MIRA
INFORM REPORT
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Report Date : |
09.07.2007 |
IDENTIFICATION DETAILS
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Name : |
LOTS SHIPPING LIMITED |
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Registered Office : |
4th
Floor, GCDA Commercial Complex, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.06.2002 |
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Com. Reg. No.: |
09-7786 |
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CIN No.: [Company
Identification No.] |
U63090KL2002PLC00786 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNL00423D |
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PAN No.: [Permanent
Account No.] |
AAACL4062A |
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Legal Form : |
Closely Held
Public Limited Liability Company |
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Line of Business : |
Barge operations |
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 15739 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and progressive company having satisfactory track. Trade relations are fair. General financial position is
satisfactory. Payments are usually
correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
4th
Floor, GCDA Commercial Complex, |
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Tel. No.: |
91-484-4020000,
4052600 |
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Fax No.: |
91-483-2370610 |
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E-Mail : |
DIRECTORS
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Name : |
Capt. Philip
Mathews |
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Designation : |
Managing Director |
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Brief: |
Started his
career with the Shipping Corporation of |
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Address : |
No. 2, Neptune
Country, Chilavannoor, Kochu Kadavanthra, Ernakulam – 682020, |
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Date of Birth/Age : |
09.06.1958 |
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Experienced: |
30 Years |
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Qualification: |
Master Mariner |
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Date of Appointment : |
01.07.1999 |
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Name : |
Mr. John Mathews |
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Designation : |
Director |
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Brief: |
A Business
Management professional with over 15 years of Sales, Marketing and General
Management experience with leading multinational companies. |
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Address : |
16 Choice
Village, Nadama East, Tripunithura, |
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Date of Birth/Age : |
16.08.1959 |
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Date of Appointment : |
01.07.1999 |
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Name : |
Mr. M. K. Suresh |
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Designation : |
Director |
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Address : |
Indian Guest
House, Darbarhall Ground, |
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Date of Birth/Age : |
14.11.1956 |
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Date of Appointment : |
29.09.2001 |
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Name : |
Mr. Prasad Menon |
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Designation : |
Director |
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Address : |
9A, |
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Date of Birth/Age : |
12.05.1949 |
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Date of Appointment : |
27.08.2003 |
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Name : |
Capt. George
Vurgese |
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A Shipping
professional with 16 years sea and 7 years shores experienced. Over the last
couple of years, he has been actively involved in the US Aid Shipments. He is
in-charge of the overseas operation of the company |
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Designation : |
Director |
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Address : |
10C Paul Abro,
Indian Residency, |
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Date of Birth/Age : |
20.02.1959 |
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Date of Appointment : |
27.08.2003 |
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Lots International Limited - |
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Name : |
Capt. Philip
Mathews |
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Designation : |
Director |
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Name : |
Mr. John Mathews |
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Designation : |
Director |
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Name : |
Capt. Jacob Thomas |
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Designation : |
Director |
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A Qualified
Master Mariner with several years of experience in sailing and ship
management. He was a consultant to Tradeway, Dubai He is heading the company |
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Master Shipyard Private Limited - |
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Name : |
Capt. Philip
Mathews |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. John Mathews |
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Designation : |
Executive
Director |
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Name : |
Mr. G. Soman |
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Designation : |
Director |
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Brief: |
An Engineer with
long experience with the Directorate General of Naval Design. With the DGND he
has designed and construction several types of ocean going vessels. After
completing his tenure with the Indian Navy he has worked in |
KEY EXECUTIVES
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Name : |
Mr. T. N. Renjit |
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Designation : |
Chief Executive Officer |
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Brief : |
A Masters in Social Work, specialized in Personnel Management and
Industrial Relations, has over 22 Years of experience in the areas of Human
Resources and Corporate Planning in various organizations. |
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Name : |
Mr. M. K. Santosh |
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Designation : |
Dy. General Manager – Operations |
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Address : |
Currently heading the company’s operations in |
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Name : |
Mr. K. Shyam |
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Designation : |
General Manager – Technical |
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Address : |
Specialized as a Mechanical Engineer (B.Tech), he has extensive sailing experience as
Chief Engineer in reputed companies like Shipping Corporation of India,
Untied Ocean Ship Management, Singapore, Univan Ship Management Limited and
MSC Ship Management, |
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Name : |
Ms. Alph Mini Joy Joseph |
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Designation : |
Asst. General Manager – Finance and Accounts |
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Address : |
