MIRA
INFORM REPORT
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Report Date : |
03.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAMATEX TEXTILES INDUSTRIAL SDN BHD |
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Registered Office : |
6a, Jalan Merah, Taman Bukit Pasir, 83000 Batu Pahat |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
06/01/1990 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Yarn, Knitting, Printing & Dyeing of Fabrics. |
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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Status : |
Good |
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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 : 191854-P
COMPANY NAME : RAMATEX TEXTILES INDUSTRIAL SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 06/01/1990
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : 6A, JALAN MERAH, TAMAN BUKIT PASIR,
83000 BATU
PAHAT,
MALAYSIA.
BUSINESS ADDRESS : SRI GADING INDUSTRIAL ESTATE, 83000
BATU PAHAT,
JOHOR,
MALAYSIA.
TEL NO : 07 - 4551225
FAX NO : 07 - 4559386
CONTACT PERSON : ALBERT LIM POH BOON (EXECUTIVE
DIRECTOR)
INDUSTRY CODE : 17121
PRINCIPAL ACTIVITY : MANUFACTURING OF YARN, KNITTING,
PRINTING &
DYEING
OF FABRICS
AUTHORISED CAPITAL : MYR600,000,000.00 DIVIDED INTO ORDINARY
SHARE
600,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR120,000,000.00 DIVIDED INTO
ORDINARY SHARE
80,000,000
CASH AND 40,000,000 OTHERWISE OF MYR1.00
EACH.
SALES : MYR352,083,237 [2005]
NET WORTH : MYR578,163,058 [2005]
M1000 OVERALL RANKING : 610 [2005]
M1000 INDUSTRY RANKING : 4 [2005]
STAFF STRENGTH : 1,820 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : LIMITED
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : MARGINAL 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) manufacturing of
yarn, knitting, printing & dyeing of fabrics.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is one of the Top Corporate Performers in the Malaysia 1000
(M1000) publication, a directory jointly published by Companies Commission of
Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer
Affairs and our publication arm, BASIS Publications House Sdn Bhd. According to
the Malaysia 1000 publication, the SC's ranking are as follows :
YEAR 2005 2004
OVERALL RANKING 610 487
INDUSTRY RANKING 4 4
The ultimate holding company of the SC is RAMATEX BERHAD, a company
incorporated in MALAYSIA. The major shareholder(s) of the SC are shown
as follows :
Name Address IC/PP/Loc
No: Shareholding
RAMATEX BHD SRI GADING INDUSTRIAL
ESTATE, 83000 372672 120,000,000
BATU
PAHAT, JOHOR, MALAYSIA.
--------------------
120,000,000
===========
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown
as follows:
Local No Name (%) As At
202462 TAI WAH
GARMENTS INDUSTRY SDN BHD 100.00 06/05/06
DIRECTORS
DIRECTOR 1
Name of Subject : MR. MA WONG CHING
Address : 15, JALAN MAHANG, TAMAN BATU PAHAT,
83000 BATU PAHAT,
JOHOR,
MALAYSIA.
IC / PP No : 3861881
New IC No : 510426-01-5825
Date of Birth : 26/04/1951
Nationality : MALAYSIAN CHINESE
Date of Appointment : 06/01/1990
Qualification : GRADUATED IN 1971 MAJORING IN TEXTILE
ENGINEERING FROM FONG
CHIA
UNIVERSITY.
Working Experience : FOUNDER OF RAMATEX GROUP OF CO &
IS CURRENTLY THE MANAGING
DIRECTOR.
HAS MORE THAN 22 YEARS EDPERIENCE IN THE TEXTILE
INDUSTRY.
DIRECTOR 2
Name of Subject : MS. MA ON MAY
Address : 5, SIGLAP ROAD, #09-34 MANDARING
GARDENS, 448908, SINGAPORE.
