MIRA INFORM REPORT

 

 

Report Date :

27.06.2007

 

IDENTIFICATION DETAILS

 

Name :

HAITOGLOU BROS S.A.

 

 

Registered Office :

57009, Kalochori, Thessaloniki

 

 

Country :

Greece

 

 

Financials (as on) :

31.12.2006

 

 

Date of Incorporation :

1924

 

 

Legal Form :

Societe Anonyme                                       

 

 

Line of Business :

Production of halva, sesame paste, marmalade, hazelnut praline, vanilla sweet, wafers, sesame and honey cake, organic products (also for third parties). Processing, imports and trade of honey and sesame.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

name & address

 

HAITOGLOU BROS S.A.

57009, Kalochori, Thessaloniki

Tel.: 2310 389700

Fax: 2310 751747

U.R.L.: www.haitogloubros.com

E-mail: info@haitogloubros.com

 

 

Sector

 

Industry (Food Products)

 

 

Year Established

 

1985

 

 

Year Founded

 

1924

 

 

Chairman, Managing Director

 

Alexandros Nik. Haitoglou 

 

 

Managing Director

 

Konstantinos Nik. Haitoglou

 

 

Executive Director

 

Dimitrios Ele. Haitoglou             

 

 

Capital

 

Euro 16.047.810

 

 

 

Shareholders Equity

 

Euro 25.321.172 (31/12/2006)

 

 

Total Net Sales

 

Euro 67.300.037 (1/1/2006 - 31/12/2006)

 

 

Net Income for the Year Before Tax

 

Euro 1.009.587 (1/1/2006 - 31/12/2006)

 

 

Staff of employees

 

377

 

 

FINANCIAL STATUS    

 
Good                                            
 
 

PAYMENT RECORD    

 
Prompt                                          
 
 

TREND   

 
Upward
 
 

GOV. GAZETTE No

 
00022/1985  
 
 

TAX REGISTR. No

 
094132463                         
 
 

No OF THE REGISTER OF SOCIETE ANONYME

 
009207 /062 /Β /86 /1042                 
 
                                                                              

MEMBER OF   

 
THESSALONIKI CHAMBER OF COMMERCE & INDUSTRY                                                                       
 
 

GENERAL REG. No. 

 
0019885                                                
 
 

EXPORTS REG. No.  

 
0000231                                                
 
                                                                              

ISO Certificate

 
ISO 9001:2000                                         

Testifying Company : ELOT HELLENIC ORGANIZATION FOR STANDARDIZATION S.A.                                                          

 

 

ISO Certificate

 

ISO 14001                                              

Testifying Company : ELOT HELLENIC ORGANIZATION FOR STANDARDIZATION S.A.

 
 

LEGAL FORM

 
Societe Anonyme                                        
 
 

DATE ESTABLISHED

 
1985                                                   
 
 

HEAD OFFICE

 
Kalochori, Thessaloniki                                
 
 

DURATION

 
Up to year 2084
 
 

HISTORY

 
Established in Kalochori, Thessaloniki, in January 1985, following the change in the legal status of the general                        
partnership company, HAITOGLOU BROS O.E., originally founded in 1924.
 
 

ACTIVITY

 
Production of halva, sesame paste, marmalade, hazelnut praline, vanilla sweet, wafers, sesame and honey cake, organic products (also for third parties). Processing, imports and trade of honey and sesame. Trade of turkish delight
 
 

PREMISES (as declared )                                                      

 
HEAD OFFICE-PLANT: 570-09 Kalochori, Thessaloniki, owned, plot of land 107,000 m2, covered area 38,000 m2.                                       
                                                                               
Noted that in its head offices, subject also maintains warehouses.
 
