MIRA
INFORM REPORT
|
Report Date : |
28.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HARRISONS
MALAYALAM LIMITED |
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Registered Office : |
24/1624 Bristow
Road, Willingdon Island, Kochi – 682003, Kerala |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
05.01.1978 |
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Com. Reg. No.: |
09-2947 |
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CIN No.: [Company
Identification No.] |
L01119KL1978PLC002947 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHNH00049A |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
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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Maximum Credit Limit : |
USD 12500000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is a
part of RPG Group, a medium sized industrial house. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company is
doing well. It can be
considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office/Factory : |
24/1624 Bristow
Road, Willingdon Island, Cochin, Ernakulam, Kerala 682003, India |
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Tel. No.: |
91-484-2668023 |
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Fax No.: |
91-484-2667032 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Sanjiv Goenka |
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Designation : |
Chairman |
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Name : |
Mr. P.K. Kurian |
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Designation : |
Director |
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Name : |
Mr. S. Samuel |
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Designation : |
Director |
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Name : |
Mr. Haigreve Khaitan |
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Designation : |
Director |
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Name : |
Mr. P.K. Chowdhary |
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Designation : |
Director |
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Name : |
Mr. G. Momen |
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Designation : |
Director |
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Name : |
Mr. Umang Kanoria |
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Designation : |
Director |
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Name : |
Mr. Prabhakar Dev |
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Designation : |
Managing Director |
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Date of Birth |
56 Years |
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Qualification |
M.Sc. (Nuclear Physics)
P G
Diploma in Business Administration
from IIM, Ahmedabad |
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Experience |
33 Years |
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Date of Employment |
27-07-2000 |
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Last Employment |
Royal Packaging and Industries Van Leer NV |
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Name : |
Mr. N. Dharmaraj |
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Designation : |
Vice-President |
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Date of Birth |
54 Years |
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Qualification |
B.Sc. |
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Experience |
32 Years |
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Date of Employment |
01-09-1999 |
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Last Employment |
Hindustan Lever Limited |
KEY EXECUTIVES
|
Name : |
Mr. P.A. Krishnamoorthy |
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Designation : |
Chief Accountant &
Company
Secretary |
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Division: |
Branded
consumer pack Sales |
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Contact
Person: |
Mr. V. Nandakumar |
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Tel. No.: |
91-484-2668023 |
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E-mail: |
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Division: |
Custom
Blended tea |
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Contact
Person: |
Mr. V. Nandakumar |
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Tel. No.: |
91-484-2668023 |
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E-mail: |
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Division: |
Tea export |
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Contact
Person: |
Mr. V. Nandakumar |
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Tel. No.: |
91-484-2668023 |
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E-mail: |
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Division: |
Legal |
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Contact
Person: |
Mr. V. Venugopal |
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Tel. No.: |
91-484-2668023 |
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E-mail: |
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Division: |
Rubber Sales |
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Contact
Person: |
Mr. Anup BalaKrishnan |
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Tel. No.: |
91-484-2666364 |
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E-mail: |
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Division: |
Engineering&
Contracts |
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Contact Person:
