MIRA INFORM REPORT
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Report Date : |
24.07.2007 |
IDENTIFICATION
DETAILS
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Name : |
ORIENT
PAPER AND INDUSTRIES LIMITED |
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Registered Office : |
Unit
VIII, Plot No. 7, Bhoinagar, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25.07.1936 |
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Com. Reg. No.: |
15-117 |
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CIN No.: [Company Identification No.] |
L21011OR1936PLC000117 |
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TAN No.: [Tax Deduction & Collection Account
No.] |
HYDO00346D |
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Legal Form : |
A
Public Limited Liability Company. The company shares are listed on the Stock
Exchange. |
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Line of Business : |
Manufacturer
of Paper and Paperboards. |
RATING
& COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 6900000 |
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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 satisfactory track. Trade
relations are fair. Financials position is good. Payments are correct and as
per commitments. The
company can be considered good for any normal business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Unit
VIII, Plot No. 7, Bhoinagar, |
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Tel. No.: |
91-674-2396930,
2392947 |
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Fax No.: |
91-674-2396364 |
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E-mail : |
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Website: |
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Plant
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ORIENT CEMENT P.O.:- Devapur Cement Works, Dist.:-
Adilabad, Andhra Pradesh PIN - 504 218 Vill:- Nashirabad, National Highway No. 6,
Dist.:- Jalgaon , Maharastra PIN - 425 309 ORIENT FANS 6, 11, Industrial Estate, Sector – 6, |
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Corporate
Office : |
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Tel. No.: |
91-33-2248
0135/2213 1680 |
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Fax No.: |
91-33-2243
0490 |
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E-mail : |
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Mills: |
v Brajrajnagar, Orissa v Amlai, Madhya Pradesh v Devapur, Andhra Pradesh v Kolkata, v v Jalgaon, |
DIRECTORS
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Name : |
Mr.
C.K. Birla |
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Designation : |
Chairman |
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Name : |
Mr.
B.K. Jhawar |
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Designation : |
Director |
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Name : |
Mr. P.K. Sen |
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Designation : |
Director |
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Name : |
Mr.
D.N. Patodia |
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Designation : |
Director |
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Name : |
Mr. A. Ghosh |
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Designation : |
Director |
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Name : |
Mr. V.
Nachiappan |
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Designation : |
Nominee
– ICICI |
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Name : |
Mr.
Michael Bastian |
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Designation : |
Nominee
– IDBI |
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Name : |
Mr. M.
L. Pachisia |
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Designation : |
Managing
Director |
KEY
EXECUTIVES
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Name
: |
Mr. S
L Saraf |
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Designation
: |
Secretary |
MAJOR
SHAREHOLDERS
Statement showing Shareholding Pattern
As on 31st December,2006
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
699409 |
4.71 |
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Central Government/ State Government(s) |
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Bodies Corporate |
3833286 |
25.84 |
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Financial Institutions/ banks |
78244 |
0.53 |
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Any Other (specify) |
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Sub-Total (A)(1) |
4610939 |
31.08 |
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Foreign |
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Individuals (Non-Resident Individuals/ Foreign non Individuals) |
1000 |
0.01 |
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Public
shareholding3 |
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Institutions |
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Mutual Funds/ UTI |
2562548 |
17.27 |
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Financial Institutions/ Banks |
26492 |
0.18 |
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Central Government/ State Government(s) |
400 |
0.00 |
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Venture Capital Funds |
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Insurance Companies |
