MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
THE RUBY MILLS
LIMITED |
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Registered Office : |
Ruby House, J. K.
Sawant Marg, Dadar, Mumbai – 400 028, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.01.1917 |
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Com. Reg. No.: |
11-447 |
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CIN No.: [Company
Identification No.] |
L17120MH1917GAP000447 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00241D |
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Legal Form : |
Subject is a
public limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
The company is
engaged in manufacturing of textiles. |
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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Maximum Credit Limit : |
USD 2400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having satisfactory track. Trade relations
are fair. Financial position is good. 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 : |
Ruby House, J. K. Sawant Marg, Dadar, Mumbai – 400 028, |
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Tel. No.: |
91-22-24304226 / 24308221 / 24378125 / 0040 |
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Fax No.: |
91-22-24378125 |
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E-Mail : |
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Website : |
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Factory 1 : |
J. K. Sawant
Marg, Dadar, Mumbai - 400 028. |
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Factory 2 : |
Village Dhamni, Off Savaroli Kharpada Road, Taluka
Khalapur Dist. Raigad, |
DIRECTORS
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Name : |
Mr. Manharlal Chunilal Shah |
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Designation : |
Executive Chairman |
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Qualification
: |
Experience in Senior Management |
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Experience : |
52 Year |
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Date of
Appointment : |
01-04-1970 |
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Name : |
Mr. Hiren
Manharlal Shah |
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Designation : |
Managing Director |
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Qualification
: |
Licenciate in Textile Mfg |
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Experience : |
29 years |
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Date of
Appointment : |
1-10-1976 |
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Name : |
Mr. Bharat
Manharlal Shah |
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Designation : |
Jt. Managing Director |
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Qualification
: |
B. Com |
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Date of
Appointment : |
01-02-1982 |
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Name : |
Mr. Viraj
Manharlal Shah |
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Designation : |
Executive Director |
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Qualification
: |
B. Com |
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Date of
Appointment : |
01-04-1984 |
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Name : |
Mr. A. M. Shah |
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Designation : |
Director |
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Name : |
Mr. Jimmy D.
Masani |
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Designation : |
Independent Director |
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Date of
Appointment : |
18.03.1977 |
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Name : |
Mr. Girish C. Sharedalal |
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Designation : |
Independent Director |
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Name : |
Mr. Shardul J.
Thacker |
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Designation : |
Independent Director |
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Name : |
Mr. Dharmasinh M.
Popat |
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Designation : |
Independent Director |
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Name : |
Mr. Dattatreya S.
Soman |
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Designation : |
Independent Director |
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Name : |
Mr. Dilip J.
Thakkar |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. M N Trivedi |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
3131380 |
74.91 |
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Resident Individuals |
703362 |
16.83 |
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Private Corporate Bodies |
290992 |
6.96 |
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NRIs |
54266 |
1.30 |
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Total |
4180000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is
engaged in manufacturing of textiles. |
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Products : |
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Exports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Spindles |
Nos. |
57010 |
26992 |
-- |
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Looms |
Nos. |
613 |
136 |
-- |
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Autocoro |
Nos. |
-- |
360 |
-- |
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Fabric (packed) |
Mtrs. |
-- |
-- |
19087488 |
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Yarn (packed) |
Kgs. |
-- |
-- |
182001 |
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Waste |
Kgs. |
-- |
-- |
411522 |
GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
874 |
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Bankers : |
v
State
Bank of v
Bank
of v
Oriental
Bank of Commerce v
Bank
of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B. S. Mehta & Company Chartered Accountants Mumbai, |
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Subsidiaries : |
Ruby Impex
Limited |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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5000000 |
Equity shares |
Rs. 10 each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4180000 |
Equity shares |
Rs. 10 each |
Rs. 41.800 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
41.800 |
41.800 |
41.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
558.385 |
484.740 |
396.440 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
600.185 |
526.540 |
438.240 |
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LOAN FUNDS |
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1] Secured Loans |
913.709 |
441.259 |
280.507 |
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2] Unsecured Loans |
44.100 |
36.500 |
120.810 |
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TOTAL BORROWING |
957.809 |
477.759 |
401.317 |
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DEFERRED TAX LIABILITIES |
85.480 |
78.701 |
59.512 |
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TOTAL |
1643.474 |
1083.000 |
899.069 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1003.060 |
832.272 |
517.169 |
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Capital work-in-progress |
411.196 |
48.590 |
131.823 |
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INVESTMENT |
0.081 |
0.080 |
0.080 |
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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 |
172.641
|
166.527 |
194.950
