MIRA
INFORM REPORT
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Report Date : |
16.10.2007 |
IDENTIFICATION DETAILS
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Name : |
THONG GUAN PLASTIC & PAPER INDUSTRIES
SDN BHD |
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Registered Office : |
Suite 2-1, Wisma Penang Garden, 42 Jalan Sultan Ahmad Shah, 2nd Floor,
10050 Pulau Pinang, Pulau Pinang |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
07/08/1981 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing Of Plastic and Paper Product |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted abbreviations : SC -
Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 73976-V
COMPANY NAME : THONG GUAN PLASTIC & PAPER
INDUSTRIES SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 07/08/1981
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS :
AHMAD
SHAH, 2ND FLOOR, 10050 PULAU
BUSINESS ADDRESS :
PETANI,
08000 SUNGAI PETANI,
TEL NO : 04 - 4417888
FAX NO : 04 - 4419888
EMAIL : admin@thongguan.com
WEB SITE : www.thongguan.com
CONTACT PERSON : ANG POON CHUAN (MANAGING DIRECTOR)
INDUSTRY CODE : 25209
21096
PRINCIPAL ACTIVITY : MANUFACTURING OF PLASTIC AND PAPER
PRODUCT
AUTHORISED CAPITAL : MYR5,000,000.00 DIVIDED INTO ORDINARY
SHARE
5,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR2,496,350.00 DIVIDED INTO ORDINARY
SHARE
2,293,850
CASH AND 202,500 OTHERWISE OF MYR1.00
EACH.
SALES : MYR301,078,305 [2005]
NET WORTH : MYR59,540,850 [2005]
STAFF STRENGTH : 450
[2007]
BANKER (S) : EON BANK BHD
: MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : LIMITED
PAYMENT : AVERAGE
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : AVERAGE 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 of
plastic and paper product.
The SC is not listed on
The SC is not qualified to be one of the Top Corporate Performers in the
The immediate holding company of the SC is THONG GUAN INDUSTRIES BERHAD,
a company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
THONG GUAN INDUSTRIES
BHD JALAN
SULTAN AHMAD SHAH, 10050 PULAU
PINANG,
PULAU
--------------------
2,496,350
===========
+ Also Director
The SC interest in other companies (Subsidiaries/Associates) are shown
as follows:
Local No Name (%) As At
531508 TGP
MARKETING SDN BHD 100.00 31/12/05
DIRECTORS
DIRECTOR 1
Name of Subject : MR. ANG POON SHEN
Address : 20, LORONG 22,
IC / PP No. : 7238656
New IC No : 631117-02-5369
Date of Birth : 17/11/1963
Nationality : MALAYSIAN CHINESE
Date of Appointment : 19/10/2005
DIRECTOR 2
Name of Subject : MR. ANG POON KHIM
Address : 55 PEKAN LAMA, SUNGAI LALANG, 08100
BEDONG, KEDAH,
IC / PP No. : 4653247
New IC No : 540709-07-5075
Date of Birth : 09/07/1954
Nationality : MALAYSIAN CHINESE
Date of Appointment : 15/05/1982
Qualification : B.SC (HONS)(MECHANICAL ENG) TEESIDE
Working Experience : TEST ENGINEER AT ADVANCE MICRO
DEVICES EXPORT S/B IN
DIRECTOR 3
Name of Subject : MR. ANG TOON PIAH @ ANG TOON HUAT
Address : 57 PEKAN LAMA, SUNGAI LALANG, 08100
BEDONG,
IC / PP No. : 0108543
New IC No : 291122-07-5055
Date of Birth : 22/11/1929
Nationality : MALAYSIAN CHINESE
Date of Appointment : 07/08/1981
Working Experience : MORE THAN 50 YEARS EXPERIENCE IN THE
BUSINESS SINCE HE
STARTED
THE BUSINESS OF THE GROUP WITH HIS FATHER &
BROTHER
IN 1974.
