MIRA
INFORM REPORT
|
Report Date : |
25.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
MOI FOODS |
|
|
|
|
Registered Office : |
Lot 40, Section 4, Fasa 2a, Pulau Indah Industrial Park, Jalan Sungai Pinang
5/1, 42920 Pulau Lumut, Selangor |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
27/09/1994 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing of Specialty Oils and Fats |
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 : |
Regular |
|
|
|
|
Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 317881-W
COMPANY NAME : MOI FOODS
FORMER NAME : GREAT PATTERN SDN BHD (11-09-2000)
INCORPORATION DATE : 27/09/1994
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : LOT 40, SECTION 4, FASA 2A, PULAU
INDAH INDUSTRIAL
PARK,
JALAN SUNGAI
BUSINESS ADDRESS : LOT 40, SECTION 4, FASA 2A, PULAU
INDAH INDUSTRIAL
PARK,
JALAN SUNGAI
PULAU
LUMUT,
TEL NO : 03 - 31011133
FAX NO : 03 - 31011155
WEB SITE : www.moigroup.com
CONTACT PERSON : CHEO TONG CHOON (MANAGING DIRECTOR)
INDUSTRY CODE : 15499
PRINCIPAL ACTIVITY : MANUFACTURING OF SPECIALTY OILS AND FATS
AUTHORISED CAPITAL : MYR10,000,000.00 DIVIDED INTO
ORDINARY SHARE
10,000,000
OF MYR1.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR10,000,000.00 DIVIDED INTO
ORDINARY SHARE
8,513,000
CASH AND 1,487,000 OTHERWISE OF MYR1.00
EACH.
SALES : MYR674,355,910 [2006]
NET WORTH : MYR26,372,921 [2006]
STAFF STRENGTH : 215
[2007]
BANKER (S) : RHB BANK BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : FAIR
PAYMENT : GOOD
MANAGEMENT CAPABILITY : GOOD
COMMERCIAL RISK : MODERATE
CURRENCY EXPOSURE : MODERATE
GENERAL REPUTATION : GOOD
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 of specialty oils and fats.
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 MOI INTERNATIONAL INC, a
company in incorporated in
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
MOI INTERNATIONAL INC 355, BARKLY WHARF, LE CAUDAN 10,000,000
WATERFRONT,
--------------------
10,000,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : CHEO SENG JIN
Address : BATU 23, JALAN SEREMBAN, JALAN
RINCHING HULU, 43500
SEMENYIH,
IC / PP No. : S1070705F
Nationality : SINGAPOREAN
Date of Appointment : 17/12/2003
DIRECTOR 2
Name of Subject : DR CHEO TONG CHOON @ LEE TONG CHOON
Address : BATU 23,
SEMENYIH,
IC / PP No. : 1281598J
Nationality : SINGAPOREAN
Date of Appointment : 14/12/1994
DIRECTOR 3
Name of Subject : MS. LEONG CHOI FOONG
Address : B-5-7, ENDAH REGAL CONDOMINIUM, 7 JALAN
3/149E,
57000
IC / PP No. : 5044690
New IC No : 560924-10-5466
Nationality : MALAYSIAN CHINESE
MANAGEMENT
1) Name of Subject : CHEO
TONG CHOON
Position : MANAGING DIRECTOR
2) Name of Subject : BRUCE
GNA
Position : SENIOR MARKETING MANAGER
3) Name of Subject : TANER
KORAY KALAN
Position : SENIOR MARKETING MANAGER
4) Name of Subject : JIMMY
TEH
Position : FINANCE MANAGER
AUDITOR
Auditor : HALS & ASSOCIATES
Auditors' Address :
FLOOR,
50200
COMPANY SECRETARY
1) Company Secretary : MS.
