MIRA
INFORM REPORT
|
Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
CHAMPION PHOTOCHEMISTRY SDN BHD |
|
|
|
|
Registered Office : |
Wisma Havela Thakardas, 1 Jalan Tiong Nam, Off Jalan Raja Laut,
10th Floor, 50350 Kuala Lumpur, Wilayah Persekutuan |
|
|
|
|
Country : |
Malaysia |
|
|
|
|
Financials (as on) : |
31.08.2006 |
|
|
|
|
Date of Incorporation : |
15/03/1990 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and Distribution of Photographic Equipment and related Product |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 194979-M
COMPANY NAME : CHAMPION PHOTOCHEMISTRY SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 15/03/1990
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : WISMA HAVELA THAKARDAS, 1 JALAN TIONG NAM, OFF
JALAN RAJA LAUT, 10TH FLOOR, 50350 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
BUSINESS ADDRESS : LOT 28-B, MUKIM BATU INDUSTRIAL AREA, 6 1/2 MILES,
JALAN KEPONG, 52000 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
TEL NO : 03 - 62572600
FAX NO : 03 - 62572622
WEB SITE : www.championphotochemistry.com
CONTACT PERSON : ANDY TEOH (GENERAL MANAGER)
INDUSTRY CODE : 2429
PRINCIPAL ACTIVITY : MANUFACTURING AND DISTRIBUTION OF PHOTOGRAPHIC
EQUIPMENT AND RELATED PRODUCT
AUTHORISED CAPITAL : MYR2,500,000.00 DIVIDED INTO ORDINARY SHARE
2,500,000 OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR2,500,000.00 DIVIDED INTO ORDINARY SHARE 2 CASH
AND 2,499,998 OTHERWISE OF MYR1.00 EACH.
SALES : MYR33,770,880 [2006]
NET WORTH : MYR4,101,785 [2006]
STAFF STRENGTH : 55 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : SATISFACTORY
INDUSTRY OUTLOOK : STRONG GROWTH
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing and distribution of photographic equipment and related product.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
The immediate holding company of the SC is NATURECARE CORPORATION, a company in incorporated in BRITISH VIRGIN ISLAND.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
NATURECARE CORPORATION P.O.BOX 659, ROAD TOWN TORTOLA, BRITISH 2,500,000
INDIAN
OCEAN.
--------------------
2,500,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MS. JAILAMI BINTI KASMANI
Address : 776, JALAN TBK3-1, TAMAN BUKIT KEPAYANG, 70200 SEREMBAN, NEGERI
SEMBILAN, MALAYSIA.
IC / PP No. : A0556555
New IC No : 670122-01-5036
Date of Birth : 22/01/1967
Nationality : MALAYSIAN MALAY
Date of Appointment : 21/09/2002
DIRECTOR 2
Name of Subject : MR. ANDY TEOH EAN LEE
Address : 12, JALAN 14/41, 46100 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No. : A0458799
New IC No : 660603-07-5903
Date of Birth : 03/06/1966
Nationality : MALAYSIAN CHINESE
Date of Appointment : 27/04/2005
DIRECTOR 3
Name of Subject : PETER NEWTON
Address : 27, DONRIDGE DR. TORONTO ON M2P, 1H3, CANADA.
IC / PP No. : VH341051
Date of Birth : 21/09/1943
Nationality : CANADIAN
Date of Appointment : 19/03/1990
Remark : OLD P/P: MB213698
DIRECTOR 4
Name of Subject : JORGE IBANEZ CATALAN
Address : BERGARA 62-B, SANT CUGAT DE VALLES, 08190, SPAIN.
IC / PP No. : AC225741
Date of Birth : 21/11/1945
Nationality : SPANIARD
Date of Appointment : 27/04/2005
DIRECTOR 5
Name of Subject : PHILIP ABRAHAM CHIN
Address : 9, CIRCLE COURT, THORNHILL ON, L3T 7M3, CANADA.
