MIRA
INFORM REPORT
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Report Date : |
13.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
MSPL LIMITED |
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Registered Office : |
No.117, Baldola Bhavan, Maharshi Karve Road, Mumbai-400020,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
18.10.1961 |
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Com. Reg. No.: |
11-12160 |
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CIN No.: [Company
Identification No.] |
U13100MH1961PLC012160 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM10132D |
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PAN No.: [Permanent
Account No.] |
AABCM1040N |
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Legal Form : |
A Closely held Public Limited Liability Company |
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Line of Business : |
Iron Ore Mining, Processing and
Exporting Company |
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 8000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established and reputed company having fine track.
Financial position is excellent. Trade relations are fair. Payments are
usually correct and as per commitments. The company is doing well. Nothing adverse reported. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
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Registered Office : |
No.117, Baldola Bhavan, Maharshi Karve Road, Mumbai-400020,
Maharashtra, India |
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Tel. No.: |
91-22-22030989 |
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Fax No.: |
91-22-24133766 |
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E-Mail : |
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Website : |
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Corporate Office : |
Baldota Enclave, Abheraj
Baldota Road, Hospet- 583203, Karnataka. India. |
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Tel. No.: |
91-8394-232002/3/4 Mines: 91-8394-244158 |
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Fax No.: |
91-8394-232333 |
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E-Mail : |
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Factory 1 : |
Mines and Export
Oriented Unit Vyasanakere Village, Hospet |
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Area : |
347.2 hecrates |
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Location : |
Leased |
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Factory 2 : |
Hosahalli Village, Munirabad-583233 |
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Windmill : |
Vankusawade, Satara, Maharashtra, India |
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Branches : |
Bangalore
Office: Baldota
Villa, No.368, 12th Cross, R.M.V. Hig House, Dollars Colony, New BEL Road,
Devasandra, Bangalore 560094, Karnataka. India. |
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Telefax No.: |
91-80-23511988/9 |
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E-Mail : |
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Branch 2 : |
Chennai
Office: Door No.10, Plot No.56, Sriram
Nagar, 1st Cross Street, Opp. L.I.C.Colony, Thiruvanmiyur, Chennai 600041,
Tamilnadu, India |
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Tel. No.: |
91-44-24911875 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Abheraj Hirachand Baldota |
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Designation : |
Chairman |
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Name : |
Mr. Narendrakumar A. Baldota |
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Designation : |
Managing Director |
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Name : |
Mr. Rahul Kumar N. Baldota |
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Designation : |
Executive Director |
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Name : |
Mr. Shrenik Kumar N. Baldota |
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Designation : |
Director |
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Name : |
Mr. Vasanti Abheraj Baldota |
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Designation : |
Director |
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Name : |
Mr. R. H. Sawkar |
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Designation : |
Technical Director |
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Name : |
Mr. M. Ravindra |
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Designation : |
Independent Director |
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Name : |
Mr. Anirudha R. Barwe |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. A. T. Shaymsundar |
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Designation : |
Company Secretary |
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Name : |
Mr. Meda. Venkataiah |
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Designation : |
Executive Director (Mines) |
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Name : |
Mr. G. V. S. B. Reddy |
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Designation : |
General Manager (Corporate) |
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Name : |
Mr. Kishore Kumar Kamisetti |
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Designation : |
General Manager (Marketing
& Logistics) |
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Name : |
Mr. S. Raghunathan |
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Designation : |
General Manager (Finance &
Accounts) |
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Name : |
Mr. K. R. M. Reddy |
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Designation : |
General Manager (Public
Relations) |
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Name : |
Mr. K. V. S. Subrahmanyam |
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Designation : |
General Manager (Power) |
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Name : |
Mr. Arun Solomon |
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Designation : |
General Manager (HR) |
BUSINESS DETAILS
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Line of Business : |
Iron Ore Mining, Processing and
Exporting Company |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Iron Ore (Lumps SHG, Fines, Concentrate and Aggregates) |
MT |
NA |
NA |
1978568 |
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Industrial Gases (Oxygen, Liquid Oxygen, Medical Oxygen, Nitrogen, Argon
and Compressed Air) |
CUM |
NA |
5400000 |
2385485 |
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Wind Power Generation |
KW |
NA |
387875000 |
66958462 |
GENERAL
INFORMATION
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No. of Employees : |
844 |
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Bankers : |
State Bank of India |
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Facilities : |
Secured Loans (Rs.
