MIRA
INFORM REPORT
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Report Date : |
16.05.2007 |
IDENTIFICATION DETAILS
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Name : |
SHETRON LIMITED |
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Formerly Known As : |
SHETRON METALS LIMITED |
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Registered Office : |
Plot No. 1, Bommasandra Industrial Area, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.06.1980 |
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Com. Reg. No.: |
08-3842 |
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CIN No.: [Company
Identification No.] |
U21014KA1980PLC003842 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRSO1805G/BLRS02308F |
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Legal Form : |
Public Limited Liability Company The company's shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of printed tin/metal/containers, dry battery cells, jackets & components, printed, varnished and lacquered tin/metal sheet from tinplate prime/waste/water black plates, tinfree steel and CRC sheets, MS, defectives and MS cuttings Aluminium Sheets. |
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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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track. Trade relations are fair. The company’s sales turnover and profit margin has improved substantially. Financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/Factory : |
Plot No. 1, Bommasandra Industrial Area, |
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Tel. No.: |
91-80-2226 8920 / 2226 8921/7832290/1/2/46 |
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Fax No.: |
91-80-2225 8285/7832293 |
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E-Mail : |
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Website : |
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Corporate Office |
A/6, |
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Tel. No.: |
91-22-2832 6228 / 2832 8609 |
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Fax No.: |
91-22- 2837 2145 |
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E-Mail : |
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Head Office : |
26/3A, |
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Tel. No.: |
91-80-226 8920 / 21 |
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Fax No.: |
91-80-225 8285 |
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E-Mail : |
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Factory 2 : |
Mumbai- |
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Tel. No.: |
91-952527-220097/220521 |
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Fax No.: |
91-952527-220520 |
DIRECTORS
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Name : |
Mr. Divakar S.
Shetty |
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Designation : |
Chairman &
Managing Director |
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Qualification : |
B.Com. |
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Date of Appointment : |
01.09.1983 |
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Previous Employment |
Fibre Foils
Limited – Managing Director |
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Name : |
Mr. Kartik Nayak |
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Designation : |
Executive
Director |
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Name : |
Mr. A. T. Picardo |
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Designation : |
Director |
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Name : |
Mr. B. S. Patil |
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Designation : |
Nominee Director
[KSFC] |
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Name : |
Mr. M. Kumar |
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Designation : |
Nominee Director
[IDBI] |
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Name : |
Mr. C. R. Seetharam |
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Designation : |
Director |
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Name : |
Mr. A. P. Rao |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. T. K. Gopalakrishnan |
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Designation : |
Company Secretary
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Audit Committee |
Shri M.Kumar – Chairman Shri C.R.Seetharam – Member Shri A.P.Rao – Member |
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SHARE TRANSFER AND GRIEVANCES COMMITTEE |
Shri Diwakar S. Shetty Chairman Shri Kartik Nayak Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter's holding |
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Indian Promoters |
4609454 |
71.99 |
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Foreign Promoters |
81633 |
1.27 |
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Non-Promoters Holding |
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Institutional Investors : |
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Mutual Funds and UTI |
100 |
0.00 |
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Flls |
600 |
0.01 |
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Others : |
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Private Corporate Bodies |
308990 |
4.83 |
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Indian Public |
1205273 |
18.82 |
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NRIs/ OCBs |
197250 |
3.08 |
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Total |
6403300 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of printed tin/metal/containers, dry battery cells, jackets & components, printed, varnished and lacquered tin/metal sheet from tinplate prime/waste/water black plates, tinfree steel and CRC sheets, MS, defectives and MS cuttings Aluminium Sheets. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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MetalContainer
including O.T.S. Cans and Dry Battery Cells – Jackets & Components
including printed/ lacquered sheets |
MT |
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13500 |
7732 |
GENERAL INFORMATION
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No. of Employees : |
700 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Pal & Shanbhqgue Chartered Accountants, |
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Address : |
24, 4th Main, Malleswaram, |
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Associates/Subsidiaries : |
Fibre Foil Limited, Mumbai Line of Business - Engaged in manufacturing of printed tin/metal/containers, dry battery cells, jackets & components, printed, varnished and lacquered tin/metal sheet from tinplate prime/waste/water black plates, tinfree steel and CRC sheets, MS, defectives, MS cuttings Aluminium Sheets. Ø
Sansha Systems Limited, Ø Shetron Enterprises Private Limited Ø Fibre Shells Limited Ø Shetron Metro Pak Private Limited Ø Bunts Property Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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250,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 250.000
Millions |
Issued,:
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No. of Shares |
Type |
Value |
Amount |
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6403300 |
Equity Shares |
Rs.10/- each |
Rs.64.033 millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6398800 |
Equity Shares |
Rs.10/- each |
Rs.63.988 millions |
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Less : |
Calls in Arrears |
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Rs. 0.013 millions |