IC / PP No. : BC101621
Date of Birth : 14/06/1953
Nationality : CANADIAN
Date of Appointment : 23/05/1991
MANAGEMENT
1) Name of Subject : ANDY TEOH
Position : GENERAL MANAGER
2) Name of Subject : JAILAMI KASMANI
Position : FINANCE DIRECTOR
3) Name of Subject : JERRY ONG
Position : SALES MANAGER
4) Name of Subject : CHONG MENG
Position : SALES MANAGER
AUDITOR
Auditor : ERNST & YOUNG
Auditors' Address : MENARA MILENIUM, JALAN DAMANLELA, PUSAT BANDAR
DAMANSARA, LEVEL 23A, 50490 KUALA LUMPUR, WILAYAH
PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MS. WENDY CHIN NGEOK MUI
IC / PP No. : 7311328
New IC No. : 640423-10-7826
Address : 3, JALAN IBU KOTA 4, TAMAN IBU KOTA, GOMBAK, 53100
KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Date of Appointment : 13/07/2007
2) Company Secretary : MS. TE HOCK WEE
New IC No. : 760408-01-6498
Address : B-3A-2, PELANGI CONDOMINIUM, 1 JALAN PELANGI 9, TAMAN
PELANGI, 51000 KUALA LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
Date of Appointment : 13/07/2007
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 23 Jun 1997
Description of Charge : N/A
Amount Secured : RM 6,011,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BANK BUMIPUTRA MALAYSIA BHD
MENARA BUMIPUTRA, JALAN MELAKA, 50100 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
Form 40 Dated 28 Jun 1997
Registered and Numbered 4 In The Register of Charges
ENCUMBRANCE 2
Date of Creation : 02 Oct 2002
Description of Charge : N/A
Amount Secured : RM 2,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 5 In The Register of Charges
ENCUMBRANCE 3
Date of Creation : 12 Apr 2004
Description of Charge : N/A
Amount Secured : RM 3,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 6 In The Register of Charges
LEGAL CHECK AGAINST THE SC
* A check has been conducted in our databank against the SC whether the subject has been
involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES
Overseas : YES
Import Countries : EUROPE, ASIA.
The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ ] Average [ X ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets : MALAYSIA.
Overseas : YES
Export Market : ASIA, SOUTHEAST ASIA.
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES, TELEGRAPHIC TRANSFER (TT).
Type of Customer : DEALERS.
OPERATIONS
Products Manufactured : PHOTOGRAPHIC SOLUTIONS
Brand Name : CHAMPION® PHOTOCHEMISTRY
Competitor(s) : FLEXSYS CHEMICALS (M) SDN BHD
DAIREN CHEMICAL (M) SDN BHD
CENTURY CHEMICAL WORKS SDN BHD
STABILCHEM (M) SDN BHD
PERFORMANCE ADDITIVES SDN BHD
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
Ownership of premises : LEASED/RENTED
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 55 42 46 46
Branch : NO
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 03-62572600
Match : N/A
Address Provided By Client : LOT 28-B, MUKIM BATU INDUSTRIAL AREA, 6 1/2
MILES, JALAN KEPONG, 52000 KUALA LUMPUR
Current Address : LOT 28-B, MUKIM BATU INDUSTRIAL AREA, 6 1/2
MILES, JALAN KEPONG, 52000 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with Ms Loo from the SC's Admin Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Erratic [ 2004-2006 ]
Profit / ( Loss ) before tax : Increased [ 2004-2006 ]
Return on Shareholder Funds : Favourable [ 129.62% ]
Return on Net Assets : Favourable [ 180.62% ]
The fluctuating turnover reflects the fierce competition among the existing and new market players. The SC's management have been efficient in controlling its operating costs. Generally the SC was profitable.
The favourable return on shareholders' funds and return on net assets indicate that the SC's management was efficient in utilising the assets to generate returns.
Working Capital Control :
Stocks Ratio : Favourable [ 28 Days ]
Debtors Ratio : Favourable [ 33 Days ]
Creditors Ratio : Favourable [ 38 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity :
Liquid Ratio : Unfavourable [ 0.58 Times ]
Current Ratio : Unfavourable [ 0.87 Times ]
A low liquid ratio means that the SC may be facing working capital deficiency. If the SC cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.
Solvency :
Interest Cover : Favourable [ 30.99 Times ]
Gearing Ratio : Favourable [ 0.35 Times ]
The interest cover showed that the SC was able to service the interest. The favourable interest cover could indicate that the SC was making enough profit to pay for the interest accrued. The SC was lowly geared thus it had a low financial risk. The SC was mainly financed by its shareholders' funds and internally generated funds. In times of economic slowdown / downturn, the SC being a lowly geared company, will be able to compete better than those companies which are highly geared in the same industry.