1767720 |
11.91 |
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Foreign Institution Investors |
286725 |
1.93 |
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Foreign Venture Capital Investors |
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Any Other (specify) |
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Sub-Total (B)(1) |
4643885 |
31.30 |
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Non-instititions |
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Bodies Corporate |
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individuals- i. Individual shareholders
holding nominal share capital up to Rs. 1 lakh. |
2939611 |
45.15 |
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ii. Individual shareholders holding nominal
share capital in excess in excess of Rs. 1 lakh. |
1846463 |
12.44 |
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i. Individuals (Non-Resident Individuals/
Foreign non Individuals) |
431991 |
2.91 |
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ii. OCBs |
80151 |
0.54 |
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Sub-Total (B)(2) |
283250 |
1.91 |
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Total public
shareholding (B)= (B)(1)+(B)(2) |
5581466 |
37.62 |
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TOTAL (A)+(B) |
10225351 |
68.92 |
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GRAND TOTAL
(A)+(B)+(C) |
14837290 |
100.00 |
BUSINESS
DETAILS
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Line of Business : |
Manufacturer
of Paper and Paperboards. |
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Products : |
Pulp,
Paper and Board |
PRODUCTION
STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Pulp, Paper and Board |
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Amlai |
MT |
85000 |
95000 |
82851 |
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Brajrajnagar |
MT |
76000 |
76000 |
-- |
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Caustic Soda |
MT |
3292 |
3292 |
-- |
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Chlorine |
MT |
2926 |
2926 |
-- |
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Portland Cement |
MT |
2400000 |
2400000 |
2112132 |
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Electrostatic Precipitator |
Nos. |
30 |
30 |
-- |
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Screwbbers, Cyclones, Bag Filters |
Nos. |
970 |
970 |
-- |
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Electric Fans |
Nos. |
1674000 |
2580000 |
2566741 |
GENERAL
INFORMATION
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Bankers : |
Ż
Central Bank of |
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Facilities : |
NOTES: 1. (a) Rupee loans of Rs. 195.9
Millions from Financial Institutions/Banks are secured by a mortgage/charge
ranking pari-passu with each other on the immovable properties pertaining to
the Paper plants at Amlai and Brajrajnagar and Cement plant at Devapur, both
present and future, save and except such assets as are excluded by the
financial institutions/banks and the agents/trustees for the debenture
holders and a charge on the movable assets of the Company's said units,
subject to prior charges created/to be created in favour of the Company's
bankers for working capital requirements. (b) Non-Convertible Debentrues
of Rs. 100.5 Millions are secured by a mortgage/charge on the Company's
freehold land at Mehsana, Gujarat and subservient charges on the
immovable/movable properties of the Company's Paper plants at Amlai &
Brajrajnagar and Cement plant at Devapur. 2. Rupee/Foreign Currency loans of Rs. 1999.0
Millions from Financial Institutions/Banks and Non-Convertible debentures of
Rs. 81.7 Millions are secured by mortgage/charges ranking pari-passu with
existing charges on immovable properties pertaining to paper Plants at Amlai
and Brajrajnagar and Cement Plants
at Devapur and Jalgaon, both present and future, save and except such assets
as are excluded by the financial institutions/banks and the agents/trustees
for the debenture holders and a charge on the movable assets of the Company's
said units subject to prior charges created/to be created in favour of the
Company's bankers for working capital requirements. The aforesaid Rupee/Foreign
currency loans are further secured by exclusive mortgage/charges on property
held by the Company at The above debentures are
further secured by a charge on the Company's land at Lonavala, Maharastra. 3. The debentures indicated
above are redeemable as follows : Year of Redemption Amount (Rs. In Millions) 2006-07
84.600 2007-08 97.600 4. Loans of Rs. 41.1 Millions
from Financial Institutions/Banks are secured against assets constructed
there against. 5. Short-term loans of Rs.
510.0 Millions from bodies corporate are secured against investments held by
the Company and by third parties. 6.Deferred Payment Credits are
secured by assets acquired there against. 7. Other loans of Rs. 447.4 Millions are
secured against hypothecation of stock in trade, stock in process, raw
materials, stores and chemicals, book debts and other current assets of the
Company. Besides, loans of Rs. 112.1 Millions are further secured by an
equitable mortgage of the fixed assets of the Company's 8. The above term loans include
Rs. 952.6 millions (Rs. 729.7 millions)