An Associate Member of the |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Capt Philip Mathews |
2676419 |
44.27 |
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Mr. John Mathews |
428322 |
7.09 |
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Capt. Bharatan |
1000 |
0.02 |
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Mr. Balbir Singh Negi |
1000 |
0.02 |
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Capt. George Varugese |
60000 |
0.99 |
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Capt. Rajesh Menon |
50000 |
0.83 |
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Capt. I.P.S. Malhotra |
60000 |
0.99 |
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Mr. Raj Unni |
50000 |
0.83 |
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Lots Internaional Limited |
118250 |
1.96 |
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Fredd Isakssen (Pending allotment) |
1000000 |
16.54 |
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Mr. John Raggio (Pending allotment) |
400000 |
6.62 |
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Mr. Alan Adler (Pending allotment) |
400000 |
6.62 |
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Mr. Ragnar Knutsen (Pending allotment) |
400000 |
6.62 |
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Category |
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Foreign holding (foreign institutional investor(s), Foreign companies(s),
Foreign financial institution(s), Non-resident Indian(s) or overseas
corporate bodies or others |
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27.96 |
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Directors or relatives of directors |
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72.04 |
© Since Lots International Limited is a wholly owned subsidiary company of
Lots Shipping Limited. The shareholders of Lots Shipping have voting rights in
the subsidiary company on proportion to their share holding
BUSINESS DETAILS
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Line of Business : |
Barge operations |
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GENERAL INFORMATION
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Suppliers : |
♦
Alvares and Thomas ♦
Mr. Gabriel Sydney ♦
Teshmeher Oceanc Services ♦
Mr. John Desa |
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Customers : |
♦
FACT – Fertilizers and Chemicals Travancore
Limited ♦
South India Corporation Limited for Binani Zinc
Limited ♦
Leighton India Private Limited |
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No. of Employees : |
About 150 |
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Bankers : |
♦ State Bank of Travancore Panampilly Nagar Branch, ♦
State Bank of M.G. Raoad, Ernakulam ♦ Federal Bank ♦
UTI Bank |
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Facilities : |
State Bank of Travancore – ♦
Term Loan (60 months) – Rs.23.000 millions ♦
TL Balance as on 9.07.2007 – Rs.3.100 millions ♦
Cash Credit – Rs.6.000 millions ♦
Bank Guarantee Limit – Rs.2.500 millions State Bank of ♦
Term Loan (84 months) – Rs.125.000 millions ♦
C ash Credit – Rs.4.000 millions ♦
Bank Guarantee Limit – Rs.12.500 millions The above facilities are given at the interest rate which is 1.5%
below SBAR (State Bank Average Rate) Federal Bank and UTI Bank – Current Account Lots International Limited has a |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Venkit & Hari Chartered
Accountant, |
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Address : |
4th Floor, |
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Tel. No.: |
91-484-2395853
[O], / 2408672 [R] |
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Mobile No.: |
91-9847046610 |
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Fax No.: |
91-484-2396965 |
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E-Mail : |
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Associates : |
Master Shipyard
Private Limited |
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Subsidiaries : |
LOTS
International Limited, |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
(5644991 Shares are issued and fully paid)
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
4179020 |
Equity Shares |
Rs.10/- each |
Rs.41.790
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 (Amount USD) |
31.03.2006 (Rupees in
Millions) |
31.03.2005 (Rupees in Millions) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1474388 |
40.000 |
40.000 |
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2] Share Application Money |
-- |
1.790 |
0.000 |
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3] Reserves & Surplus |
1555405 |
15.155 |
12.746 |
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4] (Accumulated Losses) |
-- |
0.000 |
0.000 |
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NETWORTH |
3029793 |
56.945 |
52.746 |
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LOAN FUNDS |
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1] Secured Loans |
570547 |
28.786 |
1.900 |
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2] Unsecured Loans |
-- |
0.000 |
0.000 |
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TOTAL BORROWING |
570547 |
28.786 |
1.900 |
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DEFERRED TAX LIABILITIES |
332615 |
10.137 |
6.156 |
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TOTAL |
3932955 |
95.868 |
60.802 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1953309 |
59.998 |
51.733 |
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Capital work-in-progress |
-- |
0.000 |
0.000 |
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INVESTMENT |
1244957 |
8.928 |
0.000 |
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DEFERREX TAX ASSETS |
-- |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
--
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0.000 |
0.000 |
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Sundry Debtors |
395810
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12.250 |
3.982 |
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Cash & Bank Balances |
642213
|
1.434 |
6.215 |
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Other Current Assets |
--
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0.000 |
0.000 |
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Loans & Advances |
440684
|
26.090 |
5.187 |
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Total
Current Assets |
1478707
|
39.774 |
15.384 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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12.520 |
2.369 |
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Provisions |
|
7.261 |
3.946 |
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Total
Current Liabilities |
852524
|
19.781 |
6.315 |
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Net Current Assets |
626183
|
19.993 |
9.069 |
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MISCELLANEOUS EXPENSES |
108505 |
6.949 |
0.000 |
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TOTAL |
3932955 |
95.868 |
60.802 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 (Amount USD) |
31.03.2006 (Rupees in
Millions) |
31.03.2005 (Amount in Millions) |
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Sales Turnover |
5519662 |
78.505 |
56.573 |
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Other Income |
2586 |
0.093 |
0.363 |
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Total Income |
5524834 |
78.598 |
56.936 |
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Profit/(Loss) Before Tax |
637906 |
12.403 |
16.325 |
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Provision for Taxation |