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Sundry Debtors |
124.049
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109.784 |
95.829
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Cash & Bank Balances |
5.799
|
10.655 |
11.296
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Other Current Assets |
25.867
|
20.923 |
12.193
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Loans & Advances |
121.952
|
91.913 |
116.363
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Total
Current Assets |
450.308
|
399.802 |
430.631 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
212.000
|
197.961 |
130.452
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Provisions |
15.611
|
12.663 |
72.927
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Total
Current Liabilities |
227.611
|
210.624 |
203.379 |
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Net Current Assets |
222.697
|
189.178 |
227.252
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MISCELLANEOUS EXPENSES |
6.440 |
12.880 |
22.745 |
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TOTAL |
1643.474 |
1083.000 |
899.069 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1086.801 |
950.281 |
829.428 |
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Other Income |
21.070 |
22.514 |
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Total Income |
1107.871 |
972.795 |
829.428 |
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Profit/(Loss) Before Tax |
127.045 |
138.133 |
58.323 |
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Provision for Taxation |
39.250 |
33.364 |
15.004 |
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Profit/(Loss) After Tax |
87.795 |
104.769 |
43.319 |
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Earnings in Foreign Currency : |
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Export Earnings |
7.022 |
4.870 |
6.679 |
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Total Earnings |
7.022 |
4.870 |
6.679 |
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Imports : |
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Raw Materials |
8.104 |
1.188 |
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Stores & Spares |
18.762 |
17.600 |
92.747 |
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Capital Goods |
102.479 |
142.008 |
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Total Imports |
129.345 |
160.796 |
92.747 |
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Expenditures : |
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Cost of Raw Materials
consumed |
261.733 |
201.574 |
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Purchase for
Resale |
15.841 |
23.201 |
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Manufacturing
and Other Expenses |
532.342 |
494.120 |
771.104 |
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Managerial
Remuneration |
30.812 |
16.689 |
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Interest and
Financial charges (net) |
23.238 |
18.773 |
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Depreciation |
116.861 |
80.305 |
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Total Expenditure |
980.827 |
834.662 |
771.104 |
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QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2007 |
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Type |
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1st
Quarter |
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Sales Turnover |
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266.400
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Other Income |
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|
08.600
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Total Income |
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|
275.000
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Total Expediture |
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|
201.500
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Operating Profit |
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|
73.500
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Interest |
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|
12.100
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Gross Profit |
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|
61.400
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Depreciation |
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|
30.000
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Tax |
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|
12.300
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Reported PAT |
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|
16.100
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KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.27 |
0.91 |
0.84 |
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Long Term Debt
Equity Ratio |
1.08 |
0.61 |
0.48 |
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Current Ratio |
1.03 |
0.99 |
0.97 |
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TURNOVER RATIOS |
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Fixed Assets |
0.71 |
0.82 |
0.89 |
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Inventory |
6.08 |
5.11 |
4.56 |
|
Debtors |
8.82 |
8.98 |
8.74 |
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Interest Cover
Ratio |
5.99 |
5.11 |
1.86 |
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Operating Profit
Margin (%) |
26.13 |
22.03 |
16.25 |
|
Profit Before
Interest and Tax Margin (%) |
14.80 |
13.33 |
8.41 |
|
Cash Profit
Margin (%) |
19.89 |
16.73 |
10.74 |
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Adjusted Net
Profit Margin (%) |
8.56 |
8.04 |
2.90 |
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Return on Capital
Employed (%) |
12.01 |
13.62 |
9.14 |
|
Return on Net Worth (%) |
15.67 |
15.38 |
5.60 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets :
v
Land - Freehold
v
Land - Leasehold
v
Buildings
v
On
v
On
v
Plant & Machinery
v
Computers
v
Furniture & Office Equipment
v
Vehicles
v
Technical Know-how Fees
History
The Ruby Mills (TRML) was incorporated in 1917 and is been
engaged in the business of textiles. The company's manufacturing units are
located at Khalapur (Raigad district) and in
The operational performance of the company in 1994-95 was adversely affected on
account of the steep increase in the prices of polyester staple fibre (PSF)
(which increased by 22%), viscose staple fibre (VSF) (by 41%) and cotton (by
60%). The production was adversely affected for 5 months due to the acute
shortage of VSF. As a modernisation plan, the company purchased 30 Sulzer looms
and replaced its 50 Cimmco autolooms and 36 wider Picanol looms.
In order to achieve deeper market penetration, TRML shifted from exclusively
wholesale marketing to direct marketing by establishing a nationwide network of
distributors and agents. During 1994-95, the government permitted the import of
fabrics which adversely affected the demand for the company's products.
In order to retain the company's competitive advantage, a modernisation
programme to improve productivity and quality, has been undertaken under the
Textile Upgradation Fund Scheme.
FINANCIAL PERFORMANCE
The turnover
of the Company during the year is Rs 1031.574 Millions as against Rs.9233.413
Millions -in the previous year. The operating profit before Depreciation and
Taxation is Rs.2439.053 Millions - as against Rs.2184.381 Millions - in the
previous year. The net profit after depreciation, taxation is Rs.877.948
Millions - as against Rs. 1047.687 Millions -in the previous year.
