MIRA INFORM
REPORT
|
Report Date : |
17.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SUPER
TANNERY LIMITED |
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Formerly Known
As : |
SUPER
TANNERY (INDIA) LIMITED |
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Registered Office : |
187/170, Jajmau Road,
Kanpur-208 010, Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.02.1984 |
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Com. Reg. No.: |
20-6421 |
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CIN No.: [Company
Identification No.] |
L19131UP1984PLC006421 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KNPS01360C |
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Legal Form : |
Public
Limited Liability Company. The company's shares are listed on Stock
Exchanges. |
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Line of Business : |
Manufacturing
and marketing of leather sole, leather chrome, leather garments, leather shoe
uppers, leather full shoe, unit sole, leather cut sole and other leather
goods. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
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 1500000 |
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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 company having satisfactory track records. Trade relations are fair.
Financial position is satisfactory. Payments are reported as slow but
correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
187/170,
Jajmau Road, Kanpur 208010, Uttar Pradesh, India |
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Tel. No.: |
91-512-2460137 / 2462138 / 2461079 |
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Fax No.: |
91-512-2460792
/ 2462227 |
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E-Mail : |
supertannery@lw1.sancharnet.in Tannery Division Footwear Division Sales Department |
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Website : |
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Plant: |
Chrome Tanning
Division 187/170, Jajmau Road, Jajmau, Kanpur - 208 010. Goat Tanning
Division Leather Technology Park, Banthar, Unnao, Uttar Pradesh Sole Tanning
Division Mona Nagar, Jajmau, Kanpur - 208 010. 187/170, Jajmau Road, Jajmau, Kanpur - 208 010. Footwear
Division 169, Jajmau, Kanpur - 208 010. Safety Shoe
Division Leather Technology Park, Banthar, Unnao, Uttar Pradesh |
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Overseas
Office : |
UNITED
KINGDOM Super
Tannery (UK) Limited Registered
Office 17
Leeland Mansion, Leeland Road, Ealing London W 13 94B, U.K. Operational
Office 19 Hewlett
Road, Luton, Bedfordshire, LU3 2RP, U.K. Tel
No. : 44 1582 575559 Email : sales@supertannery.co.uk UNITED
ARAB EMIRATES Super
Tannery Limited Warehouse
No.- A3-101, Post Box – 8290, Saifzone, SHARJAH Tel
No.: 00971 6 5572326 Fax
No.: 00971 6 5572327 |
DIRECTORS
|
Name : |
Mr. Iftikharul
Amin |
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Designation : |
Managing Director |
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Name : |
Mr. Iqbal Ahsan |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Veqarul Amin |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Imran
Siddiqui |
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Designation : |
Whole-time
Director |
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Name : |
Mr. Arshad
Khan |
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Designation : |
Whole-time
Director |
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Name : |
Mr. Mohd.
Imran |
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Designation : |
Whole-time
Director |
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Name : |
Mr. Mohsin
Sharif |
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Designation : |
Director |
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Name : |
Mr. Nafees
Ahmad |
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Designation : |
Director |
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Name : |
Kumud Behari
Seth |
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Designation : |
Director |
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Name : |
Dr. Nafis
Ahmad |
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Designation : |
Director |
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Name : |
Dr.
Subhash Awasthi |
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Designation : |
Director |
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Name : |
Dr. Mohd.
Izhar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
Gyanendra Singh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 31.03.2007]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter group |
2042477 |
56.75 |
|
Other Directors |
1660 |
0.05 |
|
Mutual Fund/Axis |
138300 |
3.84 |
|
Banks & Fl |
100 |
0.00 |
|
Bodies Corporate |
220965 |
6.14 |
|
Clearing Member |
1701 |
0.05 |
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Individuals |
1177901 |
32.73 |
|
Flls/NRIs |
16008 |
0.44 |
|
Total |
3599112 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and marketing of leather sole, leather chrome, leather garments, leather shoe
uppers, leather full shoe, unit sole, leather cut sole and other leather
goods. |
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Products : |
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Exports : |
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Countries : |
European
countries, U.S.A., Canada, Hongkong, Singapore |
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Imports : |
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Countries : |
Europe
and Far East |
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Terms : |
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Purchasing : |
L/C,
D/A and D/P terms |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Leather Sole |
Hides |
NA |
120000 |
107856.50 |
|
Leather Chrome |
Hides |
NA |
250000 |
329499 |
|
Goat Skins |
Pairs |
NA |
1500000 |
1847901 |
|
Leather Shoe Uppers |
Pairs |
600000 |
500000 |
926373 |
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Leather Full Shoe |
Pairs |
720000 |
720000 |
239225 |
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Leather Safety Shoes |
Pairs |
250000 |
250000 |
311781 |
GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
4000 |
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Bankers : |
State Bank of India, Overseas Branch, Kanpur,
Uttar Pradesh, India |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Kapoor
Tandon and Company Chartered
Accountants |
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Address : |
Kanpur,
Uttar Pradesh, India |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3599112 |
Equity Shares |
Rs. 10/-
each |
Rs. 35.991
Millions |
|
|
Less : Call Unpaid others |
|
Rs. 0.219
Millions |
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Total |
|
Rs. 35.772 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 |
|
|
|
|
|
1] Share Capital |
35.771 |
35.771 |
35.764 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
340.304 |
318.547 |
314.842 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
376.075 |
354.318 |
350.606 |
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LOAN FUNDS |
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1] Secured Loans |
563.733 |
361.961 |
237.100 |
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2] Unsecured Loans |
0.000 |
0.000 |
28.207 |
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TOTAL BORROWING |
563.733 |
361.961 |
265.307 |
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DEFERRED TAX LIABILITIES |
38.336 |
37.177 |
0.000 |
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TOTAL |
978.144 |
753.456 |
615.913 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
376.969 |
328.818 |
314.832 |
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Capital work-in-progress |
23.058 |
1.515 |
0.882 |
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INVESTMENT |
8.901 |
10.767 |
6.527 |
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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 |
609.940
|
446.703 |
363.390 |
|
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Sundry Debtors |
288.836
|
200.872 |
154.861 |
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Cash & Bank Balances |
45.117
|
14.796 |
7.885 |
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Other Current Assets |
43.193
|
18.128 |
13.430 |
|
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Loans & Advances |
46.297
|
28.662 |
20.158 |
|
Total
Current Assets |
1033.383
|
709.161 |
559.724 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
|
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Current Liabilities |
444.859
|
283.173 |
251.423 |
|
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Provisions |
19.308
|
13.632 |
14.629 |
|
Total
Current Liabilities |
464.167
|
296.805 |
266.052 |
|
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Net Current Assets |
569.216
|
412.356 |
293.672 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
978.144 |
753.456 |
615.913 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Income from operations |
2060.120 |
1281.983 |
1096.989 |
|
|
Other Income |
4.574 |
2.594 |
0.000 |
|
|
Total Income |
2064.694 |
1284.577 |
1096.989 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
33.091 |
20.427 |
30.189 |
|
|
Provision for Taxation |
8.660 |
11.471 |
10.237 |
|
|
Profit/(Loss) After Tax |
24.431 |
8.956 |
19.952 |
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|
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Earnings in Foreign Currency : |
1353.907 |
[834.614] |
[655.126] |
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Total Imports |
232.544 |
[91.878] |
[129.779] |
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Expenditures : |
|
|
|
|
|
|
Increase/(Decrease) in Finished Goods |
[106.337] |
[59.136] |
|
|
|
Materials |
1642.989 |
974.633 |
1066.800 |
|
|
Manufacturing Expenses |
228.051 |
144.201 |
|
|
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Administrative Expenses |
246.142 |
185.830 |
|
|
|
Depreciation on Fixed Assets |
20.758 |
18.622 |
|
|
Total Expenditure |
2031.603 |
1264.150 |
1066.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
606.500
|
530.800
|
540.000
|
|
Other Income |
0.900
|
3.900
|
0.200
|
|
Total Income |
607.400
|
534.700
|
540.200
|
|
Total Expediture |
579.100
|
512.100
|
512.900
|
|
Operating Profit |
28.300
|
22.600
|
27.300
|
|
Interest |
12.600
|
8.800
|
9.900
|
|
Gross Profit |
15.700
|
13.800
|
17.400
|
|
Depreciation |
5.400
|
5.100
|
6.200
|
|
Tax |
1.800
|
2.100
|
3.000
|
|
Reported PAT |
8.200
|
5.100
|
8.200
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.35 |
0.91 |
0.66 |
|
Long Term Debt-Equity Ratio |
0.26 |
0.19 |
0.12 |
|
Current Ratio |
1.10 |
1.15 |
1.21 |
|
Fixed Assets |
3.39 |
2.44 |
2.16 |
|
Inventory |
3.27 |
2.77 |
2.92 |
|
Debtors |
7.07 |
6.31 |
4.95 |
|
Interest Cover Ratio |
1.70 |
1.61 |
2.24 |
|
Operating Profit Margin(%) |
5.86 |
6.47 |
8.03 |
|
Profit Before Interest And Tax Margin(%) |
4.65 |
4.82 |
6.27 |
|
Cash Profit Margin(%) |
2.61 |
2.45 |
4.04 |
|
Adjusted Net Profit Margin(%) |
1.41 |
0.79 |
2.29 |
|
Return On Capital Employed(%) |
9.98 |
8.59 |
10.26 |
|
Return On Net Worth(%) |
7.10 |
2.69 |
6.22 |
LOCAL AGENCY
FURTHER INFORMATION
The
company's fixed assets of important value include land, building, plant &
machinery, furniture & fixtures, vehicles, plant & machinery on lease
and vehicles on lease.
Contingent
Liabilities on account of:
|
|
As on 31.03.2007 [Rs. In
Millions] |
|
Foreign Bills negotiated/Purchased with Bankers |
22.750 |
|
Bank Guarantee |
1.320 |
|
Electricity Demand Pending litigation |
4.204 |
|
Entry Tax Demand Pending litigation |
Unascertainable |
Working Capital
Loan from State Bank of India is secured by hypothecation of stocks, Book Debts,
plant and machineries and equitable mortgage of Company's land and building and
personal guarantee of some of the Directors. Term-loan from State Bank of India
is secured by equitable Mortgage of Company's land and building and personal
guarantee of some of the Directors. Foreign Currency Loan from State Bank of
India, Mauritius is unsecured.
Certain assets of
erstwhiie Super Agro- Tech Limited (SATL) acquired pursuant to the scheme of
amalgamation sanctioned by Hon'ble High Court of Judicature at Allahabad,
included in the books of the company remain under
the name of SATL
pending completion of the relevant formalities. Likewise, certain land at
Banthar, Unnao is lying
registered in the name of some of the Directors of the
Company.
The Company's operation
predominantly comprises only one segment i.e. leather and leather Products,
therefore,
Segment Reporting
as per Accounting Standard (As-17) issued by the Institute of Chartered
Accountants of India
is not applicable.
OPERATIONAL
REVIEW
During the year under review, the income from operation stood at Rs.
2060.121 Millions as against Rs. 1281.9.830 Millions during the last financial
year, showing an impressive growth of 60.70%. The company recorded a Net Profit
before Tax of Rs. 330.91 as compared to Rs. 20.426 Millions during the last
financial year registering a growth in the net profit by 62.00%. Interest stood
at Rs. 41.450 Millions as against Rs. 28.765 Millions for the previous
year. Depreciation amounts to Rs.
20.758 Millions during the period under consideration while it was Rs. 186.22
during the last Financial Year.
SUBSIDIARY COMPANY
Super Safetywears Limited,
a subsidiary company, was incorporated during the year. Pursuant to the
exemtion granted under Section 212 (8) of the Companies Act, 1956, by the
Government of India, Ministry of Corporate Affairst, vide order no.
47/256/2007-CL-III dated 30.05.2007, the Balance Sheet as on 31st March 2007,
in respect of the subsidiaries of the Company have not been attached to the
Balance Sheet of the Company. However, the requisite information for each
subsidiary has been disclosed. The Annual Accounts of the subsidiary companies
and related detailed information will be made available to the holding and
subsidiary Company investors seeking such information. The Annual Accounts of
the subsidiary companies will be kept for inspection by any investor in the
head office of the Company and the subsidiary concerned.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure and Development
The Indian Leather Industry plays a significant role in the Indian Economy in
view of its substantial export earnings, employment generation and growth
opportunities. The export of leather and leather products has been increased
over past few years.
The Company is striving high to capture over Global Market in respect of
Leather and Leather Products. The Company has taken various steps to promote
company's products all over the world and it is being done in line with global
trends to enhance scale, global competitiveness and financial flexibility and
also to contribute towards achievement of company's objective and to increase
revenue, production volume, market shares and shareholder's returns.
The company in view of the competitive scenario has taken various steps to meet
these challenges and also capitalise on budding opportunities available. The
company is regularly carrying out detailed analysis of leather industry and has
been making all possible efforts to understand the various minutiae of the
emerging market scenario. The company has been investing considerable amount of
funds on its Research & Development programmes in order to enrich and
improve the quality of products.
Opportunities
Company has gained reputation and established itself globally as Supplier of
quality products.
The company has demonstrated global competitiveness and has achieved
international standards for the quality of its products and its immense
capabilities provide massive opportunities in the foreign market.
Company's overall strategy is to enhance shareholder value by receiving better
returns through a long-term investment.
Threat:
The company is fully aware of the factors dictating competition and has
been investing with the ups and downs through its various effective measures
like cost optimization, competitive pricing, improved production process and
enhanced customer satisfaction.
Even under difficult operating conditions, company has been consistently
performing its best. It is expected that company's sound policies, competitive
cost position will enable the company to lead the market effectively.
To exist in the competitive market and improve the value of shareholder,
company is consistently considering all the significant factors, which provide
sharp edges that enable company to enhance the margin.
Outlook
Company's maximum operational income is based on the margin on export of
leather and leather products. As most of part of the earning is realized from
Export, out look depends upon the global economic scenario, global demand and
supply and International product prices. Above all the performance of the
company is largely depends on the Exim policy of the Union Government. Looking
at the overall development of the Indian economy and the efforts of the Central
Government to achieve higher GDP, Board of directors of the company is very
much optimistic to the future of the Company.
Risks and Concerns:
Although The company does not perceive any serious threat, still company
is taking care against the risk of growing pressure of prices, foreign exchange
rates variation, current and future litigation, working capital management, bad
debts etc. Foreign exchange liabilities / revenues are mainly concerned with
the company's operation. Regular monitoring of movement of foreign exchange
rates is carried out and decisions are taken as to when outstandings are to be
covered and payments are to be made.
Working Capital requirement are to be kept at minimum level in order to
maintain the lowest possible interest rate.
Company has strongly prepared itself to meet cutthroat competition in global
market by adhering to international quality standards of its product.
In addition to above company have overall risk management strategy, follows
such practices & policies that are framework of efficient management to
count the risk in advance.
Unaudited
[Provisional] Financial Results for the Quarter Ended 31.12.2007
[Rs. In Millions]
|
|
|
Quarter Ended |
Nine Months
Ended |
|
Sr. No. |
Particulars |
31.12.2007 [Unaudited] |
31.12.2007 [Unaudited]
|
|
1 |
Income from operations |
540.001 |
1677.353 |
|
2 |
Other income |
0.222 |
4.898 |
|
3 |
Total Income |
540.223 |
1682.251 |
|
|
[a] increase/[Decrease] in stock in trade |
20.904 |
52.715 |
|
|
[b] Consumption of materials |
406.251 |
12.28.384 |
|
|
[c] Purchase of traded goods |
40.794 |
180.528 |
|
|
[d] Staff Cost |
23.337 |
69.460 |
|
|
[e] Energy Cost |
12.687 |
34.672 |
|
|
[f] Selling and Distribution Expenses |
36.888 |
91.644 |
|
|
[g] Depreciation |
6.159 |
16.650 |
|
|
[h] Other administrative Expenditure |
13.889 |
47.126 |
|
4 |
Total
Expenditure |
519.101 |
1615.749 |
|
5 |
Interest |
9.874 |
31.216 |
|
6 |
Exceptional items |
0.00 |
0.00 |
|
7 |
Profit Before
Tax |
11.248 |
35.286 |
|
8 |
Tax Expenses |
3.000 |
8.700 |
|
9 |
Net profit after
Tax |
8.248 |
26.586 |
|
10 |
Paid up Equity Share Capital [Face value Rs. 10/- per share] |
35.771 |
35.771 |
|
11 |
Reserves excluding revaluation Reserve |
|
|
|
12 |
Basic and Diluted EPS |
0.917 |
0.985 |
|
13 |
Public Shareholding |
|
|
|
|
Number of Shares |
1555675 |
1555675 |
|
|
Percentage of Shareholding |
43.22% |
43.22% |
Notes:
- The above results were taken on record by the Board of Directors at
its meeting held on 30.01.2008, reviewed by Audit Committee and subjected
to limited review by Statutory Auditors of the Company.
- The Company’s operation predominantly comprises only one segment
i.e. leather and leather products, hence segment reporting is not
applicable.
- During the quarter three invetors complaint were received, which
were duly redressed to the entire satisfaction of the shareholders. No investors complaint, either at the
beginning or at the end of the quarter, were lying unresolved.
- Figures for the previous year/period have been regrouped/rearranged
wherever considered necessary in order to make them comparable.
- The Board of Directors of the Company has approved stock split from
Rs. 10/- per share to Rs. 2/- at its meeting held on 14.01.2008.
- Owing to non payment of calls in arrear by some of the shareholders
the Board of Directors in their meeting held on 31.12.2007 has approved
forfeiture of 30600 equity shares.
Further, the same reissued on 14.01.2008 to the promoters of the
company.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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. 39.96 |
|
UK Pound |
1 |
Rs. 78.66 |
|
Euro |
1 |
Rs. 63.31 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|