MIRA
INFORM REPORT
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Report Date : |
30.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
BASF PETRONAS CHEMICALS SDN BHD |
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Registered Office : |
Uptown 1, 1 Jalan Ss 21/58, Damansara Uptown, Level 14, 47400 Petaling Jaya, Selangor |
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Country : |
Malaysia |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
28.10.1997 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturing of Petrochemicals |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
* Adopted abbreviations : SC - Subject Company ( the company enquired by you)
N/A - Not Applicable
EXECUTIVE SUMMARY
LOCAL NO : 451307-K
COMPANY NAME : BASF PETRONAS CHEMICALS SDN BHD
FORMER NAME : N/A
INCORPORATION DATE : 28/10/1997
COMPANY STATUS : EXIST
LEGAL STATUS : PRIVATE LIMITED COMPANY
LISTED STATUS : NO
REGISTERED ADDRESS : UPTOWN 1, 1 JALAN SS 21/58, DAMANSARA UPTOWN,
LEVEL 14, 47400 PETALING JAYA, SELANGOR, MALAYSIA.
BUSINESS ADDRESS : WISMA CONSPLANT, CENTRAL TOWER, 8TH FLOOR, UNIT
C802, 2 JALAN SS16/4, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
TEL NO : 03 - 50316010
FAX NO : 03 - 50316030
EMAIL : info.service@basf-petronas.com.my
WEB SITE : www.basf-petronas.com.my
CONTACT PERSON : HERMAN REINHOLD BRANDT (MANAGING DIRECTOR)
INDUSTRY CODE : 24290 2411
PRINCIPAL ACTIVITY : MANUFACTURING OF PETROCHEMICALS
AUTHORISED CAPITAL : MYR2,400,000,000.00 DIVIDED INTO ORDINARY SHARE
2,375,000 OF MYR1,000.00 EACH.
PREFERENCE SHARE 25,000 OF MYR1,000.00 EACH.
ISSUED AND PAID UP CAPITAL : MYR1,014,000,000.00 DIVIDED INTO ORDINARY SHARE
1,000,000 CASH OF MYR1,000.00 EACH.
PREFERENCE SHARE 14,000 CASH OF MYR1,000.00 EACH.
SALES : MYR2,489,722,000 [2006]
NET WORTH : MYR1,612,582,000 [2006]
M1000 OVERALL RANKING : 179 [2005]
M1000 INDUSTRY RANKING : 3 [2005]
STAFF STRENGTH : 800 [2007]
BANKER (S) : MALAYAN BANKING BHD
LITIGATION : CLEAR
FINANCIAL CONDITION : STRONG
PAYMENT : GOOD
MANAGEMENT CAPABILITY : AVERAGE
COMMERCIAL RISK : LOW
CURRENCY EXPOSURE : HIGH
GENERAL REPUTATION : GOOD
INDUSTRY OUTLOOK : STRONG GROWTH
HISTORY / BACKGROUND
The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.
The SC is principally engaged in the (as a / as an) manufacturing of petrochemicals.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The SC is one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.
According to the Malaysia 1000 publication, the SC's ranking are as follows :
YEAR 2005 2004
OVERALL RANKING 179 278
INDUSTRY RANKING 3 6
The immediate holding company of the SC is BASF AKTIEGESELLSCHAFT, a company in incorporated in GERMANY.
The major shareholder(s) of the SC are shown as follows :
Name Address IC/PP/Loc
No: Shareholding
BASF AKTIENGESELLSCHAFT 67056 LUDWIGSHAFEN, GERMANY. 608,400
[ORD 600,000 & PREF 8,400]
PETROLIAM NASIONAL BHD PETRONAS TOWER 1, KUALA LUMPUR CITY 20076 405,600
(PETRONAS) CENTRE,
JALAN AMPANG, 50088 KUALA
[ORD 400,000 & PREF 5,600] LUMPUR, WILAYAH PERSEKUTUAN,
MALAYSIA.
