MIRA
INFORM REPORT
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Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
RPG CABLES LIMITED |
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Registered Office : |
Herbal Industrial area, Belavadi Post, Mysore - 571186, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.03.1982 |
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Com. Reg. No.: |
08-4679 |
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CIN No.: [Company
Identification No.] |
L85110KA1982LC004679 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PINER06094E |
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PAN No.: [Permanent
Account No.] |
AAABCROO67Q |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the
stock Exchange |
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Line of Business : |
Manufacturing and Marketing of jelly filled telephone
cables, optical fibre cables, power cables and wind energy. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having moderate track. The company’s profit margin is under severe pressure. Payments are reported as slow by + 30 days on its commitments. However, the company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Hebbal Industrial Area, Hootagalli, Belavadi Post, Mysore-571 186 |
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Tel. No.: |
91-821-6553375 / 6553376 |
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Fax No.: |
91-821-2402499 |
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Website: |
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Head Office : |
2ND Pokhran Road, P B No.11, Thane - 400601, Maharashtra,
India |
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Tel. No.: |
91-821-6553375 |
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Fax No.: |
91-821-2402499 |
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Corporate Office : |
Ceat Mahal, 463, Dr. Annie Besant Road, Worli, Mumbai 400 030 |
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Tel. No.: |
91-22-66670300 / 24937244 / 24938330 |
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Fax No.: |
91-22-24930206 |
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Factory : |
Hebbal Industrial Area, Hootagalli, Belavadi Post, Mysore 571 186,
Thane |
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Factory : |
Plot No. 273/4, Demni Road, Silvasa - 396191 (D. & N.H.) |
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Factory : |
A9/10, UPSIDC Industrial Area No. 2, Amawan Road, Raebareli 229 001 |
DIRECTORS
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Name : |
Mr. R.A Naik |
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Designation : |
Director |
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Name : |
Mr. H. C. Dalal |
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Designation : |
Director |
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Name : |
Mr. M. K. Kumar |
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Designation : |
Director |
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Name : |
Mr. K. Kalyanasundaram, Nominee Director of IFCI |
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Designation : |
Director |
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Name : |
Mr. Nikhil Gupta |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Audit Committee:: |
Mr. R. A. Naik |
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Mr. H. C. Dalal |
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Mr. M. K. Kumar |
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Shareholders/Investors Grievance Committee: |
Mr. H. C. Dalal |
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Mr. M. K. Kumar |
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Mr. Nikhil Gupta |
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Name : |
Mr. Jitin Parekh |
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Designation : |
Company Secretary |
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Management Team: |
Mr. Nikhil Gupta |
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Mr. Rajendra Mishra |
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Mr. C .N. Banerjee |
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Mr. S. Raguraman |
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Mr. Amit Sudhakar |
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Mr. Ratish Jha |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
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Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
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Category
of Shareholder |
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Shareholding
of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided
Family |
700 |
0.00 |
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Bodies Corporate |
10523604 |
32.86 |
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Public
shareholding |
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Institutions |
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Mutual Funds/ Axis |
91336 |
0.29 |
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Financial Institutions / Banks |
103013 |
0.32 |
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Insurance Companies |
1391586 |
4.35 |
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Foreign Institutional
Investors |
962242 |
3.00 |
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Non-institutions |
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Bodies Corporate |
2463123 |
7.69 |
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Individuals |
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Individuals -i. Individual shareholders
holding nominal share capital up to Rs 0.100 Million |
11254502 |
35.14 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
3650515 |
11.40 |
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Any Other (specify) |
1585723 |
4.95 |
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TOTAL |
32026344 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of jelly filled telephone
cables, optical fibre cables, power cables and wind energy. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
3000 |
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Bankers : |
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Facilities : |
NOTES: 1. FROM BANKS a. Term Loans of
Rs.675.168 Millions (Previous year Rs. Nil) from Deutsche Bank AG are secured
by mortgage and charge on both present and future movable fixed assets of the
company including plant and machinery and other implements and charge on
immovable property situated at Thane and Mysore. b. Term Loans of
Rs. Nil (Previous year Rs. 32.900 Millions) from State Bank of India were
secured by first charge on the company’s specific assets and pari-passu
second charge on inventories, book debts and other liquid assets c. Term loan
from ICICI Bank of Rs. Nil (Previous year: Rs. 249.700 Millions) was secured
by mortgage and charge on immovable properties both present and future and charge
on movables both present and future subject to prior charges in favour of
banks for Working Capital requirement and in favour of Financial institutions
for specific machinery. The said charge ranked pari-passu with the other
lenders to whom the original security was given. This loan carried a right to
convert the whole or part of the outstanding loan balance into equity shares.