 

STAFF

 
Employees      :  377 persons
 
 

SHAREHOLDERS(as declared)

 
by 35.00% Alexandros Nik. Haitoglou (born in 1954)                            
by 35.00% Konstantinos Nik. Haitoglou (born in 1952)                          
by 22.72% Dimitrios Ele. Haitoglou (born in 1929)                             
by 4.00% Nikolaos Kon. Haitoglou (born in 1925)                               
by 1.64% Styliani Dim. Haitoglou (born in 1942)                               
by 1.64% Eleftherios Dim. Haitoglou (born in 1973)
 
 

BOARD OF DIRECTORS

 
Alexandros Nik. Haitoglou        Chairman, Managing Director                     
Dimitrios Ele. Haitoglou            Vice-Chairman, Executive Director               
Konstantinos Nik. Haitoglou      Managing Director                               
Apostolos Kon. Vassileiou        Member                                          
Eleftherios Dim. Haitoglou        Member                                          
Olga Ale. Haitoglou                  Member                                          
Nikolaos Ale. Haitoglou            Member                                          
Dionyssia Kon. Haitoglou         Member                                          
Nikolaos Kon. Haitoglou           Member
 
 

PARTICIPATIONS

 
Subject participates in the following firm(s)                                 
 
by 100.00% BOLERO CONFECTIONERY OF THRACE S.A.                                
(Code No: 0152756  VAT: EL094450987)                                          
DATE ESTABLISHED: 1997                                                        
SECTOR: Industry (Food Products)                                              
Share capital : 1,360,000                                                     
Shareholders equity : 2,540,861                                               
Net Sales : 14,956,230                                                        
Net profit : 37,423                                                           
Balance sheet details as at (31.12.2005) in Euro.                             
HEAD OFFICE-PLANT: Industrial Area 691 00, Komotini, Rodopi                   
                                                                               
by 40.00% BIOART S.A.                                                         
(Code No: 4007800  VAT: EL094131780)                                          
DATE ESTABLISHED: 1984                                                        
SECTOR: Industry (Food Products)                                              
Share capital : 382,200                                                       
Shareholders equity : 570,060                                                 
Net Sales : 713,887                                                           
Net profit : 29,020                                                           
Balance sheet details as at (31.12.2005) in Euro.                             
HEAD OFFICE-PLANT: Industrial Area, Stavrochori 611 00, Kilkis                
                                                                               
by 25.00% PAPAYIANNIS BROS GREEK HALVA PRODUCERS S.A.                         
(Code No: 4035100  VAT: EL094023049)                                          
DATE ESTABLISHED: 1967                                                        
SECTOR: Industry (Food Products)                                              
Share capital : 1,746,876                                                     
Shareholders equity : 5,139,306                                               
Net Sales : 9,790,073                                                         
Net profit : 291,893                                                          
Balance sheet details as at (30.06.2006) in Euro.                             
HEAD OFFICE-PLANT: Larissas - Volou Rd (6th km), Melissochori                 
415 00, Larissa                                                                
                                                                               
by 2.50% STELLA S.A.                                                          
(Code No: 4042250  VAT: EL094105123)                                          
DATE ESTABLISHED: 1980                                                        
SECTOR: Industry (Food Products)                                              
Share capital : 3,003,335                                                     
Shareholders equity : 122,611                                                 
Net profit : -174,853                                                         
Balance sheet details as at (31.12.2005) in Euro.                             
HEAD OFFICE-PLANT: 7 Dafnis, Athinon Ave (side street) 122 43,                
Aigaleo, Attiki                                                                
Said firm dissolved in 2006
 
 
 
AFFILIATED COS:                                                                
Alexandros Nik. Haitoglou participates in the firm(s):                        
                                                                               
  -ERGOKTIMATIKI MAKEDONIAS S.A. by 40.00%                                    
(Code No: 0036753  VAT: EL094297024)                                          
DATE ESTABLISHED: 1990                                                        
SECTOR: Real Estate                                                           
Share capital : 5,052,000                                                     
Shareholders equity : 4,781,019                                               
Net Sales : 443,086                                                           
Net profit : 122,199                                                          
Balance sheet details as at (31.12.2006) in Euro.                             
HEAD OFFICE: 5 Lordou Vyronos 570 09, Kalochori, Thessaloniki                 
                                                                               
