MIRA INFORM REPORT
|
Report Date : |
23.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PATO CHEMICAL INDUSTRY
PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
3388
Pato Building, New
Petchburi Road, Bangkapi, Huaykwang, Bangkok 10310 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
1972 |
|
|
|
|
Com. Reg. No.: |
0107536001214 [Former: BOR.
MOR. JOR. 195] |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Formulator, Importer and Distributor of Pesticide |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
US$ 500,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
Name
PATO CHEMICAL
INDUSTRY PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS ADDRESS : 3388
PATO BUILDING, NEW
PETCHBURI ROAD,
BANGKAPI, HUAYKWANG,
BANGKOK 10310
TELEPHONE : [66] 2314-6076-7,
2318-5612-20, 2318-0360-9
FAX : [66] 2318-0367
E-MAIL ADDRESS : pato1@cscoms.com
pato2@cscoms.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1972
REGISTRATION NO.
: 0107536001214 [Former : BOR. MOR. JOR. 195]
CAPITAL
REGISTERED : BHT. 140,000,000
CAPITAL
PAID-UP : BHT.
140,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR.
METHA TRILLIT, THAI
PRESIDENT
NO. OF
STAFF : 200
LINES OF
BUSINESS : PESTICIDE
FORMULATOR, IMPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH GOOD PERFORMANCE
HISTORY
The subject was
initially established on
October 6, 1972
as a private limited company
under the registered
name “Pato Chemical Industry
Co., Ltd.” by Thai
groups, in order
to import, formulate
and distribute pesticide
to local market.
On October 18,
1993, its status
was converted to
public limited company
under the name
PATO CHEMICAL INDUSTRY
PUBLIC COMPANY LIMITED.
On September 19,
1995, the subject
was finally listed
on the Stock Exchange of
Thailand. It currently
employs approximately 200
staff.
In April 1998, Nissho Iwai corporation, Japan
took 10% stake
of the subject from minor
shareholders. In October
2000, Nissho Iwai
Corporation acquired 1.4
million shares from
minor shareholders. As
a result, Nissho’s
stake in Pato
becomes 20%.
In October 2003, Chemical Department of Nissho
Iwai Corporation and
Nichimen Corporation of
Japan have been
merged to form
NN Chemical Corporation. Therefore, the name
of the subject’s
shareholder was changed
to NN Chemical Corporation., Japan.
In October 2005,
NN Chemical Corporation
was changed its
name to be
Sojitz Chemical Corp.
The subject’s registered
address is 3388
Pato Building, New
Petchburi Rd., Bangkapi,
Huaykwang, Bangkok 10310,
and this is
the company’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr. Metha Trillit
|
[x] |
Thai |
71 |
|
Dr. Viwat Trillit |
[x] |
Thai |
40 |
|
Mr. Chaovuth Pojanalai |
|
Thai |
65 |
|
Mrs. Wanthana Pojanalai |
[+] |
Thai |
55 |
|
Mr. Suvit Wesaratchawest |
[+] |
Thai |
57 |
|
Mr. Chaiwat Chandarasrivongs |
|
Thai |
72 |
|
Mr. Lertchai Leelayonkul |
|
Thai |
70 |
|
Mr. Chongrak Prichanont |
|
Thai |
75 |
|
Mr. Surachai Choengvivatkit |
|
Thai |
60 |
|
Ms. Ratchanee Trillit |
|
Thai |
37 |
|
Mr. Masahiko Nishizawa |
|
Japanese |
48 |
AUTHORIZED PERSON
One of the directors [x]
can jointly sign
with one of
the directors [+] on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Metha
Trillit [Mr. Ming Chieh] is
the President.
He is Thai nationality with
the age of
71 years old.
Experiences :
1989 - Present : Chairman
Acron Plastic Industry
Co., Ltd.
1984 - Present : Executive
Director Asia Mineral
Processing Co., Ltd.
1983 - Present : Director
Kentex Chemical Co.,
Ltd.
1973 - Present : Chairman /
President Pato Chemical
Industry Plc.
Dr. Viwat
Trillit is the Managing Director,
Acting Finance Manager
and Acting Administration Manager.
He is Thai nationality with
the age of
40 years old.
Mr. Warat
Lapserisakul is the
Factory Manager.