In millions) :
Unsecured Loans
:
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Mr. S.B. Chhajed & Company Chartered Accountants Deloitte Haskins & Sells Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
300000 |
Equity Shares |
Rs.100/- each |
Rs.300.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
960000 |
Equity Shares |
Rs.100/-
each |
Rs.96.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
96.000 |
96.000 |
96.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1931.345 |
893.198 |
291.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2027.345 |
989.198 |
387.900 |
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LOAN FUNDS |
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1] Secured Loans |
1618.304 |
450.974 |
134.000 |
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2] Unsecured Loans |
167.800 |
0.000 |
0.100 |
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TOTAL BORROWING |
1786.104 |
450.974 |
134.100 |
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DEFERRED TAX LIABILITIES |
620.918 |
118.760 |
0.000 |
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Deferred Government Grants |
1.474 |
0.000 |
0.000 |
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TOTAL |
4435.841 |
1558.932 |
522.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3932.891 |
1019.773 |
232.700 |
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Capital work-in-progress |
168.875 |
16.454 |
37.300 |
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INVESTMENT |
809.252 |
156.436 |
53.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
348.409
|
226.531 |
281.300 |
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Sundry Debtors |
381.962
|
304.178 |
62.700 |
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Cash & Bank Balances |
277.103
|
385.285 |
100.800 |
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Other Current Assets |
21.252
|
18.519 |
0.000 |
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Loans & Advances |
296.777
|
203.601 |
32.900 |
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Total
Current Assets |
1325.503
|
1138.114 |
477.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1603.637
|
469.071 |
280.200 |
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Provisions |
198.068
|
303.946 |
0.000 |
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Total
Current Liabilities |
1801.705
|
773.017 |
280.200 |
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Net Current Assets |
(476.202)
|
365.097 |
197.500 |
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MISCELLANEOUS EXPENSES |
1.025 |
1.172 |
1.300 |
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TOTAL |
4435.841 |
1558.932 |
522.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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Sales Turnover |
6026.009 |
3121.980 |
1085.800 |
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Other Income |
323.724 |
110.694 |
66.000 |
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Total Income |
6349.733 |
3232.674 |
1151.800 |
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Profit/(Loss) Before Tax |
2129.827 |
1047.399 |
106.700 |
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Provision for Taxation |
721.626 |
299.419 |
25.500 |
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Profit/(Loss) After Tax |
1408.201 |
747.980 |
81.200 |
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Earnings in Foreign Currency : |
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Export Earnings |
5512.503 |
2928.950 |
NA |
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Other Earnings |
6.019 |
0.023 |
NA |
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Total Earnings |
5518.522 |
2928.973 |
NA |
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Imports : |
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Stores & Spares |
5.383 |
2.267 |
NA |
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Capital Goods |
108.197 |
12.134 |
NA |
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Total Imports |
113.580 |
14.401 |
NA |
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Expenditures : |
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Manufacturing Expenses |
3827.306 |
2077.022 |
263.200 |
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Administrative Expenses |
NA |
NA |
431.100 |
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Raw Material Consumed |
NA |
NA |
87.600 |
|
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Salaries, Wages, Bonus, etc. |
NA |
NA |
53.100 |
|
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Interest |
57.574 |
15.389 |
12.000 |
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Depreciation & Amortization |
335.512 |
92.997 |
39.900 |
