MIRA
INFORM REPORT
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Report Date : |
31.12.2008 |
IDENTIFICATION DETAILS
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Name : |
GARWARE WALL ROPES LIMITED |
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Registered Office : |
Plot No. 11, Block D-1, MIDC, Chinchwad, Pune – 411 019, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
01.04.1976 |
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Com. Reg. No.: |
018939 |
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CIN No.: [Company
Identification No.] |
L25209MH1976PLC018939 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG08396D |
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PAN No.: [Permanent
Account No.] |
AAACG1377P |
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Legal Form : |
A Public limited liability company. The company’s shares
are listed on the stock exchange |
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Line of Business : |
Manufacturer and Seller of
Synthetic Ropes Twines and Yarns, Fishnets and Machineries and parts. |
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 9170000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Comments : |
Subject
is a part of well-established and reputed Garware Group whose member company
Garware Plastic and Polyester Limited is under liquidation. Available information indicates
satisfactory financial responsibility of the company. General financial
position is satisfactory. Payments are
usually correct and as per commitments. The
company can be considered for normal business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office/ Factory 1 : |
Plot No. 11, Block D-1, MIDC, Chinchwad, Pune – 411 019, |
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Tel. No.: |
91-20-30780000, 30780195 |
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Fax No.: |
91-20-30780350 |
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E-Mail : |
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Website : |
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Factory 2 : |
Plot No. C-1 and B-226,
MIDC, Wai-412 803, Dist. Satara, |
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Tel. No.: |
91-2167-308301/ 02 |
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Factory 3 : |
Plot No. 75, 80, 81 and
86, Danudyog Sahakari Sangh Limited, Pipraria, Amli - 396 230 |
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Branch Office : |
Mumbai Office: ·
Chowpatty Chambers, Tel. No. 91-22-2309 5111 / 2363 1120 / 2363 0063 / 2363 0158 / 23634696 ·
39, S.K. Hafizuddin Marg, Byculla, Mumbai –
400 008, |
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Overseas Offices : |
q
Narrows Reach Business Centre, Unit # 500,
6102 North 9th Street, q
P. O. Box : 3081, q
P. O. Box : 1833, |
DIRECTORS
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Name : |
Mr. R.B. Garware |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
67 Years |
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Qualification : |
Educated in a Public School called Dulwich Colloege, |
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Experience : |
44 Years |
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Date of Commencement : |
01.11.2006 |
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Name : |
Mr. V. R. Garware |
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Designation : |
Whole time Director |
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Date of Birth/Age : |
36 Years |
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Qualification : |
Graduate in Business Management, (Specilaistiaon in
Finance) from |
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Experience : |
12 Years |
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Date of Commencement : |
07.12.1995 |
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Name : |
Mr. R. M.
Telang |
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Designation : |
Director |
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Qualification : |
B.Tech. |
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Date of Joining : |
30.09.1977 |
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Previous Employment : |
Garware
Filament Corporation Private Limited, Plant Manager 9 years |
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Name : |
Mr. S.M.
Kuvelker |
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Designation : |
Vice
Chairman |
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Name : |
Mr. S. N.
Talwar |
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Designation : |
Alternate
to Dr. V.B. Lele |
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Name : |
Dr. V.B.
Lele |
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Designation : |
Director |
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Name : |
Mr. M.A.