This loan had been assigned by ICICI Bank to the third party with a recourse. 2. FINANCIAL
INSTITUTIONS a. Term loan
from IFCI of Rs. Nil (Previous year : Rs. 80 Millions) was secured by first
mortgage charge on immovable properties both present and future and charge on
movables both present and future subject to prior charges in favour of banks for
Working Capital requirement and in favour of Financial institutions for
specific machinery. The said charge ranked pari-passu with the other lenders
to whom the original security was given. b. Term Loan
from IFCI of Rs. Nil (Previous year: Rs. 26.427 Millions ) for Raebareli unit
was secured by first mortgage created on all the immovable properties of that
unit both present and future and charge by way of hypothecation of all
movable assets of that unit both present and future, save and except book
debts, and subject to prior charge in favour of banks on movables for Working
Capital requirement. c. Term Loan of
Rs.80 Millions (Previous year Rs. 80 Millions)from KSIIDC is secured by
equitable mortgage and charges on specific immovable properties of the
Company both present and future and charge by way of hypothecation of
specific movable assets of the company including movable plant and machinery
spares, tools and accessories and other movable assets both present and
future, save and except book debts and was previously subject to prior charge
in favour of banks on movables for working capital requirement. 3. OTHERS a. Loans from
PICUP in lieu of deferment of Trade / Sales tax to the extent of Rs.85.414
Millions (Previous year :Rs. 85.414 Millions) is secured by way of second
charge ranking pari passu created on all tangible movable properties and
assets of Raebareli unit, both present and future including inventories and
bookdebts. b. Hire Purchase
credit of Rs. 1.210 Millions (Previous year: Rs. 1.732 Millions) is secured
by hypothecation of assets under hire purchase scheme.
Notes 1. 13.5% Fully
Convertible Debentures will be converted into equity shares of the Company at
premium of Rs.36.30 per share on or before 30.09.2008 2. Fixed
Deposits include deposits matured but not paid Rs. Nil (Previous year Rs.
204.600 Millions). Fixed Deposits repayable within one year Rs Nil.(Previous
year Rs. 48.027 Millions) 3. Short Term
Loans and Advances from other than Banks comprises of Rs.Nil (previous year
Rs. 67.900 Millions) from Industrial Development Bank of India and Rs. Nil
(previous year Rs.0.228 Millions) from companies repayable on demand. 4. Other loans
and advances from other than Banks includes a. Sales Tax
deferment loan of Rs. 259.098 Millions (Previous year : Rs. 259.098 Millions)
repayable on completion of 8 years from the date of sanction over a period of
5 years. Out of this Rs 68.291 Millions (Previous year : Rs 57.442 Millions )
is due or repayable in one year. b. Unsecured
Loan of Rs. 17.500 Millions (Previous year :Rs. 35 Millions) from IL &
FS. c. Unsecured
Loan of Rs. 36.700 Millions (Previous year :Rs.73.200 Millions) from Stressed
Assets Stabilasation Fund to be converted into equity shares, after the
approval from the shareholders d. Sales Tax Deferment amount of Rs. 8.765 Millions (Previous year
:Rs.8.765 Millions) is pending conversion into loan. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
N. M. Raiji and company Chartered Accountant |
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Associates : |
· RPG Cellcom Limited
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
31261761 |
Equity Shares |
Rs.10/- each |
Rs.312.618
Millions |
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Add : Forfeited Shares |
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Rs. 0.017
Million |
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Less : Unpaid Allotment Money |
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Rs. 0.002
Million |
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Total |
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Rs. 312.633 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
312.633 |
212.399 |
212.399 |
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2] Share Application Money |
15.434 |
0.000 |
0.000 |
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3] Reserves & Surplus |
989.706 |
356.670 |
358.329 |
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4] (Accumulated Losses) |
[1452.456] |
(1470.128) |
(1074.793) |
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NETWORTH |
[134.683] |
(901.059) |
(504.065) |
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LOAN FUNDS |
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1] Secured Loans |
1009.328 |
2022.033 |
1795.228 |
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2] Unsecured Loans |
636.810 |
741.367 |
657.463 |
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TOTAL BORROWING |
1646.138 |
2763.400 |
2452.691 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1511.455 |
1862.341 |
1948.626 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
435.213 |
463.085 |
507.977 |
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Capital work-in-progress |
0.000 |
0.633 |
0.000 |