The
Directors are pleased to recommend the Dividend out of the available surplus,
at the rate of 30% on Paid Up equity share capital of Rs.418.000 Millions -
i.e.@Rs.37- per share on 41,80,000 equity Shares of Rs. 107- each aggregating
to Rs. 125.400 Millions - as against 25% i.e. Rs.104.500 Millions - in the
previous year.
Textile
Industry is facing fierce competition which is fuelled with the appreciation of
the Rupee. On the one hand exports have become uncompetitive thereby leading to
glut in the local market and on the other hand cheaper import of fabric. The
Company has been able to create its own niche and brand identity within the
trade circle enabling it overcome this situation.
As
required under Maharashtra Sales Tax Act Company has appointed a VAT Auditor to
conduct the VAT Audit.
The
Company's Building, Machineries, Stores and Stocks in trade etc. are fully
covered against all insurance risks.
The
Company is not accepting deposits from the public or shareholders.
MANAGEMENT'S
DISCUSSION AND ANALYSIS
Overall
Review:
The
operating profitability of the Company has improved during the year on account
of controlling of operational cost and overheads, better sales realization and
increase in turnover and reduction in interest cost. Inspite of rising cost of
interest, power, fuel, raw material, wages, and increased borrowings the
Company's operating profit has improved due to better operational control. The
present liquidity crunch faced by Banks and continuous rise in interest cost
shall affect their future cost of borrowings. On the manufacturing front they
are continuing their thrust on cost controls and improved realizations.
Business
Segment - Cotton, Synthetics Yarn and Fabrics
Industry
Structure and Development:
Towards
the end of the last financial year on account of appreciation of Rupee, the
exports fell and cheaper imports increased leading to lot of over-supply in the
local market. This became more fierce in the first three months of this
financial year. The Central Government has set a huge target for growth of
textile production, exports, employment, for which various proposals for the
Textile Industry have been announced. Further for expansion, modernisation and
upgradation the Technology Upgradation Fund Scheme (TUFS) has been extended for
further 5 years. In view of these welcome measures, the industry is making
significant efforts to upgrade technology, undertake expansion and improve
competitiveness in order to face the new challenges. Textile companies are now
aiming to create larger capacities across the value chain. The aggressive
capacity expansion plans of the industry demonstrate its commitment to take advantage
of the emerging global growth opportunities.
Opportunities
and Threats :
Due to
availability of indigenous raw material like cotton, manmade fibres, trained
labour and conducive climate for investments into textiles would help the
Indian manufacturers to withstand competition in the developed world. However,
the threat of cheaper imports continues due to appreciation of Rupee. This
would definitely bring pressure on margins of textile mills. In addition to the
above, any reduction in Interest Subsidy under the TUF scheme on new Loans
sanctioned after March 2007 will add to the burden.
Review
and Analysis :
The
cost of inputs increased substantially due to Petrochemical prices, Power, Raw
Material, Wages. The export market is less remunerative due to lower
realisation because of appreciation of Rupee. The Spinning and Weaving
production at Dhamni are stabilised and they are able to control the operating
cost and are further trying to improve the same. The Company is setting up a
completely new Processing Project with State-of the Art equipment to reduce
operating costs, control rejects and improve quality and delivery time to their
customers. In order to increase their share in the domestic market and to
provide newer varieties of fabric to meet the consumer demand, their Research
and Development Department continues to remain actively engaged in development
of new shades, finishes and varieties in an economical and environmentally
sustainable manner. Efforts are continuously being made for value addition to
enable the customer to have accessibility to a wide range of exclusive
varieties. Additionally, several fabric blends are being developed with unique
finishing processes and chemicals to cater to the ever changing consumer
demand.
Outlook:
Although
the outlook for the textile industry is coupled with uncertainty, they are
hopeful that with their thrust on improving domestic market and change in
production pattern, it should be possible to meet the challenges facing the
industry successfully. With the operations of the Spinning and Weaving Plant at
Dhamni unit stabilised and the New Processing Plant going on stream it shall
enhance the company's viability to withstand competition. The Real Estate
segment shall also see a growth.