IC / PP No : S2539365A
Nationality : SINGAPOREAN
Date of Appointment : 10/04/1991
DIRECTOR 3
Name of Subject : MR. LEE YAN MIN @ LIOW YOK MIN
Address : 70D, JALAN MERDEKA, 86500 BEKOK,
JOHOR, MALAYSIA.
IC / PP No : 7635818
New IC No : 480724-01-5407
Nationality : MALAYSIAN CHINESE
Date of Appointment : 10/04/1991
Qualification : TEXTILE ENGINEER GRADUATED FROM FONG
CHIA UNIVERSITY,
TAIWAN
IN 1968 & TEXTILE MANUFACTURING FROM BRITISH
INSTITUTE
OF ENGINEERING TECHNOLOGY IN 1972.
Working Experience : MORE THAN 26 YEARS EXPERIENCE IN YARN
SPINNING.
RESPONSIBLE
IN PLANNING & FORMULATING MANUFACTURING
RESOURCES
WITH PRODUCTION TECHNOLOGY & QUALITY CONTROL
PROGRAMME
FOR THE GROUP. INVOLVED IN THE MANAGING OF
YARN
PRODUCTION & MARKETING OPERATIONS OF THE GROUP.
DIRECTOR 4
Name of Subject : MR. MA ONG KEE
Address : 15, JALAN MAHANG, TAMAN BATU PAHAT,
83000 BATU PAHAT,
JOHOR,
MALAYSIA.
IC / PP No : A0013823
New IC No : 650302-01-6257
Nationality : MALAYSIAN CHINESE
Date of Appointment : 29/01/1996
Qualification : B.SC (BUSINESS) SOUTHERN ILLINOIS
UNIVERSITY IN 1988.
Working Experience : FROM 1976 TO 1981 WORKED FOR YUNG WAH
INDUSTRIAL CO PTE LTD,
A
KNITTING, DYEING & GARMENT CO IN S'PORE AS MANAGER IN THE
KNITTING
DEPT. ONE OF THE FOUNDER OF GIMMILL INDUSTRIAL (M) SDN
BHD.
RESPONSIBLE FOR THE GROUP'S FINANCIAL & ADMIN AFFAIRS &
ASSIST
THE BOARD IN FORMULATING & IMPLEMENTING SPECIAL
PROJECTS.
DIRECTOR 5
Name of Subject : MR. LIM POH BOON
Address : 1, JALAN JINGGA, TAMAN BUKIT PASIR,
83000 BATU PAHAT,
JOHOR,
MALAYSIA.
IC / PP No : 4610277
New IC No : 540201-01-6015
Nationality : MALAYSIAN CHINESE
Date of Appointment : 28/10/1998
Qualification : B.CHEM (USM) IN 1977. MEMBER OF
MALAYSIA INSTITUTE OF
CHEMISTRY
SINCE 1982 & AUSTRALIA INSTITUTE OF INSURANCE SINCE
1985.
MEMBER OF THE TEXTILE INSTITUTE (UK) SINCE 1984.
Working Experience : SERVED 8 YEARS AS EXECUTIVE COMMITTEE
MEMBER OF MTMA FROM
1987
TO 1994. HE IS INVOLVED IN THE GROUP OVERALL DAILY
OPERATIONS,
HUMAN RESOURCES DEVELOPMENT, R & D,
ADMINISTRATION.
HAS MORE THAN 15 YEARS EXPERIENCE IN
PRODUCTION
& MANAGEMENT OF THE GROUP.
DIRECTOR 6
Name of Subject : MR. MA OON KWONG
Address : 12, JALAN KERIS NAGA, TAMAN PASIFIK
SELATAN, 83000 BATU
PAHAT,
JOHOR, MALAYSIA.
IC / PP No : 6154889
New IC No : 610717-01-5487
Nationality : MALAYSIAN CHINESE
Date of Appointment : 26/04/2002
Qualification : DIP OF AGRICULTURAL MGTE IN 1980 FROM
A TAIWANESE INSTITUTE OF
AGRICULTURE.
