MIRA
INFORM REPORT
|
Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
UFLEX LIMITED |
|
|
|
|
Formerly Known as : |
FLEX INDUSTRIES
LIMITED |
|
|
|
|
Registered Office : |
305, 3rd
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi -
110048 |
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|
|
Country : |
India |
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|
|
|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.06.1988 |
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|
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Com. Reg. No.: |
55-32166 |
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CIN No.: [Company
Identification No.] |
L74899DL1988PLC032166 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELF00184C /
MRTF00050B |
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|
PAN No.: [Permanent
Account No.] |
AAACF0109J |
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|
Legal Form : |
Subject is a public
limited liability company. The
company’s shares are listed on the Stock Exchanges |
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|
|
|
Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 15000000 |
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|
|
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject has turned
the corner. Performance and financial status has shown improvement. Payments are reported as slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
305, 3rd
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi –
110048, India |
|
Email : |
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|
|
|
|
Corporate Office 1 : |
110, 1ST
Floor, Bhanot Corner, Pamposh Enclave, Greater Kailash – I, New Delhi -
110048 |
|
Tel. No.: |
91-11-26440917 / 26440925 |
|
Fax No.: |
91-11-26216922 |
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E-Mail : |
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Website : |
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Corporate Office 2 : |
A-107, Sector-IV,
Noida – 201 301, Uttar Pradesh, India |
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|
Marketing
Offices : |
·
A-1, Sector 60,
District Gautam Budh Nagar, Noida - 201 301, Uttar Pradesh Tel. No. 91-11-24580500 Fax No. 91-11-24580152 / 511 / 003 E Mail : ptyle@flexfilm.com ·
A-1, Sector
60, District Gautam Budh Nagar, Noida - 201 301, Uttar Pradesh Tel. No. 91-120-24580500 Fax No. 91-120-24580511/4580003 Website.: http://www.flexfilm.com |
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|
|
|
Plants : |
·
D-1-2,
15-16, Sector 59, Noida, Uttar Pradesh ·
29-B, Malanpur
Industrial Area, Distt. Bhind, Gwalior, Madhya Pradesh ·
A-2A, Sector
– 60, Noida, Uttar Pradesh ·
A-2, Sector
– 60 Noida, Uttar Pradesh ·
C-3, Sector
– 57, Phase – III, Noida, Uttar Paradesh ·
C-5-8,
Sector – 57, Phase III, Noida, Uttar Pradesh ·
L-1, Industrial
Area, Ghirongi (Malanpur), Dist-bhind, Madhya Pradesh |
|
|
|
|
Branches : |
·
118-119,
Damji Shamji Udyog Bhawan, 25-A, Veera Desai Road, Andheri (West), Mumbai -
400 053, Maharashtra ·
A-16, FMC
Fortuna, 234/3A (2nd Floor), Acharya Jagdish Chandra Bose Road,
Kolkata - 700 020, West Bengal ·
443, 2nd
Floor, 7th Block, Koramangala, Bangalore - 560 095, Karnataka |
DIRECTORS
|
Name |
Mr. Ashok
Chaturvedi |
|
Designation |
Chairman and
Managing Director |
|
Qualification |
B.Sc. |
|
Experience
|
27 years |
|
Date of
Appointment |
01.08.1988 |
|
Last
Employment |
Flex Laminaters
Limited (Chairman and Managing Director) |
|
|
|
|
Name |
Mr. Ravi
Kathpalia |
|
Designation |
Director |
|
Date of Birth |
18.08.1937 |
|
Qualification |
M.A., M. Phill,
I.A.A.S |
|
Experience |
A Retd.
Government Officer with expertise in the fields of audit and accounts. |
|
Date of
Appointment |
22.03.2002 |
|
Directorship
in other public limited companies |
|
|
Member /
Chairman of committee of the board of the public limited companies on which
he is director |
|
|
|
|
|
Name |
Mr. R. P. Agrawal |
|
Designation |
Director |
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|
|
|
Name |
Mr. M.G. Gupta |
|
Designation |
Director |
|
|
|
|
Name |
Mr. A. Karati |
|
Designation |
Nominee – ICICI
Bank |
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|
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|
Name |
Mr. S.K. Mandal |
|
Designation |
Nominee – IFCI |
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|
|
|
Name |
Mr. P. Abraham |
|
Designation |
Nominee – UTI |
|
|
|
|
Name |
Mr. Paresh Nath
Sharma |
|
Designation |
Whole Time
Director |
|
|
|
|
Name |
Mr. S. K. Kaushik
|
|
Designation |
Whole Time
Director |
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|
Name : |
Mr. Ajay Krishna |
|
Designation : |
Vice President
(Legal) and Company Secretary |
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|
Name : |
Mr. R. K. Mishra |
|
Designation : |
Assistant Company Secretary |
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|
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|
Name : |
Mr. R.P. Agrawal |
|
Designation : |
Director |
|
Date of Birth/Age
: |
12.07.1932. |
|
Qualification
: |
FCA, LL.B. |
|
Date of
Appointment : |
19.08.1997 |
|
Directorship in
other Public Limited Companies : |
- Flex
Engineering Limited |
|
Member/Chairman of
Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries
Limited - Flex
Engineering Limited Shareholders'/Investors'
Grievance Committee - Flex Industries
Limited (Chairman) - Flex Engineering
Limited (Chairman) |
|
|
|
|
Name : |
Mr. M.G. Gupta |
|
Designation : |
Director |
|
Date of
Birth/Age : |
02.03.1934 |
|
Qualification
: |
I.A.A.S |
|
Experience : |
|
|
Date of
Appointment : |
31.01.2002 |
|
Directorship in
other Public Limited Companies : |
- FCL
Technologies and Products Limited - B.T.W.