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Other Expenditure |
0.146 |
0.146 |
158.200 |
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Total Expenditure |
4220.538 |
2185.554 |
1045.100 |
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KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt-Equity Ratio |
0.75 |
0.44 |
0.37 |
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Long Term Debt-Equity Ratio |
0.75 |
0.44 |
0.37 |
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Current Ratio |
0.73 |
1.32 |
2.04 |
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TURNOVER RATIOS |
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Fixed Assets |
2.07 |
3.69 |
2.79 |
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Inventory |
19.61 |
11.86 |
3.77 |
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Debtors |
17.56 |
17.02 |
19.15 |
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Interest Cover Ratio |
37.98 |
69.02 |
9.89 |
|
Operating Profit Margin(%) |
41.87 |
37.02 |
14.61 |
|
Profit Before Interest And Tax Margin(%) |
36.30 |
34.05 |
10.93 |
|
Cash Profit Margin(%) |
28.94 |
26.94 |
11.15 |
|
Adjusted Net Profit Margin(%) |
23.37 |
23.96 |
7.48 |
|
Return On Capital Employed(%) |
83.52 |
110.21 |
23.49 |
|
Return On Net Worth(%) |
93.99 |
111.39 |
21.92 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.0.00/- |
|
Low |
Rs.0.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Company’s fixed assets include Freehold Land, Buildings, Leasehold Land,
Mining Lease Rights, Plant and Machinery, Equipments, Furniture and Fixtures, Office
Equipments, Vehicles and Barges and Air Craft.
During the financial year under review, the Company grew at
96% and 88% in terms of total revenue and net profit respectively. The
company*s Earning Per Share for the year was Rs. 36.67 based on number of paid
up equity snares of the company after considering the bonus issue and the share
split. The EPS would be much higher based on the number of paid up equity
shares as on 31tt March, 2005. During the year under review, the
company focused on expansion of its production capacity and
exploring new customers.
During the year the Company further consolidated its
financial strength through excellent financial performance.
BUSINESS
RESULTS AND TRENDS
The financial performance of the company scaled new highs
during the year. The total revenue increased by 96 % from Rs. 3233 Millions to
Rs. 6350 Millions. Net profit after tax rose by~88 % from Rs. 748 Millions to
Rs. 1408 Millions. Export income was higher by 88 % from Rs. 2929 Millions to
Rs. 5513 Millions.
The global iron ore market during the year under report was
dominated by demand far exceeding supply due to strong growth in steel
production and consumption of steel.
China contributed a large chunk of this growth. The growth
momentum in China is likely to prevail for some more time due to the large
proposed investments in infrastructure creation. The company is a dominant
player in the growing iron ore industry and has established position in the growing
Chinese iron ore market on account of customers who are satisfied due to the
company's commitment for quality and delivery schedule adherence.
Japan witnessed brisk demand for steel products and this
will gain momentum in the years to come. Relatively weak conditions prevailed
in the European Union, despite pockets of growth in certain countries. With
consumption of steel expected to remain strong in the major steel consuming
centers, the demand for Iron ore, the raw material for manufacturing steel, is
likely to be in excess of the supply. In this scenario of expanding market the
price of iron ore is likely to remain at current level.
The company is planning for the future in expanding
production and export market in the light of the above as a proactive measure.
The company undertook several initiatives in the areas of
marketing, logistics, brand development, continuous improvement in the quality
of iron ore and labour productivity.
These initiatives will enable the Company to seize growth
opportunities.
DIVIDEND
The company had paid interim dividend @150% and 150% during
February 2005 and June 2005. The interim dividend paid will be confirmed as
final dividend.
SHARE
CAPITAL
During June 2005 the company with the approval of Members in
their Extraordinary General Meeting held on 30tfl June, 2005 increased the
Authorised Capital to Rs.500 millions.
The company with the approval of members in their
Extraordinary General Meeting held on 30l July, 2005 split the face value of
Equity Shares from Rs. 100 to Rs. 10).
Further the company with the approval of Members in their
Extraordinary General Meeting held on 30th July, 2005 issued bonus shares in
the ratio of three shares for every equity share of Rs. 10/- each held.
