MIRA
INFORM REPORT
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Report Date : |
25.11.2008 |
IDENTIFICATION DETAILS
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Name : |
NATIONAL STEEL
AND AGRO INDUSTRIES LIMITED |
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Formerly Known As : |
NATIONAL STEEL INDUSTRIES LIMITED |
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Registered Office : |
621, Tulsiani
Chambers, 6th Floor,
Nariman Point, Mumbai- 400021, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
09.01.1985 |
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Com. Reg. No.: |
11-2716 |
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CIN No.: [Company
Identification No.] |
U27100MH2003PTC140379 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN09355D |
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Legal Form : |
A Public Limited Liability
company. The company’s shares are listed on the Stock exchange. |
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Line of Business : |
Manufacturers and
Marketers of G.P/G.C. Coils/Sheets and C.R. Coils/Sheets. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 13000000 |
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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 is a well
– established company having satisfactory track. Trade relations are fair.
Payments are reported as slow but correct. The company can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
621, Tulsiani
Chambers, 6th Floor,
Nariman Point, Mumbai- 400021, |
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Tel. No.: |
91-22-22025084/22025098 |
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Fax No.: |
91-22-22025084 |
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E-Mail : |
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Website : |
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Administrative
Office : |
401, Mahakosh
House, 7/5, |
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Tel. No.: |
91-731-2518167-9/2528133/2526020/(Direct)
5066187 |
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Fax No.: |
91-731-2516714 |
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E-Mail : |
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Factory : |
Village –
Sejwaya, Tehsil – Dhar, District Dhar, Madhya Pradesh |
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Tel. No.: |
91-7292-277277/277361/277612 |
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Fax No.: |
91-7292-277393 |
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Branches : |
Located at: Flat No. SF1, 2nd
Floor, 43 Daryaganj, Tel. No.
91-11-23241140/41 Fax. No.
91-11-23264143 E-mail. ruchidel@del3.vsnl.net.in 11-G, Tel. No.
91-33-22478526/22472611/22478526 Fax.
No.91-33-22405187 E-mail. national@cal2.vsnl.net.in 6/90 Kachora
Bazar, Belanganj, Tel. No.91-562-2362587/2362155 204-205 Vardan
Complex, 77/146, Tel.
No.91-512-2356370 Fax. No.
91-512-2356370 III - H/91, Nehru
Nagar, |
DIRECTORS
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Name : |
Mr. Santosh Kumar Shahra |
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Designation : |
Managing Director |
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Date of Birth/Age : |
58 years |
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Qualification : |
B.E. (Mech.), M.S. ( |
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Experience : |
34 years |
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Date of Appointment : |
01.07. 1986 |
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Previous
Employment |
Ruchi Private Limited, Mumbai |
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Name : |
Mr.
Kailashchandra Sharma |
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Designation : |
Chairman |
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Name : |
Mr. P. Srikrishna, |
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Designation : |
Whole Time Director |
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Name : |
Mr. P. S.
Santhanakrishnan |
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Designation : |
Director |
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Name : |
Mr. P. D. Nagar |
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Designation : |
Director |
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Name : |
Mr. Ashok Trivedi |
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Designation : |
Director |
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Name : |
Mr. Navneet
Zalani |
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Designation : |
Director (w.e.f. 31.07.2003) |
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Name : |
Mr. Navin
Khandelwal |
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Designation : |
Director |
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Name : |
Mr. Sudama Rama |
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Designation : |
Director (Nominee IFCI) |
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Name : |
Mr. R.K.Gupta, |
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Designation : |
Nominee Director - IFCI |
KEY EXECUTIVES
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Name : |
Mr. Ashok K.
Agarwal |
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Designation : |
Company Secretary |
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Audit Committee : |
Mr. Navin Khandelwal- Chairman Mr. Kailashchandra Shahra Mr. Navneet Zalani Mr. Sudama Ram (upto
30.10.2004) Mr. R.K.Gupta (w.e.f.