Industries Limited - Flex Foods
Limited - Credit Capital
Assets Management Company Limited |
|
Member/Chairman
of Committee of the Board of the Public Limited Companies on which he is Director : |
Audit Committee - Flex Industries
Limited - FCL
Technologies and Products Limited - Flex Foods
Limited - Credit Capital
Assets Management Company Limited (Chairman) Shareholders'/Investors'
Grievance Committee - Flex Industries
Limited - FCL
Technologies & Products Limited (Chairman) |
|
|
|
|
Name |
Shri P.N. Sharma |
|
Designation |
Director |
|
Date of Birth |
15.08.1949 |
|
Qualification |
Chartered
Accountant |
|
Experience |
A Chartered Accountant
having wide and varied experience in the field of finance and other related
arease. |
|
Date of
Appointment |
11.08.2003 |
|
Directorship
in other public limited companies |
|
|
Member / Chairman
of committee of the board of the public limited companies on which he is
director |
|
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
Promoters and
Associates |
25055176 |
48.53 |
|
Financial
Institutions, Mutual Funds & Banks |
1642041 |
3.18 |
|
Foreign
Institutional Investors |
1557319 |
3.02 |
|
NRIs |
36782 |
0.07 |
|
GDRs |
5465840 |
10.59 |
|
Other Corporate
Bodies |
11501499 |
22.28 |
|
Others (General
Public) |
6266644 |
12.13 |
|
Shares in transit
(Demat) |
105345 |
0.20 |
|
|
|
|
|
Total |
51630646 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
flexible packing materials of printed laminated of plastics and paper based
materials. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Printed,
Laminated, Metalised, Co-Extruded, Coated, Embossed/ Hologrammed and Pain
Plastic Films |
MT |
|
111000 |
84683 |
|
Polymer Granules
(meant for captive consumption) |
MT |
|
4500 |
12316 |
|
Rotogravure
Cylinder and Shims |
Nos. |
|
27000 |
-- |
|
Hologrammed
Sticker Sheets |
Sheets in Millions |
|
7.000 |
5.61 |
GENERAL
INFORMATION
|
No. of Employees : |
Around 1688 |
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Bankers : |
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Facilities : |
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NOTES:
1. Optionally
Fully Convertible Debentures are secured by way of first pari-passu charge on the specific
fixed assets of the Company (except in case of UTI and LIC where specific
charge is yet to be created). These debentures are due for redemption on Dec.
31, 2007 or earlier at the option of the Company with an aggregate amount of
Rs.1926.233 millions these debentures are convertible into a maximum of 5.480
Millions equity shares of Rs.10/- each at the option of debenture holders.
2. Zero Rate
Debentures and 18% Cumulative Debentures are secured
(a) on pari-passu basis by way of
hypothecation of specific movable assets of the Company (save and except book
debts), both present and future subject to prior charges created and/or to be
created in favour of Company's bankers for working capital facilities
(b) By first paripassu registered mortgage of specific
immovable properties of the Company situated at Mehsana (Gujarat), both present
and future, in favour of trustees of respective debenture holders
(c) By first pari-passu equitable mortgage
of specific immovable properties of the Company, both present and future
situated at Malanpur (M.P.) and NOIDA (U.P.) and
(d) By guarantee
of the Chairman and Managing Director of the Company. However, 18% Cumulative
Debentures held by UTI are yet to be specifically secured. Debenture held byUTI
for Rs.906.633 millions are repayable from March 2010 to Dec 2012. Debentures
held by IFCI for Rs. 327.912 millions are repayable in eight equal quarterly
installments commencing April 2011. 18% Cumulative Debentures are repayable in
eight equal quarterly installments commencing March 2009.
3. Term Loans from
Financial Institutions are secured
(a) On pari-passu basis by way of
hypothecation of specific movable properties of the Company (save and except book
debts), both present and future, subject to prior charges created and/or to be
created in favour of Company's bankers for working capital facilities (except
for QIC and its four subsidiaries)
(b) By first pari-passu
equitable mortgage of specific immovable properties of the Company situated
at Malanpur (M.P.) and NOIDA (UP.) and
(c) By guarantee
of Chairman and Managing Director of the Company. Term loan from Allahabad Bank
is secured by way of first charge on the specific asset. This is further guaranteed
by Chairman and Managing Director of the Company.
4. "Zero Rate
Loans" from financial institutions/others, are secured
(a) on pari-passu basis by way of
hypothecation of specific movable properties of the Company (save and except
book debts), both present and future, subject to prior charges created and/or
to be created in favour of Company's bankers for working capital facilities
(except for QIC and its four subsidiaries)
(b) By first pari-passu equitable mortgage
of specific immovable properties of the Company situated at Malanpur (M.P.) and
NOIDA (U.P.) and
(c) By guarantee
of Chairman and Managing Director of the Company.
5. Term loan and
ZRDs from IFCI are further secured by way of pledge of 1.685 millions equity
shares of erstwhile FCL Technologies & Products Ltd. However, pledge is yet
to be modified consequent upon merger.