As on the date of this report the paid up capital of the
company stands at Rs. 384 Millions consisting of 38.4 Million equity shares of
Rs. 10 each.
STATUS
The Ministry of Commerce, Government of India has awarded
"Three Star Export House" status to the company. The Status certificate
is issued as per Foreign Trade Policy 2004-09. This certificate is valid for a
period of five years, and underscores their substantial Foreign exchange
contribution to the country's exchequer.
EXPANSION
PROJECTS
The company during the year commissioned windmills with a
total generating capacity of 68.85 M.W in pursuance to its commitment to
implement environment friendly business propositions.
During the year two Oxygen plants with a capacity of 200 Cum
/Hr each were commissioned at Goa and Hospet.
Power Division
The company's Power Division has the unique distinction of
having windmill with a generating capacity of 81.85 MW which generated 66.958
Millions units and an income of RŁ 207.244 millions.
The Company is the recipient of the prestigious award for
"Highest Productivity and Highest investment in the field of Renewable
Energy** in the State of Kamataka for the year 2004 - 2005. The Kamataka
Renewable Energy Development Limited and the Energy Department, Government of
Karnataka instituted this award.
DURING THE CURRENT YEAR
The company's Unit - II of Mining Division has .been
licensed as 100% Export Oriented Unit and the benefits of this license will
accrue to the company during 2005-06. The company has achieved a turnover of
Rs. 2680 millions as on 31 * August, 2005.
Website Details :
AN
OVERVIEW
Subject was originally founded by the late Mr. Abheraj H.
Baldota in 1961. Prior to their incorporation, Mr. Abheraj Baldota was a trader
in non-ferrous metals. He was the President of the Bombay Metal Exchange in the
year 1960. Their business and operations are currently headed by the son of
late Mr. Abheraj H. Baldota, Mr. Narendrakumar A. Baldota and his sons, Mr.
Rahulkumar N. Baldota and Mr. Shrenikkumar N. Baldota, all of whom are on their
Board.
They have a strong & experienced management, with people
who have a vast experience in the mining and natural resource industry. Their
management team combines extensive operations, management and technical skills
with strong marketing and sales capability.
Their quantity-wise sales during the year ended on March 31,
2005 amounted to 2.23 million metric tons of iron ore products comprising 1.18
million metric tons of high grade fines, 0.32 million metric tons of medium
grade fines, 0.45 million metric tons of calibrated lump ore and 0.28 million
metric tons of concentrates.
They are also actively expanding their mining business by
seeking to acquire additional mining assets and by reorganizing their Group in
an effort to capture the value of the Group’s Iron Ore business in their
Company.
They also own and operate wind farms with a current
installed capacity of 85.6 MW. Their wind farms are situated in Harpanahalli,
with a capacity of 46.25 MW, Chitradurga, with a capacity of 38.35 MW, in the
State of Karnataka, and Satara, with a capacity of 1 MW, in the State of
Maharashtra. They are also in process of investing in additional 16 turbines of
1.25 MW capacity each at Dhule in Maharashtra and 9 turbines of 600KW capacity
each in Harihar in Karnataka.
MILESTONES
Key
Events and Milestones
2006
Restructuring agreements executed for the slump sale of the gas
division and the acquisition of the assets and liabilities of MSPL Exports.
2005 -
2006
Established one 100% EOU.
2003
Diversified into harnessing of wind energy.
1998
Acquired PVS Mines.
1996
500 mt. slurry system commissioned.
1993
Beneficiation plant becomes operational.
1991
Installation of 180 tons/hour Down Hill Conveyer System with
crushing and screening facilities.
1983
Gas plant established.
1962
Mining operations started.
Awards
and Certifications
2005
Karnataka Renewable Energy Development Limited award for highest
investment in the field of renewable energy in the financial year 2004-05.
1999 -
2005
Special export award from CAPEXIL.
