MIRA INFORM
REPORT
|
Report
Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
FINELINE CIRCUITS LIMITED |
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Registered
Office : |
145, SDF
– V, Seepz (SEZ), Andheri (East), Mumbai – 400 096, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
09.10.1989 |
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Com.
Reg. No.: |
11-131521 |
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CIN
No.: [Company
Identification No.] |
U72900MH2001PLC131521 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMF03519F |
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PAN
No.: [Permanent
Account No.] |
AAACF0820C |
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Legal
Form : |
A public limited liability company. The shares of the
company are listed on the Stock Exchanges |
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Line
of Business : |
Manufacturers
of printed circuit boards. |
RATING & COMMENTS
|
MIRA’s
Rating : |
B |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum
Credit Limit : |
USD
350000 |
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Status
: |
Moderate |
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Payment
Behaviour : |
Slow but
correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is an established company. Its profit margin is
under severe pressure. Payments are reported as slow but correct. The company can be considered for moderate business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
145, SDF
– V, Seepz (SEZ), Andheri (East), Mumbai – 400 096, |
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Tel.
No.: |
91-22-28290244
– 45 |
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Fax
No.: |
91-22-28292554 |
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E-Mail
: |
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Website
: |
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Factory
1 : |
145, SDF – V, Seepz (SEZ), Andheri (East), Mumbai – 400
096 |
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Tel.
No.: |
91-22-28290244
– 45 |
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Fax
No.: |
91-22-28292554 |
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E-Mail
: |
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Factory
2 : |
High
Technology Multilayer Unit 148, SDF-V,
Seepz –Sez, Andheri (East), Mumbai 400 096, |
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Tel.
No.: |
022
56792968/ 28290244/45 |
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Fax
No.: |
91-22-28292554 |
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E-Mail
: |
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Branches
: |
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Tele Fax No |
1-877-876-3660 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr. Bhagwandas
T. Doshi |
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Designation
: |
Executive
Chairman |
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Name : |
Mr. G.
Sudarsanam |
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Designation
: |
Vice-Chairman |
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Name : |
Mr. A. B.
Doshi |
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Designation
: |
Managing
Director |
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Name : |
Mr.
Rajendra J. Shah |
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Designation
: |
Non
Executive Director (upto 25.04.2006) |
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Name : |
Mr. Rajendra
V. Gandhi |
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Designation
: |
Non
Executive Director |
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Name : |
Mr. U.
Nimmagadda |
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Designation
: |
Non
Executive Director |
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Name : |
Mr. Vijay
A. Kumbhani |
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Designation
: |
Non
Executive Director |
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Name : |
Mr. Gautam
B. Doshi |
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Designation
: |
Non
Executive Director |
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Name : |
Mr. Juzer
Vasi |
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Designation
: |
Non
Executive Director |
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Name : |
Mr.
Chandrakant K Thanawala |
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Designation
: |
Non
Executive Director |
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Name : |
Mr.
Apurva R Shah (w.e.f. 26.06.2006) |
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Designation
: |
Non
Executive Director |
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Senior
Management : |
Mr. Srinivas
A. Balaji |
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Mr. Joy
Chacko |
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Mr. Kiran
Raut |
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Mr. Deepak
N. Chandavarkar |
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Mr. Shivkumar
S. Somani |
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Mr. |
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Mr. Rajiv
B. Doshi |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoter's holding |
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Indian Promoters |
563230 |
11.72 |
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Foreign Promoters |
175100 |
3.64 |
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Person Acting in concert |
442020 |
9.19 |
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Non-Promoters Holding |
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Bank, Financial Institutions,
Insurance Companies (Central/ State Qovt. Institution/
Non- Govt. Institutions |
252730 |
5.26 |
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FIIS |
-- |
-- |
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Others |
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Private Corporate Bodies |
243565 |
5.06 |
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Indian Public |
2553972 |
53.12 |
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NRIs/OCBs |
572969 |
11.92 |
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Clearing members |
4200 |
0.09 |
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Total |
4807786 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
of printed circuit boards. |
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Products