30.10.2004 upto 17.05.2005) |
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Investors Grievance
Committee : |
Mr. Navin Khandelwal- Chairman Mr. P. Srikrishna Mr. Navneet Zalani |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter’s Holding |
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Promoters |
13492873 |
41.39 |
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Non Promoter’s
Holding |
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Institutional Investors |
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Mutual Funds and UTI |
68900 |
0.21 |
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Banks, Financial Institutions, Insurance Companies (Central /State Government/ Non –Government Institutions) |
644598 |
1.98 |
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Others |
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Private Corporate Bodies |
3662834 |
11.23 |
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Indian Public |
14354794 |
44.03 |
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NRIs / Non Resident Incorporated Entries |
378943 |
1.16 |
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Total |
32602942 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Marketers of G.P/G.C. Coils/Sheets and C.R. Coils/Sheets. |
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Products : |
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Brand Names : |
'APPU BRAND' |
PRODUCTION STATUS
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Particulars |
Unit |
Registered
Capacity |
Installed
Capacity |
Actual
Production |
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G.P. / G.C. Coils / Sheets |
MTPA |
250000.000 |
210000.000 |
-- |
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C.R Coils/ Sheets |
MTPA |
400000.000 |
300000.000 |
286084.422 |
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Color Coated Coils/ Sheets |
MTPA |
100000.000 |
90000.000 |
93125.710 |
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Galvanised / Coated / Coils/ Sheets |
M.T |
-- |
-- |
219662.945 |
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G.P. Coils / Sheets (Jobwork for others) |
M.T |
-- |
-- |
5755.720 |
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G.P. Coils/ Sheets ( Jobwork done by others) |
M.T |
-- |
-- |
47679.088 |
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Color Coated Coils/ Sheets (Jobwork for others) |
M.T |
-- |
-- |
62.766 |
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C.R Coils (Jobwork for others) |
M.T |
-- |
-- |
6377.770 |
GENERAL INFORMATION
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No. of Employees : |
611 |
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Bankers : |
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Facilities: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Manoj Khatri and
Company Chartered
Accountants |
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Address : |
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Associates : |
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Subsidiaries : |
·
NSIL
Exports Limited ·
NSIL
Infotech Limited ·
NSIL
Power Limited ·
Shahra
Brothers Private Limited ·
Ruchi
Power Corporation Limited ·
Ruchi Infotech
Limited ·
Shri Mahadeo Shahra Sukrat Trust |
CAPITAL STRUCTURE
As on 30.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 millions |
|
60,00,000 |
4% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 600.000 millions |
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Total |
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Rs. 1000.000 millions |
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Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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32,602,942 |
Equity Shares |
Rs.10/- each |
Rs.326.030 millions |
|
60,00,000 |
4% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 600.000 millions |
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TOTAL |
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Rs. 926.030 millions |
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Subscribed & Paid-up Capital
|
No. of Shares |
Type |
Value |
Amount |
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32,602,942 |
Equity Shares |
Rs.10/- each |
Rs.326.029 millions |
|
5501022 |
4% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 550.102 millions |
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TOTAL |
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Rs. 876.132 millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
876.132 |
876.132 |
876.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1766.286 |
1547.416 |
1344.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2642.418 |
2423.548 |
2220.100 |
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LOAN FUNDS |
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1] Secured Loans |
1981.660 |
1984.452 |
1822.900 |
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2] Unsecured Loans |
450.000 |
250.000 |
350.000 |
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TOTAL BORROWING |
2431.660 |
2234.452 |
2172.900 |
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DEFERRED TAX LIABILITIES |
348.383 |
355.886 |
0.000 |
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TOTAL |
5422.461 |
5013.886 |