  -HAITOGLOU BROS S.A. by 25.50%                                              
(Code No: 0209727  VAT: EL094396708)                                          
DATE ESTABLISHED: 1993                                                        
SECTOR: Business Services                                                     
Share capital : 58,700                                                        
Shareholders equity : 74,608                                                  
Net Sales : 580,632                                                           
Net profit : 84,103                                                           
Balance sheet details as at (31.12.2006) in Euro.                             
HEAD OFFICE: Ag. Antoniou & 4 Skoufa, Patima 152 38, Halandri,                
Attiki                                                                         
                                                                               
  -EVZONIKI S.A. by 25.00%                                                    
(Code No: 0247643  VAT: EL099799547)                                          
DATE ESTABLISHED: 2001                                                        
SECTOR: Industry (Food Products)                                              
Share capital : 1,640,000                                                     
Shareholders equity : 1,182,647                                               
Net Sales : 3,698,852                                                         
Losses : -180,556                                                             
Balance sheet details as at (31.12.2006) in Euro.                             
HEAD OFFICE-WORKSHOP: Evzonoi 612 00, Polykastro, Kilkis                      
                                                                               
  -HAITOGLOU HARTEL S.A. by 38.00%                                            
(Code No: 6314000  VAT: EL094484757)                                          
DATE ESTABLISHED: 1996                                                        
SECTOR: Industry (Paper & products)                                           
Share capital : 2,585,400                                                     
Shareholders equity : 6,551,075                                               
Net Sales : 33,015,769                                                        
Net profit : 113,263                                                          
Balance sheet details as at (31.12.2006) in Euro.                             
HEAD OFFICE-PLANT: 5 Lor. Vyronos 570 09, Kalochori,                          
Thessaloniki                                                                   
                                                                               
  -MEDIA LTD by 50.00%                                                        
(Code No: 0203009  VAT: EL095440261)                                          
DATE ESTABLISHED: 1992                                                        
SECTOR: Trade (Food Products)                                                 
Paid up capital : 146,735                                                     
Shareholders equity : -20,298                                                 
Net Sales : 1,868,801                                                         
Losses : -115,374                                                             
Balance sheet details as at (31.12.1995) in Euro.                             
HEAD OFFICE-WAREHOUSE: 9 Lordou Vyronos 570 09, Kalochori,                    
Thessaloniki                                                                   
                                                                               
Konstantinos Nik. Haitoglou participates in the firm(s):                      
                                                                               
  -ERGOKTIMATIKI MAKEDONIAS S.A. by 40.00%                                    
(as mentioned before)                                                         
                                                                               
  -HAITOGLOU BROS S.A. by 25.50%                                              
(as mentioned before)                                                         
                                                                               
  -EVZONIKI S.A. by 25.00%                                                    
(as mentioned before)                                                         
                                                                               
  -HAITOGLOU HARTEL S.A. by 38.00%                                            
(as mentioned before)                                                         
                                                                               
  -MEDIA LTD by 50.00%                                                        
(as mentioned before)
 
 

FINANCIAL DATA               

 
Share capital amounts to Euro 16,047,810 divided into 537,927 shares at EURO 29.83 each.                                                     
                                                                               
Prior to the last increase in 2007 (Gov.Gaz.357/2007) share capital amounted to 12,399,300 Euro. Present financial data are not available.                                                                 
                                                                               
The latest published balance sheets are attached.
 
 

MORTGAGES/PRENOTES                                                             

 
Details on subject up to 12.06.2007 :                                         
 
2006 1 Mortgage(s)/prenote(s)                                                 
For amount 45,000,000 Euro. On: 26 fields 126,772m2 in Sindos. In favour of Piraeus Bank S.A.                                                    
                                                                               
According to the 31/12/2006 balance sheet, subject's fixed assets are mortgaged and prenoted for 45,000,000 Euro, in favour of BANKS, to ensure loans received, the balance of which at 31/12/2006 amounted to 45,000,000 Euro.
 
