MIRA
INFORM REPORT
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Report Date : |
25.06.2007 |
IDENTIFICATION DETAILS
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Name : |
MALAYSIAN INTERNATIONAL TRADING CORPORATION SDN BHD |
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Registered Office : |
Tower 1, Petronas Twin Towers, Kuala Lumpur City Centre, 50088
Kuala Lumpur, Wilayah Persekutuan |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28/01/1982 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Trading of Petrolchemicals, Plastic Raw Materials And Others |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 80474-V
COMPANY NAME : MALAYSIAN INTERNATIONAL TRADING CORPORATION
SDN
BHD
FORMER NAME : N/A
INCORPORATION DATE : 28/01/1982
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : TOWER 1,
CITY
CENTRE, 50088
BUSINESS ADDRESS :
AMPANG,
LUMPUR,
WILAYAH
TEL NO : 03 - 23311238/1169/8468
FAX NO : 03 - 23313074
CONTACT PERSON : FIREIDA AHMAD (GENERAL MANAGER)
INDUSTRY CODE : 51499
PRINCIPAL ACTIVITY : TRADING OF PETROLCHEMICALS, PLASTIC RAW
MATERIALS AND OTHERS
AUTHORISED CAPITAL : MYR200,000,000.00 DIVIDED INTO ORDINARY SHARE
100,000,000 OF MYR1.00 EACH.
PREFERENCE SHARE 1,000,000 OF MYR100.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR16,740,005.00 DIVIDED INTO ORDINARY SHARE
12,500,005 CASH OF MYR1.00 EACH.
PREFERENCE SHARE 42,400 CASH OF MYR100.00 EACH.
SALES : MYR7,236,225,000 [2006]
NET WORTH : MYR260,285,000 [2006]
M1000 OVERALL RANKING : 35 [2005]
M1000 INDUSTRY RANKING : 8 [2005]
STAFF STRENGTH : 400 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : AVERAGE GROWTH
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) trading of petrolchemicals, plastic raw materials and others.
The SC is not listed on
The SC is one of the Top Corporate Performers in the
According to the
YEAR 2005
OVERALL RANKING 35
INDUSTRY RANKING 8
The immediate holding company of the SC is PETROLIAM
NASIONAL BERHAD (PETRONAS), a company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
PETROLIAM NASIONAL BHD TOWER 1,
[ORD SHARES 12,500,005 & LUMPUR CITY CENTRE, 50088 KUALA
PREF SHARES 42,400] LUMPUR, WILAYAH PERSEKUTUAN,
--------------------
12,542,405
===========
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown as follows:
Local No Name (%) As At
258505 MALAYSIAN
INTERNATIONAL TRADING CORPORATION 100.00 31/03/06
(
DIRECTORS
DIRECTOR 1
Name of Subject : MR. SAMSUDIN BIN MISKON
Address : DL 49, JALAN NILAM,
IC / PP No. : 6012702
New IC No : 601110-01-5435
Date of Birth : 10/11/1960
Nationality : MALAYSIAN MALAY
Date of Appointment : 01/08/2005
DIRECTOR 2
Name of Subject : MR. WAN ZULKIFLEE WAN ARIFFIN
Address : 27, JALAN 4M, AMPANG JAYA, 68000
AMPANG,
IC / PP No. : 5995503
New IC No : 600819-07-5545
Date of Birth : 19/08/1960
Nationality : MALAYSIAN MALAY
Date of Appointment : 01/08/2005
DIRECTOR 3
Name of Subject : MR. ROSLI BIN BONI
Address : 31 JALAN SS 19/5, 47500 SUBANG JAYA,
IC / PP No. : 4967810
New IC No : 560506-04-5245
Date of Birth : 06/05/1956
Nationality :
Date of Appointment : 01/08/2005
DIRECTOR 4
Name of Subject : MR. MANHARLAL S/O RATILAL
Address : 1, LORONG 5/13G, SECTION 5, 46000 PETALING JAYA,
IC / PP No. : 5716653
New IC No : 590828-04-5907
Date of Birth : 28/08/1959
Nationality :
Date of Appointment : 01/08/2005
Qualification : DEGREE OF BACHELOR OF ARTS ( HONOURS) IN ACCOUNTANCY
FROM
THE CITY OF
1982
AND MASTER IN BUSINESS ADMINISTRATION FROM THE
Working Experience : HE
WAS WITH A LOCAL MERCHANT BANK FOR 18 YEARS.
