MIRA
INFORM REPORT
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Report Date : |
10.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
NEYCER INDIA LIMITED |
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Formerly Known As : |
Neiveli Ceramics & Refractories Limited |
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Registered Office : |
33/24 A,Ranjith Road,Kotturpuram,Chennai-600085,Tamilnadu. |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.05.1960 |
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Com. Reg. No.: |
004145 |
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CIN No.: [Company
Identification No.] |
L26109TN1960PLC004145 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEN05005A |
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PAN No.: [Permanent
Account No.] |
AAACN1998D |
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Legal Form : |
Public Limited Liability Company. The Company Shares Are Listed On
Stock Exchange |
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Line of Business : |
Manufacturing And Marketing Of Vitreous China Sanitaryware And Ceramic Floor Tiles. |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Poor Sick Company |
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Payment Behaviour : |
Delayed |
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Litigation : |
Exist |
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Comments : |
Subject is a sick company having ways and means position is difficult.
Payments are reported as slow and delayed due to liquidity problem. The company can be considered for any business dealings on safe and
secured trade terms and conditions only. |
LOCATIONS
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Registered Office : |
33/24 A,Ranjith Road,Kotturpuram,Chennai-600085,Tamilnadu,India. |
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Tel No.: |
91-44-24471642 / 24471842 |
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Fax No.: |
91-44-24471641 |
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Works: |
SANITARYWARE
DIVISION Neycer India Limited Vadalur-607303 Cuddalore District, Tamilnadu TILES DIVISION Pillayarkuppam Bahour Commune Pondicherry - 607 402. |
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Corporate Office |
15, Cenotaph Road, II Lane, Alwarpet, Chennai – 600 018, Tamilnadu |
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Tel No.: |
91-44-24347836 / 24347843 |
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Fax No.: |
91-44-24335901 |
DIRECTORS
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Name : |
Mr.V.Ramnath |
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Designation : |
Managing Director |
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Age : |
51 years |
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Experience : |
25 years |
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Profile: |
Mr. V. Ramnath has more than 25 years of industrial experience and has
turned around sick companies. He is an engineering graduate, (ceased w.e.f.
17-07-2006) |
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Name : |
Mr.Krishna Prasad Tripuraneni |
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Designation : |
Director |
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Age : |
51 years |
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Profile: |
Mr.Krishna Prasad Tripuraneni is the Promoter of Spartek and at
present he is Managing Director of Spartek Ceramics India Limited. He has a
Bachelors degree in Engineering from Andhra University and MS in Electrical
Engineering from the Illinois Institute of Technology, USA. |
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Name : |
Mr.Y.M.Prasad |
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Designation : |
Director |
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Age : |
56 years |
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Profile: |
Mr. Mohan Prasad has experience in construction sector in India |
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Name : |
Mr.B.S.Shailendar |
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Designation : |
Director |
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Age : |
53 years |
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Profile: |
Mr. B.S. Shailendar is a science graduate with about 25 years
experience in journalism and H R Administration functions with various
institutions |
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Name : |
Mr. C. R.
Vijayaraghavan |
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Designation : |
Director
(LIC Nominee) |
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Name : |
Mr. K. L.
Ramanathan |
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Designation : |
Director |
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Name : |
Mr. T.
Venkateswara Rao |
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Designation : |
Chairman
and Managing Director |
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Name : |
Mr. Arun
Santhosh |
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Designation : |
Whole Time
Director and President |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and Directors |
4864575 |
79.63 |
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Body Corporates |
14725 |
0.24 |
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Banks, Mutual Funds and Insurance Companies |
705475 |
11.55 |
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Resident Indians |
524805 |
8.58 |
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Total |
6109580 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing And Marketing Of Vitreous China Sanitaryware
And Ceramic Floor Tiles. |
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Products : |
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GENERAL
INFORMATION
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Suppliers : |
v Ashok Industries v C.R. Agency v Earnest Plastic
Private Limited v Dynamic Mines v Ganesh Cermacics
& Refractories v Dhanalaxmi
Minerals v Godavari Mines
& Minerals v Pure Chemicals v Rock Pack P
Limited v Sri Venkteswara
Products v Sri Satyasai
Mines & Minerals v Shanmukam Zircon
v Sri Balaji
Minerals v Sri Devi
Minerals v Srinivasa
Polymers |
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No. of Employees : |
200 |
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Bankers : |
Bank of India Indian Overseas Bank |
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Facilities: |
From Financial Institutions:
Due within one year Rs.145.580Millions (Previous. year Rs. 134.318
Millions) NOTES: 1. The Loans from
financial institutions are secured by equitable mortgage of all immovable
properties of the Company and hypothecation of all movable properties (except
book debts) including machinery, machinery spares, tools and accessories,
present and future subject to prior charge created in favour of Company's
bankers on Company's stocks of raw materials, semi-finished and finished
goods, consumable stores etc., and shall rank pan passu among themselves. 2. a) In respect
of rupee loans sanctioned by ICICI, IDBI & LIC, the said institutions
have an option to convert the loans outstanding or any part thereof not
exceeding 20% of the loans sanctioned, into equity shares of the company at
par. b) In respect of
loans sanctioned under rehabilitation package the institutions viz., ICICI
and IDBI have an option to convert the entire loan amount into equity shares
of the company at par,.any time during the currency of the loans. 3. a) Cash
credit is secured by the hypothecation of stores & spares, raw materials
, stock -in-process, finished goods and book debts. b) The term
loans from Bank are secured by a second charge on the fixed assets of the
Company. 4. The loans