--------------------
1,014,000
===========
+ Also Director
DIRECTORS
DIRECTOR 1
Name of Subject : MR. YEOW KIAN CHAI
Address : 12D, JALAN DUNGUN, DAMANSARA HEIGHTS, 50490 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 2733380
New IC No : 500301-04-5247
Date of Birth : 01/03/1950
Nationality : MALAYSIAN CHINESE
Date of Appointment : 16/09/2002
DIRECTOR 2
Name of Subject : DATUK NASARUDIN BIN MD IDRIS
Address : 79, JALAN ATHINAHAPAN, TAMAN TUN DR ISMAIL, 60000 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : 4825071
New IC No : 550427-05-5489
Date of Birth : 27/04/1955
Nationality : MALAYSIAN MALAY
Date of Appointment : 09/06/2003
DIRECTOR 3
Name of Subject : DR HERMAN REINHOLD BRANDT
Address : 5, 70 DAMANSARA, 70 JALAN DAMANSARA, 50480 KUALA
LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No. : P2177345908
Nationality : GERMAN
Date of Appointment : 01/09/2005
DIRECTOR 4
Name of Subject : TILMAN KRAUCH
Address : HOUSE 8, 2 BARKER ROAD, THE PEAK, HONG KONG.
IC / PP No. : P4156050597
Nationality : DEUTSCH
Date of Appointment : 17/04/2006
DIRECTOR 5
Name of Subject : PROF DR MARKUS KRAMER
Address : MONCHBERGSTEIGE 1, 69120 HEIDELBERG, GERMANY.
IC / PP No. : P6467176399
Nationality : GERMAN
Date of Appointment : 29/03/2006
MANAGEMENT
1) Name of Subject : HERMAN REINHOLD BRANDT
Position : MANAGING DIRECTOR
2) Name of Subject : PATRICK TONG
Position : ACCOUNTANT
3) Name of Subject : THOMAS RUEHL
Position : MARKETING MANAGER
4) Name of Subject : SUHAILA ABDULLAH
Position : HUMAN RESOURCE DIRECTOR
AUDITOR
Auditor : KPMG DESA MEGAT & CO
Auditors' Address : WISMA KPMG, JALAN DUNGUN, DAMANSARA HEIGHTS, 9TH-10TH
FLOOR, 50490 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
COMPANY SECRETARY
1) Company Secretary : MR. ROBERT PARAMANATHAN
New IC No. : 661019-10-6517
Address : 57, JALAN SS 2/51, 47300 PETALING JAYA, SELANGOR, MALAYSIA.
Date of Appointment : 07/08/2002
BANKING
Banking relations are maintained principally with :
1) Banker Name : MALAYAN BANKING BHD
The SC enjoys normal banking routine with above mentioned banker(s).
No adverse record was found during our investigation.
ENCUMBRANCE (S)
No encumbrance was found in our databank at the time of investigation.
LEGAL CHECK AGAINST THE SC
* A check has been conducted in our databank against the SC whether the subject has been
involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia
back dated since 1900.
No legal action was found in our databank.
No winding up petition was found in our data bank
PAYMENT RECORD
SOURCES OF RAW MATERIALS :
Local : YES Percentage : 40%
Overseas : YES Percentage : 60%
Import Countries : EUROPE , UNITED STATES.
The SC refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :
OVERALL PAYMENT HABIT
Prompt [ ] Good [ X ] Average [ ]
Fair [ ] Poor [ ]
CLIENTELE
Local : YES Percentage : 20%
Domestic Markets : MALAYSIA.
Overseas : YES Percentage : 80%
Export Market : AUSTRALIA , CHINA , INDIA , INDONESIA , JAPAN , NEW ZEALAND ,
PAKISTAN , PHILIPPINES , SOUTH KOREA , TAIWAN , THAILAND.
Credit Term : 30 - 60 DAYS.
Payment Mode : CHEQUES.
Type of Customer : DEALERS .
CUSTOMER (S) : 1) TENAGA TULIN CHEMICAL INDUSTRIES SDN BHD
: 2) TORAY BASF PBT RESIN SDN BHD
OPERATIONS
Products Manufactured : GAMMA BUTYROLACTONE, TETRAHYDROFURANCE, ACRYLIC ACID,
ACRYLIC ESTERS (2-ETHYLHEXYLACRYLATE AND N-BUTYLACRYLATE),
OXO-ALCOHOLS (2-ETHYLHEXANOL, ISO-BUTANOL AND N-BUTANOL),
PLASTICIZERS (DIOCTYL PHTHALATE), PHTHALIC ANHYDRIDE, 1, 4
BUTANEDIOL
Brand Name : PALATINOL AH (DOP)
Member(s) / Affiliate(s) : FEDERATION OF MALAYSIAN MANUFACTURERS (FMM)
Factory/Premises : LOT 139, JALAN GEBENG 2/1, KAWASAN PERINDUSTRIAN
GEBENG, 26080 KUANTAN, PAHANG.