252385 |
0.000 |
6.283 |
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Profit/(Loss) After Tax |
385521 |
12.403 |
10.042 |
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Expenditures : |
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Interest |
NA |
1.277 |
1.644 |
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Insurance Expenses |
NA |
0.225 |
0.091 |
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Salaries, Wages, Bonus, etc. |
NA |
4.995 |
3.606 |
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Payment of Auditors |
NA |
0.120 |
0.126 |
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Barge Operations |
1588619 |
NA |
NA |
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C and F Agency Expenses |
11653 |
NA |
NA |
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Logistics Expenses |
2808870 |
NA |
NA |
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Financing Charges |
89082 |
NA |
NA |
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Depreciation & Amortization |
58464 |
2.169 |
1.565 |
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Other Expenditure |
330240 |
57.409 |
33.581 |
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Total Expenditure |
4886928 |
66.195 |
40.613 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total
Income |
(%) |
6.97
|
15.78 |
15.77 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.55
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15.79 |
25.64 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
18.58
|
12.43 |
24.32 |
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Return on Investment (ROI) (PBT/Networth) |
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0.21
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0.21 |
0.30 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.28
|
0.34 |
0.15 |
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Current Ratio (Current Asset/Current Liability) |
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1.73
|
2.01 |
2.43 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
♦
Barges
♦
Furniture
♦
Vehicles
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Name of the company |
LOTS SHIPPING LIMITED |
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Presented By |
Mr. M. K. Suresh, Director |
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1) Date and description of instrument creating the change |
06.02.2003 Agreement for cash credit hypothecation of debts & assets in Form L dated 06.02.2003 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
All borrowers present and future book debts, outstanding monies, receivables, claims, bills, contracts, engagements, securities, investments, rights and assets |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 13.75% per annum. Repayable on Demand |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Travancore Panampilly Nagar Branch, |
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6) Date and brief description of instrument modifying the charge |
06.06.2005 1. Agreement of hypothecation of goods and assets dated 06.06.2005 2. Agreement of loan for overall working capital limit dated 06.06.2005 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
On 06.06.2005 [i] Bank has sanctioned an additional cash credit facility of Rs. 3.500 millions in addition to the existing cash credit limit of Rs. 2.500 millions thus making the total cash credit facility to Rs. 6 millions. [ii] Bank has sanctioned a fresh Bank guarantee limit of Rs. 2.500 millions [iii] Thus the overall limit of working capital increased to Rs. 8.500 millions from Rs. 2.500 millions details of the enhanced limits sanctioned by the bank [Rupees in Millions]
[iv] First charge by way of hypothecation of whole of borrowers goods, movables, and other assets present and future including documents of title to the goods and other assets such as book debts, outstanding monies, receivables, claims, bills, invoices, documents, contracts, insurance policies, guarantees, engagements, securities, investments and rights on uncalled capital. All machinery present and future stand extended to cover the increased limit of Rs. 8.500 millions |
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Name of the company |
LOTS SHIPPING LIMITED |
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Presented By |
Mr. M. K. Suresh, Director |
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1) Date and description of instrument creating the change |
06.10.2005 1. Hypothecation agreement for term loan dated 06.10.2005 2. Term loan agreement dated 06.10.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Whole of the movable assets / machineries / vessels / vehicles of the borrower including movable plant and machinery, machinery spares, tools and accessories and other movables both present and future whether installed or not and whether now lying loose or in cartons or boxes or other packing which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or be stored or be in or about the borrowers factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the borrower or in the course of transit or on high seas or on order or delivery, short particulars are give in schedule I of the hypothecation agreement dated 06.10.2005 ie. All barges, present and future of the company viz. meenachil – dry cargo, muziris-dry cargo, manimala-dry cargo, chitrapuzha-dry cargo, pride-tanker barge, pampa glory-acid barge [new], subsidy – 2 nos [new] and/or first charge on fixed assets. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at 1% below SBT PLR subject to a minimum of 10% per annum and also interest tax if any. Bullet repayment |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Travancore Panampilly Nagar Branch, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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Name of the company |
LOTS SHIPPING LIMITED |
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Presented By |
Mr. M. K. Suresh, Director |
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1) Date and description of instrument creating the change |
06.06.2005 1. Term loan agreement for high value advances 2. Deed of hypothecation for Term Loan |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 23.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge by way of hypothecation of all the borrowers movables [save and except book debts] including movable machinery, machinery spares, tools and accessories, present and future subject to the prior charges created and to be facilities over the borrowers raw materials, semi-finished and finished goods, consumable stores, book debts and such other movables as may be agreed to by the bank |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Repayment within 64 months in 60 equal monthly instalments of Rs. 0.385 million each. In the event of any default in the payment of instalments of principal or interest or any other monies on the due dates, the borrower shall pay on the defaulted amount further interest at 2% per annum as penal interest |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Travancore Panampilly Nagar Branch, |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
Lots Shipping launches 8th cargo barge
Their Bureau
The inland water
transport operator, Lots Shipping Ltd,
Constructed at a
cost of Rs 14.000 millions the new barge is the eighth inland water barge owned
by the company. This is the first barge built under the capital subsidy scheme
of Inland Water Authority of India. It is a `flat bottom dry cargo cum
container' barge propelled by two engines.