DIRECTOR 4
Name of Subject : MR. ANG POON SEONG
Address : 225B, MILE 3,
IC / PP No. : 4970482
New IC No : 560223-07-5583
Date of Birth : 23/02/1956
Nationality : MALAYSIAN CHINESE
Date of Appointment : 15/05/1982
Working Experience : DEVELOPED A FEW OTHER BUSINESSES FOR
THE FAMILY IN
NOTABLY
IN SNACK FOOD MANUFACTURING & GENERAL TRADING. IN
CHARGE
OF THE FAMILY'S BUSINESS IN SABAH & SARAWAK. HOLD
THE
POST OF PRESIDENT OF MALAYSIAN PLASTIC MANUFACTURERS
ASSOCIATION
(
DIRECTOR 5
Name of Subject : MS. ANG ENG CHOO
Address : 57, PEKAN LAMA, SUNGAI LALANG,
BEDONG, 08100 BEDONG,
IC / PP No. : 3947965
New IC No : 510816-02-5228
Date of Birth : 16/08/1951
Nationality : MALAYSIAN CHINESE
Date of Appointment : 15/05/1982
Working Experience : SHE JOINED THE CO IN 1973 AS AN
ADMINISTRATION CLERK & HAS
ASSISTED
HER FELLOW FAMILY MEMBERS IN BLDG UP THE CO.
PRESENTLY
THE FACTORY MANAGER OF THE PAPER PRODUCTS &
PLASTIC
ROPE MANUFACTURING FACTORY. ALSO IN CHARGE OF
TRANSPORT
& GENERAL AFFAIRS.F
DIRECTOR 6
Name of Subject : DATO' ANG TOON CHENG @ ANG TONG SOOI
Address : 55 PEKAN LAMA, SUNGAI LALANG, BEDONG,
08100 BEDONG,
IC / PP No. : 0109127
New IC No : 270121-07-5085
Date of Birth : 21/01/2027
Nationality : MALAYSIAN CHINESE
Date of Appointment : 15/05/1982
Working Experience : VAST BUSINESS EXPERIENCE &
KNOWLEDGE IN THE FIELD OF
PLASTIC
& BEVERAGE. PRESENTLY ACTIVE IN TRADE
ORGANISATIONS
& CURRENTLY THE VICE-PRESIDENT OF THE
MALAYSIAN
TEA MERCHANTS ASSOCIATION FROM 1993-1996,
PRESIDENT
OF THE MALAYSIAN PLASTICS MANUFACTURERS
ASSOCIATION
(NORTHERN BRANCH) & HAS HELD KEY POSTS IN
VARIOUS
TRADE ASSOCIA
DIRECTOR 7
Name of Subject : MR. ANG POON CHUAN
Address : 55 PEKAN LAMA, SUNGAI LALANG, BEDONG,
08100 BEDONG,
IC / PP No. : 1918181
New IC No : 440728-02-5307
Date of Birth : 28/07/1944
Nationality : MALAYSIAN CHINESE
Date of Appointment : 07/08/1981
Working Experience : DURING HIS 30 YEARS OF SERVICE WITH
THE CO, GAINED EXTENSIVE
KNOWLEDGE
OF THE PLASTIC, PAPER, FOOD, BEVERAGE & TRADING
BUSINESSES.
FORMER PRESIDENT OF MALAYSIAN PLASTIC
MANUFACTURERS
ASSOCIATION (NORTHERN BRANCH).
MANAGEMENT
1) Name of Subject : ANG
POON CHUAN
Position : MANAGING DIRECTOR
2) Name of Subject : ELWIN
ANG
Position : ACCOUNTANT
3) Name of Subject : OOI
TEONG HOE
Position : MARKETING MANAGER
AUDITOR
Auditor : KPMG
Auditors' Address :
FLOOR,
10050 PULAU PINANG, PULAU
COMPANY SECRETARY
1) Company Secretary : MS.