6. Cumulative
Rupee Loans (CRL) from ICICI Ltd. and IDBI are secured
(a) On pari-passu basis by way of
hypothecation of all movable properties of the Company (save and except book
debts), both present and future, subject to prior charges created and/or to be
created in favour of Company's bankers for working capital facilities, and
(b) By guarantee
of Chairman and Managing Director of the Company. CRLfrom QIC and its four
subsidiaries are secured by (i) first pari-passu equitable mortgage of
specific immovable properties of the Company situated at Malanpur (M.P.) and
NOIDA (U.P.) and (ii) by guarantee of Chairman and Managing Director of the
Company. CRLs from LIC and Sahara India are yet to be secured.
7. Working capital
facilities from banks are secured
(a) On pari-passu
basis, by way of hypothecation of specific stocks of raw material,
semi-finished goods, finished goods and book debts of the Company, both present
anduture
(b) By way of
second pari-passu charge on specific fixed assets of the Company,
situated at Malanpur (M.P.) and NOIDA (U.P.) and
(c) By guarantee
of Chairman and Managing Director of the Company.
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Banking
Relations : |
Satisfactory |
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Auditors : |
|
||||||
|
Name : |
Statutory
auditors
·
Vijay Sehgal
and Company Chartered Accountants, New Delhi, India Internal
auditors
·
Jain Singhal
and Associates Chartered Accountants New Delhi, India |
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Associates : |
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|
Subsidiaries |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
19000000 |
Preference Shares |
Rs.100/- |
Rs.1900.000 millions |
|
150000000 |
Equity Shares |
Rs.10/- |
Rs.1500.000 millions |
|
|
|
|
|
|
|
Total
|
|
Rs.3400.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
51630646 |
Equity Shares |
Rs.10/- |
Rs.516.306 millions |
|
Less : |
Amount Unpaid |
|
Rs.0.440 million |
|
|
|
|
|
|
|
Total |
|
Rs.515.866 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1] Share Capital |
515.866 |
490.259 |
490.255 |
|
2) Share Warrants |
134.750 |
0.000 |
0.000 |
|
3] Reserves &
Surplus |
4333.782 |
3472.230 |
3141.585 |
|
4] Profit and
Loss Account |
0.000 |
0.000 |
0.000 |
NETWORTH
|
4984.398 |
3962.489 |
3631.840 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
7662.336 |
6135.785 |
5544.086 |
|
2] Unsecured
Loans |
4547.161 |
192.565 |
475.462 |
TOTAL
BORROWING
|
12209.497 |
6328.350 |
6019.548 |
|
DEFERRED TAX
LIABILITIES |
1020.774 |
731.116 |
673.871 |
|
|
|
|
|
TOTAL
|
18214.669 |
11021.955 |
10325.259 |
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
8909.521 |
7751.927 |
7361.359 |
|
Capital
work-in-progress |
346.122 |
113.003 |
181.334 |
|
|
|
|
|
|
INVESTMENTS |
2057.586 |
1264.640 |
1010.511 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
Inventories |
911.792 |
414.734 |
466.793 |
|
Sundry Debtors |
2527.666 |
1868.976 |
1438.581 |
|
Cash & Bank
Balances |
4660.911 |
158.768 |
391.705 |
|
Other Current
Assets |
10.519 |
19.590 |
56.429 |
|
Loans &
Advances |
1316.070 |
1023.759 |
847.764 |
|
Total Current Assets |
9426.958 |
3485.827 |
3201.272 |
Less: CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
2182.299 |
1545.132 |
1393.315 |
Provisions
|
343.219 |
48.310 |
35.902 |
Total Current Liabilities
|
2525.518 |
1593.442 |
1429.217 |
|
Net
Current Assets |
6901.440 |
1892.385 |
1772.055 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
18214.669 |
11021.955 |
10325.259 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
11985.632 |
9459.638 |
7066.337 |
|
|
Other Income |
1001.868 |
681.222 |
0.000 |
|
|
Total Income |
12987.500 |
10140.860 |
7066.337 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
666.586 |
439.052 |
720.360 |
|
|
Provision for Taxation |
|
|
316.700 |
|
|
Profit/(Loss) After Tax |
420.858 |
328.661 |
403.660 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
F.O.B. value of export of manufactured/
Traded Goods |
3105.300 |
3161.493 |
|
|
|
Design and Art Work Recovery |
41.108 |
30.286 |
|
|
|
Technical Services |
233.243 |
38.871 |
1587.586 |
|
|
Interest |
5.826 |
0.000 |
|
|
|
Dividend |
43.025 |
0.000 |
|
|
Total Earnings |
3428.502 |
3230.65 |
1587.586 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1468.513 |
583.474 |
|
|
|
Stores & Spares |
90.472 |
862.497 |
1632.759 |
|
|
Capital Goods |
81.603 |
39.124 |
|
|
|
Others |
4.707 |
11.179 |
|
|
Total Imports |
1645.295 |
1496.274 |
1632.759 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
7900.143 |
6514.384 |
|
|
|
Manufacturing Expenses |
1473.007 |
1014.029 |
|
|
|
Administrative Expenses |
1154.251 |
838.840 |
|
|
|
Raw Material Consumed |
0.000 |
0.000 |
|
|
|
Purchases made for re-sale |
0.000 |
0.000 |
|
|
|
Consumption of stores and spares parts |
0.000 |
0.000 |
|
|
|
Increase/(Decrease) in Finished Goods |
(85.581) |
0.602 |
6345.977 |
|
|
Salaries, Wages, Bonus, etc. |