Risks
and Concerns :
Availability
of quality cotton throughout the year at reasonable prices has always been a
cause of concern due to crop uncertainty but they can only overcome the same by
procuring maximum amount of cotton during 3 months of peak season blocking huge
capital. All manmade and synthetic fibre prices have started going up due to
increase in Petrochemical prices and other cost. Due to appreciation of Rupee,
Industry is also facing the risk of import of cheaper textiles into the
country. The power situation in the State of
Company's
financial performance and analysis :-
The
turnover of the Company during the year is Rs. 1031.574 Millions as against
Rs.923.341 Millions during the previous year. The profit before depreciation
and tax is Rs. 243.905 Millions as against Rs. 218.438 Millions in the previous
year. The net profit after providing depreciation and taxation is Rs. 88.315
Millions as against Rs. 100.221 Millions in the previous year. During the year
the borrowing cost has been controlled inspite of increase in Term Loans and
hikes in interest rates which was mainly due to effective negotiations with
Banks and Institutions.
|
CONTINGENT
LIABILITY |
Rs
in Millions |
|
a)
Excise matters in dispute or under appeal |
37.424 |
|
b)
Taxation matters under appeal for income tax |
43.607 |
|
c)
Other claims against the Company not acknowledged as debts |
2.179 |
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d) Claims
by Ex-Empioyees pending in labour court. |
-- |
Excise
balance for Dhamni and Dadar Unit are as certified by the Management.
AS PER
WEBSITE
Incorporated in
the year, 1917 as a Composite Textile Mill mainly manufacturing Cottons. The management
of the unit was taken over by the late Shri C N Shah in 1946 and thereafter the
mill has been regularly progressing and manufacturing a wide range of products.
From 1959 onwards the management has been under the dynamic leadership of the
Chairman and Managing Director, Shri M C Shah and has made tremendous progress
by way of its product range, quality and performance.
Subject has two
plants located at Dadar,
Since 1996,
subject is manufacturing MICRO DOT FUSIBLE INTERLINING & BASIC
INTERLINING, in Technical Collaboration with GYGLI TEXTIL AG,
The Company has
been in operation since 1921 with an Annual Income of Rs. 680 million.
A modern
Research & Development Laboratory fully equipped with the latest quality
control equipment and recognised by the Government of India supports these
manufacturing activities.
Subject has
forward integration into Processed Knit Fabrics in Tubular form. The Company is
equipped with imported Sclavos Soft Flow High Temperature/Low Temperature Dying
machines, Spereto Rhymer Tubular Merceriser, Sentex Balloon Padder, Relax Dryer
and Spereto Rhymer Tubular Compacting machines to produce knitted fabrics that
meet the most exacting International Standard with regard to Dimensional
Stability (Shrinkage) and Colour Fastness.
Subject has two
plants located at Dadar,
The comapny's Dadar
Unit is a highly modernised Composite Textile Mill in
The plant is
manufacturing yarns and fabrics of Cotton / Polyester / Rayon & Blends. The
plant has latest generation of machines comprising of Super High Production
Cards, Auto Leveller, Draw Frames, Auto Coro Open End Spinning Machines, Auto
Coner Winding Machine, Wide Width Sulzer Projectile Weaving Machines, Sulzer,
Air Jet and Ruti C Shuttle Looms. The plant has it's own Process House, which
is capable of Bleaching, Dyeing, Printing & Finishing complete production.
The Dhamni
Unit is located 70 kms. South East of Bombay, has advantages in terms of
easy accessibility, availability of transportation of raw materials and
finished goods, well established communication facilitiesand availability of
adequate semi-skilled labour force.
Established in 1992
the Unit has 18,000 spindles and is among one of the most modern Spinning Unit.
The Group
manufactures and markets –
·
Cotton & Blended Yarns
·
Custom made fabrics from various
Manmade & Natural fibers like Cotton, Linen, Viscose, Lyocell, Modal, Polynosic
& the blends of the same for shirting, suiting & dress materials. Micro
Polyester and it's blends for various end applications.
·
100% Cotton Knitted Fabric
·
Basic and Micro Dot coated Interlining
·
Eco Friendly Textiles
·
Fabrics with following Special Finishes
: Silicone, Anti-Fungal, Anti-Bacterial, Water Repellent & Stain Repellent
The marketing of fabrics is done through Del Credere Agents
who are appointed by the Company for directly supplying fabrics to garment
manufacturers and other sub agents territorially. The yarn produced at
its most modern spinning unit at Dhamni is very well accepted in the market.
The Company's products i.e. yarn and fabrics are of premier quality and enjoy a
very good reputation.
The Ruby Mill's fabrics have been extremely well accepted in the market and
have been marketed as Ruby's fabrics. The Company claims to charge a premium
over their competitors by 5-10%. The reasons for this are consistency in quality,
research and the fact that they are trend setters, other companies (including
Simplex, Morarjee, Hindoostan and others), who follow, Ruby's main secret,
being the control on processing and the secret in their finishing chemicals
being used. They are certainly well known for some of their fabrics including
one called Busy Lizzie (Polyester / Rayon, spun x spun fabric) for shirting and
dress material.
The Company has been exporting fabrics and yarn mainly to
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.39.79 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.56.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
56 |
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. |
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 |
|