The new barge,
constructed at Master Shipyard owned by Lots, is capable of carrying raw
materials for various public sector undertakings in the National Waterways.
The yard,
floated by Lots in 2004, has established itself as a leading ship
building-cum-repair yard on the West Coast. It has the facility to build 3,500
DWT.
LARGEST TONNAGE
With a diverse
fleet of eight barges carrying dry and liquid cargoes, Lots Shipping operates
the largest and newest tonnage over national waterways in the State. Besides
meeting the water transport requirements of companies such as FACT, Binani Zinc
Ltd in the State, the company has operations for barge transportation of iron
ore in
The company has
successfully transported over a million tonnes of cargo by barges in ports
along the west coast.
History
Subject is a public limited company Registered under the Companies Act
1956. The main objective of the Company is to tap the largely underutilized
opportunities in Inland Water Transportation, Costal Shipping and Near Coastal
Shipping. The Company saw an emerging opportunity in IWT and launched its first
vessel? M.B.Meenachil, a 600 MT dry cargo cum container carrier in the year
2001. Since then, the Company has made steady progress in acquiring vessels and
presently owns 8 vessels. It has also leased 6 vessels.
Subject is now the biggest barge operator in the National Waterway 3 in
Kerala offering a diversified fleet with the ability to carry varied cargoes.
The Company has emerged as a key provider of barging services along the West
Coast of India and has successfully transported over a million tones of cargo.
In Kerala, the Company has contracts with FACT, Binani Zinc Limited etc.
Besides Kerala, Subject has operations in Karwar (Karnataka),
Subject has made its presence felt in the near coastal sector with
the introduction of the M.V.Thekkady, which is operated on the Tuticorin - Male
sector.
Subject is ISO 9001-2000 accredited. The company has also received
the SMERA (Small & Medium enterprise Rating Agency) rating with the
international rating agency Dun & Bradstreet.
The size of the company based on its net worth (Rs.50.000 millions to
Rs.200.000 millions) and 2 indicates the rating in the scale 1 to 8 where 1
being the highest and 8 being the lowest
Subject is also providing total logistics solutions for various
organizations.
Executive Summary:
Subject is also providing total logistics
solutions for various organizations. Subject successfully provided the complete
logistics solution for the Single Point Mooring project of the Kochi Refineries
Limited. The project required 1652 special coated steel pipes of 12.2 mts
length to be transport form
The combined turn over of the group for the
year 2005 – 07 in USD 8 Mn. The Company ha recorded more than doubled its
turnover every year for the last few years. Profitability has kept pace with
increase in turnover.
There is a huge potential for inland water and
coastal shipping in
The company has drawn up comprehensive
expansion program spread over 3 to 4 years.
Subsidiaries:
To harness the emerging opportunities to the fullest extent, Subject has
created two wholly owned subsidiaries LOTS International and Master Shipyard
Private Limited.
LOTS International Limited -
An offshore company registered in the UAE, was formed to take advantages
in the emerging opportunities in the international market. It has a share
capital of DHS 750,000 which is fully held by LOTS Shipping Limited.
The company owns a Mr. MV Thekkady, a 710 dwt general cargo vessel,
which is presently plying between Tuticorin – Male route. The company also owns
the Mr. M. V Ponmudi which is now trading on the west coast of
Master Shipyard Private Limited –
Is a ship building company located at Edakochi famous for its
traditional ship building and repairing legacy. The company has leased 2 acres
of land in the waterfront where it has the ship-building yard. It has also
leased 4 acres of land. The company has so far successfully built and launched
3 barges and is in the process of constructing 3 more. The yard is equipped to
construct vessels up to 3500 DWT. Master Shipyards is a SSI unit.
Master Shipyard is presently involved in the construction of a 3300 dwt
coastal vessel for its parent company. The designing and development is being
done y the Department of Ocean Engineering, Indian Institute of Technology,
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.40.41 |
|
|
1 |
Rs.81.37 |
|
Euro |
1 |
Rs.54.98 |
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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|