Tel No : 09 -
Fax No : 09 -
Ownership of premises : OWNED
Total Number of Employees :
YEAR 2007 2006 2005 2004
GROUP N/A N/A N/A N/A
COMPANY 800 657 701 800
Branch : NO
Other Information :
The SC is principally engaged in the (as a / as an) manufacturing of petrochemicals.
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations carried out on the SC indicated that :
Telephone Number Provided By Client : N/A
Current Telephone Number : 03-50316010
Match : N/A
Address Provided By Client : C802, CENTRAL TOWER, WISMA CONSPLANT, 1 JALAN SS
16/4, 8TH FLOOR, 47500 PETALING JAYA,SELANGOR
Current Address : WISMA CONSPLANT, CENTRAL TOWER,8TH FLOOR,UNIT
C802,2 JALAN SS16/4, 47500 SUBANG JAYA, SELANGOR,
MALAYSIA.
Match : YES
Latest Financial Accounts : YES
Other Investigations
We conducted an interview with the SC's staff, Ms Liza. She furnished us some information on the SC.
Besides, we have contacted the SC's Accountant, Mr Patrick Tong. He furnished us some information on the SC.
FINANCIAL COMMENTS
Profitability :
Turnover : Increased [ 2004-2006 ]
Profit / ( Loss ) before tax : Increased [ 2004-2006 ]
Return on Shareholder Funds : Acceptable [ 18.83% ]
Return on Net Assets : Acceptable [ 14.89% ]
The SC's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years. The higher profit could be attributed to the increase in turnover. The SC's management had generated acceptable return for its shareholders using its assets.
Working Capital Control :
Stocks Ratio : Favourable [ 33 Days ]
Debtors Ratio : Favourable [ 27 Days ]
Creditors Ratio : Favourable [ 2 Days ]
The SC's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the SC. The SC had a favourable creditors' ratio as evidenced by its favourable collection days. The SC could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity :
Liquid Ratio : Favourable [ 1.52 Times ]
Current Ratio : Favourable [ 2.10 Times ]
A minimum liquid ratio of 1 should be maintained by the SC in order to assure its creditors of its ability to meet short term obligations and the SC was in a good liquidity position. Thus, we believe the SC is able to meet all its short term obligations as and when they fall due.
Solvency :
Interest Cover : Acceptable [ 4.97 Times ]
Gearing Ratio : Favourable [ 0.00 Times ]
The SC's interest cover was slightly low. If there is no sharp fall in its profit or sudden increase in the interest rates, we believe the SC is able to generate sufficient income to service its interest and repay the loans. The SC had no gearing and hence it had virtually no financial risk. The SC was financed by its shareholders' funds and internally generated fund. During the economic downturn, the SC, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Generally, the SC's performance has improved with higher turnover and profit. The SC was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the SC should be able to repay its short term obligations. The SC had an acceptable interest cover. If there is no sudden sharp increase in interest rate or fall in the SC's profit, we do believe the SC is able to generate sufficient cash flow to service its interest payment. The SC was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The SC has good chance of getting loans, if the needs arises.
Overall financial condition of the SC: STRONG
COMMENTS
Formed in 1997, the SC is principally engaged in processes and refines petrochemical products. Its end products are raw materials and ingredients for general purposes. With almost a decade of business experience, it should have enabled the SC to establish good reputation in the market. A paid up capital of RM1.01 billion has allowed the SC to expand its business comfortably when the needs arise. The SC is a subsidiary of BASF AKTIEGESELLSCHAFT which incorporated in Germany. Backed by its strong established holding company, the SC has competitive edge against other players.
Besides the local market, the SC has penetrated into the overseas markets such as Australia, China, India, Japan and others. The export business is the main revenue driver of the SC and thus its business risk exposure is considered low. As an export-oriented company, the SC's operations will be subjected to certain inherent risk of foreign currencies fluctuations and stiff competition in the international market. The SC is a large entity with a work force of 800. Its business operation is considered stable. Overall the management capability of the SC is average.
During the financial year 2006, the SC's turnover and pre-tax profit had increased significantly to RM2.49 billion and RM0.27 billion respectively. Due to its higher profitability, the SC has generated a favourable return on shareholders' funds which indicated that the SC was efficient in utilizing its funds to generate return. As its current assets (excluding inventories) exceed its current liabilities, the SC is able to meet all its short term obligations. Being a zero geared company, the SC virtually has no financial risk as it maintains its business using internal funds. The overall financial performance of the SC is strong.