4393.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2042.262 |
2037.416 |
2106.200 |
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Capital work-in-progress |
00.000 |
0.000 |
0.000 |
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INVESTMENT |
27.940 |
27.940 |
27.900 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4676.768
|
3851.310
|
3229.500
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Sundry Debtors |
2550.380
|
1691.495
|
1698.100
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Cash & Bank Balances |
319.675
|
375.531
|
482.400
|
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Other Current Assets |
0.000
|
0.000
|
0.000
|
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Loans & Advances |
237.197
|
443.260
|
364.400
|
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Total Current Assets |
7784.020 |
6361.596
|
5774.400 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
4336.127
|
3336.503
|
3388.000
|
|
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Provisions |
95.634
|
76.563
|
127.500
|
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Total Current Liabilities |
4431.761 |
3413.066
|
3515.500 |
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Net Current Assets |
3352.259 |
2948.530
|
2258.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
5422.461 |
5013.886 |
4393.000 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
21542.255 |
18402.281 |
19911.300
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Other Income |
19.689 |
13.996 |
873.100 |
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Total Income |
21561.944 |
18416.277 |
20784.400 |
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Profit/(Loss) Before Tax |
418.687 |
350.209 |
331.500
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|
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Provision for Taxation |
166.610 |
121.678 |
106.400
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Profit/(Loss) After Tax |
252.077 |
228.531 |
225.100
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Earnings in Foreign Currency : |
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Total Earnings |
3676.369 |
6305.390 |
8594.817 |
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Imports : |
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Raw Material |
1218.767 |
2357.339 |
3538.245 |
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Plant and Machinery and Consumables |
9.625 |
2.485 |
2709.803 |
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Traded Goods |
1392.793 |
21961.685 |
0.000 |
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Total Imports |
2621.185 |
24321.509 |
6248.048 |
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Expenditures : |
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Raw
Materials |
19950.737 |
16157.018 |
17679.800
|
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Excise
Duty |
0.000 |
0.000 |
793.500
|
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Power
& Fuel Cost |
0.000 |
0.000 |
447.700
|
|
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Increase
or decrease in stock |
[866.339] |
[174.449] |
0.000 |
|
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Other
Manufacturing Expenses |
1427.296 |
1579.800 |
206.300
|
|
|
Employee
Cost |
169.896 |
133.552 |
109.400
|
|
|
Selling
and Administration Expenses |
0.000 |
0.000 |
808.900
|
|
|
Miscellaneous
Expenses |
0.000 |
0.000 |
29.900
|
|
|
Interest
& Financial Charges |
254.659 |
173.383 |
178.300
|
|
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Depreciation
|
206.787 |
197.950 |
199.100
|
|
|
Income
/ Expenses relating to prior period |
0.221 |
[1.186] |
0.000 |
|
Total Expenditure |
21143.257 |
18066.068 |
20452.900 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
|
Sales Turnover |
|
5905.400 |
6895.300 |
|
Other Income |
|
6.600 |
13.500 |
|
Total Income |
|
5612.000 |
6908.800 |
|
Total Expenditure |
|
5693.100 |
6679.800 |
|
Operating Profit |
|
218.900 |
229.000 |
|
Interest |
|
70.700 |
74.000 |
|
Gross Profit |
|
148.200 |
155.000 |
|
Depreciation |
|
42.000 |
42.300 |
|
Tax |
|
30.300 |
40.900 |
|
Reported PAT |
|
73.200 |
73.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.92 |
0.95 |
0.97 |
|
Long Term Debt
Equity Ratio |
0.57 |
0.57 |
0.58 |
|
Current Ratio |
1.35 |
1.34 |
1.29 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
6.34 |
5.61 |
6.08 |
|
Inventory |
5.31 |
5.42 |
7.24 |
|
Debtors |
10.68 |
11.32 |
11.71 |
|
Interest Cover
Ratio |
2.42 |
2.71 |
2.86 |
|
Operating Profit
Margin (%) |
4.07 |
3.92 |
3.56 |
|
Profit Before
Interest and Tax Margin (%) |
3.15 |
2.89 |
2.56 |
|
Cash Profit
Margin (%) |
2.03 |
2.22 |
2.13 |
|
Adjusted Net
Profit Margin (%) |
1.11 |
1.19 |
1.13 |
|
Return on Capital
Employed (%) |
14.68 |
12.26 |
12.18 |
|
Return on Net Worth (%) |
11.60 |
11.66 |
12.94 |
LOCAL AGENCY FURTHER INFORMATION
The company was originally
incorporated on 09.01.1985 at
History
National Steel & Agro
Industries Limited earlier known as National Steel Industries, a Ruchi group
company co-promoted by Madhya Pradesh Audhyogik Vikas Nigam to manufacture
galvanised plain (GP) and galvanised corrugated (GC) sheets and coils, set up a
GP/GC plant with 40,000-tpa capacity in 1987 in technical collaboration with
Cockerill Works, Belgium. The capacity has since been expanded to the present
130000.