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INVESTMENT |
800.016 |
879.488 |
932.188 |
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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 |
68.645
|
64.540
|
56.074 |
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Sundry Debtors |
298.224
|
229.891
|
259.101 |
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Cash & Bank Balances |
49.243
|
45.957
|
37.286 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
757.088
|
611.404
|
601.034 |
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Total
Current Assets |
1173.200
|
951.792
|
953.495 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
881.779
|
413.649
|
402.594 |
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Provisions |
15.195
|
19.008
|
42.440 |
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Total
Current Liabilities |
896.974
|
432.657
|
445.034 |
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Net Current Assets |
276.226
|
519.135
|
508.461 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1511.455 |
1862.341 |
1948.626 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
2106.500
|
1434.200
|
991.600
|
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Other Income |
295.600
|
87.100
|
110.800
|
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Stock Adjustments |
05.200
|
04.400
|
[49.200]
|
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Total Income |
2407.300 |
1525.700 |
1053.200 |
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Profit/(Loss) Before Tax |
18.800
|
[409.800]
|
[424.500]
|
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Provision for Taxation |
01.100
|
[14.500]
|
00.000
|
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Profit/(Loss) After Tax |
17.700
|
[395.300]
|
[424.500]
|
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Imports : |
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Raw Materials |
78.224 |
90.717 |
NA |
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Stores & Spares |
0.315 |
0.473 |
NA |
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Total Imports |
78.539 |
91.19 |
NA |
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Expenditures : |
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Raw Materials |
1449.800
|
885.500
|
475.600
|
|
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Excise Duty |
277.400
|
175.000
|
105.200
|
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Power & Fuel Cost |
32.800
|
33.500
|
22.800
|
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Other Manufacturing Expenses |
44.900
|
151.900
|
187.600
|
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Employee Cost |
111.000
|
119.300
|
136.600
|
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Selling and Administration
Expenses |
150.100
|
56.900
|
62.500
|
|
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Miscellaneous Expenses |
105.100
|
142.800
|
174.500
|
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Interest & Financial Charges
|
177.800
|
332.000
|
270.100
|
|
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Depreciation |
39.600
|
38.600
|
42.800
|
|
Total Expenditure |
2388.500 |
1935.500 |
1477.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
562.600 |
622.100 |
|
Other Income |
|
21.000 |
3.500 |
|
Total Income |
|
583.600 |
625.600 |
|
Total Expenditure |
|
549.200 |
604.400 |
|
Operating Profit |
|
34.400 |
21.200 |
|
Interest |
|
58.000 |
74.400 |
|
Gross Profit |
|
[23.600] |
[53.200] |
|
Depreciation |
|
08.600 |
8.700 |
|
Tax |
|
00.300 |
0.200 |
|
Reported PAT |
|
[32.500] |
[62.100] |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.87 |
0.63 |
0.70 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.83 |
0.56 |
0.38 |
|
Inventory |
31.65 |
23.78 |
9.49 |
|
Debtors |
7.98 |
5.87 |
3.63 |
|
Interest Cover Ratio |
[0.43] |
[0.23] |
[0.83] |
|
Operating Profit Margin(%) |
[1.77] |
[2.73] |
[18.29] |
|
Profit Before Interest And Tax
Margin(%) |
[3.65] |
[5.42] |
[22.61] |
|
Cash Profit Margin(%) |
[10.26] |
[24.87] |
[45.53] |
|
Adjusted Net Profit Margin(%) |
[12.14] |
[27.56] |
[49.85] |
|
Return On Capital Employed(%) |
[3.22] |
0.00 |
0.00 |
|
Return On Net Worth(%) |
[139.50] |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
RPG Telecom, formerly Karnataka Telecables, was jointly promoted
by KSIIDC (Karnataka State Industrial Investment & Development Corporation)
and Asian Cables Corporation (ACCL). It later changed its name to RPG Cables
(RPGCL) on 21 Sep.'92.
RPGCL, a major player in the jelly-filled cable industry, set up a project with
an installed capacity to manufacture 0.625 Million sophisticated equipments for
Maillerfer, Switzerland; ETS Pourtier Pere Fils, France; DCM International, US;
and Dussek Cambel, UK. The project was completed in 1987. It entered into a
technical collaboration with Pheeps Dodage International Corporation (PDPC),
US, for technical know-how to manufacture telephone cables. The plant was
commissioned in Mar.'87 and commercial production commenced in 1987. The DoT
successfully completed manufacturing processes in 1986-87 and quality assurance
programmes in 1987-88 (15 months).