Investigation revealed that 40% of the SC's products are sourced locally whilst the rest are obtained from overseas suppliers. Thus, it eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials or other necessary components.
Based on our historical financial data, we concluded that the SC's pattern of payment habit is good. This implies good credit control and the SC could be taking advantage of the cash discounts while maintaining a good reputation with its creditors. There are no legal suit against the SC.
The chemical products industry is expected to grow in tandem with the overall growth of other manufacturing industries. Besides that, the industry raises investment to improve efficiency and increase productivity to meet stronger demand. The SC should benefit from this favourable condition. With the SC's strong capital background, it should be able to gain a higher market share.
In view of the above, we recommend credit be granted to the SC promptly.
THE FINANCIAL STATEMENTS WERE
PREPARED
IN ACCORDANCE WITH MALAYSIA
ACCOUNTING
STANDARD.
PROFIT AND LOSS ACCOUNT
For
The Year Ended 31-December-2006
2006 2005 2004
MYR MYR MYR
TURNOVER 2,489,722,000 2,023,507,000 1,773,801,000
=========== =========== ===========
PROFIT/(LOSS) FROM OPERATIONS 274,211,000 87,201,000 64,204,000
SHARE OF
PROFITS/(LOSSES) OF ASSOCIATED
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE TAXATION 274,211,000 87,201,000 64,204,000
Taxation 29,441,000 - -
------------------- ------------------- -------------------
PROFIT/(LOSS)
AFTER TAXATION 303,652,000 87,201,000 64,204,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
BEFORE EXTRAORDINARY ITEMS 303,652,000 87,201,000 64,204,000
------------------- ------------------- -------------------
PROFIT/(LOSS)
ATTRIBUTABLE TO SHAREHOLDERS 303,652,000 87,201,000 64,204,000
RETAINED
PROFIT/(ACCUMULATED LOSS) BROUGHT
FORWARD
As previously
reported <391,070,000> <478,271,000> <542,475,000>
------------------- ------------------- -------------------
As restated <391,070,000> <478,271,000> <542,475,000>
------------------- ------------------- -------------------
PROFIT
AVAILABLE FOR APPROPRIATIONS <87,418,000> <391,070,000> <478,271,000>
------------------- ------------------- -------------------
RETAINED
PROFIT/(ACCUMULATED LOSS) CARRIED
FORWARD <87,418,000> <391,070,000> <478,271,000>
=========== =========== ===========
RETAINED BY:
The Company <87,418,000> <391,070,000> <478,271,000>
------------------- ------------------- -------------------
<87,418,000> <391,070,000> <478,271,000>
=========== =========== ===========
INTEREST
EXPENSE (as per notes to P&L)
Revolving
loans - - 702,000
Other
interest expenses 20,000 5,000 259,000
Shareholders
loan 69,025,000 68,107,000 6,075,000
Bankers
acceptances - 576,000 42,070,000
Prommisory
motes and offshore foreign currency - 55,000 130,000
------------------- ------------------- -------------------
69,045,000 68,743,000 49,236,000
=========== =========== ===========
BALANCE SHEET
As
At 31-December-2006
2006 2005 2004
MYR MYR MYR
ASSETS
EMPLOYED:
FIXED ASSETS 1,847,117,000 2,121,574,000 2,450,662,000
LONG
TERM INVESTMENTS/OTHER ASSETS
Deferred
assets 29,441,000 - -
------------------- ------------------- -------------------
TOTAL LONG
TERM INVESTMENTS/OTHER ASSETS 29,441,000 - -
INTANGIBLE
ASSETS
------------------- ------------------- -------------------
------------------- ------------------- -------------------
TOTAL LONG
TERM ASSETS 1,876,558,000 2,121,574,000 2,450,662,000
CURRENT
ASSETS
Stocks 227,265,000 217,942,000 164,255,000
Trade debtors 181,582,000 176,073,000 103,257,000
Other
debtors, deposits & prepayments 9,261,000 5,153,000 7,117,000
Short term
deposits 154,474,000 165,834,000 28,938,000
Items in
transit between head office & branches
Amount due
from holding company - - 24,526,000
Amount due