Working Experience : JOINED GIMMILL IN 1982 AS A
SUPERVISOR & A MERCHANDISER
CHIEF IN GIMMILL GARMENT
DIVISIION BETWEEN 1983 & 1984.
TRANSFERRED
TO FULONG IN 1985 AS A FACTORY MANAGER.
RESPONSIBILITY
INCLUDE ADMIN & MGTE OF FULONG.
MANAGEMENT
1) Name of Subject : ALBERT
LIM POH BOON
Position : EXECUTIVE DIRECTOR
2) Name of Subject : MA
WONG CHING
Position : MANAGING DIRECTOR
3) Name of Subject : LIM
TECK SWEE
Position : ACCOUNT MANAGER
4) Name of Subject : CHENG
HONG HUE
Position : HUMAN RESOURCE MANAGER
5) Name of Subject : ONG
HAI PENG
Position : PRODUCTION MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : LOT 1, MENARA PERTAM, JALAN BBP 2,
TAMAN BATU BERENDAM
PUTRA,
6TH FLOOR, 75350 BATU BERENDAM, MELAKA, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS.
LEE CHAI KIEN
IC / PP No. : 4758347
New IC No. : 550318-01-5672
Address : 1, JALAN JINGGA, TAMAN BUKIT PASIR, 83000 BATU PAHAT,
JOHOR,
MALAYSIA.
Date of Appointment : 06/01/1990
2) Company Secretary : MR.
TAN KIAN HONG
IC / PP No. : 8186368
New IC No. : 550701-01-5229
Address : 15, JALAN BINTANG 14, TAMAN KOPERASI BAHAGIA, 83000
BATU
PAHAT, JOHOR, MALAYSIA.
Date of Appointment : 06/01/1990
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 Malaysia
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
Overseas : YES
Import Countries : JAPAN.
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
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : HONG KONG, GERMANY, AUSTRALIA, SOUTH AFRICA, CAMBODIA,
SINGAPORE, MAURITIUS, UNITED STATES, NEW ZEALAND.
Credit Term : 30 DAYS.
Payment Mode : CHEQUES , LETTER OF CREDIT (LC) ,
TELEGRAPHIC TRANSFER (TT).
Type of Customer : TEXTILES AND GARMENT INDUSTRIES.
OPERATIONS
Products Manufactured : YARN & FABRICS
Competitor(s) : AMDB BHD
PENFABRIC
SDN BHD
CNLT
(FAR EAST) BHD
KAMUNTING
TEXTILE INDUSTRIES SDN BHD
KANEBO
MALAYSIA SPINNING MILLS SDN BHD
Ownership of premises : OWNED
Factory Size : 37.5 ACRES
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 1,820 1,800 1,796 1,825
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) manufacturing of
yarn, knitting, printing & dyeing of fabrics.
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 : 07-4551225
Match : N/A
Address Provided By Client : N/A
Current Address : SRI GADING INDUSTRIAL ESTATE, 83000
BATU
PAHAT,
JOHOR, MALAYSIA.
Match : N/A
Latest Financial Accounts : YES
Other Investigations
On 26th February 2007, we conducted an interview with Mr Mohammad from
he SC's Admin Department. He revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Erratic [ 2002-2005 ]
Profit / ( Loss ) before tax : Decreased [ 2002-2005 ]
Return on Shareholder Funds : Unfavourable [ 2.03% ]
Return on Net Assets : Unfavourable [ 4.18% ]
The fluctuating turnover reflects the fierce competition among the
existing and new market players. The SC's profit fell sharply because of the
high operating costs incurred. The unfavourable return on shareholders' funds
and net assets could indicate that the SC's management was inefficient in
utilizing its assets to generate returns.