Other Info : COUNCIL MEMBER OF THE
ASSOCIATION
OF MERCHANT
VICE-PRESIDENT
( FINANCE) OF PETRONAS AND MEMBER OF ITS
MANAGEMENT
COMMITTEE.
MEMBER
OF AUDIT COMMITTEE ON 9 JULY 2004
DIRECTOR 5
Name of Subject : DATO TENGKU MAHAMAD BIN TENGKU MAHAMUT
Address : 3 JLN TEMENGGUNG 12/6, SEC12, 40000 SHAH ALAM, SELANGOR.
IC / PP No. : 4716064
New IC No : 541227-11-5227
Date of Birth : 27/12/1954
Nationality :
Date of Appointment : 23/09/1999
DIRECTOR 6
Name of Subject : MR. MOHD SALEH BIN HASHIM
Address : LOT 5751,
IC / PP No. : 4899230
New IC No : 560117-08-5243
Date of Birth : 17/01/1956
Nationality : MALAYSIAN MALAY
DIRECTOR 7
Name of Subject : DATUK ANUAR BIN AHMAD
Address : 9, JALAN SS 19/3B, 47500 SUBANG JAYA,
IC / PP No. : 4546399
New IC No : 540131-11-5279
Date of Birth : 31/01/1954
Nationality : MALAYSIAN MALAY
DIRECTOR 8
Name of Subject : DATUK YEOW KIAN CHAI
Address : 12D, JALAN DUNGUN,
LUMPUR,
WILAYAH
IC / PP No. : 2733380
New IC No : 500301-04-5247
Date of Birth : 01/03/1950
Nationality : MALAYSIAN CHINESE
DIRECTOR 9
Name of Subject : TAN SRI DATO MOHD HASSAN BIN MARICAN
IC / PP No. : 4378882
New IC No : 521018-02-5569
Date of Birth : 18/10/1952
Nationality :
Working Experience : HE
JOINED PETRONAS IN 1989 AS SENIOR VICE-PRESIDENT OF
FINANCE
AND WAS APPOINTED PRESIDENT AND CEO IN FEBRUARY
1995.
HE IS THE CHAIRMAN OF 2 OTHER PUBLIC LISTED COMPANIES
UNDER
THE GROUP NAMELY PETRONAS DAGANGAN BHD AND
MALAYSIA
INTERNATIONAL SHIPPING CORPORATION BHD. HE IS ALSO
THE
CHAIRMAN OF ENGEN LIMITED,
REFINING
AND MARKETING COMPANY WHICH IS A SUBSIDIARY OF
PETRONAS.
Other Info : MEMBER OF
MEMBER
OF THE MALAYSIAN ASSOCIATION OF CERTIFIED PUBLIC
ACCOUNTANTS.
HE IS A MEMBER OF THE MALAYSIA-THAILAND JOINT
AUTHORITY,
WHICH OVERSEES PETROLEUM DEVELOPMENT IN THE
OVERLAPPING
AREA BETWEEN
A
MEMBER OF THE INTERNATIONAL INVESTMENT COUNCIL FOR THE
MANAGEMENT
1) Name of Subject : FIREIDA
AHMAD
Position : GENERAL
MANAGER
2) Name of Subject : MOHD
SALEH BIN HASHIM
Position : MANAGING
DIRECTOR
3) Name of Subject : AZMI
MOHAMAD
Position : MARKETING
MANAGER
AUDITOR
Auditor : KPMG DESA MEGAT & CO
Auditors' Address : WISMA
KPMG, JALAN DUNGUN,
COMPANY SECRETARY
1) Company Secretary : MR.