LAM VOON KEAN
IC / PP No. : 4326724
New IC No. : 520920-07-5670
Address : 9 RESERVOIR,
Date of Appointment : 02/05/1998
BANKING
Banking relations are maintained principally with :
1) Banker Name : EON
BANK BHD
2) Banker Name : MALAYAN
BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
ENCUMBRANCE (S)
ENCUMBRANCE 1
Date of Creation : 18 Feb 1992
Description of Charge : N/A
Amount Secured : RM 632,000.00
Description of Property Affected : N/A
Name & Address of Chargee : HONGKONG BANK
Form 40 Dated
Registered and Numbered 1 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 29 May 1994
Description of Charge : N/A
Amount Secured : RM 494,000.00
Description of Property Affected : N/A
Name & Address of Chargee : HONGKONG BANK
Form 40 Dated
Registered and Numbered 2 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 23 Feb 2000
Description of Charge : NEGATIVE PLEDGE
Amount Secured : RM 13,500,000.00
Description of Property Affected : FIXED & FLOATING CHARGE
Name & Address of Chargee : MALAYAN BANKING BHD
FLOOR,
08000 SUNGAI PETANI,
Form 40 Dated 09 Apr 2000
Registered and Numbered 6 In The
Register of Charges
ENCUMBRANCE 4
Date of Creation : 04 Apr 2003
Description of Charge : N/A
Amount Secured : RM 3,300,000.00
Description of Property Affected : N/A
Name & Address of Chargee : EON BANK BHD
Form 40 Dated
Registered and Numbered 7 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
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 :
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 Percentage : 60%
Domestic Markets :
Overseas : YES Percentage : 40%
Export Market : UNITED
EUROPE
,
Credit Term : 30 - 60 DAYS.
Payment Mode : CASH, CHEQUES , TELEGRAPHIC TRANSFER
(TT).
Type of Customer : END USERS, DISTRIBUTORS .
OPERATIONS
Products Manufactured : SHRINKABLE LDPE FILM, HDPE/LDPE/PP
SIDE-SEALED &
BOTTOM-SEALED
BAGS (SIXCOLORS) PP RAFIA STRING, PP
STRAWS,
HDPE MONOFILAMENT ROPES,
TOWELS,
SERVIETTES, PLASTIC FILMS, ROPES STRINGS &
STRAWS,
PAPER PRODUCTS AND OTHERS
Brand Name : 888, ELASTORAP, ENVIROBAGS,
ENVIROSTRETCH, HANDIWRAP
Award : MS ISO 9001 : 2000 Year : 2002
Competitor(s) : NYLEX (
TITAN
PETCHEM (M) SDN BHD
BASF
(
INNOVATIVE
PLASTICS LNP
LUSTER
INDUSTRIES BHD
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS
(FMM)
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 450 411 380 384
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 : 04-4417888
Match : N/A
Address Provided By Client :
SUNGAI
PETANI 08000 SUNGAI PETANI KEDAH
Current Address :
SUNGAI
PETANI, 08000 SUNGAI PETANI, KEDAH,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We contacted one of the Senior staff from the Production Department. She
provided some information on the SC. Later we contacted one of the Assistant
staff from the Sales Department. He provided further information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 20.49% ]
Profit / ( Loss ) before tax : Decreased [ 20.68% ]
Return on Shareholder Funds : Acceptable [ 23.52% ]
Return on Net Assets : Acceptable [ 21.44% ]
The higher turnover could be attributed to the favourable market
condition and the SC could be gaining the market share progressively. The dip
in profit could be due to the stiff market competition which reduced the SC's
profit margin. The SC's management had generated acceptable return for its
shareholders using its assets.