Bakre |
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Designation : |
Director |
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Name : |
Mr. S.P. Kulkarni |
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Designation : |
Director |
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Name : |
Ms. Diya Garware Ibanez |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. A.S. Wagle |
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Designation : |
Company Secretary |
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Name : |
Mr. S.B. Marulkar |
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Designation : |
Company Secretary |
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Name : |
Mr. Chandrachud P. M. |
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Designation : |
President ( |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B.E. |
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Experience : |
34 Years |
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Date of Commencement : |
01.10.1998 |
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Name : |
Mr. O'Neil David |
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Designation : |
Manager ( |
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Date of Birth/Age : |
50 Years |
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Qualification : |
Graduated from |
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Experience : |
22 Years |
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Date of Commencement : |
01.10.2001 |
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Previous Employment : |
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Name : |
Mr. M. V. Subbarao |
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Designation : |
President |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B. Tech. Chennai, Post Graduate Diploma in Business Management from
XLRI |
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Experience : |
32 Years |
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Date of Commencement : |
11.12.2002 |
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Previous Employment : |
Pidilite Industries Limited, President – Business Planning |
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Name : |
Mr. Einar Ask |
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Designation : |
Manager |
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Date of Birth/Age : |
48 Years |
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Qualification : |
B.A. (In English) |
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Experience : |
26 Years |
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Date of Commencement : |
01.02.2005 |
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Previous Employment : |
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Name : |
Mr. Harbinder Singh |
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Designation : |
Business Head – MSW |
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Date of Birth/Age : |
39 Years |
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Qualification : |
Bachelor of Laws (Hons) from MBA from |
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Experience : |
17 Years |
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Date of Commencement : |
02.03.2008 |
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Previous Employment : |
Infrastructure and Utilities |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
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Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian Promoters |
10001393 |
46.06 |
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Foreign Promoters |
2504 |
0.01 |
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Public shareholding |
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Institutions |
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Indian Institutions |
2037643 |
9.39 |
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Foreign Institutions |
1031704 |
4.75 |
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Non-institutions |
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Bodies Corporate |
1245202 |
5.73 |
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Individuals |
7173003 |
33.04 |
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Individuals NRI/ Foreign Nationals |
220901 |
1.02 |
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TOTAL |
21712350 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller
of Synthetic Ropes Twines and Yarns, Fishnets and Machineries and parts. |
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Products : |
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PRODUCTION STATUS As on 31.03.2008
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Twines, Ropes and Yarns |
M.T. |
NA |
27514 |
15842 |
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Nettings |
M.T. |
NA |
6970 |
6133 |
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Woven Fabric |
M.T. |
NA |
360 |
291 |
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Metal Gabions |
M.T. |
NA |
5400 |
1877 |
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Machineries and Parts |
Nos. |
NA |
NA |
#24 |
GENERAL INFORMATION
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No. of Employees : |
About 600 |
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Bankers : |
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Facilities : |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
Patki and Soman Chartered Accountants |
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Solicitors and Advocates : |
Talwar Thakore and Associates |
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Subsidiaries : |
Garware Environmental Services Private Limited ('GESPL') |
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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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50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 millions |
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10000000 |
Unclassified Shares |
Rs.10/- each |
Rs.100.000 millions |
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Total |
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Rs.600.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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21712350 |
Equity Shares |
Rs.10/- each |
Rs.217.124
millions |
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Note1: Of the above, 7024100 Equity Shares are
allotted as fully paid Bonus Shares by capitalization of General Reserve and Share
Premium.
Note2: 998000 Convertible Warrants have been
converted into Equity Shares during the year.
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 |
217.124 |
207.144 |
199.600 |
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2] Convertible Warrants Application Money |
13.273 |
19.910 |
0.000 |
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3] Reserves & Surplus |
1605.423 |
1370.677 |
1166.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1835.820 |
1597.731 |
1366.500 |
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LOAN FUNDS |
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1] Secured Loans |