falling due for payment within one year. |
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Banking Relations : |
Satisfactory
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Auditors : |
S. R.
Batlibol & Company Chartered
Accountant |
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Address: |
22, Camac Street, Block
"C", 3rd Floor, Kolkata-700 016, West Bengal, India |
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Subsidiaries : |
v
Air Conditioning Corporation Limited v
OPI Exports Limited |
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Associated: |
v
Origami Products v
Origami Tissues v
Origami v
Time Design Private Limited v
Next Link Private Limited v
Suraj General Engineering Private Limited v
Shine Makers v
Suraj Industrial Corporation |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
75000000 |
Equity
Shares |
Rs. 10/- |
Rs. 750.000 Millions |
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2500000 |
Preference
Shares |
Rs. 100/- |
Rs. 250.000 Millions |
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Total |
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Rs. 1000.000 Millions |
Issued
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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14837610 |
Equity
Shares |
Rs. 10/- |
Rs. 148.376 Millions |
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2000000 |
12%
Redeemable Cumulative Preference Shares |
Rs. 100/- |
Rs. 200.000 Millions |
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Total |
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Rs. 348.376 Millions |
Subscribed
& Paid-up Capital
|
No.
of Shares |
Type |
Value |
Amount |
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14837610 |
Equity
Shares |
Rs. 10/- |
Rs. 148.376 millions |
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Add: Forfeited
Shares (Amount Originally Paid up ) |
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Rs. 0.002 millions |
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2000000 |
12%
Redeemable Cumulative Preference Shares |
Rs. 100/- |
Rs. 200.000 millions |
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Total |
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Rs. 348.375Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
348.400 |
348.375 |
348.375 |
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2] Reserves & Surplus |
1391.500 |
310.559 |
299.983 |
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3] (Accumulated Losses) |
0.000 |
0.000 |
(120.491) |
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NETWORTH |
1739.900 |
658.934 |
527.867 |
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LOAN FUNDS |
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1] Secured Loans |
2561.600 |
3383.907 |
3611.145 |
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2] Unsecured Loans |
685.200 |
973.661 |
1204.112 |
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TOTAL BORROWING |
3246.800 |
4357.568 |
4815.257 |
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TOTAL |
4986.700 |
5016.502 |
5343.124 |
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APPLICATION
OF FUNDS |
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FIXED
ASSETS [Net Block] |
2856.900 |
2962.172 |
3126.378 |
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Capital
work-in-progress |
656.400 |
73.323 |
43.517 |
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Capital
Expenditure on New Projects |
0.000 |
6.154 |
6.154 |
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INVESTMENT |
134.000 |
134.770 |
135.752 |
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DEFERREX
TAX ASSETS |
0.000 |
273.210 |
374.485 |
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CURRENT
ASSETS, LOANS & ADVANCES |
|
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Inventories |
926.000
|
863.340
|
902.823 |
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Sundry
Debtors |
1235.900
|
1102.894
|
1019.398 |
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Cash
& Bank Balances |
170.800
|
174.652
|
178.656 |
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Other
Current Assets |
0.000
|
88.145
|
49.450 |
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Loans
& Advances |
1304.100
|
754.705
|
598.788 |
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Total Current
Assets |
3636.800 |
2983.736
|
2749.115 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current
Liabilities |
2239.500
|
1358.101
|
1132.500 |
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Deferred
Payment Liabilities |
0.000
|
71.968
|
97.969 |
|
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Provisions |
179.300
|
127.470
|
56.231 |
|
Total Current
Liabilities |
2418.800 |
1557.539
|
1286.700 |
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Net Current Assets |