Working Capital Control :
Stocks Ratio : Acceptable [ 61 Days ]
Debtors Ratio : Unfavourable [ 82 Days ]
Creditors Ratio : Favourable [ 46 Days ]
The SC kept adequate stocks to meet its normal business transactions
without incurring excessive storage costs. The high debtors' ratio could
indicate that the SC was weak in its credit control. However, the SC could also
giving longer credit periods to its customers in order to boost its sales or to
capture / retain its market share. 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 [ 0.64 Times ]
Current Ratio : Unfavourable [ 1.04 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 : Unfavourable [ < 11.66
Times > ]
Gearing Ratio : Favourable [ 0.09 Times ]
The SC incurred losses in the year. It did not generate sufficient
income to service its interest. If the
situation does not improve, the SC may be vulnerable to default in servicing
the interest. 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 SC's turnover had increased, its profits had declined over
the same corresponding period. This could be due to the stiffer market
competition and / or higher operating costs which lowered the SC's profit
margin. 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. The SC's interest cover was negative,
indicating that it did not generate sufficient income to service its interest.
If its result does not show impressive improvements or succeed obtaining short
term financing or capital injection, it may not be able to service its interest
and repay the loans. 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: LIMITED
COMMENTS
Incorporated in 1981, the SC is principally engaged in the manufacturing
of plastic and paper products. Being a private limited company, its paid up
capital stands at RM2,496,350 and the immediate holding company is Thong Guan
Industries Bhd which is incorporated in
We noted that the SC concentrates on both local and overseas clients.
The SC has expanded its business to other countries such as
In 2005, the SC reported pre-tax profit of RM15.95 million based on its
turnover of RM301.08 million. Return on shareholders' funds of the SC was high,
indicating that the management was efficient in utilising its funds to generate
return. However, the SC's liquidity ratio was slightly low at 0.64 times, which
demonstrates that the SC was not be able to repay all its short term
obligations. Being a lowly geared company, it places the SC at low financial
risk. Given a healthy net worth of RM59.54million, the SC should be able to
maintain its business in the near term.
The SC's raw materials are from both local and overseas suppliers. Being
involved in both import and export activities, the SC is exposed to foreign
exchange risk. Its long presence in the market has enabled the SC to bargain
with its suppliers for lower prices and higher quality products.
Based on our historical financial data, the SC's overall payment pattern
is average. The SC is clear of any litigation.
The plastic industry continues to be attractive with encouraging global
and domestic demand for its products. With the promising outlook of the
industry, the SC should be able to further enhance its business. Having strong
support from its holding company, the SC has better competitive edge against
other players in the same field.
In view of the above, we recommend credit be granted to the SC promptly.
THE FINANCIAL
STATEMENTS WERE PREPARED IN ACCORDANCE WITH
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2005
THONG
GUAN PLASTIC & PAPER INDUSTRIES SDN BHD
2005 2004
MYR MYR
TURNOVER 301,078,305 249,875,758
=========== ===========
PROFIT/(LOSS) FROM OPERATIONS 15,949,062 20,108,079
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 15,949,062 20,108,079
Taxation <1,942,673> <2,710,125>
------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 14,006,389 17,397,954
------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 14,006,389 17,397,954
------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 14,006,389 17,397,954
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported 44,837,817 33,005,543