2004
Awarded the Indira Priyadarshini Vrikshamitra Award for innovative
and outstanding work done in afforestation.
2003
Accredited for OHSAS 18001: 1999 for occupational health and
safety.
2001
Tata Energy Research Institute Corporate Environment Award.
2000
ISO 9001:2000 certification received for production and marketing
systems.
1999
ISO 14001: 1996 certification received for environment management
system.
1997
ISO 9002: 1994 certification received for quality system.
1996 -
2000
State award for “excellence in
exports” instituted by the Visvesaraya Industrial Trade Centre – an arm of the
Government of Karnataka.
1987
National Safety Award from the
President of India.
HIGHLIGHTS
04-05
Subject's performance for the
year ended March 31, 2005 is given below:
v The
total income of the company increased by Rs. 3117.06 million, or 96.4%, from
Rs. 3232.67 million in fiscal 2004 to Rs. 6349.73 in fiscal 2005.
v Iron
Ore direct exports increased by Rs. 2728.22 million, or 93.1% from Rs. 2928.95
million in fiscal 2004 to Rs. 5657.17 million fiscal 2005.
v Increased
sale of products from their wind division of Rs. 185.63 million, or 859.0% from
Rs. 21.61 million in fiscal 2004 to Rs. 207.24 million in fiscal 2005
v Revenue
from manufactured product sales increased by Rs. 2875.61 million, or 106.2%,
from Rs. 2,707.34 million in fiscal 2004 to Rs. 5582.95 million in fiscal 2005.
v Manufacturing
related expenses decreased by Rs. 14.69 million, or 3.3%, from Rs. 446.97
million in fiscal 2004 to Rs. 432.28 million in fiscal 2005.
v
Costs for royalties on mining iron ore increased by Rs. 4.97
million, or 13.6%, from Rs. 36.45 million in fiscal 2004 to Rs. 41.42 million
in fiscal 2005.
MANAGEMENT
TEAM
Board
of Directors
Mr. Narendrakumar A. Baldota –
Chairman & Managing Director
Mr. Rahulkumar N. Baldota –
Whole Time Director
Mr. Shrenikkumar N. Baldota –
Whole Time Director
Mr. R. H. Sawkar – Independent
Director
Mr. M. Ravindra – Independent
Director
Mr. Anirudha R. Barwe -
Independent Director
Company
Secretary
Mr. A.T. Shymasundar
Key
Executives
Mr. Meda. Venkataiah - Executive
Director (Mines)
Mr. G. V. S. B. Reddy - General
Manager (Corporate)
Mr. Kishore Kumar Kamisetti -
General Manager (Marketing & Logistics)
Mr. S. Raghunathan - General Manager
(Finance & Accounts)
Mr. K. R. M. Reddy - General
Manager (Public Relations)
Mr. K. V. S. Subrahmanyam -
General Manager (Power)
Mr. Arun Solomon - General
Manager (HR)
Auditors
S. B. Chhajed & Co , Mumbai-
Joint Auditors
Deloitte Haskins & Sells ,
Mumbai - Joint Auditors
Press Release :
India's largest wind energy producer receives 'highest
investor award'
Their Corporate Bureau
23 August 2005
New Delhi: MSPL Limited, the flagship company of
Baldota Group, and the leading private sector company in iron ore mining and
exports and gases establishments in India, has been awarded the "highest
investor award in renewable energy for 2004-05.
Rahul N. Baldota, director, Baldota Group, received the
award at the Rajiv Gandhi Akshay Urja Diwas function organised by Karnataka
Renewable Energy Development Limited (KREDL) on Saturday.
MSPL has a total installed capacity of 140mw of wind energy at an investment of
about Rs650 crores. MSPL Limited along with group companies exports about 385
million units of energy to the Karnataka State grid per annum.
MSPL also
plans to diversify into hydro power generation projects in the Nethravathy basin
and also in Tunga basin in Karnataka and enter into power trading and power
distribution
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.44.17 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.67 |
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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--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 |
|