He is Thai nationality with
the age of
67 years old.
Mr. Chanwut
Kooniyapantu is the
Marketing Manager.
He is Thai nationality with
the age of
53 years old.
Mr. Visut
Vanitcharoenkarn is the
Accounting Manager.
He is Thai nationality with
the age of
48 years old.
Mr. Kawinharn Polaharn
is the Research & Development
Manager.
He is Thai nationality with
the age of
42 years old.
Mrs. Parichart
Manuthasna is the Office Manager.
She is Thai nationality with
the age of
48 years old.
Mr. Rapin
Thiengthum is the Area Sales
Manager 1.
He is Thai nationality with
the age of
50 years old.
Mr. Kittichai Sutthichaimongkol is
the Area Sales
Manager 2
He is
Thai nationality.
Mr. Sayan
Wan-aree is the Area Sales
Manager 3.
He is Thai nationality.
BUSINESS OPERATIONS
The subject is
an importer, formulator
and distributor of
pesticides.
Major Types of
Imports:
1. Technical Grade
[TG] : is a concentrated chemicals which are
used in formulations to produce final
products according to the
specified formulas.
2. Finished Product
[FP] : FP is the product ready
for use. Most
of the imported FD
is in liquid and solid
from in bulk
sizes. Therefore, repackaging
is needed before distribution.
About 80% of
the company’s imported products
are TG for formulation at
the factory before
distribution resulted in
lower cost of
raw material as compared
with other competitors who
import finished product
for repackaging. TG
has longer shelf-life
than FP and
can be formulated according to
the requirements which
is more suitable for
the environment. Chemical
pesticide in the market can
be in many forms e.g.
liquid, powder, and
granule for safety
in moving and
storing. In the production
process, there are 2
main ingredients in
chemical pesticide: active
and inert ingredients. “Active Ingredients” are
chemical substance called
by its chemical names for
different uses of purposes. “Inert Ingredients” are
substance to combine
with the active
chemical to make it
in the forms suitable for
different types uses such
as solvents, carriers,
surfactants, emulsifiers, or
any other substance
which are added
for special purpose called
“Special Additives”.
Product Characteristic
In general, there
are 2 major types of chemical
pesticide (from business
aspect)
1.
Specialty product :
this is proprietary
product belonging to
a particular company which has the patent
right to produce and
distribute it. It
may also refer
to a product that
is exclusively imported by
a national
distributor/formulator.
Such product has
to go through
phase-registration process required
by the ministry of
Agriculture. Such process
usually involves the
submission an d approval of
complete toxicology data
experimental trials which
can take up
to 3-5 years to complete.
2. Commodity product
: this is generic product
commonly sold and
distributed by many
companies. Commodity product
can be imported from many
manufacturers around the
world. It is
usually imported in
the form of technical grade
and then formulated into finished products. Such
product is fairly
simple to register,
requiring only authorization certificate from the
manufacturer. Since there
is no significant
difference in the quality
and price, brand
loyalty and image
are very important
factors for commodity
products.
|
Products by types |
Specialty Products |
Commodity Products |
Total |
|
|
|
|
|
|
Technical Grade |
15 |
46 |
61 |
|
Finished Products |
8 |
21 |
29 |
|
Total |
23 |
67 |
90 |
|
Total Value in 2007 [Million
Baht] |
291.43 |
334.69 |
626.12 |
MAJOR BRANDS
“PATO GLOBE”, “PRATUTHONG”, “YAN VILOR”, “PEE-SUA”,
“THONGCHAI”, and “SING
KEE JARUAD”
PURCHASE
70% of raw materials such
as technical grade,
solvent, emulsifiers, auxiliary
and etc., are
imported from Taiwan,
Australia, Republic of
China, Israel, Hungary,
India, Japan, Hong
Kong and France,
the remaining 30%
is purchased from
local suppliers.