LEONG CHOI FOONG
IC / PP No. : 5044690
New IC No. : 560924-10-5466
Address : B-5-7, ENDAH REGAL CONDOMINIUM, 7 JALAN 3/149E,
SRI
ENDAH, 57000
Date of Appointment : 15/12/1994
BANKING
Banking relations are maintained principally with :
1) Banker Name : RHB
BANK 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 : 27 Jul 2001
Description of Charge : N/A
Amount Secured : RM 44,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 1 In The
Register of Charges
ENCUMBRANCE 2
Date of Creation : 30 Jun 2004
Description of Charge : N/A
Amount Secured : RM 20,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 2 In The
Register of Charges
ENCUMBRANCE 3
Date of Creation : 10 Jun 2004
Description of Charge : N/A
Amount Secured : RM 20,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA-COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 3 In The
Register of Charges
ENCUMBRANCE 4
Date of Creation : 27 Oct 2005
Description of Charge : N/A
Amount Secured : RM 30,000,000.00
Description of Property Affected : N/A
Name & Address of Chargee : BUMIPUTRA COMMERCE BANK BHD
Form 40 Dated
Registered and Numbered 4 In The
Register of Charges
ENCUMBRANCE 5
Date of Creation : 27 Oct 2005
Description of Charge : N/A
Amount Secured : RM 30,000,000.00
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 6
Date of Creation : 25 Jun 2007
Description of Charge : DEED OF ASSIGNMENT
Amount Secured : RM 50,000,000.00
Description of Property Affected : LAND OF APPROXIMATELY 153,409.8
SQUARE FEET (3.5213
ACRES)
HELD UNDER THE MASTER TITLE HS(D) 71657, PT
67089,
MUKIM KLANG, DAERAH KLANG, NEGERI SELANGOR
DARUL
EHSAN
Name & Address of Chargee : RHB BANK BHD
TOWER
1, RHB CENTRE, JALAN TUN RAZAK, LEVEL 10,
50400
Form 40 Dated 04 Jul 2007
Registered and Numbered 6 In The
Register of Charges
ENCUMBRANCE 7
Date of Creation : 25 Jun 2007
Description of Charge : DEED OF ASSIGNMENT
Amount Secured : RM 50,000,000.00
Description of Property Affected : CONTRACTOR'S ALL RISKS- HOF302EN07100008
(14/06/2007),
HOF302EN07100009 (14/06/2007), ERECTION
ALL
RISKS- HOF302EN07100011 (14/06/2007),
HOF302EN07100013(18/06/2007),
HOF302EN07100014
(14/06/2007)
ALL INSURER BY TAKAFUL IKHLAS SDN BHD
AND
FIRE- FP043379 (19/06/2007) INSURER BY HSBC
AMANAH
TAKAFUL (
Name & Address of Chargee : RHB ISLAMIC BANK BHD
TOWER
1, RHB CENTRE, JALAN TUN RAZAK, LEVEL 10,
50400
Form 40 Dated 04 Jul 2007
Registered and Numbered 7 In The
Register of Charges
ENCUMBRANCE 8
Date of Creation : 25 Jun 2007
Description of Charge : DEBENTURE
Amount Secured : RM 50,000,000.00
Description of Property Affected : ALL ASSETS OF THE COMPANY
Name & Address of Chargee : RHB ISLAMIC BANK BHD
TOWER
1, RHB CENTRE, JALAN TUN RAZAK, LEVEL 10,
50400
Form 40 Dated 04 Jul 2007
Registered and Numbered 8 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
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 [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES
Domestic Markets :
Overseas : YES
Export Market :
Credit Term : AS AGREED.
Payment Mode : CHEQUES, TELEGRAPHIC TRANSFER (TT).
OPERATIONS
Products Manufactured : SPECIALTY OILS AND FATS
Competitor(s) : QL RESOURCES BHD
YEO
HIAP SENG (
RIKEVITA
(
INTERCONTINENTAL
SPECIALTY FATS SDN BHD
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005
GROUP N/A N/A N/A
COMPANY 215 206 210
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 : 03-31011133
Match : N/A
Address Provided By Client : LOT 40, SECTION 4, FASA 2A, PULAU
INDAH
INDUSTRIAL
PARK, JALAN SUNGAI
PULAU
INDAH 42920
Current Address : LOT 40, SECTION 4, FASA 2A, PULAU
INDAH INDUSTRIAL
PARK,
JALAN SUNGAI
PULAU
LUMUT,
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with Ms Rohaya from the SC's Human Resource
Department. She revealed some information pertaining to the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2004-2006 ]
Profit / ( Loss ) before tax : Increased [ 2004-2006 ]
Return on Shareholder Funds : Acceptable [ 25.55% ]
Return on Net Assets : Acceptable [ 24.17% ]
The SC's turnover increased steadily as the demand for its products /
services increased due to the goodwill built up over the years. The higher
profit could be attributed to the increase in turnover. The SC's management had
generated acceptable return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Favourable [ 7 Days ]
Debtors Ratio : Favourable [ 31 Days ]
Creditors Ratio : Favourable [ 2 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 [ 0.52 Times ]
Current Ratio : Unfavourable [ 0.59 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 : Acceptable [ 3.87 Times ]
Gearing Ratio : Unfavourable [ 1.08 Times ]
The SC's interest cover was slightly low. If there is no sharp fall in
its profit or sudden increase in the interest rates, we believe the SC is able
to generate sufficient income to service its interest and repay the loans. The
SC was highly geared, thus it had a high financial risk. The SC was dependent
on loans to finance its business needs. In times of economic downturn and / or
high interest rate, the SC will become less profitable and competitive than
other firms in the same industry, which are lowly geared. This is because the
SC has to service the interest and to repay the loan, which will erode part of
its profits. The profits will fluctuate depending on the SC's turnover and the
interest it needs to pay.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and
profit. 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 had an acceptable interest
cover. If there is no sudden sharp increase in interest rate or fall in the
SC's profit, we do believe the SC is able to generate sufficient cash flow to
service its interest payment. The SC's gearing level was high and its going concern
will be in doubt if there is no injection of additional shareholders' funds in
times of economic downturn and / or high interest rates.