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Add : |
Forfeited Equity Shares 4,500 |
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Rs. 0.023 millions |
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GRAND TOTAL |
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Rs.63.998 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
63.998 |
63.998 |
63.998 |
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2] Share Application |
13.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
226.060 |
143.687 |
108.643 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(41.439) |
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NETWORTH
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303.058 |
207.685 |
131.202 |
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LOAN FUNDS |
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1] Secured Loans |
505.264 |
532.877 |
553.512 |
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2] Unsecured Loans |
53.337 |
58.872 |
89.977 |
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TOTAL BORROWING
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558.601 |
591.749 |
643.489 |
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DEFERRED TAX LIABILITIES |
84.692 |
5.974 |
7.025 |
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TOTAL
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946.351 |
805.408 |
781.716 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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401.297 |
409.255 |
424.271 |
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Capital work-in-progress
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43.951 |
18.807 |
31.479 |
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INVESTMENT
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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289.567
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199.205
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133.782 |
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Sundry Debtors
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205.829
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179.057
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176.628 |
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Cash & Bank Balances
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27.955
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30.492
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28.202 |
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Other Current Assets
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11.412
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12.648
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10.437 |
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Loans & Advances
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87.440
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102.396
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96.793 |
Total Current Assets
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622.203
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523.798
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445.842 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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148.292
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137.330
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118.123 |
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Provisions
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20.308
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9.122
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1.753 |
Total Current Liabilities
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168.600
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146.452
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119.876 |
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Net Current Assets
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453.603
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377.346
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325.966 |
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MISCELLANEOUS EXPENSES
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47.500 |
0.000 |
0.000 |
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TOTAL
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946.351 |
805.408 |
781.716 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
803.614 |
693.669 |
604.030 |
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Other Income |
28.388 |
31.129 |
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Total Income |
832.002 |
724.799 |
604.030 |
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Profit/(Loss) Before Tax |
182.648 |
86.902 |
0.646 |
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Provision for Taxation |
83.255 |
5.149 |
[9.458] |
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Profit/(Loss) After Tax |
99.393 |
81.753 |
10.104 |
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Earnings in Foreign Currency : |
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Export Earnings |
150.148 |
127.167 |
0.000 |
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Commission Earnings |
1.632 |
1.516 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
112.792 |
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Total Earnings |
151.780 |
128.683 |
112.792 |
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Imports : |
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Raw Materials |
421.159 |
222.937 |
0.000 |
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Stores & Spares |
11.256 |
7.484 |
0.000 |
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Capital Goods |
13.626 |
1.757 |
0.000 |
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Others |
0.000 |
0.000 |
100.591 |
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Total Imports |
446.041 |
232.178 |
100.591 |
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Expenditures : |
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Insurance Expenses |
145.781 |
0.000 |
0.000 |
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Other Expenditure |
0.000 |
700.328 |
609.925 |
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Total Expenditure |
145.781 |
700.328 |
609.925 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 (1st
Quarter) |
30.09.2006 (2nd
Quarter) |
31.12.2006 (3rd
Quarter) |
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Sales Turnover |
224.200 |
209.500 |
165.500 |
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Other Income |
8.700 |
8.000 |
9.000 |
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Total Income |
232.900 |
217.500 |
174.500 |
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Total Expenditure |
181.800 |
175.900 |
142.800 |
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Operating Profit |
51.100 |
41.600 |
31.700 |
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Interest |
16.400 |
15.300 |
14.000 |
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Gross Profit |
34.700 |
26.300 |
17.700 |
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Depreciation |
10.200 |
10.500 |
10.000 |
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Tax |
3.100 |
1.000 |
2.000 |
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Reported PAT |
19.400 |
12.800 |
3.700 |
200606
Quarter 1 - EPS
is Basic & 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 Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1.The above results were
taken on record by the Board of Directors at the meeting held on July 26, 2006.