RPGCL promoted a joint venture - Sprint RPG India - which, in technical and
financial collaboration with Sprint Mail, US, has launched E-mail services in
eight major cities in India. It has entered into a tie-up with BICC, UK, to
manufacture optical fibre cables in Mysore (inst. cap. : 40,000 fibre kmpa).In
2000-01 the company bagged orders from MTNL & BSNL.
In the OFC segment the prospects looks promising where the company has already
has expanded its capacity to 444,000 FKM. The Power Cables division has
expanded its capacities at the new plant at Silvassa from 2000 Km to 3000 Km.
The company restructured its business into SBU's and in each sector viz Telecom
Cables,(JFC) Power Cables(HT & LT cables) and a new business called Telenet
Solutions which will undertake all activity relating to laying of cables,
erecting towers and providing turnkey solutions for setting up communicating
networks.
RPGCL has expanded the installed capacity of Jelly Filled Telephone Cables,
Optical Fibre Cables & Power Cables during the year 2002-03 by 2637000 CKM,
235000 FKM & 34680 KM respectively.
The company has expanded the installed capacity of Power Cables during the year
2003-04 by 600 KM and with this expansion the total capacity of Power Cables
has risen to 41016 KM.
REVIEW
OF OPERATIONS:
Despite non-availability of working capital throughout the year under report,
the Company has achieved a marked improvement in performance. The turnover
increased by 58.52% and the Gross Profit has been positive after several years.
In view of substantial write back, on account of Financial Restructuring, the
Company has reported a Net Profit of Rs. 17.700 Millions as against a loss of
Rs. 395.400Millions for the previous year.
FINANCIAL RESTRUCTURING:
The Company has entered into a One-time Settlement (OTS) with majority of its
lenders. Deutsche Bank, Mumbai have granted financial credit facility to the
tune of Rs. 1034.700 Millions to finance the OTS payment to the lenders.
Deutsche Bank, Hong Kong has subscribed to 500 fully convertible debentures of
Rs. 5,65,000/- each aggregating to Rs. 282.500 Millions. The debentures will be
converted into 61,01,511 equity shares of Rs. 10/- each at a price of Rs. 46.30
per share. In addition, the promoters of the Company have subscribed to
10,00,000 equity shares at a price of Rs. 46.30 per share and also 33,33,500
optionally convertible warrants of Rs. 46.30 each giving option to the
allottees to apply for 33,33,500 equity shares of Rs. 10/- each at a price of
Rs. 46.30 per share.
The funds have been utilized to make payment to the lenders as well as for the
working capital requirements, which will enable the Company to grow the
business.
With the financial restructuring, the debt burden of the Company has come down
to about Rs. 2000 Millions resulting in substantial savings on interest cost to
the Company.
COMPANIES
(DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES,
1988:
The information relating to energy conservation, technology absorption, foreign
Exchange earnings and outgo as required to be disclosed under Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is
given in the Annexure to this Report.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
The Company today operates in two segments viz., Power Cables and
Telecommunication Cables. The respective industry scenario are as under:
Power Cables
The demand for Power Cables still continues to be strong. The Company could
only partially capitalize on this demand due to working capital constraints.
With the completion of financial restructuring and consequently more funds
being available to the Company for its working capital requirements, the
Company expects to further improve its performance in the current year.
Telecom Cables
There is a steady improvement in the off-take of both Jelly Filled and Optical Fibre
Telecom Cables, due to the expansion in the networks of the State owned Telecom
companies, as well as the private operators.
The above trends are likely to continue in the near future, resulting in
substantive growth, particularly for Power Cables.
FIXED ASSETS:
- Land-Freehold
- Land-Lease
Hold
- Buildings
- Plant and
Machinery
- Furniture and
Fixture
- Office
Equipments
- Vehicles
About the Company
RPG Cables Limited came into being in 1996 with the merger of three Companies;
Upcom Cables (Rae Bareli), RPG Telecom (Mysore) & Asian Cables &
Industries Limited (Thane). RPG cables is a part of the well known RPG Group of
Companies.
The Company manufactures four types of Cables - Power & Control Cables, Jelly Filled Telephone Cables, Optical Fibre Cables and Housewiring Cables.
Today RPG Cables is operating through four manufacturing units
Thane Unit
Mysore Unit
Rae Bareli Unit
Silvassa Unit
Mysore
Certificate of Approval
Certificate of Merit
ISO 14001:1996
ISO 9001:1994
OHSAS 18001:1999
Raebareli
Certificate of Registration
Silvassa
ISO 9001:1994
Thane
ISO 14001:1996
ISO 9001:2000
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.39.37 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
-- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
54 |
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 |
|