%2013-Feb-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
13.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SARA TEXTILES LIMITED |
|
|
|
|
Registered Office : |
A-31, Sara House, Hauz –Khas, New Delhi – 110 016 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
26.12.2003 |
|
|
|
|
Com. Reg. No.: |
123708 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U18101DL2003PLC123708 |
|
|
|
|
IEC No.: |
0504003275 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELS21005F |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAHCS9602C |
|
|
|
|
Legal Form : |
A Closely held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturers of Terry Towel, Yarn, Bed Linen, Bath Mat, Kitchen
Linen. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 879932 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track records.
Company’s profitability is under severe pressure. It has huge accumulated losses.
Payments are however reported as slow but correct. The company can be considered for small to mediocre business dealings
with slight caution initially. |
INFORMATION PARTED
BY
|
Name : |
Mr. Deepit Singh |
|
Designation : |
Director (Finance) |
|
Contact No.: |
91-9810494444 |
|
Date : |
11.02.2008 |
LOCATIONS
|
Registered Office : |
A-31, Sara House, Hauz –Khas, New Delhi – 110 016, India |
|
Tel. No.: |
91-11-26851340 /26517138 / 26517241 |
|
Mobile No: |
91-9810494444 |
|
Fax No.: |
91-11-26851340 / 26517127 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
6000 sq.fts |
|
Location : |
Owned |
|
|
|
|
Factory : |
Village – Bhatian, Pargana Palasi, Tehsil
Nalagarh, District Solan, Himachal Pradesh, India |
|
E-Mail : |
|
|
Area : |
200000 sq.fts |
|
Location : |
Owned |
DIRECTORS
|
Name : |
Mr. Deepit Singh |
|
Designation : |
Director |
|
Address : |
S-99, Panchsheel Park, New Delhi – 110017 |
|
Date of Birth/Age : |
13.10.1978 |
|
Qualification : |
BA (Hons), MA, IIFT Engineer, MBA |
|
Experience : |
27 years |
|
Date of Appointment : |
26.12.2003 |
|
|
|
|
Name : |
Mr. Devinder Pal Singh |
|
Designation : |
Director |
|
Address : |
S-99, Panchsheel Park, New Delhi – 110017 |
|
Date of Birth/Age : |
07.12.1952 |
|
Qualification : |
BA (Hons), MA, IIFT Engineer |
|
Date of Appointment : |
26.12.2003 |
|
|
|
|
Name : |
Mr. Shyam Mohan Dwivedi |
|
Designation : |
Whole Time Director |
|
Address : |
I-4, 1st Floor, Janpura –B, Delhi, India |
|
Qualification : |
B Tech (Text) |
|
Experience : |
15 years |
|
Date of Birth/Age : |
04.02.1966 |
|
Date of Appointment : |
26.12.2003 |
|
|
|
|
Name : |
Mr. Surender Lal Kapoor |
|
Designation : |
Director |
|
Address : |
161-A, Western Avenue, Sainik Farms, New Delhi |
|
Qualification : |
MA, LLB, IAS |
|
Experience : |
43 years |
|
Date of Birth/Age : |
07.03.1937 |
|
Date of Appointment : |
02.02.2005 |
|
|
|
|
Name : |
Mr. Satnam Arora |
|
Designation : |
Director |
|
Address : |
Farm House, 248, Saidulajaib Village, Western Marg, Opp. CISF Camp,
New Delhi |
|
Qualification : |
MA |
|
Experience : |
25 years |
|
Date of Birth/Age : |
23.01.1949 |
|
Date of Appointment : |
02.02.2005 |
|
|
|
|
Name : |
Mr. Ram Anuj Mishra |
|
Designation : |
Director |
|
Address : |
82/6 B, Gandhi Gram, Harjender Nagar, Kanpur , Uttar Pradesh, India |
|
Qualification : |
M Tech, MBA |
|
Experience : |
40 years |
|
Date of Birth/Age : |
15.03.1946 |
|
Date of Appointment : |
02.02.2005 |
KEY EXECUTIVES
|
Name : |
Mr. G. P. Gupta |
|
Designation : |
Secretary |
|
Address : |
C-5/91, Yamuna Vihar, Delhi- 110053 |
|
Date of Birth/Age : |
08.04.1978 |
|
Date of Appointment : |
10.10.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Mrs. Deepit Singh |
810000 |
|
Ms. Abha Singh |