Overall Assessment :
Although the turnover was erratic, the SC had maintained a steady growth in its profit. This indicate the management's efficiency in controlling its costs and profitability. Due to its weak liquidity position, the SC will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the SC. With the favourable interest cover, the SC could be able to service all the accrued interest without facing any difficulties. The SC as a lowly geared company, will be more secured compared to those highly geared companies. It has the ability to meet all its long term obligations.
Overall financial condition of the SC: FAIR
COMMENTS
Incorporated in 1990, the SC is principally engaged in manufacturing and distribution of photographic equipment and related products. Being a private limited company, the SC has a paid up capital of RM2.5million. Under the control of Naturecare Corporation, the SC is expected to enjoy timely assistance when the needs arise. With its long presence in the industry coupled with its vast business experience, the SC should have built up its own image and reputation over times.
Throughout its years of establishment, the SC's business has been growing steadily due to sheer determination and prudent management. Penetrating into overseas countries as such Asia countries has well diversified its business risk and allowed the SC to capture higher market shares. Currently, there are 55 employees in its business operations and the SC is headed by General Manager, Andy Teoh.
Compared to the previous year, the group's pre-tax profit has increased 4.26% to RM7.17million, given a turnover of RM33.77million. Return on shareholders' funds was high, indicating that the group was efficient in utilising its funds to generate returns. However, the group is in a weak liquidity position, which demonstrates that the group may face difficulties in meeting its short term obligations. Fortunately, a low gearing ratio has placed the group at low financial risk.
The SC sources its raw materials from both local and overseas suppliers. Hence, the SC might be exposed to currency fluctuation risk.
Based on our historical financial data, the SC's overall payment habit is average. The SC is clear of any litigation.
The industry remains robust with the encouraging demand for its products. With the promising outlook of the industry performance, the business potential of the SC should be favourable. Moreover, with the SC's strong background, the SC has better competitive edge against other players in the same fields.
In view of the above, we recommend credit be granted to the SC promptly.
THE FINANCIAL STATEMENTS WERE
PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.
CONSOLIDATED PROFIT AND LOSS
ACCOUNT
For
The Year Ended 31-August-2006
2006 2005 2004
MYR MYR MYR
TURNOVER 33,770,880 36,424,118 34,707,492
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 7,169,565 6,876,494 7,285,713
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 7,169,565 6,876,494 7,285,713
Taxation <1,852,875> <1,492,565> <2,182,515>
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 5,316,690 5,383,929 5,103,198
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 5,316,690 5,383,929 5,103,198
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 5,316,690 5,383,929 5,103,198
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 1,679,282 345,353 1,714,677
Prior year
adjustment - - <172,522>
------------------- ------------------- -------------------
As restated 1,679,282 345,353 1,542,155
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 6,995,972 5,729,282 6,645,353
DIVIDENDS -
Ordinary (paid & proposed) <5,400,000> <4,050,000> <6,300,000>
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 1,595,972 1,679,282 345,353
=========== =========== ===========
RETAINED BY:
The Company 1,595,972 1,679,282 345,353
------------------- ------------------- -------------------
1,595,972 1,679,282 345,353
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Bank
overdraft 80,348 117,031 163,207
Export credit
refinancing 32,788 29,540 82,214
Bankers
acceptances 125,902 145,325 73,487
------------------- ------------------- -------------------
239,038 291,896 318,908
=========== =========== ===========
