyota Kirloskar Motor Company Limited
Bata India Limited
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 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.40.75 |
|
|
1 |
Rs.81.63 |
|
Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
|
53 |
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 |
|