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Mr. Benjamin T.K |
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Tel. No.: |
91-484-2667183 |
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E-mail: |
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Division: |
Purchase |
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Contact
Person: |
Mr. George Sebastian |
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Tel. No.: |
91-484-2666377 |
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E-mail: |
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Division: |
Secretarial |
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Contact
Person: |
Mr. Krishnamoorthy.P.A |
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Tel. No.: |
91-484-2666694 |
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E-mail: |
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Division: |
Careers |
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Contact
Person: |
Mr. Vinay Maira |
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Tel. No.: |
95-484-2668023 |
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E-mail: |
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Division: |
Tissue Culture |
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Contact
Person: |
Dr. R. Chandran |
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Tel. No.: |
91-4344-276095 |
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E-mail: |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 31.03.2006]
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign Companies |
4114026 |
22.29 |
|
Non Resident
Individuals |
54471 |
0.30 |
|
Mutual Funds |
298299 |
1.62 |
|
Nationalised
Banks |
535 |
— |
|
Insurance
Companies |
465140 |
2.52 |
|
Financial
Institutions |
1075 |
— |
|
Other Bodies
Corporate |
6465488 |
35.03 |
|
Directors and
their relatives |
91560 |
0.50 |
|
Resident
Individuals |
6964811 |
37.74 |
|
Total |
18455405 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer,
Exporter and Trading of Tea, Coffee, Rubber, Clearing, Shipping and
Biotechnology |
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|
|
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Products : |
v
Black Tea –
09-02-30 v
Natural
Rubber Latex – 40-01-10 v
Somked
Rubber Sheets – 40-01-21 |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Made Tea |
MT |
-- |
-- |
15902.619 |
|
Rubber |
MT |
-- |
-- |
2914.402 |
|
Steel Fabrication |
MT |
6960 |
6960 |
-- |
|
Centrifuge Rubber Latex |
MT |
-- |
6275 |
4577.504 |
|
Shrimp Farm |
MT |
-- |
123 |
-- |
|
Shrimp Hatchery |
Million |
-- |
50 |
-- |
GENERAL
INFORMATION
|
Customer |
v
Alberto
Bertuzzi SpA, Italy v
BPL India
Group v
Cochin Port
Trust v
Cochin
Refineries v
Electronics
Technology Parks, Trivandrum v
Fertilizers&
Chemicals Limited (FACT), Cochin v
Hindustan
Steelworks Construction Limited., Calcutta v
Greater
Cochin Development Agency (GCDA) v
Indian Rare
Earths Limited, Kollam v
Kerala
Horticulture Development Programme, Cochin v
McDowell
& Company Limited. v
Mineral
Technologies Limited, Australia v
National
Thermal Power Corporation v
Neuman
Equipment Pty Limited, Australia v
Oil Palm
India Limited. v
Tata Tea
Limited. v
Cochin
International Airport - Kochi v
Kerala
Industrial Infrastructure Development Corporation (KINFRA) v
Kerala
Industrial & Technical Consulting Organisation (KITCO) v
Tamilnadu
Tea Plantation Corporation Limited. v
Cochin
Special Economic Zone v
Kerala
Tourism Development Corporation (KTDC) v
Travancore
Titanium products Limited. v
Cochin
Cements Limited. v
English
Indian Clays Limited. v
Airport
Authority of India |
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No. of Employees : |
3000 |
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Bankers : |
v
State Bank of India v
State Bank of Travancore v
Centurion Bank of Punjab Limited |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Lovelock & Lewes Chartered Accountants |
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Address: |
32, Khader Nawaz Khan Road, Nungambakkam, Chennai - 600 006 |
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Associates/Subsidiaries : |
v
Sentinel Tea and Exports Limited. v
Harrisons Agro- Products Limited. v
Harrisons Rubber Products Limited. v
Harrisons Malayalam Financial Services Limited. |
CAPITAL STRUCTURE
As on 31.03.2006
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 300.000
Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
18455405 |
Equity Shares |
Rs. 10/- Each |
Rs. 184.554
Millions |
|
Less |
Allotment Money
in Arrears |
|
Rs. 0.016 Millions |
|
|
Total |
|
Rs. 184.538 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 |
184.500 |
184.538 |
184.537 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2941.100 |
2832.332 |
2267.549 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3125.600 |
3016.870 |
2452.086 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
746.100 |
953.211 |
439.082 |
|
|
2] Unsecured Loans |
20.500 |
24.383 |
48.642 |
|
|
TOTAL BORROWING |
766.600 |
977.594 |
487.724 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
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|
|
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TOTAL |
3892.200 |
3994.464 |
2939.810 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1817.500 |
1834.508 |
1955.376 |
|
|
Capital work-in-progress |
6.900 |
6.612 |
79.360 |
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|
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INVESTMENT |
121.000 |
121.089 |
495.863 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