2.Segment Reporting: The Company is engaged in the manufacture of Metal
Packaging and hence results are reported under one segment. 3.In respect of
para 5 of auditors report to the accounts as on March 31, 2006 the comments are
as follows Amount shown as overdue debtors is fully recoverable and no loss is
anticipated. 4.The Company has issued 26,00,000 Non- Transferable share warrant
to 3 Investors on preferential basis, with an option to convert the shares
within 18 months from the date of allotment. As per SEBI guideline the Company
has received Rs 5/- share the investors. 5.The above results have been
subjected to Limited Review by the Statutory Auditors.
200609
Quarter 2 - The above results
were taken on record by the Board of Directors at their meeting held on October
30 2006. 2. Segment Reporting: The Company is engaged m the manufacture of
Metal Packaging and hence results are reported under one segment 3. In respect
of para 5 of auditors report to the accounts as on 31.03.2006, the comments are
as follows: Amounts shown as overdue debtors is fully recoverable anri no loss
is anticipated. 4. The Company has issued 26,00,000 Non - Trasferable Share
Warrants to 3 investors on preferential basis, with an option to convert the
shares within 18 months from the date of allotment. As per SEB1 guideline the
Company has received Rs SI- per share from the invrslor'. 5. The above results
have been subjected to Limited Review by the Statutory Auditors. 6. 50:50 J.V.
Company. Shetton Metropak Pvt LldS production is expected to start in eary
2007. 7. No of shareholder complaints Opening number of Complaims reciewd
attended, Closing no. of complaints – NIL
200612
Quarter 3 - The above results
were taken on record by the Board of Directers at the meeting held on January
30, 2006. 2. Worldwide increase in Zinc prices which is a critical raw matrial
for Battery Industry has affected in drop in sales temporarily 3. Segment
reporting the company is engaged in the manufacture of metal packaging and
hence results are reported under one segment. 4. In respect of para 5 of
auditors report to the accounts as on 31/03/2006, the comments are as follows:
Amount shown as overdue debtors is fully rcoverable and no loss is anticipated.
5. Allotment of 26,00,000 Equity Shares of Rs.10/- each at a permium of Rs/-
per share to 3 investors made on 28.12.2006 pursuant to Circular Resolution
passed by the Board of Directors upon conversion of equal number of Share
warrants issued on 02.09.2005 was confirmed by the Board 6.EPS has been
computed on Weighted Average No of Shares consequent to increase in Paid up
Equity Capital from Rs 64.000 Millions to Rs 90.000 Millions due to allotment
of Equity Shares of Rs 26.000 Millions on preferntial basis on 28.12.2006. 7.