1218.000 |
1426.197
|
1462.415 |
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MISCELLANEOUS
EXPENSES |
121.400 |
140.676 |
194.423 |
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TOTAL |
4986.700 |
5016.502 |
5343.124 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
12832.900 |
10233.000 |
8746.800 |
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Other Income |
299.000 |
186.000 |
349.600 |
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Total
Income |
13131.900 |
10419.000 |
9096.400 |
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Profit/(Loss) Before Tax |
1960.200 |
350.400 |
42.100 |
|
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Provision for Taxation |
653.400 |
134.600 |
14.700 |
|
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Profit/(Loss) After Tax |
1306.800 |
215.800 |
27.400 |
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Total
Earnings |
NA |
392.705 |
407.152 |
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Total
Imports |
NA |
71.730 |
65.012 |
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Expenditures : |
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Manufacturing Expenses |
941.300 |
922.400 |
835.300 |
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Administrative Expenses |
1943.700 |
1545.900 |
1193.900 |
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Raw Material Consumed |
3280.700 |
2660.200 |
2379.000 |
|
|
Miscellaneous Expenses |
487.400 |
479.000 |
352.400 |
|
|
Salaries, Wages, Bonus, etc. |
741.400 |
631.200 |
618.800 |
|
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Interest |
348.200 |
465.100 |
528.200 |
|
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Depreciation & Amortization |
262.200 |
266.100 |
270.700 |
|
|
Other Expenditure |
1641.800 |
1545.100 |
1438.900 |
|
Total
Expenditure |
9646.700 |
8515.000 |
7617.200 |
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
3.49 |
9.60 |
12.33 |
|
Long
Term Debt-Equity Ratio |
3.01 |
7.48 |
8.97 |
|
Current
Ratio |
1.33 |
1.24 |
1.13 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
1.90 |
1.54 |
1.32 |
|
Inventory |
14.34 |
11.59 |
10.50 |
|
Debtors |
10.97 |
9.64 |
7.79 |
|
Interest
Cover Ratio |
6.63 |
1.61 |
0.84 |
|
Operating
Profit Margin(%) |
20.03 |
9.93 |
8.18 |
|
Profit
Before Interest And Tax Margin(%) |
17.99 |
7.33 |
5.08 |
|
Cash
Profit Margin(%) |
12.23 |
4.29 |
2.14 |
|
Adjusted
Net Profit Margin(%) |
10.18 |
1.69 |
(0.95) |
|
Return
On Capital Employed(%) |
48.49 |
15.14 |
8.71 |
|
Return
On Net Worth(%) |
144.18 |
30.78 |
(32.62) |
STOCK PRICES
|
Face
Value |
Rs.1/- |
|
High |
Rs.494.95 |
|
Low |
Rs.480.05 |
LOCAL
AGENCY FURTHER INFORMATION
Bio
Data:
Subject
is part of CK Birla Group, is an diversified company having interest in Papers,
Cement and Electric Fans.
Paper Division
Subject is a pioneer and leading manufacturer of paper and paperboards in the
country. Its two paper plants are situated in Amlai, Madhya Pradesh and
Brajrajnagar, Orissa each with a capacity of 76,000 tpa and 85,000 tpa,
respectively. The company is also into production of Caustic Soda and its
byproduct Chlorin as part of backward integration.
The Amlai unit was designed to produce cultural varieties of paper. The company
further modernised its Brajrajnagar and Amlai units and established a new
bagasse-based paper mill.
Subject has provided technical and financial aid to Panafrican Paper Mills (E.A),
to set up a pulp and paper mill in
Subject has completed installation of 40 tonnes per day Tissue Paper of world
class qualtity at Amlai during the year 1996-97. The company has also
sucessfully completed the installing a 6 MW back pressure turbine, upgradation
of the
The Brajrajnagar plant which has been a constant drag on the company's
performance for several years has introduced the Voluntary Retirement Scheme
which received a good response.The company earned Rs.58.077 Millions for
technical know-how and services rendered to the Pan African Paper Mill (E.A) Limited,
Kenya.
Cement Division
Subject has two Cement units at Devapur, Andhra Pradesh and Jalgaon,
The company, in the second half of 90's has underkaken effors to expand
modernise and upgrade its cement facility. In 1995-96, it undertook an
expansion -cum-modernisation at its cement division to increase the capacity to
1.75 Million MTPA. It had set up an additional clinkerisation capacity at its
existing plant at Devapur, Andhra Pradesh and a split grinding unit with
packing facilities of 0.57 Million tonnes per annum at Jalgaon, Maharashtra.
Upgradation of Truck Loading with Mechanical Auto Loaders is being taken up at
Devapur Cement Plant at a investment of Rs.3.00 Millions. As on March 31, 2002,
the total cement capacity of the company stood at 2.0 Million MTPA.
The company has not seen any progress in its efforst to sale it's Cement
Division.