658.366 |
459.557 |
|
|
|
Managerial Remuneration |
0.000 |
0.000 |
|
|
|
Payment to Auditors |
0.000 |
0.000 |
|
|
|
Interest |
473.116 |
281.830 |
|
|
|
Insurance Expenses |
0.000 |
0.000 |
|
|
|
Power & Fuel |
0.000 |
0.000 |
|
|
|
Depreciation & Amortization |
760.554 |
592.566 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
|
|
Total Expenditure |
12459.437 |
9701.808 |
6345.977 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2007 |
30.06.2007 |
|
Type |
|
2 Qtr |
1 Qtr |
|
Sales Turnover |
|
3214.500 |
3147.600 |
|
Other Income |
|
77.900 |
98.200 |
|
Total Income |
|
3292.400 |
3245.800 |
|
Total Expenditure |
|
2760.100 |
2661.600 |
|
Operating Profit |
|
532.300 |
584.200 |
|
Interests |
|
166.800 |
168.200 |
|
Gross Profit |
|
365.500 |
416.000 |
|
Depreciation |
|
195.000 |
190.400 |
|
Tax |
|
53.000 |
28.400 |
|
Reported PAT |
|
117.500 |
134.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
2.10 |
1.63 |
1.65 |
|
Long Term Debt
Equity Ratio |
1.68 |
0.44 |
1.31 |
|
Current Ratio |
1.28 |
0.55 |
0.97 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Asset Ratio |
0.98 |
0.89 |
0.90 |
|
Inventory |
20.14 |
23.66 |
23.50 |
|
Debtors |
6.07 |
6.30 |
7.89 |
|
Interest Cover
Ratio |
2.00 |
2.55 |
3.26 |
|
Operating Profit
Margin (%) |
12.79 |
12.58 |
13.19 |
|
Profit Before
Interest and Tax Margin (%) |
7.09 |
6.89 |
7.56 |
|
Cash Profit
Margin (%) |
7.91 |
8.84 |
8.75 |
|
Adjusted Net Profit
Margin (%) |
2.21 |
3.15 |
3.13 |
|
Return on Capital
Employed (%) |
6.93 |
7.21 |
7.91 |
|
Return on Net
Worth (%) |
6.71 |
8.66 |
8.41 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 21st June 1988 at New Delhi having Company
Registration Number 32166.
Subject obtained
the Certification of Commencement of Business on 8th August. By a scheme of amalgamation, the assets and
liabilities of the Flex Laminates Limited and Flex Papers Limited were taken by
the company effective from 1st August.
2215640 equity
shares allotted to erstwhile Flex Laminates Limited (in proportion 82 shares
: 100 shares in Flex Laminates) and 625016 shares allotted to erstwhile Flex
Papers Limited (in proportion 56 shares : 100 shares in Flex Papers Limited)
both consequent to the scheme of amalgamation without payment in cash.
The other companies
in the group are Flex Chemicals, Flex Engineering and Flex Foods. The company manufactures flexible packaging
material at its plants in Noida, Uttar Pradesh and near Gwalior, Madhya
Pradesh. Its products are used in
packing a variety of products like processed foods, toiletries, pharmaceuticals
and automobile spare parts. The
company’s products include metalised biaxially oriented polypropylene film and
holographic flexible packaging material.
It also provides complete system packaging.
The company was
awarded The Best Paper award in the international exposition on recycling of
plastics, held in May 1995 in Davos, for its technology to process mix plastic
waste arising in the course of manufacturing packaging material. The famous
brands like Pan Parag, Baba and Prince use the company’s packaging. The company’s clients also include big
companies like Hindustan Lever, Brooke Bond, Tata Tea, Nestle, etc.
The company is ISO
9002 certified and also a recognised Trading House. In 1995-96, it completed its expansion-cum-backward integration
plan involving the setting up of PET film line, BOPP film line and laminates facilities.
In 1999-2000, the
company successfully developed 1 Kg. Spout pouch of Taj Mahal Tea and a
specially designed Gillet Gel Big Nose Pouch.
In addition to this the company has successfully developed a high
performance laminate used for packaging of highly hygroscopic products,
extra-clear film having excellent optical properties for holographic
application.
The company’s film
division was awarded ISO –14001 certification.
The company’s paid up equity capital was increased by Rs. 100000000due
to Preferential issues to FI’s/MF’s and further warrants have been issued in
favour of the promoters.
It is also engaged
in the manufacture of Rotogravure Cylinders for various types of rotogravure
printing, Anilox/Coating Rollers for flexo printing and Shims for holographic
embossing.
The main products
of the company comprise of Polyester Films, BOPP Films, Poly Films and various
combinations of packaging laminates.
Line I, II &
III of Film Division are ISO 9002 and ISO 14001 certified.
Subsidiary 
FLEX MIDDLE EAST FZE, located in
Dubai, UAE is a subsidiary of Uflex Group.
With an aim to serve their customers
spread all over the world, Uflex Films has invested over 50 million dollars in
a world class flexible films facility in Jebel Ali Free Zone, UAE, thereby
being the first company to do major investment in UAE by establishing state of
the art 7.2 metre wide Polyester film line, manufacturing polyester film in
plain and metallized forms. A second Polyester film line is being planned
thereby taking the total polyester film capacity to over 45000 tons.