: |
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PRODUCTION STATUS
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Particulars |
Unit |
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Actual Production |
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Printed
Circuit Board |
Sqm. |
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|
25806 |
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High
Technology Multilayer Board |
Sqm. |
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NA |
GENERAL INFORMATION
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No. of
Employees : |
350 |
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Bankers
: |
v Allahabad Bank v State Bank of |
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Facilities : |
- |
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Banking Relations : |
Satisfactory |
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Auditors
: |
DKP & Associates Chartered Accountant |
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Associates/Subsidiaries
: |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
75,00,000 |
Equity
Shares |
Rs. 10/- each |
Rs. 75.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
4807786 |
Equity
Shares |
Rs. 10/- each |
Rs. 48.078 Millions |
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Add: |
Forfeited Shares |
|
Rs. 0.187 Million |
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Total |
|
Rs. 48.265 Millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
48.265 |
48.264 |
48.360 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
40.048 |
39.668 |
34.555 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
88.313 |
87.932 |
82.915 |
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LOAN
FUNDS |
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1]
Secured Loans |
0.000 |
0.000 |
0.000 |
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
0.000 |
0.000 |
0.000 |
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DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
88.313 |
87.932 |
82.915 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
24.007 |
38.428 |
47.410 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS
|
2.350 |
1.018 |
0.150 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
35.069
|
39.097
|
21.649 |
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Sundry Debtors
|
33.898
|
26.171
|
20.429 |
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Cash & Bank Balances
|
6.486
|
3.746
|
2.939 |
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Other Current Assets
|
0.000
|
0.000
|
0.000 |
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Loans & Advances
|
9.771
|
4.155
|
3.427 |
Total Current Assets
|
85.224
|
73.169
|
48.444 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
18.567
|
23.966
|
12.290 |
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Provisions
|
4.701
|
0.717
|
0.799 |
Total Current Liabilities
|
23.268
|
24.683
|
13.089 |
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Net
Current Assets
|
61.956
|
48.486
|
35.355 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
88.313 |
87.932 |
82.915 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
237.430 |
|
166.668 |
|
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Other Income |
1.875 |
6.237 |
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Total
Income |
239.305 |
197.895 |
166.668 |
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Profit/(Loss) Before Tax |
(0.750) |
5.445 |
7.748 |
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Provision for Taxation |
0.283 |
0.382 |
2.024 |
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|
Profit/(Loss) After Tax |
(0.467) |
5.063 |
5.724 |
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Total
Earnings |
211.376 |
171.998 |
144.847 |
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Imports
: |
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Raw Materials |
63.633 |
53.059 |
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Stores & Spares |
29.504 |
23.064 |
68.208 |
|
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Capital Goods |
0.440 |
6.050 |
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Total
Imports |
93.577 |
82.173 |
68.208 |
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Expenditures : |
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Manufacturing Expenses |
223.717 |
173.766 |
158.919 |
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Depreciation & Amortization |
16.338 |
18.684 |
|
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Total
Expenditure |
240.055 |
192.450 |
158.919 |
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QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 1st Quarter |
30.09.2006 2nd Quarter |
31.12.2006 3rd Quarter |
|
Sales Turnover |
77.200 |
87.700 |
63.900 |
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Other Income |
0.000 |
0.000 |
0.100 |
|
Total Income |
77.200 |
87.700 |
64.000 |
|
Total Expenditure |
67.500 |
79.800 |
55.500 |
|
Operating Profit |
9.700 |
7.900 |
8.500 |
|
Interest |
0.000 |
0.000 |
0.000 |
|
Gross Profit |
9.700 |
7.900 |
8.500 |
|
Depreciation |
2.300 |
2.800 |
3.100 |
|
Tax |
1.300 |
0.600 |
0.300 |
|
Reported PAT |
6.200 |
4.600 |
5.300 |
200606 Quarter 1
Notes
Net Sales Includes Exports Rs 76.907 million Domestic Rs
0.311 million Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
1.919 million Consumption of Raw Materials, Chemicals & Consumables Rs
42.603 million Staff Cost Rs 7.953 million Other Expenditure Rs 15.067 million
Tax Includes Provision for Income Tax Rs 1.339 million Fringe Benefit Tax Rs
0.039 million Deferred Tax Rs (0.135) million EPS is Basic and Diluted Status
of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The company has business in only one segment (i.e.
Printed Circuit Boards) 2. In view of AS-15 (revised 2005) Employee Benefits
issued by the Institute of Chartered Accountants of India, which is applicable
w.e.f. April 01, 2006, the adjustment on account of transitional provision if
any, will be dealt in the general reserve at the year end. 3. The above results
were reviewed by the Audit Committee and taken on record at the meeting of the
Board of Directors of the Company held on July 31, 2006. 4. These results for
the quarter ended June 30, 2006 were subjected to Limited Review by the
Statutory Auditors of the Company. 5. The Previous period's figures have been
rearranged / regrouped to make them comparable.