CONSOLIDATED BALANCE SHEET
As
At 31-August-2006
2006 2005 2004
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 518,958 745,616 1,017,741
LONG
TERM INVESTMENTS/OTHER ASSETS
Loans &
advances - non-current - - 4,800,000
Deferred
assets 99,159 58,427 -
Loans to
holding company 4,649,684 4,764,632 -
------------------- ------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 4,748,843 4,823,059 4,800,000
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL LONG
TERM ASSETS 5,267,801 5,568,675 5,817,741
CURRENT
ASSETS
Stocks 2,573,641 3,141,691 4,180,885
Trade debtors 3,030,010 3,059,609 3,371,178
Other
debtors, deposits & prepayments 388,786 246,988 472,605
Short term
deposits 16,000 16,000 16,000
Interest
receivable - - 48,000
Items in
transit between head office & branches
Cash &
bank balances 1,180,478 1,294,642 1,025,639
Amount due
from fellow subsidiaries 589,396 3,032,033 -
Interest
receivable from holding company 50,526 47,514 -
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 7,828,837 10,838,477 9,114,307
CURRENT
LIABILITIES
Trade
creditors 3,527,407 4,092,538 3,503,516
Other
creditors & accruals 1,995,289 1,909,502 2,350,849
Bank
overdraft 1,080,303 1,072,667 1,441,972
Other
borrowings 339,000 377,000 -
Bill &
acceptances payable 1,855,000 4,126,000 2,110,000
Amounts owing
to holding company 154,716 211,858 172,019
Amounts owing
to subsidiary companies - - 161,241
Provision for
taxation 43,138 217,485 147,075
Others
(please specify) - 208,676 2,178,000
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 8,994,853 12,215,726 12,064,672
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) <1,166,016> <1,377,249> <2,950,365>
------------------- ------------------- -------------------
TOTAL NET
ASSETS 4,101,785 4,191,426 2,867,376
=========== =========== ===========
FINANCED BY:
SHARE CAPITAL
Ordinary
share capital 2,500,000 2,500,000 2,500,000
------------------- ------------------- -------------------
TOTAL SHARE
CAPITAL 2,500,000 2,500,000 2,500,000
RESERVES
Exchange
equalisation/fluctuation reserve 5,813 12,144 <6>
Retained profit/(Accumulated loss)
carried
forward 1,595,972 1,679,282 345,353
------------------- ------------------- -------------------
TOTAL
RESERVES 1,601,785 1,691,426 345,347
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 4,101,785 4,191,426 2,845,347
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Deferred
taxation - - 22,029
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS - - 22,029
------------------- ------------------- -------------------
4,101,785 4,191,426 2,867,376
=========== =========== ===========
CONSOLIDATED FINANCIAL RATIOS
As
At 31-August-2006
CHAMPION
PHOTOCHEMISTRY SDN BHD
2006 2005 2004
MYR MYR MYR
TYPES OF
FUNDS
Cash 1,196,478 1,310,642 1,041,639
Net Liquid
Funds 116,175 237,975 <400,333>
Net Liquid
Assets <3,739,657> <4,518,940> <7,131,250>
Net Current
Assets/(Liabilities) <1,166,016> <1,377,249> <2,950,365>
Net Tangible
Assets 4,101,785 4,191,426 2,867,376
Net Monetary
Assets <3,739,657> <4,518,940> <7,153,279>
BALANCE
SHEET ITEMS
Total
Borrowings 1,419,303 1,449,667 1,441,972
Total
Liabilities 8,994,853 12,215,726 12,086,701
Total Assets 13,096,638 16,407,152 14,932,048
Net Assets 4,101,785 4,191,426 2,867,376
Net Assets
Backing 4,101,785 4,191,426 2,845,347
Shareholders''
Funds 4,101,785 4,191,426 2,845,347
Total Share
Capital 2,500,000 2,500,000 2,500,000
Total
Reserves 1,601,785 1,691,426 345,347
LIQUIDITY
(Times)
Cash Ratio 0.13 0.11 0.09
Liquid Ratio 0.58 0.63 0.41
Current Ratio 0.87 0.89 0.76
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 28 31 44
Debtors Ratio 33 31 35
Creditors
Ratio 38 41 37
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.35 0.35 0.51
Liabilities
Ratio 2.19 2.91 4.25
Times Interest
Earned Ratio 30.99 24.56 23.85
PERFORMANCE
RATIO (%)
Operating
Profit Margin 21.23 18.88 20.99
Net Profit
Margin 15.74 14.78 14.70
Return On Net
Assets 180.62 171.03 265.21
Return On
Capital Employed 142.97 136.18 176.47
Return On Shareholders''
Funds/Equity 129.62 128.45 179.35
Dividend Pay
Out Ratio (Times) 1.02 0.75 1.23
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0 0
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. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)