The above results have been subjected to limited review by the statutory
Auditors. 8 50:50 J V Company Shatron Metropak Pvt Ltd is expected to start
prodution in next quarter. 9. During this Quarter the Company has raised Rs
117.000 Millions though preferential allotment of equity shares consequent of
conversion of warrants and according to Listing Agreement the details of
utilisation of proceeds are as follows Particulars Amount Redemption of
Unsecured Loans 400 Capital Expenditure 230 Working Capital 540 Total 1170
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt
Equity Ratio |
2.31 |
3.65 |
4.97 |
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Long
Term Debt Equity Ratio |
1.85 |
2.97 |
4.04 |
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Current
Ratio |
1.66 |
1.70 |
1.56 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.20 |
1.07 |
0.91 |
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Inventory
|
3.64 |
4.61 |
4.65 |
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Debtors |
4.63 |
4.31 |
4.17 |
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Interest
Cover Ratio |
2.12 |
1.27 |
0.93 |
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Operating
Profit Margin (%) |
16.97 |
16.85 |
17.98 |
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Profit
Before Interest and Tax Margin (%) |
12.47 |
11.79 |
11.88 |
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Cash
Profit Margin (%) |
8.00 |
7.50 |
6.67 |
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Adjusted
Net Profit Margin (%) |
3.50 |
2.44 |
0.57 |
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Return
on Capital Employed (%) |
13.88 |
11.19 |
9.36 |
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Return
on Net Worth (%) |
12.54 |
9.83 |
2.02 |
STOCK PRICES
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Face Value |
Rs.10/- |
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High |
Rs.63.25/- |
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Low |
Rs.63.25/- |
LOCAL AGENCY FURTHER INFORMATION
|
Contingent Liabilities |
31.03.2006 |
|
Letters of Credit established |
130.159 |
|
Inland Bills/LC's Discounting outstanding and guarantees given by bank on behalf of the company |
49.328 |
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Guarantees given by the Company in favour of Collector of Customs |
45.000 |
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Future lease rentals payable |
3.521 |
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Estimated amount of contracts remaining to be executed on capital
account net of advance and not provided for. |
12.314 |
HISTORY :
The company was incorporated on 9th June, 1980 at
It was promoted by Divakar S Shetty and his associates jointly with the Karnataka State Industrial & Investment Development Corporation, under the name Shetron Metals.
It manufactures battery cell jackets and components, printed
metal sheets, cans and can components.
In August, 1993, the company came out with a public issue at a premium
of Rs. 30 aggregating Rs. 92.200 millions.
The issue was to part-finance the setting up of manufacturing facilities
for open top sanitary cans at
The company also focus on international market for Battery Division and hope that no apprehension in playing a major role in the world market over the years. The company continues to be the market leaders in the segment of processed food and vegetable. The company also entered into the Mushroom Sector in a large way and anticipate to be a major supplier and market leader in this segment. Food Can Division also shows a significant growth an increased by 21%.
The company’s list of clients include companies like Union
Carbide, Indo National, Lakhanpal National, as also companies in Europe, West
Asia and
The company shifted its registered office from
OPERATIONAL
REVIEW
They are pleased to report that the Company continues to be
in growth track and achieved 14.8% increase in sales over previous year.
The price of tin plate, the main raw material for the company
products, continues to go up in both domestic and international market. The
price structure in the domestic market causes concern to the domestic steel
users. However Company has taken adequate steps to partially mitigate the
effect of price increase.
The Company is continuing its focus in improving operating
efficiency and achieved gross profit of Rs.145.800 Millions.
EXPORTS
The Company has further consolidated the export market and registered an
increase of 18.1% over previous year. The Company is currently exporting to
South East Asian countries, Africa and the
FINANCE RESTRUCTURING
During the year under review Citicorp Finance Limited has contributed to the 9%
non convertible debenture of Rs. 380.000 Millions at a discount. The proceeds
of the above were utlised mainly for settlement of Term Loan dues with
Institutions / Banks.
Company also issued non transferable share warrants of 2.600 Millions to 3
investors at a premium of Rs 40 per share, under the SEBI guidelines, with an
option to convert the same to Equity Shares with in a period of 18 months. As
per the requirement the investors have paid the initial subscription of Rs 5/-
per share.
JOINT VENTURE / TECHNICAL SERVICE
INITIATIVE
Company has signed a Joint Venture Agreement with Metropak, A/S Denmark for the
manufacture of Lug Cap on a 50:50 basis with an initial investment of As 9.95
Millions. A Company, by name Shetron Metropak Pvt Limited, is incorporated and
the project is under implementation.
Company has also entered into a Technical and Managerial Service Agreement with
Shetron Sobemi Europe N.V. Belgium, to support their activities in printing and
battery jacket operations. Such an agreement is also expected to benefit the
Company, in terms of better visibility, in European markets.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT:
Global packaging industry, in value terms, is estimated at around US$500
billion growing at 4 to 5%, per annum with volumes growing at 12 to 14%.