 

BUSINESS TRANSACTION INDEX                                                     

 
Subject                                                                       
                                                                               
                  2007      2006       2005      2004       2003                       
                   ----          ----          ----         ----           ----                       
Group 1: 5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)                     
Group 2: 5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)                     
Group 3: 5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)                     
Total    : 5*(5.00)   5*(5.00)  5*(5.00)  5*(5.00)  5*(5.00)                     
                                                                               
Final Result: 5Stars (5.00)                                                   
                                                                               
Index: 5*, 4*, 3*, 2*, 1*, NA (Not applicable)
 
 

CREDIT APPRAISAL

 

We recommend a maximum credit limit of Euro 6,700,000

 

 

BANKS

 
Alpha Bank A.E.                                                               
  Mitropoleos Branch (tel.:231-0267311)                                       
  (Deposits-Loans-Imports/Exports)                                            
 
National Bank of Greece S.A.                                                  
  Dimokratias Sq Branch (tel.:231-0560928)                                    
  (Deposits-Loans-Imports/Exports)                                            
 
Alpha Bank A.E.                                                               
  Monastiriou (Menemeni) Branch (tel.:231-0539786)                            
  (Deposits-Loans-Imports/Exports)                                            
 
Bank of Piraeus S.A.                                                          
  I. Dragoumi (Thessaloniki) Branch (tel.:231-0542213)                        
  (Deposits-Loans-Imports/Exports)                                            
 
EFG EUROBANK ERGASIAS S.A.                                                    
  Thessaloniki Branch (tel.:231-0376900)                                      
 
EFG EUROBANK ERGASIAS S.A.                                                    
  Porto Center Branch (tel.:231-0556525)                                      
 
Bank of Piraeus S.A.                                                          
  Katouni Branch (tel.:231-0293802)                                           
 
Bank of Cyprus Ltd                                                            
  Thessaloniki (nikis Ave) Branch (tel.:231-0363000)                          
 
Credit Commercial de France                                                   
  Thessaloniki Branch (tel.:231-0533454-7)

 

 

SHORT FINANCIAL STATEMENT

(Figures in Euro)

 

ASSETS

 

ACCOUNTS

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Fixed Assets

74.572.066

6,84

69.797.584

43,63

48.596.230

Land

7.576.330

0

7.576.330

8,39

6.989.663

Buildings / Means of Transport / Furniture and Other Equipment

37.160.243

9,00

34.092.568

10,11

30.962.480

Machinery and Mechanical Equipment

37.066.544

14,03

32.505.487

30,48

24.912.002

Intangibles Assets and Estabishment Expenses

3.025.501

23,84

2.443.171

-15,88

2.904.517

Accumulated Depreciation

34.216.286

13,33

30.191.830

13,60

26.577.147

Depreciation of Buildings / Furniture / Means of Transport

16.672.236

9,31

15.252.560

9,80

13.891.307

Depreciation of Machinery and Mechanical Equipment

16.011.911

15,71

13.837.437

19,49

11.580.645

Depreciation of Intangible Assets and Establishment Expenses

1.532.138

39,05

1.101.833

-0,30

1.105.195

Long Term Receivables

153.564

7,30

143.122

-97,98

7.091.779

Participations

23.806.171

2,48

23.228.737

904,30

2.312.937

Inventories

31.541.658

7,25

29.408.979

26,84

23.185.429

Finished Products / Merchandise

13.672.346

35,48

10.091.953

37,05

7.363.522

Semi finished Goods

0

N/A

0

N/A

0

Raw Direct and Indirect Material

17.869.312

-7,49

19.317.026

22,09

15.821.907

Receivables / Transit balances

22.226.087

15,30

19.275.919

11,01

17.364.313

Receivables from Customers / Bills and Cheques

21.784.516

17,25

18.579.114

12,02

16.585.740

Marketable Securities

161.201

0,09

161.061

-61,48

418.125

Other Receivables / Transit Debit Balances

280.369

-47,67

535.743

48,63

360.448

Cash and Deposits

646.496

500,20

107.713

-87,32

849.451

Total Assets

128.986.307

8,77

118.590.195

31,77

89.995.424

LIABILITIES

 