MAJOR SUPPLIER
Sojitz Chemical Corp. :
Japan [20%]
Local Purchasing
Ratio of 2006-2007
Value of
Purchasing [Unit :
Thousand Baht]
|
Raw Material |
2007 |
% |
2006 |
% |
|
|
|
|
|
|
|
Technical Grade |
12,174 |
2.71 |
3,791 |
1.11 |
|
Solvent |
13,985 |
3.11 |
16,508 |
4.83 |
|
Emulsifiers |
3,620 |
0.81 |
6,572 |
1.92 |
|
Auxiliary |
10,063 |
2.24 |
8,922 |
2.62 |
|
Others |
6,656 |
1.48 |
6,707 |
1.97 |
|
Total Amount |
46,498 |
10.35 |
42,500 |
12.45 |
Import Ratio
of 2006-2007
Value of
Import [Unit :
Thousand Baht]
|
Raw Material |
2007 |
% |
2006 |
% |
|
|
|
|
|
|
|
Technical Grade |
368,139 |
81.99 |
285,235 |
83.59 |
|
Solvent |
- |
- |
- |
- |
|
Emulsifiers |
33,163 |
7.38 |
11,944 |
3.50 |
|
Auxiliary |
250 |
0.06 |
203 |
0.06 |
|
Others |
978 |
0.22 |
1,356 |
0.04 |
|
Total Amount |
402,530 |
89.65 |
298,738 |
87.55 |
SALES [LOCAL]
100% of its
products is sold
locally by wholesale
through 417 authorized
dealers, 27 repackers, and
19 distributors both
in Bangkok and
provincial.
There are 3
main distribution channels:
1. Distributors [10%] :
They are in
Bangkok and distribute
products under their
own brands to
dealers in the
upcountry. They will
hire a formulator/manufacturer
to produce, pack
and register the
pesticide products with
the Ministry of
Agriculture.
2. Local Repackers
[13%] : They are
packaging companies who
purchase the products
from producer to
repackage and distribute
under their own
brands. These companies
will register the
pesticide by themselves
by getting the authorization certificate
from the formulator/manufacturer.
3. Dealers or
Free Market [77%] :
They are small
dealers or retailers
in both Bangkok
and the upcountry
who sell pesticide
products to the
end users.
Product Distribution of
Pato Chemical Industry
Plc. in 2006 - 2007
|
|
2007 |
|
2006 |
|
||
|
Area |
No. of Customers |
Total Sale [Thousand Baht] |
No. of Customers |
Total Sale [Thousand Baht] |
||
|
|
|
|
|
|
||
|
1. Distributors |
19 |
83.00 |
16 |
56.66 |
||
|
2. Local Repackers |
27 |
60.99 |
27 |
84.90 |
||
|
3. Free Market |
417 |
482.13 |
415 |
471.55 |
||
|
Total |
463 |
626.12 |
458 |
613.11 |
||
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have subsidiary or affiliated company
in Thailand.
LITIGATION
Bankruptcy
and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
On June 10,
2004, the Company
was sued by
Itochu [Thailand] co.,
Ltd. as an
alleged guarantor of
Plastic Precision Industry
Co., Ltd. for the outstanding
debt totaling Bht. 37,527,303, the Company recorded liabilities arising from guarantee amounting
of Bht. 39,454,784
which calculated from outstanding debt totaling Bht.
32,493,511 plus interest
amounting of Bht.
6,961,273 (interest rate
7.5% per annum).
The Company has
also appealed to
the court to suspend
the execution on January
12, 2007 and
on September 21, 2007,
the Company had
entered into a
compromise agreement in
appeal court to
pay the principal debt amounting of Bht.
32,493,511 including some
expenses in court
amounting of Bht.
1,725,000, totaling Bht.
34,218,511. The Company
has recorded the difference
amount between forecasted
guarantee burden and
the actual payment
of Bht. 4,985,133, which presented as income
in the statements of income
for the year
ended December 31,
2007.
The Company agreed
to pay amounted to Bht.
5,000,000 on the
date entering into
the agreement. The balance
of Bht. 29,218,511
will be paid
in 8 installments at
Bht. 3,652,314 each
month. The first
installment was paid
before October 30,
2007. Total payment
will be completed
on May 30, 2008. PATO has
already exercised the
right of recourse
against Plastic Precision
Industry Co., Ltd. and recorded
such company as
debtor with outstanding
balance of Bht.
34,469,651. However, the
Company expected that the
amount due from
PPIC would not
be recoverable therefore,
the Company set up
a full provision for the outstanding
balance.