200609 Quarter 2
Notes
Net Sales Includes Exports Rs 84.448 million Domestic Rs
3.248 million Expenditure Includes (Increase)/Decrease in Stock in Trade Rs
0.065 million Consumption of Raw Materials, Chemicals & Consumables Rs
52.314 million Staff Cost Rs 7.976 million Other Expenditure Rs 19.441 million
Tax Includes Provision for Income Tax Rs 0.557 million Fringe Benefit Tax Rs
0.065 million Deferred Tax Rs (0.089) million EPS is Basic and Diluted Status
of Investor Complaints for the quarter ended September 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 04 Complaints disposed off during the quarter 04 Complaints unresolved
at the end of the quarter Nil 1. The company has business in only one segment
(i.e. Printed Circuit Boards) 2. In view of AS-15 (revised 2005) Employee
Benefits issued by the Institute of Chartered Accountants of India, which is
applicable w.e.f. April 01, 2006, the adjustment on account of transitional
provision if any, will be dealt in the general reserve at the year end. 3. The
above results were reviewed by the Audit Committee and taken on record by the
Board of Directors of the Company at their meeting held on October 20, 2006. 4.
These results for the quarter ended September 30, 2006 were subjected to
Limited Review by the Statutory Auditors of the Company. 5. The Previous
period's figures have been rearranged / regrouped to make them comparable.
200612 Quarter 3
Notes:
EPS is Basic and Diluted Status of Investor Complaints for
the quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 03 Complaints disposed off
during the quarter 03 Complaints unresolved at the end of the quarter Nil 1.
The Company has business in only one segment (i.e. Printed Circuit Boards) 2.
In view of AS-15 (revised 2005) Employee Benefits issued by the Institute of
Chartered Accountants of India, which is applicable w.e.f. April 01, 2006, the
adjustment on account of transitional provision if any, will be dealt in the
general reserve at the year end. 3. The previous periods figures have been
rearranged/regrouped to make them comparable with the current period. 4. The
above results were reviewed by the Audit Committee and taken on record by the
Board of Directors of the Company at their meeting held on January 15, 2007. 5.
These results for the quarter ended December 31, 2006 were subjected to Limited
Review by the Statutory Auditors of the Company.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
3.00 |
2.82 |
4.63 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
2.01 |
1.60 |
1.56 |
|
Inventory |
6.41 |
6.32 |
10.14 |
|
Debtors |
7.91 |
8.24 |
8.21 |
|
Interest
Cover Ratio |
0.45 |
4.86 |
10.56 |
|
Operating
Profit Margin(%) |
7.07 |
13.29 |
14.97 |
|
Profit
Before Interest And Tax Margin(%) |
0.21 |
3.54 |
5.80 |
|
Cash
Profit Margin(%) |
7.07 |
12.40 |
12.89 |
|
Adjusted Net
Profit Margin(%) |
0.21 |
2.66 |
3.73 |
|
Return On
Capital Employed(%) |
0.57 |
7.96 |
11.59 |
|
Return On
Net Worth(%) |
0.57 |
5.97 |
7.44 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.36.90 |
|
Low |
Rs.35.30 |
LOCAL AGENCY FURTHER
INFORMATION
History:
Subject was incorporated on at Ankleshwar in
The company Law Board, Western Region Mumbai passed the
order under section 17 of Companies Act, 1956 confirming of the alteration of
clause II of Memorandum of Association of the company for shifting of
registered office of company from state of Gujarat to state of Maharashtra. The
said amendment was earlier approved by members of annual general meeting of the
company held on 29th September, 1999. The registered office of the
company is now situated at the company’s works.
Fixed Assets:
v
Plant
& machinery
v
Vehicles
v
Furniture
& fixtures
v
Computers
v
Office
equipments.
PERFORMANCE AND
OPERATIONAL RESULTS
The concerted team efforts at the factory enhanced its
operations even with adverse and competitive environment at global level. The
sales were higher at Rs.237.700 millions as against Rs. 192 millions in the previous
year i.e. a growth of 23.87%. The Printed Circuits Boards (PCBs) Production was
also higher at 25,760 sqm as against 21,172 sqm in previous year i.e. a growth
of 21.67%. The increased productivity was however eroded by the sharp increase
in material costs and high rejections. Tough competition in the global market
with
Website Details :
COMPANY ASPIRATION
v Their Aspiration for Fine –Line is
to be a Performance Drivern, Reliable, Continuously Improving, High Quality,
Medium Volume independent manufacturer, exporter” Pleasing customer 100%” in
the complex High Count Multilayer PCB.
v To achieve true
& sustainable MIL Approval & ISO 9001:2000.
v To have a manufacturing base in each
of the major market served by the company.
To complete in the world markets by continuously
improving capability to handle higher PCB complexity (thinner lines &
smaller holes) and gear up for smaller lot sizes and shorter lead times and
border range of materials & finishes all at a continuously reducing selling
price.