In the domestic market, modern retailing concepts and the culture of
super markets have taken a strong fotting in various cities. customers are now
exposed to a variety of goods to pick and choose from and packaging plays a
crucial part in selection. Food Packaging also demands highest safety. Food
cans fortsee significant growth ahead mainly due to its attractiveness,
convenience and long shelf life and is also completely re-cycleable. Production
cost of metel cans used in food packaging is more economical than flexible
packaging, tamper-proof and safe. Domestic food processing industry has emerged
as focus area with the Union budget 2006 having given additional fiscal
benefits to the food processing industries.
SEGMENT WISE PERFORMANCE:
The Company products constitute metal packaging and hence there is no
separate disclosure on segment reporting.
THREATS AND CONCERNS:
Fluctuation in the prices of tin plate in the international market and the
pressure exerted by other Companies packaging system poses a constant threat to
metal packaging. However, due to the upgradation of technology, Shetron
continues to progress and maintain a lead over the competitive packaging system
particularly in food packaging.
OUTLOOK AND OPPORTUNITIES:
The Company is focussing on metal food packaging and expected to clock double
digit in this sector. The Company is contemplating expansion in line with food
processing industry's demand.
FINANCIAL
AND OPERATIONAL PERFORMANCE:
Higher productivity, aggressive cost control together with debt restructuring
have been the key areas to improve the operational performances.
HUMAN RESOURCES:
Training and development continues to be the focus areas for increasing competency
levels in the organization in line with the business standard. The Company has
conducted awareness and training programs to all levels of employees. The
company has completed the second year of TPM programs and has further improved
the competency level of the employees.
The company's fixed
assets of important value include leasehold land and development, buildings,
plant & machinery, furniture, fixtures & equipments and vehicles.
Website details attached :
GROUP PROFILE :
The Company was incorporated
in 1980 and commenced production in 1984 for the manufacturing of Metal Cans
for Food and Dry Cell Battery Jackets / Components.
Shetron Technology
focuses on two vital sectors - FOOD and ENERGY. As one of the leading
manufacturers of Metal Packaging, Printed Metal Sheets and Dry-cell Battery
Jackets and Components, SHETRON is rightly 'The Name Behind The Names'.
With world class manufacturing facilities, Shetron offers
products of international standards.
The
Company is the largest integrated Producer of Dry Cell Battery Jackets in the
South East Asian region and a single source supplier for many Multinatoinal
Industries.
During the last over 2
decades, the Company has attained the number one position as the most preferred
supplier to a large number of leading organizaitons.
Products :
Shetron is an
organisation dedicated to excellence in packaging … packaging that protects,
preserves and promotes products … packaging that attracts… packaging that
offers convenience … packaging that offers value.
An ISO 9001:2000 company, Shetron has facilities that match
some of the world’s best can-making units.The growing list of their satisfied
clients, which includes leading names in food and food processing industry,
reiterates their claim that Shetron is “The Name Behind The Names”.
Ø Dry Cell
Shetron is
Making of battery jackets at Shetron starts with the selection of
quality sheets. Printing on metal sheets with clarity and precision is an art
that finds expression at Shetron. The Printing line at Shetron has a range of
machines designed to bring out best on metal printing.
Ø Metal Food Cans :
As
a leading name in Metal Packaging, Shetron offers a wide range of well-designed
Food Cans for packing a variety of products.
Profile :
Fibre Foils Technology
encompasses "The Power of Packaging" comprising Fibre Drums, Paper
Cores, Textile Tubes, Film Cores, Composite Cans and Paper Sleeves.
With world class manufacturing
facilities, at Khopoli in
Major users of these
products include manufacturers of Snack Foods, Spices, Agricultural Seeds, Bulk
Drugs, Chemicals, Paper, Plastic Films, Textile Yarns and other products.
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 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.40.84 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.55.23 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
47 |
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 |
|