Working Capital Control :
Stocks Ratio : Unfavourable [ 346 Days ]
Debtors Ratio : Favourable [ 33 Days ]
Creditors Ratio : Favourable [ 22 Days ]
The SC could be incurring higher holding cost. As its capital was tied
up in stocks, it could face liquidity problems. 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 [ 1.13 Times ]
Current Ratio : Favourable [ 2.02 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 : Unfavourable [ 1.84 Times ]
Gearing Ratio : Favourable [ 0.60 Times ]
The SC's interest cover was low. If its profits fall or when interest
rate rises, it may not be able to meet
all its interest payment. The SC was lowly geared thus it had a low financial
risk. The SC was mainly financed by its shareholders' funds and internally
generated funds. In times of economic slowdown / downturn, the SC being a lowly
geared company, will be able to compete better than those companies which are
highly geared in the same industry.
Overall Assessment :
The SC recorded lower profits as its turnover showed a erratic trend.
The SC's management was unable to control its costs efficiently as its profit
showed a downward trend. 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. If there
is a fall in the SC's profit or any increase in interest rate, the SC may not
be able to generate sufficient cash-flow to service its interest. The SC, as a
lowly geared company, will be more secured compared to those highly geared
companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC: LIMITED
COMMENTS
Incorporated in 1990, the SC as a private limited company engaged in
manufacturing of yarn, knitting, printing and dyeing of fabrics. Its long
presence in the industry coupled with its good reputation has enabled the SC to
built up an extensive clientele base both locally and internationally. Presently,
the SC's paid up capital stands at RM120 million. In addition, we noted that
the SC is backed by its well established ultimate holding company therefore the
SC is expected to enjoy timely financial and technical assistance should the
needs arise.
The SC is regarded as a large organization with a manpower strength of
1,820 and its business operation is managed by Executive Director Albert Lim.
Its management capability is considered average. The SC supplies its products
to local market and also overseas market. The SC exports its products to
overseas countries like Hong Kong, Germany, Australia, Singapore and etc. The
wider range of its market segments has benefited the SC in terms of higher
earnings and minimized its business risk.
Referring to the SC's financial account for the year 2005, the SC
recorded a turnover and pre-tax profit of RM352,083,237 and RM13,948,287
respectively. The SC has generated a relatively low return on shareholders'
funds indicating that the SC was inefficient in utilizing its shareholders'
funds to generate returns. However, the SC possesses an adequate liquidity
position with its total current liabilities well covered by its total current
assets. With its net current assets, the SC should be able to repay its short
term obligations. Moreover, being a lowly geared company has minimized its
financial risk. Overall the financial condition of the SC is Limited.
Apart from sourcing its raw materials from the local market, the SC also
imports its raw material from overseas countries such as Japan. As a result,
the SC is exposed to foreign currency fluctuation risk.
Investigation revealed that the SC currently is clear from any
litigation case and based on the financial historical data, the SC's payment
record is regarded as average.
The industry remains robust with continuing strong global demand for its
products. However, there are many competitors involved in the textile and
apparel industry and it is highly dependent on the SC’s ability to deliver good
quality products in order to further enhance its competitiveness and thus
increased its profitability.