95.700
|
108.671
|
119.416 |
|
|
Sundry Debtors |
99.100
|
84.327
|
73.405 |
|
|
Cash & Bank Balances |
138.400
|
24.668
|
19.944 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
2198.900
|
2210.944
|
531.781 |
|
Total
Current Assets |
2532.100
|
2428.610 |
744.546 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
458.500
|
267.142
|
265.271 |
|
|
Provisions |
126.800
|
129.213
|
70.064 |
|
Total
Current Liabilities |
585.300
|
396.355 |
335.335 |
|
|
Net Current Assets |
1946.800
|
2032.255
|
409.211 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3892.200 |
3994.464 |
2939.810 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2047.800
|
1468.600
|
1427.500
|
|
|
Other Income |
61.900
|
771.900
|
368.000
|
|
|
Total Income |
2109.700 |
2240.500 |
1795.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
150.600
|
706.900
|
484.300
|
|
|
Provision for Taxation |
09.500
|
6.800
|
7.700
|
|
|
Profit/(Loss) After Tax |
141.100
|
700.100
|
476.600
|
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
509.500
|
134.100
|
73.300
|
|
|
Excise Duty |
0.000
|
0.000
|
17.700
|
|
|
Power & Fuel Cost |
112.000
|
105.200
|
95.500
|
|
|
Other Manufacturing Expenses |
287.500
|
259.300
|
231.800
|
|
|
Employee Cost |
651.100
|
621.600
|
602.500
|
|
|
Selling and Administration Expenses |
164.700
|
138.500
|
111.000
|
|
|
Miscellaneous Expenses |
71.600
|
133.100
|
87.000
|
|
|
Interest & Financial Charges |
119.000
|
98.600
|
72.100
|
|
|
Depreciation |
29.700
|
30.400
|
26.900
|
|
|
Stock Adjustments |
14.000
|
12.800
|
[6.600]
|
|
Total Expenditure |
1959.100 |
1533.600 |
1311.200 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
400.700
|
500.700
|
496.000
|
|
Other Income |
17.400
|
35.600
|
28.800
|
|
Total Income |
418.100
|
536.300
|
524.800
|
|
Total Expenditure |
380.200
|
481.200
|
445.800
|
|
Operating Profit |
37.900
|
55.100
|
79.000
|
|
Interest |
24.100
|
23.100
|
29.000
|
|
Gross Profit |
13.800
|
32.000
|
50.000
|
|
Depreciation |
7.400
|
7.300
|
7.500
|
|
Tax |
1.600
|
2.600
|
2.800
|
|
Reported PAT |
04.800
|
22.100
|
39.700
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
6.68
|
31.24 |
26.54 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.35
|
48.13 |
33.92 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.46
|
16.58 |
17.93 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
0.23 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.43
|
0.45 |
0.33 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.32
|
6.12 |
2.22 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets
v
Land
v
Building
v
Plant &
machinery
v
Furniture
& Fixture
v
Water
v
Vehicles
History
The first of their Tea Plantations was established nearly 200 years ago as Tea
was first planted on the slopes of the mountains that form the backbone of
South India. (The Western Ghats). Over the next 100 years. Tea Plantations
became a major activity transforming the landscape of these mountains, turning
them into the manicured tea gardens they see today and providing employment and
subsequently a reasonable standard of living, to the local population. In the
early 1900's these estates saw consolidation and in 1907 Harrisons and
Crosfield, which was set up as Tea Traders in 1857 in Liverpool, bought and
established Malayalam Plantations Limited. As Owners and Managing Agents of
Malayalam Plantations, Harrisons & Crosfield further consolidated their
land holdings, including plantations in Rubber, to produce the highest quality
of both Tea and Rubber in this part of the World. About 15 years ago, changing
priorities of Harrisons & Crosfield saw the RPG Group, one of the largest
business houses in India, take control of this Company. Harrisons &
Crosfield in India and Malayalam Plantations were merged to establish Harrisons
Malayalam Limited
Today, Harrisons
Malayalam Limited., as the largest Plantation Company in South India, leads the
industry in scientific and modern agriculture and manufacture. The Company also
preserves its proud heritage of looking after its employees and evolving them
with modern HR practices.
Co-existing with
Nature, plantations in South India have a proud ecological history in harmony
with nature. Their lands borders virgin tropical forest and, as such, they
operate with a little "helping hand" from wild life. It is not
uncommon for elephants to ramble in their rubber plantations or dig up tea
bushes. The old bungalows while able to protect the occupiers from such ventures
do regularly have panthers looking for a pet dog meal!
Performance:
The Company achieved an all-time record turnover of Rs. 2104.600
Millions for the financial year under review, which is 38% higher than
Rs.1526.800 Millions achieved during the previous year. Prices for both tea and
rubber improved over the previous year. Good progress was made in the
manufacture of both tea and rubber through bought raw materials which
contributed in enhancing the turnover and profits. The Company continues its
efforts towards better labour productivity through reorganised work and
incentive schemes.
Tea:
Tea prices in South India witnessed an upward movement from April 06 and
the average price realized for the financial year was Rs. 51.84 per kg as
against Rs. 42.38 during the previous year. The disparity between the price
realized by the producers and the price paid by the consumer continues to be a
major problem faced by the plantation industry. As in the earlier years
Surianalle teas continued to fetch the highest price in Cochin Auction. A total
quantity of 2864 MT of tea was exported mainly to Russia, U.K., Pakistan and
Netherlands.