IZHAM BIN IDRIS
IC / PP No. : A0614353
New IC No. : 670912-09-5077
Address : G7-3-8
DESA PANDAN, 55100
Date of Appointment : 06/09/2001
BANKING
Banking relations
are maintained principally with :
1) Banker Name : MALAYAN BANKING
BHD
The SC enjoys normal
banking routine with above mentioned banker(s).
No adverse record
was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was
found in our databank at the time of investigation.
LEGAL CHECK AGAINST
THE SC
* A check has been conducted in our
databank against the SC whether the subject has been
involved in any litigation. Our
databank consists of 99% of the wound up companies in
back dated since 1900.
No legal action was
found in our databank.
No winding up
petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS
:
Local : YES Percentage : 60%
Overseas : YES Percentage : 40%
Import Countries :
The SC refused to
provide any name of trade/service supplier and we are unable to conduct any trade
enquiry. However, from financial historical data we conclude that :
OVERALL PAYMENT
HABIT
Prompt [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 50%
Domestic Markets :
Overseas : YES Percentage : 50%
Export Market :
Credit Term : 30 DAYS.
Payment Mode : CHEQUES
, TELEGRAPHIC TRANSFER (TT).
Type of Customer : DEALERS
, MANUFACTURING INDUSTRIES .
CUSTOMER (S) : 1)
STENTA FILMS (
OPERATIONS
Goods Traded : PETROCHEMICALS, PLASTIC RAW MATERIALS AND OTHERS
Competitor(s) : TITAN TRADING CORP. SDN BHD
TEXCHEM
MATERIALS SDN BHD
TAIKO
MARKETING SDN BHD
SAMCHEM
SDN BHD
MALAYSIAN
INTERNATIONAL TRADING CORPORATION (
SDN
BHD
Ownership of
premises : LEASED/RENTED
Total Number of
Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 400 337 309
Branch : NO
RECENT DEVELOPMENT
We have checked with
the Malaysian National News
Agency's (BERNAMA) database, but
no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh
investigations carried out on the SC indicated that :
Telephone Number
Provided By Client : N/A
Current Telephone
Number : 03-23311238/1169/8468
Match : N/A
Address Provided By
Client : LEVEL 15, TOWER 1
Current Address :
AMPANG,
Match : YES
Latest Financial
Accounts : YES
Other
Investigations
On 25th June 2007,
we conducted an interview with one of the staff from the SC's Admin Department.
She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2004-2006 ]
Profit / ( Loss )
before tax : Decreased [ 2004-2006 ]
Return on
Shareholder Funds : Acceptable [ 11.63% ]
Return on Net Assets : Acceptable [ 16.11% ]
The SC's turnover
increased steadily as the demand for its products / services increased due to
the goodwill built up over the years. The SC's profit fell sharply because of
the high operating costs incurred. The SC's management had generated acceptable
return for its shareholders using its assets.
Working Capital
Control :
Stocks Ratio : Favourable [ 4
Days ]
Debtors Ratio : Favourable [ 28
Days ]
Creditors Ratio : Favourable [ 3
Days ]
The SC's stocks were
moving fast thus reducing its holding cost. This had reduced funds being tied
up in stocks. The favourable debtors' days could be due to the good credit
control measures implemented by the SC. The SC had a favourable creditors'
ratio as evidenced by its favourable collection days. The SC could be taking
advantage of the cash discounts and also wanting to maintain goodwill with its
creditors.
Liquidity :
Liquid Ratio : Favourable [ 1.19
Times ]
Current Ratio : Unfavourable [ 1.28
Times ]
A minimum liquid ratio
of 1 should be maintained by the SC in order to assure its creditors of its
ability to meet short term obligations and the SC was in a good liquidity
position. Thus, we believe the SC is able to meet all its short term
obligations as and when they fall due.