In view of the above, we recommend credit be granted to the SC promptly.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
PROFIT AND LOSS ACCOUNT
For The Year Ended 31-December-2005
RAMATEX TEXTILES INDUSTRIAL SDN BHD
2005 2004
MYR MYR
TURNOVER 352,083,237 374,939,619
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 13,948,287 73,114,830
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 13,948,287 73,114,830
Taxation <2,203,000> <9,304,370>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 11,745,287 63,810,460
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 11,745,287 63,810,460
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 11,745,287 63,810,460
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 476,777,771 434,959,477
------------------- -------------------
As restated 476,777,771 434,959,477
------------------- -------------------
PROFIT AVAILABLE
FOR APPROPRIATIONS 488,523,058 498,769,937
DIVIDENDS -
Ordinary (paid & proposed) <30,360,000> <21,992,166>
------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 458,163,058 476,777,771
=========== ===========
RETAINED BY: The Company 458,163,058 476,777,771
------------------- -------------------
458,163,058 476,777,771
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses 16,550,354 13,801,457
------------------- -------------------
16,550,354 13,801,457
=========== ===========
BALANCE SHEET
As At 31-December-2005
RAMATEX TEXTILES INDUSTRIAL SDN BHD
2005 2004
MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 345,085,255 359,025,536
LONG
TERM INVESTMENTS/OTHER ASSETS
Subsidiary
companies 2,293,859 2,293,859
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 2,293,859 2,293,859
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 347,379,114 361,319,395
CURRENT
ASSETS
Stocks 333,901,534 252,288,485
Trade debtors 32,240,680 59,855,337
Other
debtors, deposits & prepayments 2,178,968 2,373,599
Short term
deposits 8,956,430 4,600,000
Items in
transit between head office & branches
Amount due
from holding company 139,033,976 163,246,880
Amount due
from subsidiary companies 223,811,456 284,285,656
Cash &
bank balances 11,677,951 2,527,310
Marketable
securities 6,515,162 6,602,912
Tax
refundable 938,254 -
------------------- -------------------
TOTAL CURRENT
ASSETS 759,254,411 775,780,179
CURRENT
LIABILITIES
Trade
creditors 20,947,301 7,575,433
Other
creditors & accruals 71,860,863 17,072,151
Bank
overdraft 43,153,344 45,148,207
Short term borrowings/Term
loans 200,850,688 236,610,764
Other
borrowings 24,000,000 25,000,000
Bill &
acceptances payable 15,806,859 -
Provision for
taxation - 2,926,950
------------------- -------------------
TOTAL CURRENT
LIABILITIES 376,619,055 334,333,505
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 382,635,356 441,446,674
------------------- -------------------
TOTAL NET
ASSETS 730,014,470 802,766,069
=========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 120,000,000 120,000,000
------------------- -------------------
TOTAL SHARE
CAPITAL 120,000,000 120,000,000
RESERVES
Retained
profit/(Accumulated loss) carried
forward 458,163,058 476,777,771
------------------- -------------------
TOTAL
RESERVES 458,163,058 476,777,771
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 578,163,058 596,777,771
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Long term
loans 79,425,114 133,000,000
Deferred
taxation 72,426,298 72,988,298
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 151,851,412 205,988,298
------------------- -------------------
730,014,470 802,766,069
=========== ===========
FINANCIAL RATIOS
As At 31-December-2005
RAMATEX TEXTILES INDUSTRIAL SDN BHD
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 20,634,381 7,127,310
Net Liquid
Funds <223,369,651> <274,631,661>
Net Liquid
Assets 48,733,822 189,158,189
Net Current
Assets/(Liabilities) 382,635,356 441,446,674
Net Tangible
Assets 730,014,470 802,766,069
Net Monetary
Assets <103,117,590> <16,830,109>
BALANCE
SHEET ITEMS
Total
Borrowings 347,429,146 439,758,971
Total
Liabilities 528,470,467 540,321,803
Total Assets 1,106,633,525 1,137,099,574
Net Assets 730,014,470 802,766,069
Net Assets
Backing 578,163,058 596,777,771
Shareholders''
Funds 578,163,058 596,777,771
Total Share
Capital 120,000,000 120,000,000
Total
Reserves 458,163,058 476,777,771
LIQUIDITY
(Times)
Cash Ratio 0.05 0.02
Liquid Ratio 1.13 1.57
Current Ratio 2.02 2.32
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 346 246
Debtors Ratio 33 58
Creditors
Ratio 22 7
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.60 0.74
Liabilities
Ratio 0.91 0.91
Times
Interest Earned Ratio 1.84 6.30
PERFORMANCE
RATIO (%)
Operating
Profit Margin 3.96 19.50
Net Profit
Margin 3.34 17.02
Return On Net
Assets 4.18 10.83
Return On
Capital Employed 3.13 8.01
Return On
Shareholders'' Funds/Equity 2.03 10.69
Dividend Pay
Out Ratio (Times) 2.58 0.34
NOTES
TO ACCOUNTS
Contingent
Liabilities 294,935,738 187,450,443
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%)
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