Rubber:
Rubber prices ruled at high levels throughout the year. RSS IV price
recorded a high of Rs. 115.00 in May 06 for the financial year and is currently
ruling at Rs. 83.50 per kg.
Engineering:
The Engineering Division registered a turnover of Rs. 105.200 Millions as against Rs.80.000 Millions in the
previous year. The order book position has improved during the year under
review and the Division is expected to perform better in terms of turnover and
profitability in 2007-08.
Sale
of Estate:
During the year under review an Agreement for sale of
Kaliyar Estate situated in Kodikulam village, Thodupuzha Taluk, Idukki
District, Kerala, was entered into with the prospective buyer. Approval of the
shareholders under Section 293(1)(a) of the Companies Act, 1956 was obtained
through postal ballot. The transaction is, however, not completed.
Export & Foreign Exchange
Outgo:
During the year the Company exported 2864 MT of Tea and 244
MT of Rubber.
MANAGEMENT
DISCUSSION & ANALYSIS REPORT:
Improvement in Tea prices and healthy Rubber prices coupled with growth
in operations based on bought tea leaf and rubber latex helped the Company to
achieve substantial growth in turnover and profitability. The Company achieved
a turnover of Rs 2104.600 Millions for the financial year under review - an all
time high - against Rs. 1526.800 Millions in 2005-06. This could have been
bettered but for a month long industry-wide strike across Rubber
Plantations.
TEA:
While the global tea production was higher than the previous year by 2.6%,
Kenya and Sri Lanka registered a drop by 5.5% and 2.0% respectively. World tea
exports recorded a marginal increase of 1.4% reflecting a higher growth in
domestic consumption in both China and India. Decrease in tea production in
Kenya marginally helped India in increasing its exports by 2.4%.
Auction prices across all tea producing regions were higher indicating an
overall growth in demand. South Indian prices improved by 15.5% in the calendar
year 2006 though even at these levels they are about the lowest in the world.
Better demand for South Indian orthodox teas contributed to a 24.8% price surge
in 2007.
The company continued its efforts in producing high quality teas. During
the year 2006-07, the Company was a recipient of three awards in the Golden
Leaf India Awards 2007 organized by UPASI and Tea Board of India.
Outlook:
Erratic rainfall and warm temperatures affected the domestic production in
Jan - Mar 07 with both North and South India showing drop in production by
14.3% and 8.5 % respectively. Rising domestic demand estimated at 3% to 4%o per
annum could lead to firming up of prices in the coming twelve months.
They expect
their superior quality to further contribute to this improvement though the
strengthening of the rupee does place some pressure on export realizations -
primarily orthodox teas.
RUBBER:
Natural
Rubber production in India increased from 0.803 Millions MT in 2005-06 to 0.853
Millions MT in 2006-07. Consumption on
the other hand increased only by 2.4 % - from 0.801 Millions MT to 0.820
Millions MT. Thus growth in production was marginally higher than the
consumption growth. Despite this Natural Rubber prices during 2006-07 were
higher than the previous year - the estimates perhaps need refinement - RSS IV
recording the highest price of Rs. 115 per kg in May 2006.
Outlook:
Growth
in global Natural Rubber production is unlikely to continue and may slow down
from 2007 till 2009. Relatively rapid growth in demand for Natural Rubber in
relation to supply is likely to lead to a decline in the surplus and a possible
deficit in the next three years. Hence the market outlook continues to be positive
and it is anticipated that rubber price would continue to remain at high
levels.
OPPORTUNITIES AND THREATS:
The disparity
between the price realized by the producers and the price paid by the consumer
continues to be the single biggest problem faced by the tea plantation
industry. It is hoped that necessary changes will take place to ensure fair
price realisation by the producers.
It is
anticipated that the price for rubber will remain at high levels but any
drastic change in the global economic environment could affect this.
Agriculture is
dependent on the weather and recent years have seen unusual patterns. These
changes can affect the overall output.
AS PER WEBSITE
DETAILS:
30th- January 2008
The unaudited financial results of Harrisons Malayalam
Limited for the Quarter ended December 2007 published. The Statutory
Auditors have carried out a limited review of the results and the same was
approved by the Board of Directors at its meeting held on 30/12/2007.
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. 40.15 |
|
UK Pound |
1 |
Rs. 80.54 |
|
Euro |
1 |
Rs. 63.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|