Solvency :
Interest Cover : Favourable [ 13.36
Times ]
Gearing Ratio : Favourable [ 0.00
Times ]
The interest cover
showed that the SC was able to service the interest. The favourable interest
cover could indicate that the SC was making enough profit to pay for the
interest accrued. The SC had no gearing and hence it had virtually no financial
risk. The SC was financed by its shareholders' funds and internally generated
fund. During the economic downturn, the SC, having a zero gearing, will be able
to compete better than those which are highly geared in the same industry.
Overall
Assessment :
Although the SC's
turnover had increased, its profits had declined over the same corresponding
period. This could be due to the stiffer market competition and / or higher
operating costs which lowered the SC's profit margin. The SC was in good
liquidity position with its total current liabilities well covered by its total
current assets. With its current net assets, the SC should be able to repay its
short term obligations. With the favourable interest cover, the SC could be
able to service all the accrued interest without facing any difficulties. The
SC was a zero gearing company, it was solely dependant on its shareholders to
provide funds to finance its business. The SC has good chance of getting loans,
if the needs arises.
Overall financial
condition of the SC: FAIR
COMMENTS
Established in 1982,
the SC is principally engaged in the trading of petrochemicals, plastic raw
materials and others. With its long track record in the business, the SC should
have built up good reputation and image among its clients and suppliers.
Presently, the SC has a paid up capital of RM16,740,005. Such a large amount of
paid up capital has allowed the SC to capture a higher market shares as it is
competing aggressively in the market. Being backed by Petronas, a reputed
company, the SC's growth prospect is bright and its business position in the
market is stable.
Our investigation
revealed that the SC serves both local and overseas clients. Penetrating into
the overseas countries such as
During the financial
year 2006, turnover of the SC grew by 12.10% to RM7,236,225,000. The SC
recorded a pre-tax profit of RM38,783,000 for the year, a decrease of 32.64%
over the previous year. The SC has generated an acceptable return on
shareholder's funds which indicates that the SC was efficient in utilising its
funds to generate returns. Besides that, an acceptable liquidity ratio clearly
implies that the SC has sufficient working capital to meet its short term
financial obligations. The SC posted a zero gearing ratio indicating the
financial risk of the SC is low. The overall financial performance of the SC is
fair.
We noted that the SC
sources its raw materials from both local and overseas countries. About 40% of
the SC's products are imported from
Based on our
historical financial data, we concluded that the SC's payment is average. This
implies good credit control and the SC could be taking advantage of the cash
discounts while maintaining a good reputation with its creditors. The SC is
clear of litigation.
The industry continues
to grow and the growth prospect is bright. With the SC's good reputation
coupled with its favourable capabilities, it has better competitive edge
against other players in the same field.
In view of the
above, we recommend credit be granted to the SC promptly.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-March-2006
MALAYSIAN
INTERNATIONAL TRADING CORPORATION SDN BHD
2006 2005 2004
MYR MYR MYR
TURNOVER 7,236,225,000 6,454,872,000 4,835,376,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 38,783,000 57,579,000 45,428,000
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 38,783,000 57,579,000 45,428,000
Taxation <8,515,000> <12,764,000> <12,360,000>
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 30,268,000 44,815,000 33,068,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 30,268,000 44,815,000 33,068,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 30,268,000 44,815,000 33,068,000
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 5,227,000 <39,588,000> <72,656,000>
------------------- ------------------- -------------------
As restated 5,227,000 <39,588,000> <72,656,000>
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 35,495,000 5,227,000 <39,588,000>