Overall financial condition of the SC: FAIR
COMMENTS
Established in 1994, the SC is principally engaged in the manufacturing
of specialty oils and fats. Its long presence in the industry coupled with its
vast experiences in the business, the SC should have built up a certain
goodwill with its clients over times. Being backed by the holding company,
allows the SC to enjoy the benefit of timely financial assistance if the needs
arise. With these favourable conditions, the SC has minimized its risk in the
industry compared to other players. With RM10 million in issued and paid up
capital, the SC has the potential of capturing a higher market shares as it is
competing aggressively in the market.
Over the years, the SC has established an extensive clientele base in
the market. Besides catering to the local market, the SC has penetrated into
other countries such as ASIA and
During the financial year 2006, turnover of the SC surged by 95.29% to RM674.35
million in 2006. The SC recorded a pre-tax profit of RM9.75 million for the
year, an increase of 46.88% over the previous year. The SC generated an
acceptable return on shareholders' funds indicating that the SC was efficient
in utilising its shareholders' funds to generate favourable returns. However
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. Beside this the SC also posted a high
gearing ratio. Nonetheless, with the comfortable networth standing at RM26.37
million, the SC is able to sustain its business performance in the near terms.
Investigation revealed that the SC sources its raw materials from both
local and overseas countries. As a result, the SC is exposed to foreign
currency fluctuation risk.
Based on our historical financial data, we concluded that the SC's
payment is good. This implies a good credit control and the SC could be taking
advantage of the cash discounts and while maintaining good reputation with its
creditors.
The rising population, improvement in quality of life and higher
propensity to consume will further increase the demand for food products. We
believe that the encouraging demand for the SC's products would present more
business opportunities for the SC.
In view of the above we recommend a fairly large amount of credit be
granted to the SC promptly.
THE FINANCIAL
STATEMENTS WERE PREPARED
IN ACCORDANCE WITH
STANDARD.
PROFIT
AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
MOI
FOODS
2006 2005 2004
MYR MYR MYR
TURNOVER 674,355,910 345,312,520 228,944,824
=========== =========== ===========
PROFIT/(LOSS)
FROM OPERATIONS 9,755,194 6,641,409 5,403,412
SHARE OF PROFITS/(LOSSES) OF
ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 9,755,194 6,641,409 5,403,412
Taxation <3,017,140> <1,587,000> <1,626,000>
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 6,738,054 5,054,409 3,777,412
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 6,738,054 5,054,409 3,777,412
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 6,738,054 5,054,409 3,777,412
RETAINED PROFIT/(ACCUMULATED LOSS)
BROUGHT
FORWARD
As
previously reported 9,634,867 4,580,458 803,046
------------------- ------------------- -------------------
As
restated 9,634,867 4,580,458 803,046
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS 16,372,921 9,634,867 4,580,458
------------------- ------------------- -------------------
RETAINED PROFIT/(ACCUMULATED LOSS)
CARRIED
FORWARD 16,372,921 9,634,867 4,580,458
=========== =========== ===========
RETAINED
BY: The Company 16,372,921 9,634,867 4,580,458
------------------- ------------------- -------------------
16,372,921 9,634,867 4,580,458
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Term
loan 2,240,061 1,147,780 -
Bank
overdraft 361 664 872
bank
charges 379,164 374,521 234,690
ECR
interest 744,246 12,233 -
bank
guarantee commission 21,235 - -
Commitment
fees 9,954 9,912 -
------------------- ------------------- -------------------
3,395,021 1,545,110 235,562
=========== =========== ===========
BALANCE SHEET
As
At 31-December-2006
MOI