946.624 |
1014.046 |
619.900 |
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2] Unsecured Loans |
178.303 |
0.000 |
236.600 |
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TOTAL BORROWING |
1124.927 |
1014.046 |
856.500 |
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DEFERRED TAX LIABILITIES |
157.546 |
151.358 |
0.000 |
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TOTAL |
3118.293 |
2763.135 |
2223.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1282.456 |
1065.450 |
852.000 |
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Capital work-in-progress |
0.000 |
0.000 |
34.800 |
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INVESTMENT |
177.130 |
177.130 |
177.100 |
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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 |
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743.500 |
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Sundry Debtors |
3065.864
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2401.544 |
603.800 |
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Cash & Bank Balances |
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32.500 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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|
733.600 |
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Total
Current Assets |
3065.864
|
2401.544 |
2113.400 |
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Current Liabilities |
1407.411
|
883.505 |
800.800 |
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Provisions |
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|
158.300 |
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Total
Current Liabilities |
1407.411
|
883.505 |
959.100 |
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Net Current Assets |
1658.453
|
1518.039 |
1154.300 |
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MISCELLANEOUS EXPENSES |
0.254 |
2.516 |
4.800 |
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TOTAL |
3118.293 |
2763.135 |
2223.000 |
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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 |
3987.422 |
3351.999 |
2649.500 |
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Other Income |
14.337 |
29.822 |
14.600 |
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Total Income |
4001.759 |
3381.821 |
2664.100 |
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Profit/(Loss) Before Tax |
285.748 |
250.465 |
151.300 |
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Provision for Taxation |
43.779 |
28.200 |
2.700 |
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Profit/(Loss) After Tax |
241.969 |
222.265 |
148.600 |
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Earnings in Foreign Currency : |
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Export Earnings |
1261.570 |
1108.152 |
NA |
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Total Earnings |
1261.570 |
1108.152 |
NA |
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Imports : |
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Raw Materials |
702.699 |
400.907 |
NA |
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Stores & Spares |
110.852 |
100.762 |
NA |
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Capital Goods |
87.927 |
53.634 |
NA |
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Total Imports |
901.478 |
555.303 |
NA |
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Expenditures : |
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Manufacturing Expenses |
3462.624 |
2947.716 |
NA |
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Interest |
143.195 |
89.285 |
72.500 |
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Depreciation & Amortization |
110.192 |
94.355 |
85.800 |
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Other Expenditure |
0.000 |
0.000 |
2354.500 |
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Total Expenditure |
3716.011 |
3131.356 |
2512.800 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
|
1156.500 |
1161.800 |
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Other Income |
|
4.600 |
10.900 |
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Total Income |
|
1161.100 |
1172.700 |
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Total Expenditure |
|
1038.900 |
1009.600 |
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Operating Profit |
|
122.200 |
163.100 |
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Interest |
|
33.900 |
37.000 |
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Gross Profit |
|
88.300 |
126.100 |
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Depreciation |
|
31.300 |
31.200 |
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Tax |
|
6.500 |
14.700 |
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Reported PAT |
|
50.400 |
80.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
0.63 |
0.64 |
0.59 |
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Long Term Debt Equity Ratio |
|
0.13 |
0.35 |
0.59 |
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Current Ratio |
|
1.26 |
1.59 |
2.34 |
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TURNOVER RATIOS |
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Fixed Assets |
|
1.81 |
1.74 |
1.53 |
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Inventory |
|
4.70 |
4.48 |
3.66 |
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Debtors |
|
3.98 |
4.57 |
4.91 |
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Interest Cover Ratio |
|
2.99 |
3.80 |
3.09 |
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Operating Profit Margin (%) |
|
13.23 |
12.78 |
11.69 |
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Profit Before Interest and Tax Margin (%) |
|
10.53 |
10.00 |
8.45 |
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Cash Profit Margin (%) |
|
8.65 |
9.32 |
8.85 |
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Adjusted Net Profit Margin (%) |
|
5.94 |
6.54 |
5.61 |
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Return on Capital Employed (%) |
|
15.49 |
14.14 |
10.73 |
|
Return on Net Worth (%) |
|
14.25 |
15.12 |
11.29 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Incorporated on 1 Apr.'76 in
The company entered into a technical collaboration with
In domestic market, Company concerted efforts in reaching out to the end-users
have not only resulted in the imporvement of market share, but also enhanced
the brand equity enjoyed by the Company products. Company has opened branch
office in
The company has been awarded the Top Exporter Awards for the year 1998-99
during 1999-2000, both in "Fishnets/Fishing Line" and
"Ropes" by `The Plastics Export Promotion Council'. The company has
planned to develop Raschel nets for fish farming.
2007-2008-THE
YEAR:
The Company achieved total turnover of Rs.4001.800 millions for the year ended
31st March, 2008 as against Rs.3381.800 millions for the previous year, an
increase of 18% over previous year. Domestic Sales stood at Rs.2610.600
millions, with a year-on-year growth of 19%. During the year, exports have
risen to Rs.1376.800 millions from Rs.1179.300 millions last year representing
an increase of 17% even after an appreciation of the Indian Rupee by 11%.