Galvanised sheets manufactured by the company are used in building and
construction, automobiles, appliances and agriculture, and are marketed under
the Peacock brand. Exports are done through international trading companies
based in
A unit for cold-rolled steel sheets and coils was set up in 1992-93, in
technical collaboration with three world leaders -- CMI,
The company's fully computerised galvanising line incorporates the world's
latest Dagal process, comprising superior surface cleaning and preparation
techniques. It also has facilities for computer-aided annealing followed by hot
dip galvanising in a zinc bath. The resultant products adhere to Indian and
international standards such as ASTM, JIS, DIN and BIS.
The company increased its installed capacity to 130000 TPA for manufacturing G.P./G.C.Coils/Sheets
& to 120000 for C.R.Coils/Sheets in 2000-2001.
Since the demand for the Steel is very much optimistic the company is in the
process of setting up a Color Coating Plant and also expand its production
facilities by 100%. The above said expansion and is expected to go streamline
in the second half of the financial year 2004-05. The project is being financed
by way of term loans and further issue of share capital. During 2002-03 the
company has issued 1187000 RCP Shares at par to NRI and Bodies Corporate on
private placement basis to part finance the above said project.
Industry
Structure and Developments:
The
Iron and Steel Industry in
Riding high on the resurgent economy and rising demand, the Indian steel
industry has entered into new development stage from 2005-06 with an average
growth rate of 12% per annum in steel out put. The rapid rise has resulted in
Opportunities and
Threats:
The demand for steel will continue to grow in traditional sectors such
as infrastructure, construction, housing, automotive, steel tubes and pipes,
consumer durables, packaging and ground transportation. Specialized steel will
also be increasingly used in hi-tech engineering industries - such as power
generation, petrochemicals, fertilizers etc. According to a report by the World
Steel Dynamics, a leading global steel information service, Indian steel
industry has entered a period of massive growth not only in steel demand but
also in steel making capacities. According to Credit Swisse Group India's steel
consumption will grow by 16% fuelled by demand for construction and
infrastructure.
With this surge in demand level, steel producers have been reporting
encouraging results. A host of steel companies have line up major investment
proposals. While some of the investment is directed at modernization and
upgradation of existing plants, a major share of it is either to set up new
plants or expand existing capacities. Indian steel producers are spreading
their footprints all over the globe. Country's steel industry is getting
renewed global attention.
While the gap between the demand and supply, the high cost of raw materials has
been driving the steel prices northwards, the pressure of such steep rise on
inflation has drawn the attention of the government. Union government's recent
policy measures on steel both administrative and fiscal have meant turning a full
circle for the steel industry's 17 years after the sector was decontrolled.
Realizing that Indian steel was one of the lowest cost steel and there is a
surplus of about 2 million ton in the flat product capacity specially
galvanized sheets, government has withdrawn the export tax on the flats.
With prices so high and soaring further and cause for rise not completely
explainable, there is always fear lurking that the down turn is round the
corner.
The prices of coking coal, iron ore, energy and scrap have rocketed to
unprecedented high culminating in steel prices breaking the $1000/ton barrier.
Is the industry still poised for sustained profitability, strengthened by
industrial consolidation or is a turning point in the current super cycle to be
expected led by over capacity and the subsequent fall in prices?
Segment-wise performance The
Segments identified by the Company are as under :
1) Manufacturing Segment
2) Trading Segment
The Segmentwise performance in detail is given in Schedule 20 to the
audited accounts of the Company.
Out Look:
The International Iron and Steel Institute (IISI) forecasts 2008 will still be
another strong year for the steel industry with apparent steel use rising from 1,202
million metric tons (mmt) in 2007 to 1,282 mmt in 2008, an increase of 6.7%.