STRUCTURE
& GUIDING PRINCIPLES
Capital Adequacy :
v Do business on cash flow & No
liabilities basis using realized Internal Accruals for Capital expenditure
& Equity Buy backs.
v Perpetually retain the financial
Reserve for opportunities by having a Liquid Balance Sheet & keep all
expense provisions supported by fixed deposits.
v Creditors only for Capital
Expenditure.
Asset Quality :
Manpower :
v Motivated and involved Management
Team professionally working with passion and committed for the long haul to
fiercely complete and achieve ever increase goals.
v Multiskilled and Multifunctional
abilities at all levels.
v Open and clear spoken and written
communication, internal and external.
v Complete mutual support, no follow
up required & to ensure each person's output gives boost to the other.
v Clear job clarity & career path
with half yearly reviews and annual appraisals.
v Constant training & grooming by
each person to there team members.
Manufacturing :
v Final yields of 98% on SS, 96% on DS
& 94% on MLB & FPY of 85%.
v OTDD of 99% by value and area &
max 1 day late on no more than 1% of the orders by area.
v Cycle time of DS 7 days, 4L 10 days,
6L 14 days & continuously reducing.
v SOP/QA/WRP in every area and
constantly update them.
v Judiciously and continuously invest
and implement “LEAN MANUFACTURING” concepts and reduce rework, inspection,
interim process steps and achieve quick-change overs.
v Constantly search for good used
equipments.
v Smooth Factory & Departmental
layout for convenient material movement.
v Achieve average age of key of
machines to be under 6 years in 3 years.
v Good clean Housekeeping &
Environment friendly operations, review factory security annually.
Material :
v Inventory level of 25 days
v Minuscule Import and Export Clearing
Charges.
v Annual purchase cost reduction of
10% in “A” material & 15% in “B” &”C” material.
v Continuously develop new vendors
& AMC contractors.
Marketing :
v A process in place to get through
customer insight, to develop high value, added customer offerings and keep up
through customer interaction.
v A wide customer base with top 4
customers to account for only 25% of sales & no customer more than 8%.
v 2 months order backlog.
v Constantly generate new MLB customers
Prospects & contacts and access better priced markets and get timely paying
customers through an active sales force & representatives network.
Accounts :
Capitalize only machines.
R & D :
v Continuously absorb and consolidate
technology and offer new “Golden” products and new finishes &move up the
pcb layer count to reach a 60% Gross Margin.
v Clear Technology Road map for
rolling two years.
Management Philosophy :
v Earn daily, remain austere &
transparent & govern with values, financially conservative & low
profile, never compromise on quality, have clarity of role & accountability
& measurable milestones & goals, follow best practices, open office,
meticulous filing, detailed MIS, no work backlog, track every panel, rupee and
man hour, perform to budgets with good internal controls & internal audit.
v True board of directors'
participation with board package sent 7 days prior to quarterly board meetings.
v To become more web enabled – web
site, Online status, Engg. Data transfer & a less paper environment.
v Well – defined forums for all other
areas.
v No employee will accept nor ask for
any financial consideration/gifts for personal use from any Agency.
v To have a work place that is
pleasant and gives an enjoyable working experience.
Earning Capability :
Work towards putting in place a Sustainable Competitive
Advantage (of product and of serviceable markets) than can be executed in the
coming years to ensure sustainable Annual Net Profit growth of 60%.
Liquidity :
Timely paying customers and receivables to be under 30 days.
Products
Multi Layer PCBs
Complex Highcount MLBs with fine pitch SMDs on both sides.
High Copper Board
The typical high copper thickness achievable is at 210 microns. Upon request
& with very special process & material they can go upto 350 micron with
varying copper thickness for each layer.
Impedance Controlled PCBs
Impedance controlled multilayer boards for high frequency and high speed
applications.
Backplane PCBs
This type of
special purpose board requires very dense package of plated through holes which
are structurally strong and ductile to guarantee high speed and stable
electronic signal flow.
Single & Double Sided PCBs
Most common PCBs
for consumer and industrial electronics devices. Large volume single-sided
which can be CEM or FR4 pierced and blanked with hard tools & double sided
PTH Routed/Scored.
Equipments :
Alongwith
employee skills & involvement, equipments play a very important role in PCB
manufacturing. Fine-Line's equipment base consists of state of the art
equipments in key manufacturing areas like:
v
MLB
Press-Lauffer (
v
CNC
Drilling-Excellon (
v
Plating-Direct
Metallisation of Nubal
v
Wet
Process-IS,Marseco (
v
Electrical
Flying Probe Testing-ATG (
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
4 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT
LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
37 |
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
|
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 |