FOODS
2006 2005 2004
MYR MYR MYR
ASSETS EMPLOYED:
FIXED
ASSETS 126,936,740 110,453,455 83,315,432
LONG
TERM INVESTMENTS/OTHER ASSETS
------------------- ------------------- -------------------
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL
LONG TERM ASSETS 126,936,740 110,453,455 83,315,432
CURRENT
ASSETS
Stocks 12,754,713 11,104,554 9,530,127
Trade
debtors 57,890,131 31,021,723 86,081,709
Other
debtors, deposits & prepayments 4,193,306 4,007,825 1,164,016
Items in transit between head
office & branches
Amount
due from holding company - - 622,334
Amount
due from related companies 5,060,800 5,037,793 -
Amount
due from director 26,318,557 35,602,636 -
Cash
& bank balances 173,639 55,547 5,929
tax
recoverable 10,184 10,184 10,184
------------------- ------------------- -------------------
TOTAL
CURRENT ASSETS 106,401,330 86,840,262 97,414,299
CURRENT
LIABILITIES
Trade
creditors 3,051,527 5,940,077 123,787,622
Other
creditors & accruals 5,778,827 7,375,285 6,581,472
Bank
overdraft - - 72,320
Short
term borrowings/Term loans 6,833,360 5,708,360 3,708,350
Amounts
owing to holding company 22,560,412 20,360,412 -
Amounts
owing to related companies 116,640,443 38,518,415 1,550,460
Amounts
owing to director 8,935,567 58,037,928 -
export
credit refinancing 15,125,000 9,112,000 -
------------------- ------------------- -------------------
TOTAL
CURRENT LIABILITIES 178,925,136 145,052,477 135,700,224
------------------- ------------------- -------------------
NET
CURRENT ASSETS/(LIABILITIES) <72,523,806> <58,212,215> <38,285,925>
------------------- ------------------- -------------------
TOTAL
NET ASSETS 54,412,934 52,241,240 45,029,507
=========== =========== ===========
FINANCED
BY:
SHARE
CAPITAL
Ordinary share capital 10,000,000 10,000,000 10,000,000
------------------- ------------------- -------------------
TOTAL
SHARE CAPITAL 10,000,000 10,000,000 10,000,000
RESERVES
Retained profit/(Accumulated loss)
carried
forward 16,372,921 9,634,867 4,580,458
------------------- ------------------- -------------------
TOTAL
RESERVES 16,372,921 9,634,867 4,580,458
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 26,372,921 19,634,867 14,580,458
LONG
TERM & DEFERRED LIABILITIES & PROVISIONS
Long
term loans 21,536,013 29,119,373 28,549,049
Deferred
taxation 6,504,000 3,487,000 1,900,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 28,040,013 32,606,373 30,449,049
------------------- ------------------- -------------------
54,412,934 52,241,240 45,029,507
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-December-2006
MOI
FOODS
2006 2005 2004
MYR MYR MYR
TYPES OF FUNDS
Cash 173,639 55,547 5,929
Net
Liquid Funds <6,659,721> <5,652,813> <3,774,741>
Net
Liquid Assets <85,278,519> <69,316,769> <47,816,052>
Net
Current Assets/(Liabilities) <72,523,806> <58,212,215> <38,285,925>
Net
Tangible Assets 54,412,934 52,241,240 45,029,507
Net
Monetary Assets <113,318,532> <101,923,142> <78,265,101>
BALANCE
SHEET ITEMS
Total
Borrowings 28,369,373 34,827,733 32,329,719
Total
Liabilities 206,965,149 177,658,850 166,149,273
Total
Assets 233,338,070 197,293,717 180,729,731
Net
Assets 54,412,934 52,241,240 45,029,507
Net
Assets Backing 26,372,921 19,634,867 14,580,458
Shareholders''
Funds 26,372,921 19,634,867 14,580,458
Total
Share Capital 10,000,000 10,000,000 10,000,000
Total
Reserves 16,372,921 9,634,867 4,580,458
LIQUIDITY
(Times)
Cash
Ratio 0.00 0.00 0.00
Liquid
Ratio 0.52 0.52 0.65
Current
Ratio 0.59 0.60 0.72
WORKING
CAPITAL CONTROL (Days)
Stock
Ratio 7 12 15
Debtors
Ratio 31 33 137
Creditors
Ratio 2 6 197
SOLVENCY
RATIOS (Times)
Gearing
Ratio 1.08 1.77 2.22
Liabilities
Ratio 7.85 9.05 11.40
Times
Interest Earned Ratio 3.87 5.30 23.94
PERFORMANCE
RATIO (%)
Operating
Profit Margin 1.45 1.92 2.36
Net
Profit Margin 1.00 1.46 1.65
Return
On Net Assets 24.17 15.67 12.52
Return
On Capital Employed 21.47 14.13 11.55
Return
On Shareholders'' Funds/Equity 25.55 25.74 25.91
Dividend
Pay Out Ratio (Times) 0 0 0
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%)