New projections for 2009 suggest a global growth rate of 6.3%.
The underlying assumption behind this forecast is that although some
weakening in the US and EU economies is expected, demand for steel will remain
healthy, thanks in part to the emerging markets which will maintain their own
dynamism.
The BRIC (
For
The outlook for Agro trade business also expected to be good keeping in
view the fairly good monsoon.
Fixed
Assets
v
v
Buildings
v
Plant
& Machinery
v
Furniture
& Fixture
v
Office
Equipments
v
Vehicles
v
Computer
As per Website Details
- A Pioneering
Spirit.
- A Clear
Vision Of Future.
- A Commitment
To Achievement.
National Steel And Agro Industries Limited
(NSAIL) formerly known as National Steel Industries Limited (NSIL) was
set up on the 9th of January 1985 with the objective of Manufacturing
Galvanized Plain Steel Coils, Galvanized Plain Steel Sheets and Galvanized
Corrugated Steel Sheets. Subject
was set up in technical collaboration with three world leaders :
CMI,
Stein
The
initial capacity of the plant was 35,000 TPA which has now been enhanced to
1,40,000 TPA.
In
1992, subject integrated
backward by setting up a 1,00,000 TPA Cold Rolling (CR) Mill. Subject has also started a 25 MW Power
Plant adjacent to its existing steel complex in order to meet the rising demand
for power.
Subject manufactures Ultra-thin
gauge GP and GC sheets, as low as 0.12 mm and width upto 1220mm for use in
roofing, defence, construction, automobile and white goods sector. Subject products are identified by
special 'APPU BRAND' printed at approx. one meter interval, over the length.
PRODUCT
BRIEF (GP/GC Sheets & Coils)
- Galvanized
Corrugated Steel Sheets as per JIS G 3302, Regular Spangle, Chromated and
Unoiled, Bright Finish & Dry
Galvanized Plain Sheets as per JIS G 3302, Regular Spangle, Chromated, Unoiled and Dry Lock forming Quality.
Galvanized Plain Steel Coils as per JIS G 3302, Regular Spangle Chromated & Dry.
The Company
was awarded with export excellence award for two consecutive years '94-'95 and
'95-'96. In '96-'97, Subject was
honoured with All India Special Shield for "Highest Exporter For Metals - All Types".
Subject exports about 35% of its
total output to South East Asia, African Countries,
Subject's wide range of products include
both, plain and corrugated forms of Galvanized Sheets.
Available in annealed and full hard conditions, these sheets are manufactured
in thickness varying from 0.16 mm to 1.25 mm and width ranging from 600 mm to
1250 mm, along with coating weight to maximum of 275 gms/sqm. Lock forming and
deep drawing qualities of galvanized sheets can be supplied against specific
orders.
Coils for bulk requirements are also available in above mentioned range with
weights varying from 2 MT to 8 MT.
Plans are already underway for the introduction of profiled and colour coated
sheets.
Subject products are known for their close tolerances,
superior finish and perfect flatness, in annealed or full hard conditions.
As the Company's products are corrosion resistant, they can withstand
fluctuations in climatic conditions and find wide applications in industries
ranging from Construction to Electrical, Furniture to Defence, Chemical to
Automobile and Packaging to Agriculture.
AGRO TRADING DIVISIONS
They have a strong presence in
Company Overview
National Steel and Agro Industries Limited, an ISO 9001:2000 company, is
a member of the Ruchi Group of Industries. They rank amongst the front-runners
in the Indian Galvanized Steel industry commanding a significant market share.
With sales of over USD 300 millions and total tonnage shipment of
300,000 MT, they service customers across continents. The products are well
established in the
With consistent export achievements, they have gained the status of Star
Trading House in exports.
They produce flat steel products - CR Coils, Galvanized steel and
Galvanized Color Coated steel products in various grades ranging from LFQ, DD,
EDD as per ASTM, JIS and other standards.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.50.09 |
|
|
1 |
Rs.74.90 |
|
Euro |
1 |
Rs. 63.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|