from related companies 225,046,000 190,119,000 212,899,000
Cash &
bank balances 3,856,000 2,125,000 10,156,000
amount due
from affiliates 15,210,000 11,644,000 12,434,000
------------------- ------------------- -------------------
TOTAL CURRENT
ASSETS 816,694,000 768,890,000 563,582,000
CURRENT
LIABILITIES
Trade
creditors 12,682,000 18,437,000 17,225,000
Other
creditors & accruals 62,881,000 87,006,000 93,677,000
Bill &
acceptances payable - - 10,700,000
Amounts owing
to holding company 65,333,000 2,344,000 -
Amounts owing
to related companies 5,569,000 4,035,000 1,225,000
amount due to
affiliates 88,808,000 136,587,000 48,696,000
shareholders'
loan 153,229,000 296,250,000 -
------------------- ------------------- -------------------
TOTAL CURRENT
LIABILITIES 388,502,000 544,659,000 171,523,000
------------------- ------------------- -------------------
NET CURRENT
ASSETS/(LIABILITIES) 428,192,000 224,231,000 392,059,000
------------------- ------------------- -------------------
TOTAL NET
ASSETS 2,304,750,000 2,345,805,000 2,842,721,000
=========== =========== ===========
FINANCED
BY:
SHARE CAPITAL
Ordinary
share capital 1,014,000,000 1,014,000,000 1,014,000,000
------------------- ------------------- -------------------
TOTAL SHARE
CAPITAL 1,014,000,000 1,014,000,000 1,014,000,000
RESERVES
Share premium 686,000,000 686,000,000 686,000,000
Retained profit/(Accumulated loss)
carried
forward <87,418,000> <391,070,000> <478,271,000>
------------------- ------------------- -------------------
TOTAL
RESERVES 598,582,000 294,930,000 207,729,000
------------------- ------------------- -------------------
SHAREHOLDERS'
FUNDS/EQUITY 1,612,582,000 1,308,930,000 1,221,729,000
LONG TERM
& DEFERRED LIABILITIES & PROVISIONS
shareholders
loan 692,168,000 1,036,875,000 1,620,992,000
------------------- ------------------- -------------------
TOTAL LONG TERM & DEFERRED
LIABILITIES &
PROVISIONS 692,168,000 1,036,875,000 1,620,992,000
------------------- ------------------- -------------------
2,304,750,000 2,345,805,000 2,842,721,000
=========== =========== ===========
FINANCIAL RATIOS
As
At 31-December-2006
BASF
PETRONAS CHEMICALS SDN BHD
2006 2005 2004
MYR MYR MYR
TYPES OF
FUNDS
Cash 158,330,000 167,959,000 39,094,000
Net Liquid
Funds 158,330,000 167,959,000 39,094,000
Net Liquid
Assets 200,927,000 6,289,000 227,804,000
Net Current
Assets/(Liabilities) 428,192,000 224,231,000 392,059,000
Net Tangible
Assets 2,304,750,000 2,345,805,000 2,842,721,000
Net Monetary
Assets <491,241,000> <1,030,586,000> <1,393,188,000>
BALANCE
SHEET ITEMS
Total Borrowings 0 0 0
Total
Liabilities 1,080,670,000 1,581,534,000 1,792,515,000
Total Assets 2,693,252,000 2,890,464,000 3,014,244,000
Net Assets 2,304,750,000 2,345,805,000 2,842,721,000
Net Assets
Backing 1,612,582,000 1,308,930,000 1,221,729,000
Shareholders''
Funds 1,612,582,000 1,308,930,000 1,221,729,000
Total Share
Capital 1,014,000,000 1,014,000,000 1,014,000,000
Total
Reserves 598,582,000 294,930,000 207,729,000
LIQUIDITY
(Times)
Cash Ratio 0.41 0.31 0.23
Liquid Ratio 1.52 1.01 2.33
Current Ratio 2.10 1.41 3.29
WORKING
CAPITAL CONTROL (Days)
Stock Ratio 33 39 34
Debtors Ratio 27 32 21
Creditors
Ratio 2 3 4
SOLVENCY
RATIOS (Times)
Gearing Ratio 0 0 0
Liabilities
Ratio 0.67 1.21 1.47
Times
Interest Earned Ratio 4.97 2.27 2.30
PERFORMANCE
RATIO (%)
Operating
Profit Margin 11.01 4.31 3.62
Net Profit
Margin 12.20 4.31 3.62
Return On Net
Assets 14.89 6.65 3.99
Return On
Capital Employed 14.89 6.65 3.99
Return On
Shareholders'' Funds/Equity 18.83 6.66 5.26
Dividend Pay Out
Ratio (Times) 0 0 0
NOTES
TO ACCOUNTS
Contingent
Liabilities 0 0 0
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.95 |
|
UK Pound |
1 |
Rs.85.62 |
|
Euro |
1 |
Rs.67.81 |
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 |
|
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%)