FLEX MIDDLE EAST FZE,
P.O BOX 17930,
JEBEL- ALI FREE ZONE
Dubai, UNITED ARAB EMIRATES
Phone: +971 4 8834622
Fax: +971 4 8839683
E-mail: stiku@flexfilm.ae
Contact: Sanjay Tiku
Mobile #: 00971502156002
FLEX AMERICA INC.
Uflex has been catering to the
North and South American markets since the inception of their operations of
plastic films in 1995. We are supplying to the industrial and packaging sector
there. In view of our expanding business and also to provide better service to
the customers, Uflex has incorporated a marketing and distribution subsidiary,
Uflex America Inc. located in North Carolina, USA. Our customers there have
appreciated our commitment to the market and their business
19300,
STATESVILLE ROAD
STE#102,
CORNELIUS,NC 28031
U.S.A
Phone: +1 704 892 2750
Fax: +1 704 892 2753
Contact : PEEKAY KASTURIA
Email : flexamerica@msn.com
Management
Policy
·
Proceed always
with ambition and youthfulness
·
Sustain a
working environment that attracts, retains and develops committed share in the
success of the company
·
Respect sound
theory, develop fresh ideas and make the most effective use
·
Enjoy the work
and always brighten the working atmosphere
·
Strive
constantly for a harmonious flow of work
·
Be ever
mindful of the value of research and endeavour
Pioneering the use of :
·
BOPP in
barrier metallising
·
Holograms in
packaging
·
Technology
Development for chemically coated films
·
Producing
various packaging machines of renowned technical capability
The company is
exploring new technologies for the proper processing of post consumer waste.
It is in trade
terms with :
·
Aakash Plasto
Pack Private Limited
·
Anand
Packaging Private Limited
·
Cosmic
Aluminium Wire Private Limited
·
Cranex Limited
·
Ess Aar
Engineering Private Limited
·
Gajanan
Packers Private Limited
·
Glenview
Plastics Systems Private Limited
·
Heatex Comp.
Tools Private Limited
·
Image Coding
Techn. Private Limited
·
New Pack Plastics
Private Limited
·
Print Pack
Machinery Private Limited
YEAR IN RETROSPECT
The Audited
Financial Results for the year ended 31st March, 2007 is the first
consolidated result of the Company after the merger of erstwhile Flex
Engineering Limited, Flex Securities Limited and FCL Technologies &
Products Limited with the Company in terms of Scheme of Arrangement approved by
the Hon'ble High Court of Delhi at New Delhi vide its order dated 6th October,
2006 read with order dated 9th November, 2006. The Audited figures for the year
ended 31st March, 2006 are shown without giving effect of the said scheme.
Therefore, the figures are not comparable The operational performance of the
Company has been comprehensively covered in the Management Discussion and Analysis
Report and the same forms a part of this Directors' Report
DIVIDEND
The Board of
directors at their meeting held on 28th March, 2007 after
considering the overall situation and buoyant performance of the Company had
declared an interim dividend @ Rs. 21- per share involving a total
outflow of Rs. 10,32,61,292/-. The said dividend was already paid to the
members in April, 2007. Your Directors now pleased to recommend for the
approval of Members a final dividend @ Rs. 21- per share for the
financial year ended 31st March, 2007. The final dividend, it approved by the
Members will be paid on or after 13th September, 2007.
SCHEME OF
ARRANGEMENT
During the Year,
in terms of the Scheme of Arrangement approved by the Members of the Company
and the Members o1 erstwhile Flex Engineering Ltd, FCL Technologies &
Products Ltd and Flex Securities Ltd. And Honorable High Court of Delhi vide
its Order dated October 6, 2006 read with Order dated November 9, 2006,
erstwhile Flex Securities Ltd, Flex Engineering Ltd and FCL Technologies &
Products Ltd were merged with your Company with effect from December 4, 2006.
The appointed date being April 1, 2006. In terms of the aforesaid Scheme of
Arrangement, the Company issued 1,24,52,060 fully paid equity shares of Rs.
10/- each to the members of erstwhile Flex Engineering Ltd and FCL Technologies
& Products Ltd and issued 13,15,200 Optionally Fully Convertible Debentures
of Rs.100/- each to specified Financial Institutions upon conversion of
54,80,000 equity shares of Rs. 107- each issued earlier to the said Financial
Institutions in terms of Negotiated Settlement Scheme.
CHANGE OF NAME
Pursuant to the
approval received from the Members of the Company through the process of Postal
Ballot conducted in the month of December, 2006-February, 2007 and approval
received from the Central Government through the Registrar of Companies, NCT of
Delhi & Haryana, the name of the Company has been changed to
UFLEX LIMITED.
Shareholders are requested to make correspondence in the Company's new name
i.e. UFLEX LIMITED
MANAGEMENT
DISCUSSION AND ANALYSIS
FORWARD-LOOKING
STATEMENTS
Forward-looking
statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that these assumptions and expectations are
accurate or will be realized. The Company's actual results, performance or
achievements could thus differ materially from those projected in any such
forward-looking statements. The Company assumes no responsibility to publicly
amend, modify or revise any forward looking statements, on the basis of any
subsequent developments, information or events.