Fan Division
Orient Fans Division, which came into the fold of OPIL by the merger of Orient
General Industries Limited, a wholly owned subsidiary of OPIL with effect from
March 1, 1995 on approval of High Courts of Cuttak and
Subject markets fans under the popular brand 'Orient Fans'. The company has two
units form manufacturing fans at Kolkata, West Bengal and
Subsidiary Companies
Subject has three subsidiary companies i.e. Th Air Conditioning Corporation Limited,
OPI Exports and Orient Dealers and Traders Limited The Air Conditioning
Corporation is into manufacturing of Industrial Blowers, Room Airconditioners,
Bag Filter. OPI Exports, another subsidiary of subject is into Trading and
investment.
Subject has diversified into the manufacture of air pollution control equipment
in collaboration with the Odge-Cottrel,
Fixed
Assets:
Freehold
Land, Leasehold Land, Factory Building, Non-Factory Building, Railway Siding,
Plant & Machinery, Furniture & Fixtures, Office Equipment, Conveyance,
Locomotives and Boats.
Website Details :
Subject believes
that resources must be dynamically matched with a strong commitment to
excellence in products and processes though a team of dedicated people, while
ensuring a clean environment for their planet, the earth. All to server the
customer better. Today and tomorrow. Across the country and beyond its borders,
graced with service from the heart which says, "you mean the world to them".
Orient Paper
Orient Paper Mills is one of
Fully integrated with facilities for production of high strength pulp combined
with reafforestation.
Orient Cement
Orient
Cement's
state-of-the-art manufacturing facility at Devapur in Andhra Pradesh and
at Jalgaon in Maharastra.
Orient Fans
Orient
Fans introduced the
cutting edge techno- logy, revolutionary invention and the most sought after
benchmark in the fan industry.
Incorporated
in 1939 with a single paper machine and now a multi-product, multi-location
Company, that's much more than paper. That's Orient Paper and Industries Limited, a proud member of one of the
premier and most dynamic business houses of
The G P Birla / C K Birla Group has
promoted and established a large number of industrial undertakings
manufacturing a diverse range of products such as Automobiles, Earthmoving
Equipment, Engineering Products, Ball Bearings, Building Materials, Chemical
Plants and Software Development etc.
In keeping with the Birla philosophy, giving shape to customers' aspirations is
Orient Paper and Industries Limited's
pivotal strength. Keeping abreast of new technology, its credo. Preserving the
hues and shades of nature, its obsession.
No wonder then, that in the Paper Industry Orient Paper and Industries Limited commands the status of a
leader with a vision. In cement, it has earned a solid reputation. In
appliances, Orient, has become a household name.
And, all combined Orient Paper and
Industries Limited in seen as a company with a cutting edge. A hi-tech,
customer friendly, eco-responsive corporate citizen, that is Shaping a Better
Tomorrow for everyone.
Products
Orient Paper Mills is one of
Fully integrated with facilities for production of high strength pulp combined
with reafforestation, high speed paper machines and independent power
generation, Orient Paper Mills is
in total control right from raw materials to the production of a variety of
superior papers and boards.
The Orient Paper Mills plants
at AMLAI, Madhya Pradesh have
manufacturing facilities to produce a variety of grades and types of papers.
Judicious deployment of new technology, abiding commitment to total quality
management systems and ingenuity in research and product development have
enabled Orient Paper Mills to
carve out an important niche not only in the Indian market but in several other
countries as well.
The Company has recently set up state-of-the-art facilities to produce a
spectrum of Soft Tissue Paper of world class quality.
On the global plane, Orient Paper Mills
has blazed a trail by promoting and successfully managing Pan African
Paper Mills Limited,
To perpetuate progress, the Paper Division of Orient Paper Mills continually improving its people, products and
processes as it marches ahead in its quest for even higher standards of
excellence.
As an integral part of its growth oriented strategy Orient Paper Mills has always
identified exports as a priority area. That Orient Paper Mills has been in the forefront in this field is a
reflection of this attitude, as more and more countries express satisfaction
with Orient Paper Mills quality,
its papers and paper boards are in wide demand in several countries. Orient
Paper products are being regularly shipped to Africa,
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.40.30 |
|
|
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.55.64 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|