ACCOUNTS

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Shareholders Equity

25.321.172

2,89

24.609.745

18,88

20.701.473

Share Capital

16.047.810

29,42

12.399.300

24,00

9.999.300

Capital Surplus

8.995.059

-24,36

11.891.639

11,16

10.698.216

Earned Surplus / Accumulated Losses

278.303

-12,70

318.806

7.956,76

3.957

Long Term Liabilities and Provisions

42.990.290

-16,74

51.634.224

743,83

6.118.996

Long Term Liabilities

42.850.013

-16,78

51.487.509

761,18

5.978.719

Provisions

140.277

-4,39

146.715

4,59

140.277

Current Liabilities / Transit Balances

60.674.845

43,28

42.346.226

-32,97

63.174.955

Short Term Bank Debt

43.136.448

59,74

27.004.175

-46,49

50.464.784

Suppliers / Bills Notes Payable and Cheques / Creditors

16.184.232

16,19

13.928.546

26,66

10.996.912

Dividends Payable

100.000

0

100.000

-18,91

123.325

Partners / Shareholders Accounts

0

N/A

0

N/A

0

Other Liabilities / Transit Credit Balances

1.254.165

-4,52

1.313.506

-17,39

1.589.933

Total Liabilities and Net Worth

128.986.307

8,77

118.590.195

31,77

89.995.424

PROFIT AND LOSS ACCOUNT

 

ACCOUNTS

1/1/2006 - 31/12/2006

CHANGE 06/05 (%)

1/1/2005 - 31/12/2005

CHANGE 05/04 (%)

1/1/2004 - 31/12/2004

Total Net Sales

0

N/A

0

N/A

0

Total Net Sales

67.300.037

20,57

55.818.272

18,95

46.924.636

Cost of Net Sales

54.763.879

19,80

45.712.779

22,49

37.318.446

Gross Margin

12.536.158

24,05

10.105.493

5,20

9.606.190

Commission and Other Operating Income

304.458

458,66

54.498

-21,71

69.613

Interest Expenses

3.664.504

41,08

2.597.391

9,80

2.365.598

Other Operating Expenses

8.138.427

21,91

6.675.506

13,14

5.899.923

Operating Results after Interest Expenses

1.037.685

16,98

887.095

-37,10

1.410.282

Non Operating Income

483.761

-19,34

599.735

-1,29

607.577

Non Operating Expenses

511.859

39,69

366.424

35,26

270.904

Depreciation Out of Cost

0

N/A

0

-100

446.882

Total Depreciation

4.692.555

8,66

4.318.763

17,68

3.669.926

Depreciation Included in the Operation Cost

4.692.555

8,66

4.318.763

34,00

3.223.044

Net Income for the Year Before Tax

1.009.587

-9,89

1.120.405

-13,82

1.300.073

Net Dividends

100.000

N/A

100.000

N/A

123.325

Income Tax

178.014

7,05

166.287

-42,14

287.398

COMPANY RATIOS

 

PROFITABILITY RATIOS

 

RATES

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Return on Equity (Before Income Tax) (%)

4,04

-18,38

4,94

-29,98

7,07

Return on Equity (Before Interest and Income Tax) (%)

18,72

14,08

16,41

-17,70

19,94

Return on Capital Employed (Before Interest and Income Tax) (%)

3,78

6,18

3,56

-20

4,45

Gross Profit Margin (%)

18,63

2,93

18,10

-11,58

20,47

Operating Profitability (%)

6,88

10,26

6,24

-21,90

7,99

Net Profit Margin (Before Income Tax) (%)

1,50

-25,37

2,01

-27,44

2,77

Net Profit Margin (before Interest, Income Tax, Depreciation and Non Operating Income) (%)

13,85

-0,93

13,98

-5,92

14,86

VIABILITY AND CAPITAL STRUCTURE RATIOS

 

RATES

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Financial Leverage (:1)

0,80

1,26

0,79

2,60

0,77

Total Debt Equity Ratio (:1)

4,09

7,07

3,82

14,03

3,35

Interest Coverage (Before Interest and Income Tax) (X)

1,28

-10,49

1,43

-7,74

1,55

LIQUITIDY RATIOS

 

RATES

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Current Ratio (Χ)

1

17,65

0,85

23,19

0,69

Quick Ratio (Acid Test) (Χ)

0,41

13,89

0,36

12,50

0,32

Working Capital (EURO)

-6.260.604,17

-197,12

6.446.384,38

129,60

-21.775.761,29

ACTIVITY RATIOS

 