1. Overview -
Industry Structure & Developments
Flexible Packaging
The year goneby
was a remarkable year for India. For the fourth year in succession, year end
GDP growth have exceeded initial expectation. With robust performance by
manufacturing and service sectors, Indian GDP expanded by about 9.2% in the
year 2006- 2007, to register the fastest growth in 18 years and remain the
second fastest growing Country behind China among large economies. The India
growth story continues to hog the headlines around the world. The high growth
phase of the economy was reflected in a steady improvement in the
infrastructure, increase in planned expenditure and capacity addition in
different sectors.
Flexible packaging
and printing are the fastest growing segment of the packaging industry
worldwide. The global flexible packaging market can be classified into two distinct
categories - the developed markets like North America, Western Europe &
Japan and the emerging markets like India, China, South East Asia and Latin
America. Countries like India & China have been identified as the fastest
growing markets with large demand potential. In the future, increased
competition in home territories is likely to prompt players in the developed
markets to look for investment opportunities in the emerging markets. The
converted flexible packaging market is growing at a higher rate. World demand
for converted flexible packaging will rise about 5 - 6% annually. The high
growth rate can be attributed to the rise in demand for branded foods and other
products.
India is the
world's largest democracy with a population of over 1.2 billion and has a fast
growing consumer market. The retail sector in India is growing at a fast pace
and India is emerging as a nation where shopping trends and styles are
undergoing radical changes. It is in this context that the printing and
packaging industry in India has assumed growing significance. The Indian
packaging Industry is itself growing at 18 - 20% annually. This growth rate is
expected to double in the next couple of years. According to a recent survey,
this Industry has consistently outpaced GDP growth
Flexible packaging
generally involves the use of lightweight, durable and flexible materials, such
as plastic films, paper and aluminium foil (rather than traditional materials
such as paper board, glass or tin), to pack any products. Applications
for flexible packaging include labels, adhesive tapes, wrappings and bags for
foods, tobacco, textiles and other consumer products. The principal substrates
currently used by the flexible packaging industry are BOPET films and BOPP
films. These films ensure aroma retention and moisture and facilitate good
quality printing.
Flexible packaging
contains multi-layered laminates of single or a combination substrates such as
plastic, paper or aluminum. Flexible packaging finds varied use because of its
ability to provide strength, moisture resistance, aroma retention, gloss,
grease resistance, heat retention, scalability, printability and low odour.
Flexible packaging has gained vast acceptability because of the protection, it
offers to the products against environmental threats like moisture, heat and
chemical reaction. More so, convenience in handling the product and the cost
benefits it provides are added advantages.
Consumer demand
for packaging products and services is expanding into almost every area, which
has typically been reserved for human consumption. However, the pet food
industry has also responded to the requirements set by the trend of pet
humanization and the corresponding demands of pet owners. This trend is moving
fast in the European Union, Japan and other high-income countries. Even in
developing countries, there are segments of population, which follow the same
trends. It coincides with the fast economic growth observed in various
countries. Pet food packaging is also major consumer of the packaging industry.
Packaging Raw Materials - Poly Condensation (PET Chips) PET chips are
mainly classified as polyester chips of
film grade, yarn grade and bottle grade. These chips are used as raw
material for manufacturing of polyester
.films, polyester yarn and PET bottles. Since 2001-02, the market for
film grade and yarn grade chips
in India has over grown beyond expectation, with the installation and
commissioning of number of production facilities by new entrants as well as by
the end users themselves. This has led to
disbalancing of supply demand ratio and resulted in stiff drop in price
and margins. Further, the rise in the price
of petro-chemical products, more particularly in PTA and MEG, the basic raw
materials for production of
chips, across the globe during the last couple of years has resulted in higher
input cost-for the unit. The yarn grade chips market in India is going through
a dull and difficult phase! Though, there has been demand for yarn grade chips, the falling price and margins and
competition from countries like China and
Indonesia have made it quite un-remunerative. However, the Company still
continues to produce yarn grade
chips as well, even though its contribution to the overall turnover was quite
low.
The business/market
of bottle grade chips in India in the initial phase had shown lot of promise
with better demand and margins. However, over a period of time, with the entry
of new players with huge capacity, the market has become quite competitive and
the margins were not as attractive as it used to be earlier. Packaging Raw
Materials - Inks & Adhesives Printing Ink industry has witnessed an
encouraging growth in domestic market during the year under review. However,
the year under review was a difficult one for the printing ink industry
particularly in view of the steep increase in input costs and rising interest
rates.
Printing inks are
formulated from three basic components: a colorant, a vehicle system to carry
the colorant, and additives such as waxes and driers. Colorants may be dyes,
but are typically pigmentbased. They may be in powder form (dry toner), in a
concentrated paste dispersion known as a flush, or in a liquid dispersion.
Additives can include waxes, driers and other materials that add specific characteristics
to an ink or the dried ink film. Together, these ingredients produce the key
properties of printing ink: visual properties, runnability properties and
end-use performance properties. The growth of the printing ink sector including
that of rotogravure and flexographic inks has been very fast. Many new and
innovative products are being introduced on a regular basis to meet the
specific requirements of customers and other factors such as environmental
concerns. Packaging Machinery
The capital goods
Industry posted a handsome growth, marking the end of many years of recession.
The Indiancapital Industry has to play key role in achieving the industrial
growth. Indian Capital Goods sector is characterized by a large width of
products (almost all major Capital Goods are domestically manufactured) - a
legacy of import substitution policy. This is reflected in the import and
export weights calculated for the various reference and benchmark countries.
Most Indian manufacturers define quality of Capital Goods largely by
performance parameters and dimensional accuracy and not in terms of aesthetics
of finished goods. Most Indian Capital Goods are functionally at par with
equipment made elsewhere in the world; but they rank poorly as far as finish is
concerned. This has adversely impacted the competitiveness of the Indian
Capital Goods in
discriminating and
sophisticated export market.
Business Review _i
Plastic Film
Business : The main products of this business are Polyester Films, BOPP Films,
Metalised & Specialty fNms and Polyester Chips of different grades etc. The
Company's BOPP films are highly cost effective
and functionally
efficient product, that has made swift headways into the higher barrier
sensitive packagingsegment across the World. It is primarily being used for
applications in packaging food products such as confectionery, biscuits,
bakery, pasta, dried foods, meats and others. The technologically superior and
highly dependable BOPP film produced by the Company in its state-of-the-art ISO
9001 -2000 certified plants can be structured in up to three layers and
tailored for almost any machine requirements and is capable of meeting both
rotogravure and flexographic printing standards. The product can be used in a
wide range of industries such as packaging, industrial coating, holography,
metalizing, printing & lamination etc. The Company has production capacity
of over 28000 MTs of BOPP Films.
The Company's
BOPET film is one of the initial products of the Company. It has succeeded in
retaining its market share and continues to expand its markets in today's
dynamic & rapidly changing packaging scenario. It is used in a wide range
of applications. Its barrier properties, high tensile and dielectric strength,
thermal and chemical stability and toughness make it suitable for a multitude
of applications. The film provides a strong barrier to aroma retention and
odour, which makes it especially suitable for use in food packaging, electric
insulation, office supplies, graphic arts, imaging and industrial applications.
Its dimensional stability and high tensile strength makes. this film suitable
for critical applications such as audio, video and other magnetic tape
applications. Produced in state-of-the-art ISO 9001-2000 certified plants in
different range of microns, the BOPET films have the capacity to sustain the
high fidelity graphics and to meet the requirements of both rotogravure as well
as flexographic printing standards. The Company has production capacity of over
54000 MTs of BOPET Film.
The Company has
the facility to produce polyester chips of film grade, yarn grade and bottle
grade. Thefilm grade chips are used as raw material for the manufacturing of
polyester films whereas yarn grade chips are used for the manufacturing of
polyester yarn and bottle grade chips for production of PET bottles. The unit
has made use of its state-of-the-art batch processing manufacturing facilities,
by conveniently switching over to produce different grades of chips based on
the demand and orders in hand. Over two decades of company's global experience
and expertise now reaches the Middle-East. Flex Middle East is the first of
many planned expansions at UFLEX to service some of the most technologically
challenging and quality sensitive requirements of the Gulf an
FIXED ASSETS
A) Tangible Assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Plant and Machinery
·
Electrical
Installations
·
Office Equipments
·
Furniture and Fixtures
·
Vehicles
B) Intangible Assets
·
Software
Attached Web Details
Uflex is a Multi Million Group headquartered
at Noida, on the periphery of New Delhi, India and having manufacturing
facilities in India & Dubai. UAE, offices in Europe and North America and
market presence in 80 countries around the world. Uflex facility enjoys ISO
9001 and ISO 14001 certifications and has FDA and BGA approvals. For their
products, Uflex is part of the D&B Global Database and winner of various
prestigious national and international awards like the top exporter of BOPET
and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL
and the Dupont Awards in 2004-2005 are the latest in this series. Uflex Group
came into existence in 1983 and has grown into one of the biggest multi
integrated packaging groups in the world. The group is a multi faceted
organization which has backward integrated its operations from manufacture of
Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized
form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks
and adhesives to all types of packaging & printing machines, offering total
flexible packaging solutions to the entire world.
Uflex has always been dedicated to the
industry giving technical know-how and being the trend-setter in the flexible
packaging industry . Uflex has always been on the edge of innovation and
endeavors to be the first to come up with innovative products that cater to the
changing demands of the packaging industry. Experience and expertise in all
spheres of packaging gives Uflex the insights of all the latest developments
and innovations that are taking place around the world and helps to be in the
sync with our customer requirements and quality concerns.
As part of the Uflex
Group, we have over twenty years of experience and know-how in polymer
technology, a record of success and innovation and are a publicly traded
company in the DSE since 1989, manufacturing and supplying products and
delivering services that are world class, world wide.
Profile
They would like
to extend their sincere gratitude to all their business partners and customers
at home and in over sixty countries for their unending support.
They are thankful
to continued belief and faith in them, in their products and in their services.
At Flex it is always their endeavor to serve customer to best of their
abilities.
The world demand of plastic films is rising and is expected to grow 2.8%
annually to 5.6 billion pounds by 2005. Plastic films already account for 70% of
the global demand among all flexible packaging materials and will continue to
post gains at the expense of paper and aluminium foil.
The Flex Industries Film Division is well equipped with plants that have
unparalleled manufacturing capability and is all set to face enthusiastically
the ever increasing challenges of the future. With emphasis on advancement
through technological development, innovation, commitment to safety and
environment, high ethical standards and integrity, Flex is expanding and growing
rapidly.
People are their
greatest asset and they employ highly skilled, experienced and talented
individuals, dedicated and motivated to the task of producing a product to
match the every need, every requirement.
Let us put their
experience to help customer with complete flexible packaging solutions.
Flex Industries Limited (Film Division),
spread across an area of over 95,000 sq. meters, located in the fastest growing
places, very close to the capital city of India, New Delhi, is one of the leaders
in the Plastic Film Industry in the Asia Pacific region.
With a strong
foundation, total commitment to exceptional standards of performance and
productivity, dedication to excellence, willingness to embrace new ideas,
learning continuously and working together effectively, they are what it takes
to be India’s largest plastic films company.
As part of the
Flex Group, they have over twenty years of experience and know-how in polymer
technology, a record of success and innovation and are a publicly traded
company in the DSE since 1989, manufacturing and supplying products and
delivering services that are world class, world wide.
With an ISO
9001-2000 (revised) and ISO 14001 certification, they understand their commitment to the environment and society and
are dedicated to supplying quality products and services that are acceptable
across the entire globe.
Flex Industries
Limited employs over 3,000 personnel, enjoys the support of over 28,000
shareholders and has grown at the rate of 12% over last year.
Continuing to
develop their international perspective
they are a major player in several dynamic and rapidly changing global markets
with their market share having expanded
to over 65 countries in several regions.
At Flex they are dedicated to make and supply superior products that deliver real benefit and performance improvements to their customers and they go “that extra mile” to service them. They understand the value of time of their clients and are therefore committed to deliver on schedule in order to smoothen their business operations. Over the past few decades of their existence it has been their continuous endeavor to supply complete solutions that bring a smile on the face of their customers and associates because for us it is when they smile is when they smile!
Manufacturing Facilities
In their
state-of-the-art, twenty-four hour, manufacturing facility, they produce a vast
variety of Plastic films suitable for a wide range of applications. All
their plants are imported from Europe
and the US. Their machines not only have greater capacity, they can run at very
high speeds and can accommodate product widths of up to 7 meters, producing
plain, corona treated or chemically coated films.
They have three
production lines for manufacturing Biaxially Oriented Polyethylene Terapthalate
Films (BOPET) with a capacity of over 54,000 Metric Tonnes per annum. Sold
under the brand name of FLEXPET™ and available in the thickness range of 10 to
50 microns, these films offer excellent machinability, dimensional stability,
clarity, moisture and gas barrier, high tensile strength, outstanding
durability, runnability, printability, surface smoothness and resistance to
tear and abrasion. FLEXPET™ is suitable for various applications like printing
and packaging, thermal lamination, metallising, hot stamping, electrical
insulation, holography, synthetic yarn etc.
Biaxially
Oriented Polypropylene (BOPP) film line has an annual production capacity in
excess of 18,000 Metric Tonnes and produces film of high strength, dimensional
stability and stiffness, with excellent barrier to moisture and gas and is heat
sealable on one or both sides. Sold under the brand name of FLEXOPP™ these
films find applications in print lamination, reverse print & lamination,
pressure sensitive adhesive tapes, release applications, decorative
applications, reams and sheet for manual wrapping, bag application, print and
pouching, cable wrapping, vacuum metallising base film, overwrap, printing and
lamination.
Starting with the
Polyester and Polypropylene film lines, their
plant expansion has never ceased. Increasing production capacity to meet
the demand for film in the domestic and international markets, Flex put up two
state-of-the-art, high performance, Metallisers recently with a total capacity
of 11,000 Metric Tonnes per annum, producing barrier metallised films, sold
under the brand name of FLEXBARRIERMET™, that can be used for converting,
packing, laminating, insulation ducting, electronic goods packaging, metallic yarns
and in other decorative applications. Engineered to manufacture a high degree
of barrier metallised films with optical density ranging from 0.5 to 3, this
metalliser offers excellent barrier properties to substrates like polyester
film (9-50 microns), BOPP film (10-80 microns), CPP films (18-40 microns), LDPE
films (25-50 microns), Nylon (12-50 microns) which can be barrier metallised
upto a width of 2,450mm.
Expanding the
area of business and diversifying the line of products, Flex has also set up a five
layered Cast Polypropylene film line with a capacity of 6,000 Metric Tonnes per
annum. Designed to meet the functional requirements of the user, these films
offer better heat seal strength and opticals, excellent moisture barrier,
metallisation and twistability and higher tear strength, weld strength and
yield as compared to many other films. These CPP films are available in the
thickness range of 20-150 microns with a maximum width of 2,400mm and corona
treatment on either one or both sides. The wide range of applications for these
films include lamination and metallised lamination film for packaging, bakery
and confectionary wraps, biscuits and cake packaging, textile bags, twist and
metallised twist wraps, anti fog film for fruit, vegetable and bulk flower
wrapping, over wrap of toilet papers, napkins and health care products etc.
Thus they are
continually updating their “World Class
Manufacturing” capabilities by investing in new equipment, technology and
research and development.
Subsidiary
Flex America Inc., located in North
Carolina, USA, is a fully owned subsidiary of Flex Industries Limited.
Set up in June
2001 to cater to their esteemed
customers in the United States more effectively and efficiently it has recorded
growth in sales and profits since the time of its formation.
Selling a
variety of Polyester, BOPP, CPP and Metallised Films to a huge customer base,
Flex America Inc. is making a name for itself in the plastic film industry in
the US- reaching and crossing ever higher goals and targets each day.
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 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.39.33 |
|
UK Pound |
1 |
Rs.81.75 |
|
Euro |
1 |
Rs.57.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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/normal. |
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 |
|