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 35,495,000 5,227,000 <39,588,000>
=========== =========== ===========
RETAINED BY:
The Company 35,495,000 5,227,000 <39,588,000>
------------------- ------------------- -------------------
35,495,000 5,227,000 <39,588,000>
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 3,137,000 1,570,000 -
------------------- ------------------- -------------------
3,137,000 1,570,000 -
=========== =========== ===========
BALANCE SHEET
As
At 31-March-2006
2006 2005 2004
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 908,000 1,077,000 1,030,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Subsidiary
companies 10,000,000 10,000,000 10,000,000
Deferred
assets 15,347,000 23,362,000 36,093,000
------------------- ------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 25,347,000 33,362,000 46,093,000
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL LONG
TERM ASSETS 26,255,000 34,439,000 47,123,000
CURRENT
ASSETS
Stocks 72,603,000 34,291,000 2,398,000
Trade debtors 558,837,000 648,258,000 451,520,000
Other
debtors, deposits & prepayments 10,209,000 34,976,000 13,636,000
Short term
deposits 242,866,000 43,444,000 64,103,000
Items in
transit between head office & branches
Amount due
from related companies 162,378,000 275,434,000 179,143,000
Cash &
bank balances 19,848,000 17,033,000 5,526,000
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 1,066,741,000 1,053,436,000 716,326,000
CURRENT
LIABILITIES
Trade
creditors 53,133,000 117,206,000 73,257,000
Other
creditors & accruals 8,670,000 15,299,000 13,166,000
Bill & acceptances
payable 111,863,000 136,415,000 60,034,000
Amounts owing
to holding company 15,277,000 1,318,000 537,000
Amounts owing
to related companies 643,562,000 587,414,000 427,158,000
Provision for
taxation 206,000 206,000 4,095,000
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 832,711,000 857,858,000 578,247,000
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 234,030,000 195,578,000 138,079,000
------------------- ------------------- -------------------
TOTAL NET
ASSETS 260,285,000 230,017,000 185,202,000
=========== =========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 16,740,000 16,740,000 16,740,000
TOTAL SHARE
CAPITAL 16,740,000 16,740,000 16,740,000
RESERVES
Share premium 208,050,000 208,050,000 208,050,000
Retained profit/(Accumulated loss)
carried
forward 35,495,000 5,227,000 <39,588,000>
------------------- ------------------- -------------------
TOTAL RESERVES 243,545,000 213,277,000 168,462,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 260,285,000 230,017,000 185,202,000
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
------------------- ------------------- -------------------
260,285,000 230,017,000 185,202,000
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-March-2006
MALAYSIAN
INTERNATIONAL TRADING CORPORATION SDN BHD
2006 2005 2004
MYR MYR MYR
TYPES OF
FUNDS
Cash 262,714,000 60,477,000 69,629,000
Net Liquid
Funds 262,714,000 60,477,000 69,629,000
Net Liquid
Assets 161,427,000 161,287,000 135,681,000
Net Current Assets/(Liabilities) 234,030,000 195,578,000 138,079,000
Net Tangible
Assets 260,285,000 230,017,000 185,202,000
Net Monetary
Assets 161,427,000 161,287,000 135,681,000
BALANCE
SHEET ITEMS
Total
Borrowings 0 0 0
Total
Liabilities 832,711,000 857,858,000 578,247,000
Total Assets 1,092,996,000 1,087,875,000 763,449,000
Net Assets 260,285,000 230,017,000 185,202,000
Net Assets
Backing 260,285,000 230,017,000 185,202,000
Shareholders''
Funds 260,285,000 230,017,000 185,202,000
Total Share
Capital 16,740,000 16,740,000 16,740,000
Total
Reserves 243,545,000 213,277,000 168,462,000
LIQUIDITY
(Times)
Cash Ratio 0.32 0.07 0.12
Liquid Ratio 1.19 1.19 1.23
Current Ratio 1.28 1.23 1.24
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 4 2 0
Debtors Ratio 28 37 34
Creditors
Ratio 3 7 6
SOLVENCY
RATIOS (Times)
Gearing Ratio 0 0 0
Liabilities
Ratio 3.20 3.73 3.12
Times
Interest Earned Ratio 13.36 37.67 0
PERFORMANCE
RATIO (%)
Operating
Profit Margin 0.54 0.89 0.94
Net Profit
Margin 0.42 0.69 0.68
Return On Net
Assets 16.11 25.72 24.53
Return On
Capital Employed 16.11 25.72 24.53
Return On
Shareholders'' Funds/Equity 11.63 19.48 17.86
Dividend Pay
Out Ratio (Times) 0 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0 0
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%)