RATES

31/12/2006

CHANGE 06/05 (%)

31/12/2005

CHANGE 05/04 (%)

31/12/2004

Collection Period (DAYS)

99

-7,05

106,51

0,16

106,34

Payable Period (DAYS)

98

1,06

96,97

11,42

87,03

Inventory Turnover (DAYS)

203

-3,32

209,97

0,18

209,60

Equity Turnover (Χ)

2,70

9,76

2,46

-3,53

2,55

Turnover of Capital Employed (Χ)

0,54

0

0,54

-5,26

0,57

INVESTOR RATIOS

 

RATES

31/12/2006

Share Internal Value (EURO)

47,07

Earnings per Share (EURO)

1,88

 

 

 

SECTOR RATIOS

 

PROFITABILITY RATIOS

 

RATES

2006

CHANGE 06/05 (%)

2005

CHANGE 05/04 (%)

2004

Return on Equity (Before Income Tax) (%)

4,90

-39,43

8,09

-19,58

10,06

Return on Equity (Before Interest and Income Tax) (%)

11,06

-15,96

13,16

-10,72

14,74

Return on Capital Employed (Before Interest and Income Tax) (%)

4,12

-19,53

5,12

-14,67

6,00

Gross Profit Margin (%)

23,87

-4,29

24,94

0,81

24,74

Operating Profitability (%)

5,28

-4,29

6,04

0,81

6,43

Net Profit Margin (Before Income Tax) (%)

2,58

-28,73

3,62

-18,47

4,44

Net Profit Margin (before Interest, Income Tax, Depreciation and Non Operating Income) (%)

8,67

-9,88

9,62

-2,83

9,90

ACTIVITY RATIOS

 

RATES

2006

CHANGE 06/05 (%)

2005

CHANGE 05/04 (%)

2004

Collection Period (DAYS)

125,31

22,80

102,04

0,72

101,31

Payable Period (DAYS)

102,51

17,85

86,98

7,70

80,76

Inventory Turnover (DAYS)

100,58

15,38

87,16

4,99

83,03

Equity Turnover (Χ)

1,90

-14,80

2,23

-1,76

2,27

Turnover of Capital Employed (Χ)

0,71

-18,39

0,87

-5,43

0,92

VIABILITY AND CAPITAL STRUCTURE RATIOS

 

RATES

2006

CHANGE 06/05 (%)

2005

CHANGE 05/04 (%)

2004

Financial Leverage (:1)

0,62

0

0,63

6,78

0,59

Total Debt Equity Ratio (:1)

1,67

-1,18

1,69

16,55

1,45

Interest Coverage (Before Interest and Income Tax) (X)

1,80

-30,77

2,60

-17,46

3,15

LIQUITIDY RATIOS

 

RATES

2006

CHANGE 06/05 (%)

2005

CHANGE 05/04 (%)

2004

Current Ratio (Χ)

1,20

0,84

1,19

-0,83

1,20

Quick Ratio (Χ)

0,86

2,38

0,84

-1,18

0,85

Working Capital (EURO)

709.346.352,29

-16,90

853.659.347,60

2,81

830.334.524,75

Sample of Companies: 687(2006), 1.295(2005), 1.317(2004)

 

NOTES

-

When the minus sign (-) appears to Income Tax Payable account or to other Tax accounts indicates that company is obliged to pay the particular tax amount, while the opposite signifies a tax return.

-

Some ratios are calculated using the average value of the accounts of the Balance Sheet or Midterm Statements. For applying this type of calculation, company's financial statements must be presented in succession, with common accounting standards (either Greek Standards or IFRS) and with the same depth of analysis. In the opposite case, the corresponding ratios are calculated based on the accounts as at they are presented in the reporting year.

-

N/A: Not Available

 

N/C: Not Calculable

 

The indications N/A and N/C may appear in cases where accounts that participate in the computation of the ratios or in the accounts changes are not detected in the original balance sheet as well as the computation of certain ratios does not have a meaning i.e. Return on Equity ratio or Total Dept Equity ratio for companies where Equity is negative, etc.

 

 

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

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions