MIRA
INFORM REPORT
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Report Date : |
31.12.2008 |
IDENTIFICATION DETAILS
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Name : |
AFCONS INFRASTRUCTURE LIMITED |
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Registered Office : |
Afcon House, 16, Shah Industrial
Estate, Veera Desai Road, Azad Nagar, P.O. No. 11978, Andheri (West),
Mumbai-400053, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
22.11.1976 |
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Com. Reg. No.: |
11-19335 |
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CIN No.: [Company
Identification No.] |
U45200MH1976PLC019335 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA09981G / MUMA19369A / MUMA20959B |
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PAN No.: [Permanent
Account No.] |
AAACA9067G |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Construction Activity |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 26000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company and undertakes large construction projects. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Profit margin is under severe pressure. 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 : |
Afcon House, 16, Shah Industrial
Estate, Veera Desai Road, Azad Nagar, P.O. No. 11978, Andheri (West),
Mumbai-400053, Maharashtra, India |
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Tel. No.: |
91-22-26731107 / 26367091 / 7093 / 6677 3100 Ext 138 / 56773100 |
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Fax No.: |
91-22-26730047 / 26369052 / 26315910 / 2673 1031 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. P.S Mistry |
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Designation : |
Director |
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Date of Birth/Age : |
01.06.1929 |
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Qualification : |
Inter Arts |
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Date of Appointment : |
26.04.2000 |
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Name : |
Mr. A H Divanji |
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Designation : |
Director |
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Date of Birth/Age : |
20.11.1928 |
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Qualification : |
B.E (Civil) |
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Date of Appointment : |
27.03.2002 |
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Name : |
Mr. P N Kapadia |
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Designation : |
Director |
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Date of Birth/Age : |
30.09.1951 |
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Qualification : |
B.A, L.L.B |
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Date of Appointment : |
28.11.2006 |
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Name : |
Mr. N D Khurody |
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Designation : |
Director |
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Date of Birth/Age : |
26.10.1936 |
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Qualification : |
M.A (Cantab)Economics (Hons) |
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Date of Appointment : |
22.12.2006 |
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Name : |
Mr. S Paramasivan |
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Designation : |
Director |
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Date of Birth/Age : |
20.05.1957 |
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Qualification : |
B.Com, CAIIB, FICWA, FCS |
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Date of Appointment : |
10.06.2002 |
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Name : |
Mr.C P. Mistry |
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Designation : |
Chariman |
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Name : |
Mr. S.P Mistry |
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Designation : |
Director |
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Name : |
Mr. N.J Jhaveri |
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Designation : |
Director |
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Name : |
Mr. J J Parakh |
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Designation : |
Director |
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Name : |
Mr. B D Narang |
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Designation : |
Director |
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Name : |
Mr. R. M Premkumar |
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Designation : |
Director |
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Mr. K Subrahmanian |
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Managing Director |
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Mr. A N Jangle |
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Executive Director
(Business Development) |
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AUDIT COMMITTEE : |
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MEMBERS : |
· Mr. N. J. Jhaveri · Mr. J. J. Parakh ·
Mr. H. J. Tavaria ·
Mr. K. Subramanian |
KEY EXECUTIVES
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Name : |
Mr. P R Rajendran |
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Designation : |
Company Secretary |
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Name : |
Mr. R M Premkumar |
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Designation : |
Key Executives |
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Qualification : |
IAS (Retired) |
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Name : |
Mr. B D Narang |
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Designation : |
Consultants |
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Name : |
Mr. Pradip Narotam Kapadia |
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Designation : |
Advocate and Solicitor |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON
31.03.2008)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Holding |
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Indian Promoters-
Bodies Corporate |
69199207 |
96.92 |
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Non Institutional Investors |
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Companies/Bodies
Corporate |
50000 |
0.06 |
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General Public |
726139 |
1.02 |
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Directors
Non-Promoters Category |
233284 |
0.33 |
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Employee Trust/ Trustee |
1191370 |
1.67 |
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Total |
71400000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Construction Activity |
GENERAL INFORMATION
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Customers : |
· Konkan Railway Corporation Limited ·
· Mazagon Dock Limited ·
· Reliance Infocomm ·
·
· East Central Railway ·
PWD · DTTDC · Saipem · DSI · BARC · ESSAR ·
GHCL, ·
· Tata power ·
·
Shell |
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No. of Employees : |
6800 |
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Bankers : |
· State Bank · UCO Bank · Oriental Bank of Commerce · Axis Bank Limited ·
Bank of ·
Bank of · Andhra Bank · Dena Bank · BNP Paribas · ING Vysya Bank Limited ·
Bank of · Calyon BankCenturion Bank Limited ·
Union Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
·
Deloitte
Haskins and Sells Chartered Accountant ·
C. C.
Chokshi and Company Chartered Accountants ·
J. C.
Bhatt Chartered Accountants |
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Associates : |
Afcons [ |
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Subsidiaries : |
·
Afcons
Pauling ( ·
Afcons
BOT Constructions Private Limited ·
Tensacciai
[ ·
Kier
Afcons ( · Afcons (Overseas) Constructions and Investments Private Limited · Hazarat and Company Private Limited ·
SSS
Electricals ( · Afcons Dredging and Marine Services Limited ·
Afcons
Arethusa Offshore Services Limited |
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Holding Companies : |
· Cyrus Investments Limited [Directly] ·
Shapoorji Pallonji and Company Limited
[Indirectly] |
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Partners : |
Afcons Pauling Joint Venture |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
421525000 |
Equity Shares |
Rs.10/- each |
Rs.4215.250
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
4215.300 |
1715.300 |
1715.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1025.200 |
661.500 |
525.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5240.500 |
2376.800 |
2240.400 |
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LOAN FUNDS |
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1] Secured Loans |
2431.300 |
1951.700 |
1054.300 |
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2] Unsecured Loans |
2733.100 |
3762.700 |
2429.400 |
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TOTAL BORROWING |
5164.400 |
5714.400 |
3483.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
10404.900 |
8091.200 |
5724.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3006.700 |
2012.400 |
1167.800 |
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Capital work-in-progress |
153.200 |
240.000 |
51.100 |
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INVESTMENT |
82.800 |
68.300 |
65.900 |
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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 |
1111.700 |
781.700 |
515.600 |
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Sundry Debtors |
2039.700 |
2330.100 |
1887.200 |
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Cash & Bank Balances |
515.200 |
430.900 |
216.200 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
9253.800 |
7609.500 |
4450.700 |
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Total
Current Assets |
12920.400
|
11152.200 |
7069.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
5736.300 |
5331.000 |
2587.500 |
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Provisions |
58.000
|
104.900 |
109.000 |
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Total
Current Liabilities |
5794.300 |
5435.900 |
2696.500 |
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Net Current Assets |
7126.100 |
5716.300 |
4373.200 |
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MISCELLANEOUS EXPENSES |
36.100 |
54.200 |
66.100 |
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TOTAL |
10404.900 |
8091.200 |
5724.100 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
16978.400 |
10405.100 |
6490.400 |
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Other Income |
516.000 |
336.000 |
372.500 |
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Total Income |
17494.400 |
10741.100 |
6862.900 |
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Profit/(Loss) Before Tax |
664.600 |
251.500 |
149.000 |
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Provision for Taxation |
224.400 |
106.000 |
90.900 |
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Profit/(Loss) After Tax |
440.200 |
145.500 |
58.100 |
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Earnings in
Foreign Currency : |
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Export Earnings |
NA |
751.087 |
0.000 |
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Imports : |
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Import Value |
NA |
869.244 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
12316.600 |
7466.400 |
4190.300 |
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Employees Cost |
1505.100 |
773.700 |
603.800 |
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Administrative Expenses |
1141.700 |
865.600 |
684.500 |
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Miscellaneous Expenses |
184.100 |
157.600 |
328.200 |
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Interest and Financial charges |
864.100 |
519.500 |
381.300 |
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Power & Fuel |
578.200 |
526.000 |
376.700 |
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Depreciation & Amortization |
240.000 |
180.800 |
149.100 |
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Total
Expenditure |
16829.800 |
10489.600 |
6713.900 |
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KEY RATIOS
|
Particulars |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
1.45 |
2.04 |
1.54 |
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Long Term Debt-Equity Ratio |
0.64 |
0.96 |
1.17 |
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Current Ratio |
1.40 |
1.42 |
2.07 |
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TURNOVER RATIOS |
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Fixed Assets |
4.03 |
3.36 |
2.73 |
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Inventory |
17.93 |
16.06 |
14.38 |
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Debtors |
7.77 |
4.94 |
3.59 |
|
Interest Cover Ratio |
1.66 |
1.48 |
1.39 |
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Operating Profit Margin(%) |
9.85 |
9.14 |
10.47 |
|
Profit Before Interest And Tax Margin(%) |
8.44 |
7.40 |
8.17 |
|
Cash Profit Margin(%) |
3.66 |
3.13 |
3.19 |
|
Adjusted Net Profit Margin(%) |
2.24 |
1.40 |
0.90 |
|
Return On Capital Employed(%) |
15.65 |
11.36 |
10.38 |
|
Return On Net Worth(%) |
25.23 |
12.68 |
5.87 |
LOCAL AGENCY FURTHER INFORMATION
Directors
Profile:
|
Name: |
Mr. P.S Mistry |
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Experience in
Specific Functional Area: |
Experience in diverse stream of business such as real estate, trading, power
generation and information technology |
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Directorship
held in other Public Co. (excluding Foreign Company and Private Limited |
1.
Shapoorji Pallonji and Company Limited 2.
Cyrus Investments Limited 3.
Forbes and Company Limited 4.
Fovol International Services Limited 5.
Shaopoorji Pallonji Infrastructure Capital Company
Limited 6.
Shapoorji Pallonji Power Company Limited 7.
Gokak Textiles Limited 8.
Shapooji Pallnji Finance Limited 9.
United Motors ( |
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Membership / Chairmanship
of Committees of other Public Company (Includes only Audit Committee and
Shareholders / Investors Grievance Company: |
Forbers and Company Limited, Share Tranfer and Shareholders Grievance
Committee |
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Name: |
Mr. A H Divanji |
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Experience in
Specific Functional Area: |
Extensive Experience in construction of bridges, marine structures and
highway |
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Name: |
Mr. P N Kapadia |
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Experience in
Specific Functional Area: |
He is a senior partner in a law firm. |
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Directorship held
in other Public Co. (excluding Foreign Company and Private Limited |
1.
Mafatlal Denim Limited 2.
Navin Flourine International Limited |
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Name: |
Mr. N.D Khurody |
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Experience in
Specific Functional Area: |
Experience in the Business and Financial Planning |
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Directorship
held in other Public Co. (excluding Foreign Company and Private Limited |
1.
Voltas Limited 2.
Nextd Gen Publishing Limited 3.
Eureka Forbes Limited 4.
Semrat Holding Limited 5.
Vantech Investments Limited 6.
Forbes Gokak Limited 7.
Tata Ceramics Limited |
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Membership /
Chairmanship of Committees of other Public Company (Includes only Audit
Committee and Shareholders / Investors Grievance Company: |
Eureka Forbes Limited Audit Committee – Membership |
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Name: |
Mr. S Paramasivan |
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Experience in
Specific Functional Area: |
Experience in Banking and Finance |
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Directorship
held in other Public Co. (excluding Foreign Company and Private Limited |
1.
Fouress Engineering ( 2.
Rubber Products Limited |
OPERATIONS:
The total Income for the year has increased from Rs. 10741.100 Millions
to Rs. 17494.400 Millions which represents 62.87% increase over the previous year.
Profit Before tax increased by 164.18% from Rs. 251.600 Millions to Rs. 664.700
Millions. Profit after tax for the year has increased by 202.54% from Rs. 145.500 Millions to Rs. 440.200
Millions. The EBIDTA of the Company has shown a significant increase at 85.80%
from Rs. 951.984 Millions in the previous year to Rs. 1768.809 Millions in the
year.
To address the increased volume and growth of the company, during the
year the company has revamped the management structure into three Strategic
Business Units which shall act as profit centre in due course of time. The
switch is expected to take time; in the meanwhile they are operating as
Strategic Business Operations.
During the year, Company has made addition of Rs. 1297.500 Millions to
its fixed assets.
Business:
Engaged in the business of all kinds of Construction Jobs. It undertakes work of Jetty, Wharves, Dry Dock, Tunnels, Highways, Bridges, Foundations, Pipelines, Dredging and Turnkey Projects.
During the year,
the following major works were completed:
1.
Complete Project Management and Execution Work for
Intake Structure, Submarine Pipeline, Effuent Disposal and Low Head Pump House
at Sutrapada,
2.
Construction of Jetty at Village Yanam near
3.
Protection Works to the slope on the right hand side
if the outlet of diversion tunnel for NTPC Koldam.
4.
Construction of Container Yard at
5.
Four laning of Haveri- Hubli section of NH-4 KM
340-404 for laning road Karnataka, For NHAI
6.
Civil and Structural Construction of Green Field
Cement Plant for M/S National Cement Company at Wadi, Faltah, Yemen in Joint
Venture with Al Seed Company of Yemen.
7.
Six Laning of Hyderabad- Bangalore Section of NH-7,
Karnataka, For NHAI]
8.
widening and Rehabilation of Poonamalle Kanchipuram
Road – NH4, Tamilnadu for NHAI
9.
Operation and Maintenance of Dewatering system Phase
– II 7N for Quarter Petroleum
10.
Construction of Flyover at
The company has bagged several orders in various segments of construction
business viz Marine Works, Bridge Road Works, Civil Works, Metro, Hydro Works,
Tunnel Works, Pipe Lines, The present order book position of the Company as on
31st March 2008 is Rs. 31712.200 Millions presently the share of the
overseas contract is over 8% of the order book.
During the year,
the Company has secured the following major contracts:
1.
Conversion of Wet Docks to Dry Docks for Rs.
3000.000 Millions for Pipavav Shipyard Limited, Pipavav
2.
Corridor Improvement for outer ring road from IIT
gate to NH-8 Intersection for Rs. 2340.000 Millions for PWD, Near Delhi
3.
Construction of 9 Sheds at the Block making site at
4.