1100000 |
|
Mr. Devinder Pal Singh |
1250000 |
|
Mr. Iskander Sultan Khwaja |
1095381 |
|
Ms. Indra Banga |
6769000 |
|
Mr. Tushar Singh |
4318859 |
|
Sara International Limited |
4250000 |
Equity Share Breakup
|
Sr. No. |
Category |
Percentage |
|
1. |
Foreign holdings (Foreign institutional
investor, Foreign companies, Foreign Financial institution, Non resident Indian
or Overseas corporate bodies or others |
60.00 |
|
2. |
Bodies corporate |
21.00 |
|
3. |
Directors or Relatives of Directors |
18.00 |
|
|
|
|
|
|
Total |
100 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Terry Towel, Yarn, Bed Linen, Bath Mat, Kitchen
Linen. |
|
|
|
|
Products: |
· Terry Towel · Yarn · Bed Linen · Bath Mat · Kitchen Linen |
|
|
|
|
Exports : |
|
|
Products : |
|
|
Countries : |
|
|
|
|
|
Terms : |
|
|
Selling : |
L/C and Credit (30 Days) |
|
|
|
|
Purchasing : |
Cash and Credit (30 Days) |
PRODUCTION STATUS:
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
Terry Towel |
MT |
11 MT Per Day |
9 MT Per Day |
GENERAL
INFORMATION
|
Customers : |
|
||||
|
|
|
||||
|
No. of Employees : |
475 (15 in Office and 460 in Factory ) |
||||
|
|
|
||||
|
Bankers : |
Address: International Banking Branch, Barakhamba Road, New Delhi Credit Limit: Fund Based 37.500 millions , Non Fund Based Rs. 5.000
millions, Term Loan Rs. 216.900 millions
Overseas Branch, M -93, Connaught Place, New Delhi Credit Limit: Fund Based – Rs. 50.000 millions, Non Fund Based Rs.
50.000 millions, Term Loan Rs. 216.900 millions |
||||
|
|
|
||||
|
Financial Institutions: |
General Manager
District Industries Centre Solan DIC Chambaghat,
Solan – 173213, Himachal Pradesh, India |
||||
|
|
|
||||
|
Facilities : |
|
||||
|
|
|
||||
|
Banking
Relations : |
Satisfactory |
||||
|
|
|
||||
|
Auditors : |
|
||||
|
Name : |
Sunil K. Khanna And Company Chartered Accountant |
||||
|
Address : |
606, Chiranjiv Tower, 43, Nehru Place, New Delhi – 110019 |
||||
|
Tel. No.: |
91-22-41608766 |
||||
|
Fax No.: |
91-22-41608767 |
||||
|
E-Mail : |
|||||
|
|
|
||||
|
Associates : |
· Sara International Limited. Address: A -31, Hauz Khas, New Delhi – 110
016, India Activity: Government Recognized Trading
House · Sara Universal Private Limited · Gopalpur Ports Limited. · Magnum India · Sara Traders and Distributors |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs. 10/- Each |
Rs.250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19860741 |
Equity Shares |
Rs. 10/- Each |
Rs.198.600
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 (Projected) |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
248.600 |
248.607 |
198.607 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(15.000) |
(28.624) |
(7.349) |
|
|
NETWORTH |
233.600 |
219.983 |
191.258 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
405.600 |
408.278 |
346.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
405.600 |
408.278 |
346.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
639.200 |
628.261 |
537.258 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
591.100 |
497.177 |
517.346 |
|
|
Capital work-in-progress |
0.000 |
34.220 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
102.500
|
97.139
|
37.945 |
|
|
Sundry Debtors |
87.100
|
35.869
|
3.168 |
|
|
Cash & Bank Balances |
6.700
|
24.788
|
7.920 |
|
|
Other Current Assets |
3.300
|
0.000
|
0.000 |
|
|
Loans & Advances |
28.300
|
24.977
|
18.828 |
|
Total
Current Assets |
227.900
|
182.773 |
67.861 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
179.600
|
11.655
|
13.332 |
|
|
Provisions |
0.400
|
74.254
|
34.617 |
|
Total
Current Liabilities |
180.000
|
85.909 |
47.949 |
|
|
Net Current Assets |
47.900
|
96.864 |
19.912 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
639.200 |
628.261 |
537.258 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 (Projected) |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
523.800 |
244.900 |
35.998 |
|
|
Other Income |
33.900 |
5.000 |
31.754 |
|
|
Total Income |
557.700 |
281.1307 |
67.752 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(13.100) |
(21.400) |
(6.571) |
|
|
Provision for Taxation |
0.000 |
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
(13.100) |
(21.400) |
(6.571) |
|
|
|
|
|
|
|
|
Export Value |
450.000 |
94.400 |
NA |
|
|
|
|
|
|
|
|
Import Value |
NA |
12.200 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
420.800 |
191.100 |
0.000 |
|
|
Administrative Expenses |
43.000 |
32.200 |
0.000 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
38.052 |
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
13.171 |
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
2.319 |
|
|
Managerial Remuneration |
0.000 |
0.000 |
0.000 |
|
|
Payment to Auditors |
0.000 |
0.000 |
0.174 |
|
|
Interest |
35.000 |
24.600 |
4.766 |
|
|
Insurance Expenses |
0.000 |
0.000 |
0.078 |
|
|
Power & Fuel |
0.000 |
0.000 |
7.882 |
|
|
Depreciation & Amortization |
45.600 |
23.100 |
5.463 |
|
|
Other Expenditure |
0.000 |
0.000 |
2.418 |
|
Total Expenditure |
544.400 |
271.000 |
74.323 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 (Projected) |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
(2.34)
|
(7.27)
|
(9.69) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.50)
|
(8.67)
|
(18.25) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(1.59)
|
(3.12)
|
(1.12) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.05)
|
(0.09)
|
(0.03) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.50
|
2.25
|
2.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.26
|
2.12
|
1.41 |
LOCAL AGENCY FURTHER
INFORMATION
Form 8:-
|
Corporate
identity number (CIN) Foreign company registration number |
U18101DL2003PLC123708 |
|
Name of the
Company |
SARA TEXTILES LIMITED |
|
Address |
A-31, Sara House, Aauz –Khas, New Delhi – 110 016 |
|
This form is for |
Creation of
Charge |
|
Type of Charge |
|
|
Particulars of
the charge holder |
General Manager
District Industries Centre Solan DIC Chambaghat,
Solan – 173213, Himachal Pradesh Email ID : GMDICSLN-HP@NIC.IN |
|
Nature or
description of the instrument creating or modifying the charge |
|
|
Amount secured by
the charge |
Rs.3.000 Millions |
|
Short particulars
of the property charged |
Hypothecation of
plant and machinery situated at vill. Bhatian The Nalagarh, Dist Solan in the
State of Himachal Pradesh |
|
Date of
Instrument Creating |
21.05.2007 |
Trade References:-
· M/s Domtex
Mr. Manoj Bhatia, Country Head
Email: manoj@domtexindia.com
· The Cambridge Towel Corp, USA
Mr. Hugh Thomson, CEO
Email: hthomson@rogers.blackberry.net
· M/s Indus Merchandising
Mr. Rahul Bhargava, MD
Email: rahul.b@indusmerc.com
· Tekstil Promet DD
· FIS Doo Vitez
Fixed Assets:-
- Furniture and
Fittings
- Office
Equipment
- Land and
Building
- Plant and
Machinery
- OTHER
INOFRMAITON:
The company (M/S Sara textile Limited) having
its registered office at A – 31, Hauz Khas, New Delhi was incorporated on
26.12.2003 and registered with Registrar of Companies, NCT of Delhi and Haryana
on 26.12.2003. The Company has also been issued Certificate of Commencement of
Business on 08.01.2004. M/s Sara Textiles Limited is a group company of m/s
Sara International Limited. M/s Sara International Limited is the flagship
company of Sara Group having presence in commodities, minerals (iron ore,
steel, chrome, concentrate), textile items, ports, etc.
The Sara Group is in the line of trading of
textile goods for about 5 years with some exposure to sale Terry Towels. Sara
Group got motivated from the demand and scope of the Terry Towels in
international markets, so its promoters decided to install their own unit to
manufacture terry towels and has set up a terry towel manufacturing plant at Nalagarh
Himachal Pradesh with 28 Looms in all (16 Dobby and 12 with Jacquard
structures) at project cost of Rs. 516.300 millions. The location of the
project i.e Nalagarh Himachal Pradesh was choosen because of the various
incentives is being offered by the Central / State Government for new units
coming up in this area. This project was duly appraised under TUFF Scheme by
SBI Capital Markets limited as well as by PNB Technical Cell at HO for
technology economic viability. The commercial production started in January
2006. The company also expanded its production capacity by installing
additional 8 looms (dobby) at a project cost of Rs. 130.000 millions. As on
date, the company is having installed capacity of 11 MT per day. The project
has been financed by consortium of Punjab National Bank (Lead Bank) and
Corporation Bank.
- Introduction
An entrepreneur’s dream and passion is what
Subject started as along with an unwavering commitment to deliver complete
satisfaction to all its stakeholders. Today, subject growing force in the world
of Textiles providing its customers with a reliable source for all home
furnishings and delivering an unmatched value proposition for long-term
partnerships.
They are a part of the Subject Group, which
has a turnover in excess of $100 Million and offices in Europe, Middle East and
the Far East.(www.sara-intl.com) The Group has diversified business interests
ranging from international commodity trading to infrastructure development to
textile machinery to software development.
Manufacturing Base for Terry Towels
- Setup in the beautiful foothills of the Himalayas
- Spread out in 15 acres of a landscaped campus with 200000 ft.
covered area
- Annual Capacity of 3500 metric tones
- Completely integrated plant from Fiber to towels
- Latest manufacturing technology from all over the world
- ISO 9001:2000, ISO 14001, SA 8000 Certified.
- Infrastructure
Infrastructure includes state of the art machinery purchased from the world’s leading machinery manufacturers capable of delivering top quality outputs. All machines are vintage 2005/2007 and are capable of unprecedented efficiency enabling us to lower costs and achieve higher utilization levels.
Their facilities include computerized colour matching equipment, in-house design studio with CAD/CAM systems backed by well known textile designers and enterprise level software solutions.
They believe that they can only see further by standing on the shoulders of giants. Thus they have made a conscious effort of building and sustaining the best in the industry human Infrastructure. By offering an atmosphere conducive for growth, they have been able to hire some of the most converted talent in the industry.
Salient Features:
- Situated in the only power surplus state in India
- World Class Laboratory
- 4 Jumbo Jacquard
- 7 Pick Terry/ Variable Pile Height-level
- Bigger dye lots (up to 1400kgs/ charge) for uniform dyeing
- Backed by 100% captive power
- Global standard effluent treatment plant
Company Group Profile:
Company Group is India’s leading business conglomerate with interests in commodities, textiles, Infrastructure development and ports. With a dedicated team of over 1500 employees and offices in Bejing, Dubai, Zagreb, Belgrade, Cleveland and Johannesburg, the company is continually identifying new business opportunities in India and the world over.
Over the years the group has built on its strengths and transformed itself in to a powerful commodities trader. Today specialized and professional teams manage its portfolio ranging from ores and minerals, steel and metals, coal and energy to agriculture.
Having had a sizeable presence in the textiles business for over 15 years, it is today one of the top three terry towel producers in India. Under Subject, the group is a dominant exporter of home furnishing to Eastern Europe, making it one of the group’s key markets.
Infrastructure is one of the core areas of growth for the group as it is for India, and it plans to be a key driver in the industry through the development of world-class ports and rail Infrastructure. Under a special purpose vehicle (SPV), Gopalpur Ports Limited, the group is modernizing, expanding and operating Gopalpur Port on the Eastern Coast of India.
The group has its roots firmly planted in India, but has always aspired to take Indian expertise to the world; and bringing the best in class products and services back home. It has stood strong on its principles of:
- Honesty and integrity in each transaction
- An attitude of inclusive growth
- An environment to empower its people
- A willingness to learn
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] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.65 |
|
UK Pound |
1 |
Rs.77.41 |
|
Euro |
1 |
Rs.57.62 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
26 |
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 |
|