------------------- -------------------
As restated 44,837,817 33,005,543
------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 58,844,206 50,403,497
- General - 51,107
DIVIDENDS -
Ordinary (paid & proposed) <4,992,700> <5,616,787>
------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD 53,851,506 44,837,817
=========== ===========
RETAINED BY: The Company 53,851,506 44,837,817
------------------- -------------------
53,851,506 44,837,817
=========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Other
interest expenses <1,260,211> <576,080>
------------------- -------------------
<1,260,211> <576,080>
=========== ===========
BALANCE SHEET
As
At 31-December-2005
2005 2004
MYR MYR
ASSETS EMPLOYED:
FIXED ASSETS 64,041,139 52,289,809
LONG
TERM INVESTMENTS/OTHER ASSETS
Subsidiary
companies 2 2
------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 2 2
INTANGIBLE
ASSETS
------------------- -------------------
------------------- -------------------
TOTAL LONG
TERM ASSETS 64,041,141 52,289,811
CURRENT
ASSETS
Stocks 50,151,950 42,985,000
Trade debtors 67,623,640 49,839,782
Other
debtors, deposits & prepayments 10,875,160 6,344,538
Short term
deposits 780,000 2,000,000
Items in
transit between head office & branches
Cash &
bank balances 1,510,740 2,085,942
------------------- -------------------
TOTAL CURRENT
ASSETS 130,941,490 103,255,262
CURRENT
LIABILITIES
Trade
creditors 37,865,199 33,581,185
Other
creditors & accruals 39,020,579 28,834,114
Hire purchase
& lease creditors 150,000 -
Bank
overdraft 2,269,314 2,443,442
Short term
borrowings/Term loans 3,103,333 1,250,469
Bill &
acceptances payable 25,378,000 -
Provision for
taxation - 840,226
Onshore
foreign currency loan 10,848,985 25,770,804
Revolving
credit 3,890,000 5,120,000
Trust
receipts 3,814,801 -
Export credit
refinancing 117,000 -
------------------- -------------------
TOTAL CURRENT
LIABILITIES 126,457,211 97,840,240
------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 4,484,279 5,415,022
------------------- -------------------
TOTAL NET
ASSETS 68,525,420 57,704,833
=========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 2,496,350 2,496,350
------------------- -------------------
TOTAL SHARE
CAPITAL 2,496,350 2,496,350
RESERVES
Capital
reserve 2,626,864 56,314
Revaluation
reserve 566,130 3,136,680
Retained profit/(Accumulated loss)
carried
forward 53,851,506 44,837,817
------------------- -------------------
TOTAL
RESERVES 57,044,500 48,030,811
------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 59,540,850 50,527,161
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
Hire purchase
creditors 37,500 -
Deferred
taxation 8,947,070 7,177,672
------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 8,984,570 7,177,672
------------------- -------------------
68,525,420 57,704,833
=========== ===========
FINANCIAL RATIOS
As At
31-December-2005
2005 2004
MYR MYR
TYPES OF
FUNDS
Cash 2,290,740 4,085,942
Net Liquid
Funds <3,081,907> 392,031
Net Liquid
Assets <45,667,671> <37,569,978>
Net Current
Assets/(Liabilities) 4,484,279 5,415,022
Net Tangible
Assets 68,525,420 57,704,833
Net Monetary
Assets <54,652,241> <44,747,650>
BALANCE
SHEET ITEMS
Total
Borrowings 5,560,147 3,693,911
Total
Liabilities 135,441,781 105,017,912
Total Assets 194,982,631 155,545,073
Net Assets 68,525,420 57,704,833
Net Assets
Backing 59,540,850 50,527,161
Shareholders''
Funds 59,540,850 50,527,161
Total Share
Capital 2,496,350 2,496,350
Total
Reserves 57,044,500 48,030,811
LIQUIDITY
(Times)
Cash Ratio 0.02 0.04
Liquid Ratio 0.64 0.62
Current Ratio 1.04 1.06
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 61 63
Debtors Ratio 82 73
Creditors
Ratio 46 49
SOLVENCY
RATIOS (Times)
Gearing Ratio 0.09 0.07
Liabilities
Ratio 2.27 2.08
Times
Interest Earned Ratio <11.66> <33.91>
PERFORMANCE
RATIO (%)
Operating
Profit Margin 5.30 8.05
Net Profit
Margin 4.65 6.96
Return On Net
Assets 21.44 33.85
Return On
Capital Employed 19.84 31.81
Return On
Shareholders'' Funds/Equity 23.52 34.43
Dividend Pay
Out Ratio (Times) 0.36 0.32
NOTES
TO ACCOUNTS
Contingent
Liabilities 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%)