Civil works at Kakinada Fro Rs. 800.000 Millions for
Reliance Industries Limited
5.
Corrosion Protection of Steel piles at
6.
Design and Construction of Cut and Cover Tunnel
switchover ramps and one underground station in airport area – Contract AMEL C3
for R.s 2332.200 Millions for DMRC
7.
Repairing of Pile No. 90/1 at LNG Jetty Dahej for
Rs. 550.600 Millions for Petronet LNG Limited
8.
Part Design and Construction fo elevated viaduct of
length Rs. 4.682 km inclulding structural work of three elevated stations on
Yamuna bank- Anand Vihar Corridor of Phase – II of Delhi MRTS Project Contract Bc-
10 for Rs. 69.600 Millions for DMRC
9.
Construction of Bridge at designed location across
Dhatwadi near block making site Pipavav for Rs. 220.000 Millions for Pipavav
Shipyards Limited, Pipavav.
10.
Site Grading Works at
11.
Fabrication of 600 Tones Goliath Crane at or Pipavav
Shipyard Site for Rs. 650.000 Millions for Pipavav Shipyard Limited, Pipavav
12.
Construction of 2 Nos. LNG Storage Tanks at
13.
Laying/ Entension of Pipeline at Jetty area
connecting berth A,B, C and D for Rs. 50.000 Millions for Reliance Industries
Limited
14.
Ambatovy Project 334488-C-0106-2 Port Site Mole B-
Civil and Marine Works for Rs. 1330.900 Millions for Dynatec Madagascar S.A
DMSA,
15.
Jetty Ruwals
AS PER WEBSITE
History
1959 - Born as Rodio Hazarat Company, a partnership between
1976 - Consequent to the exit of Rodio Foundation Engineers and Hazarat and Company, renamed as Asia Foundations and Construction Limited wherein from a partnership it became a closely held private limited Company with equity shares distributed to the employees
1977 - Became a deemed public limited Company
1993 - Shipping Credit and Investment Corporation of India (SCICI) became a 20% shareholder, which shareholding was transferred to ICICI pursuant to the merger of SCICI with ICICI
1997 - Became a full-fledged public limited Company by the name of “Afcons Infrastructure Limited”. In 1998 ICICI subscribed to further shares in the Company, which made ICICI the single largest shareholder with 47.37% equity stake in their Company.
2000 - Shapoorji Pallonji Group acquired 53.96% shareholding in their Company in 2000 where 47.37% was acquired from ICICI Limited and 6.59% was acquired from the Hazarat family.
Profile:
Subject is the premier - most engineering, construction, rehabilitations and infrastructure companies in India with an annual turnover of around 400 Million USD in this current financial year, which is expected to touch 1.0 Billion USD in about two years time. Over the last five decades, AFCONS has emerged as the leader in its business field by continuously delivering its world-class services in the areas of Marine Works, Highways, Bridges, Power Houses, Tunnels and other General Civil Engineering Projects
Since its establishment in 1959, AFCONS has played a pivotal role led the growth of construction industry, creating in the process customer trust and enviable reputation for itself.
Subject is a certified with ISO 9001:2000, OHSAS 18001:1999 and ISO 14001:2004 company and conduct its business through an established Quality System. AFCONS has a commendable record in terms of safety at the various project sites and has received a number of awards as well as appreciation letters from the clients
NEWS:
Afcons Infrastructure
Limited has filed DRHP with Sebi
Afcons Infrastructure Limited, a Shapoorji
Pallonji Group Company, engaged in civil engineering and construction work in
India, has filed its Draft Red Herring Prospectus with the Securities and
Exchange Board of India (SEBI) here yesterday with a proposal to enter the
capital market with its Initial Public Offering of equity shares.
The Company proposes
to offer 16,065,000 equity shares of Rs. 10 each for cash at a premium.
The Issue comprises a Net Issue of 15,743,700 equity shares to the public and a
reservation of 321,300 equity shares for eligible employees. The Issue
would constitute 18.37% of the post Issue paid up capital of the Company.
The Net Issue constitutes 18% of the post Issue paid up capital of the
Company.
The Issue is being
made through 100% Book Building Process wherein at least 60% of the Net Issue
shall be allocated on a proportionate basis to QIB Bidders. 5% of the QIB
Portion shall be available for allocation on a proportionate basis to Mutual
Funds only, and the remainder of the QIB Portion shall be available for
allocation on a proportionate basis to all QIB Bidders including Mutual Funds.
Further, not less than 10% of the Net Issue shall be available for allocation
on a proportionate basis to non-institutional Bidders and not less than 30% of
the Net Issue shall be available for allocation on a proportionate basis to
Retail Individual Bidders. The Company has not opted for IPO grading of
this Offer.
Afcons Infrastructure Limited, a civil engineering and construction company in
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 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.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|