Despite an unprecedented rise in oil prices during the year, resulting
increased raw material cost, the Profit before Tax of the Company was
Rs.285.700 millions as against Rs.250.500 millions of earlier year.
SUBSIDARY
COMPANY
Garware Environmental Services Private Limited ('GESPL') became wholly owned
subsidiary of the Company effective from 9th April, 2008.
GESPL has not undertaken any activity since its inception.
FINANCIAL AND
OPERATIONAL PERFORMANCE
1. The Operating Profit ratio of the
Company is 6.81%.
2. The Current ratio of the Company is
at 1.50.
3. The Company has a debt-equity ratio
of 1.39.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRIAL STRUCTURE AND DEVELOPMENT
They have been dominant suppliers to the domestic fishing industry over
the last three decades offering high quality fishing nets and ropes for the
marine fishing industry. The product has been continually upgraded to improve
application efficiency and new constructions are offered as the requirements
change. Over the last decade, they have offered the global fishing industry
several value added products and services to improve efficiency in fishing
gear. By offering fully fabricated and ready to use fishing nets to the latest
designs, they have created new opportunities not only for their selves but also
for the customers by improving their offerings to the fishing industry. In the
last decade, since they entered the infrastructure field with the Geo synthetic
products range, they have been successful in offering the Indian industry a
wide range of solutions for coastal protection, Airport run way and Rail Road
stabilization, Road retainingwall building, Canal lining and Waste management.
The various products offered to the fishing industry largely depends upon the
market for fish in the global markets, whereas, the demand for the industrial
mooring ropes is strongly impacted by the economic development of the country.
The infrastructure business continues to receive major impetus due to the
continuous investment made by the Govt. of India in the development of
infrastructure.
On the product manufacturing front, the raw material prices dominated the
financial year primarily due to high petroleum cost and petroleum based raw
material. This, however, did not impact the business as they were able to
control costs and were able to largely pass on the increases.
SEGMENT-WISE
PERFORMANCE
The Synthetic Cordage segment excelled this year too with a 73% contribution in
Company's total turnover and it continues to be a major profit gainer. In the
last financial year, fiber, industrial products and projects business showed
significant improvement in its market share, eventually adding to Company's
turnover and profitability.
Segment
|
|
Sales (Rs. In
Millions) |
Profit (Rs. In
Millions) |
Profitability |
|
Synthetic Cordage |
2988.133 |
439.329 |
14.70% |
|
Fiber, Industrial Products and Projects |
1123.312 |
132.095 |
11.76% |
OUTLOOK
The
Company strives for efficient management of resources by skillful adaptation of
modern manufacturing principles enabling them to increase production capacity
for producing high quality premium products. The products introduced in the
market over the years have grown substantially strengthening the offerings
through continuous development and increasing the base in synthetic cordage,
fiber and industrial products. The geographic presence too has improved further
during the year by consolidating the position in Europe and the
The company is in trade terms with:-
- Ceebeegee Investment and Trading Company Private
Limited
- RSDV Finance Company Private Limited
- RSDV Investment Company Private Limited
- Suramex Exim Private Limited
- Garware Capital Markets Limited
- Moonshine Investment and Trading Company Private
Limited
- Garware Indus Consulting Limited
- Garware Utzon (Cordage) Limited
- Gurukrupa Investment and Trading Company Private
Limited
- Starshine Investment and Trading Company Private
Limited
- Sanand Investment Company Private Limited
- Manmit Investments and Trading Company Private
Limited
- Sukukar Holdings and Trading Company Private
Limited
- Garware Research Institute
- Consolidated Agricultural and Dairy Farming
Company Private Limited
- Vimalabai Garware Research Institute
- Ramesh Trading Company
- Sunita Trading company
- Diya Trading company
- Vayu Trading Company
- Garware Securities Broking Limited
FIXED ASSETS:
- Buildings
- Plant and
Machinery
- Electrical
Installation
- Furniture and
Fixtures
- Office
Equipments
- Vehicles and
Helicopter
- Technical
Know How
- Product
Development
- Computer
Software
WEBSITE DETAILS:
PROFILE:
Subject specializes in providing customized solutions in the Cordage and
Infrastructure industry across the globe. The philosophy for customer servicing
is persistent commitment to quality, focus on R&D, well equipped
manufacturing facilities and deep understanding of customer needs.
Coupled with the focus on customer, they also believe in creating value for all
the stake holders in an environment that fosters enterprise within and outside
the organization.
Historical Background
The plinth of Garware Group was incorporated in year 1976 by the
visionary philanthropist, late Mr. B. D. Garware, a recipient of ‘Padmabhushan’,
the second highest civilian award of
1976 saw the incorporation of subject in collaboration with M/s Wall Industries
Inc.,
Taking advantage of the meteoric growth in the Indian infrastructure industry
over the last 5 years, the company diversified into this field and established
a separate division within the group, thus achieving a quantum growth to the
company.
RBG Group
Of the several companies within the RBG Group, subject and Bestretch
Elastomers International Limited are at the forefront of their chosen industry.
With Mr. R.B Garware at the
helm, both these companies have posted brilliant results in growth and profit.
The companies are poised
for unprecedented growths in the coming years.
For more information on
Bestretch Elastomers International Limited , please visit their website www.beilindia.com
GWRL owns three manufacturing facilities, all located in
The Rope manufacturing facility in
Pune
also houses the Fibre manufacturing unit which also conforms to ISO 9000
standards. The unit caters to industrial stitching and yarn business and has a capacity
of 3,000 tonnes per annum. The facility has a capacity to manufacture 6,000
tonnes of nettings with 1,000 tonnes of customized net fabrication.
The
Net manufacturing facility at Wai, 85 kms from Pune, is the largest unit in
Marketing
Subject caters to the requirements of 80 countries where fishing is a
major industry and has earned recognition in the international market on the
basis of its proven track record. The company’s ‘no compromise’ philosophy and
dedication to total customer satisfaction focuses on developing customized
solutions for every application – right from yarn extrusion to complete net
assembly. Apart from fishing, they have growing presence in industries like
sports, shipping and material handling.
In
Internationally, client liaison is effectively maintained through 5 overseas
representative offices. While the Indian market is serviced with 7 offices, 12
depots, a field force of 80 strong and a distribution network of more than 300
distributors.
MILESTONES :
|
1993 |
PE twisted nettings for Indian and global
Market |
|
1995 |
PE braided nettings for Global market |
|
|
Sports nets and Fabricated nets for
non-fishing applications |
|
1996 |
Nylon Multifilament nettings. Various
resins developed |
|
1997 |
Geonets and Geoboxes |
|
1998 |
Nylon Monofilament nettings |
|
1999 |
Olivene MK2 nettings (entry into compact
braided nettings) |
|
2000 |
High end Sports nets (batting / golf
cages) and Geonets (mulchmats) |
|
2001 |
Square mesh cod ends |
|
2002 |
Sapphire Braided nettings |
|
|
Olivene MK3 nettings |
|
|
Fully assembled Purse Seine net |
|
2003 |
Dedicated Net Assembly shop |
|
|
Catfish Seine nets |
|
|
Shrimp Trawl Fabrication |
|
|
Electric Fence Wire |
|
|
Sea lion Protection nets |
|
2004 |
Garfil Nylon Purse Seine nettings for
Domestic Market |
|
|
Purse Seine nettings as per Norwegian
standards (Global market) |
|
|
Twisted Sapphire nettings |
|
|
Aquaculture Cages Fabrication |
|
2005 |
Raschel Knotless nettings production |
|
|
Aquaculture Cages Fabrication for Tuna |
|
|
Twisted Sapphire nettings |
|
|
Camouflage nets |
|
2006 |
Production of Pelagic Nettings –
Commissioning of one of the largest Hot Air D.S. |
|
|
Sapphire Aquaculture Cages Fabrication –
for Cod |
|
|
Aquaculture Cages Fabrication for Abalone |
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.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
44 |
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 |
|