CREDIT
Purchasing terms are
by cash or
on the credits term of
60-90 days.
Imports are by
L/C on the credits term
of 120-180 days
and T/T.
Selling terms are
by cash or
on the credits term of
30-60-90 days.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
The Siam
Commercial Bank Public Co., Ltd.
Kasikornbank Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately 200 staff. [office
staff, sales person
& factory workers]
LOCATION DETAILS
The premise is
owned for administrative office at the
heading address. Premise
is located in a prime
commercial area.
The factory is
located on 1,500
Sq.M. of area
at 569 Moo 4, Soi
12., Pattana 3
Rd., Bangpoo Industrial
Estate, T. Praksa,
A. Muang, Samutprakarn 10280.
Tel.: [66] 2324-0890-1, Fax:
[66] 2324-0187
REMARK
CREDIT OF US$
500,000 D/A SHOULD
BE IN ORDER.
COMMENT
The subject’s sales has
moderately grown. The
industrial sector is
quite resilient to
stable yields, good
potential upside and
has a growing product base
with strong consumption
in domestic market.
Its business outlook
is very promising.
FINANCIAL INFORMATION
The capital was
originally registered at
Bht. 1,000,000 divided
into 1,000 shares of
Bht. 1,000 each
with fully paid.
The capital was
increased later as followings:
Bht. 22,440,000 in 1988
Bht.
50,490,000 in 1989
Bht.
100,000,000 in 1991
Bht.
110,000,000 in 1993
Bht.
140,000,000 in 1993
The latest registered
capital was increased to
Bht. 140,000,000 divided into
14,000,000 shares of
Bht. 10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
March 24, 2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr.
Metha Trillit |
2,100,000 |
15.00 |
|
Sojitz Corp. |
2,100,000 |
15.00 |
|
Dr. Viwat Trillit |
1,500,000 |
10.71 |
|
Ms. Ratchanee Trilit |
1,150,000 |
8.21 |
|
Mr. Suvit Wesaratchawest |
683,900 |
4.89 |
|
Mr. Chen, Cheng-Jen |
521,000 |
3.72 |
|
Mrs. Wanthana Pojanalai |
500,000 |
3.57 |
|
Mr. Chaovuth Pojanalai |
450,000 |
3.21 |
|
Mr. Suwat Choengvivatkit |
328,000 |
2.34 |
|
Mrs. Sashiko Nakahara |
322,000 |
2.30 |
|
Others |
4,345,100 |
31.05 |
Total Shareholders : 361
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.:
Mr. Pradit Rodloytook
No. 218
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in hand
& at Bank
|
79,850,012 |
103,282,476 |
|
Current investments-net |
84,523,154 |
50,645,771 |
|
Accounts receivable-net |
135,150,883 |
128,617,881 |
|
Inventories |
155,671,081 |
96,159,434 |
|
Other Current Assets
|
1,863,163 |
1,913,003 |
|
Total Current
Assets |
457,058,293 |
380,618,565 |
|
|
|
|
|
Fixed Assets |
74,397,223 |
84,835,481 |
|
Other Assets |
1,056,383 |
862,859 |
|
Total Assets |
532,511,899 |
466,316,905 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
|
|
|
|
|
Short-term loan from financial institution |
95,683,294 |
50,378,374 |
|
Accounts payable-related company |
10,777,436 |
12,668,606 |
|
-other companies |
10,305,244 |
11,981,412 |
|
Current portion of purchase
contracts payable |
120,891 |
- |
|
Liability arising from
guarantee |
18,261,569 |
39,454,784 |
|
Accrued income tax
and accrued expenses |
27,170,642 |
9,543,590 |
|
Other Current Liabilities |
220,353 |
239,843 |
|
Total Current
Liabilities |
162,539,429 |
124,266,609 |
|
|
|
|
|
Hire-purchase contracts
payable-net |
212,234 |
- |
|
Total Liabilities |
162,751,663 |
124,266,609 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 10 value authorized, issued
and fully paid share
capital 14,000,000 shares |
140,000,000 |
140,000,000 |
|
Capital Paid |
140,000,000 |
140,000,000 |
|
Premium on share
capital |
135,000,000 |
135,000,000 |
|
Retained Earning |
|
|
|
Appropriated for
legal reserve |
14,000,000 |
14,000,000 |
|
- Unappropriated |
80,760,236 |
53,050,296 |
|
Total
Shareholders' Equity |
369,760,236 |
342,050,296 |
|
Total
Liabilities & Shareholders' Equity |
532,511,899 |
466,316,905 |
PROFIT & LOSS ACCOUNT
|
Sales |
2007 |
2006 |
|
|
|
|
|
Sales |
620,540,463 |
600,728,366 |
|
Gain on exchange rate |
3,627,349 |
1,320,700 |
|
Reversal of provision
for doubtful account
from loan |
4,985,133 |
- |
|
Other Income |
3,015,526 |
4,021,379 |
|
Total Saless
|
632,168,471 |
606,070,445 |
|
Expenses |
|
|
|
|
|
|
|
Cost of sales
|
459,557,225 |
450,359,971 |
|
Selling and administrative expenses |
54,014,511 |
52,8000,564 |
|
Provision for doubtful account
from loan |
- |
39,454,784 |
|
Directors’ remuneration |
871,019 |
870,093 |
|
Total Expenses |
514,442,755 |
543,485,412 |
|
Profit / [Loss] Before Interest
Expenses |
117,725,716 |
62,585,033 |
|
Interest Expenses |
[4,401,662] |
[2,546,390] |
|
Income Tax |
[33,114,114] |
[12,916,841] |
|
Net Profit / [Loss] |
80,209,940 |
47,121,802 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
3.30 |
|
|
Operating Profit |
[130.84] |
|
|
Net Profit |
70.22 |
|
|
Fixed Assets |
[12.30] |
|
|
Total Assets |
14.20 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
74.06 |
74.97 |
|
Operating Profit Margin |
19.11 |
[61.97] |
|
S & A
Expenses |
8.70 |
87.89 |
|
Interest Paid |
0.71 |
0.42 |
|
Other Saless |
1.87 |
0.89 |
|
Net Profit Margin |
12.93 |
7.84 |
|
Earning Per Shares |
5.73 |
3.37 |
|
No. of Shares |
14,000,000 |
14,000,000 |
Net Sales was
increased by 3.30%,
Operating Profit was
decreased by 130.84%,
Net Profit was
increased by 70.22%,
Fixed Assets was
decreased by 12.30%,
Total Assets was increased by
14.20%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 74.97%
to 74.06%, Operating
Profit Margin was
increased from -61.97%
to 19.11%, S
& A Expenses
was decreased from
87.89% to 8.70%,
Interest Paid was increased
from 0.42% to
0.71%, Other Saless
was increased from
0.89% to 1.87%,
Net Profit Margin
was increased from
7.84% to 12.93%.
Earning Per Shares
was increased from
3.37 baht per
share to 5.73
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
2.81 |
3.06 |
|
Quick-Assets Ratio |
1.84 |
2.27 |
Current Ratio was
decreased from 3.06
to 2.81, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
2.27 to 1.84,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
0.44 |
0.36 |
|
Times Interest Earned |
26.94 |
[146.20] |
D/E Ratio was
increased from 0.36
to 0.44, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was increased from
-146.20 to 26.94,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
8.34 |
7.08 |
|
Total Assets Turnover |
1.17 |
1.29 |
|
Return on Assets |
15.06 |
10.11 |
|
Return on Equity |
21.69 |
13.78 |
|
Day's Payable |
5.98 |
7.18 |
|
Day’s Inventories |
90.31 |
57.63 |
|
Day’s Receivables |
78.41 |
77.08 |
Fixed Assets Turnover
was increased from
7.08 times to
8.34 times, Total
Assets Turnover was
decreased from 1.29
times to 1.17
times, show the
company could use
Fixed Assets so efficiently, Return
on Assets was
increased from 10.11
to 15.06, Return
on Equity was
increased from 13.78
to 21.69, capacity
to use Assets to make
profit was good.
Day's Payable was
decreased from 8
days to 6
days, while Day’s
Inventories was increased
from 58 days
to 91 days, and Day’s
Receivables was increased
from 78 days
to 79 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.33 |
|
UK Pound |
1 |
Rs.84.32 |
|
Euro |
1 |
Rs.66.75 |
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%)