from financial institutions under rehabilitation package and term loans from
bank are guaranteed by the holding company, viz., Spartek Ceramics India
Limited. |
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Auditors : |
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Name : |
AUDIT COMMITTEE Mr. Krishna Prasad Tripuraneni, Chairman Mr. Y. Mohan Prasad Mr. B S Shailendar Auditors : M/s. Suri & Co. Chartered Accountants, Chennai |
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Parent Company: |
Ø Spartek Ceramics India Limited |
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3,00,000 |
Cumulative Redeemable Preference Shares |
Rs. 10/- Each |
Rs.3.000
Millions |
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2,97,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs.297.000
Millions |
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Total |
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Rs.300.000
Millions |
Issued Capital:
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No. of Shares |
Type |
Value |
Amount |
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15,000 |
9.5% Cumulative Preference Shares |
Rs. 10/- Each |
Rs.0.150 Million |
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61,66,315 |
Equity Shares |
Rs. 10/- Each |
Rs.61.663 Millions |
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Total |
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Rs.61.813 Millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,000 |
9.5% Cumulative Preference Shares |
Rs. 10/- Each |
Rs.0.150
Million |
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61,09,580 |
Equity Shares |
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Rs.61.095 Millions |
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Total |
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Rs.61.245 Millions |
NOTE
i) 17,700 Equity shares of Rs. 10/-- each have been allotted as fully
paid-up by way of consideration other
Than cash
ii) 4,20,000 Equity Shares of Rs. 10/- each have been allotted as fully
paid-up by way of Bonus shares
iii) 47,64,800 equity shares are held by Holding Company viz. Spartek
Ceramics India Limited
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
61.245 |
61.245 |
61.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
20.220 |
20.220 |
(334.400) |
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4] (Accumulated Losses) |
(525.469) |
(425.082) |
0.000 |
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NETWORTH |
(444.004) |
(343.617) |
(273.200) |
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LOAN FUNDS |
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1] Secured Loans |
157.873 |
187.991 |
238.200 |
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2] Unsecured Loans |
117.422 |
61.995 |
10.700 |
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TOTAL BORROWING |
275.295 |
249.986 |
248.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
(168.709) |
(93.631) |
(24.300) |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
73.738 |
94.747 |
112.900 |
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Capital work-in-progress |
3.865 |
3.865 |
03.900 |
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INVESTMENT |
0.150 |
0.150 |
00.300 |
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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 |
71.155
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70.150 |
72.100 |
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Sundry Debtors |
9.114
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19.228 |
50.000 |
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Cash & Bank Balances |
6.755
|
2.782 |
03.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
19.139
|
43.924 |
41.200 |
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Total
Current Assets |
106.163
|
136.084 |
167.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
351.425
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327.827 |
308.500 |
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Provisions |
1.200
|
0.650 |
0.000 |
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Total
Current Liabilities |
352.625
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328.477 |
308.500 |
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Net Current Assets |
(246.462)
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(192.393) |
(141.400) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
(168.709) |
(93.631) |
(24.300) |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
128.833 |
155.015 |
230.200 |
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Other Income |
2.031 |
2.274 |
01.900 |
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Total Income |
130.864 |
157.289 |
232.100 |
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Profit/(Loss) Before Tax |
(99.836) |
(69.812) |
(84.200) |
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Provision for Taxation |
0.550 |
0.650 |
0.000 |
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Profit/(Loss) After Tax |
(100.386) |
(70.462) |
(84.200) |
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Imports : |
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Raw Materials |
3.269 |
0.378 |
0.000 |
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Stores & Spares |
1.634 |
0.000 |
0.000 |
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Total Imports |
4.903 |
0.378 |
0.000 |
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Total Export |
2.087 |
1.998 |
0.000 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
17.400 |
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Administrative Expenses |
0.000 |
0.000 |
35.100 |
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Raw Material Consumed |
25.890 |
22.702 |
37.800 |
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Purchases made for re-sale |
4.316 |
2.244 |
0.000 |
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Increase/(Decrease) in Finished Goods |
(14.990) |
1.245 |
(02.200) |
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Interest |
19.427 |
19.162 |
44.800 |
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Power & Fuel |
34.969 |
33.168 |
48.800 |
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Depreciation & Amortization |
4.948 |
18.228 |
18.200 |
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Other Expenditure |
156.140 |
130.352 |
116.400 |
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Total Expenditure |
230.700 |
227.101 |
316.300 |
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SUMMARISED RESULTS
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PARTICULARS |
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|
31.03.2008 |
|
Type |
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|
Full
Year |
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Sales Turnover |
|
|
123.800 |
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Other Income |
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|
01.600 |
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Total Income |
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|
125.400 |
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Total Expenditure |
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|
142.600 |
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Operating Profit |
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|
(17.200) |
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Interest |
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|
21.600 |
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Gross Profit |
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|
(38.800) |
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Depreciation |
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|
04.800 |
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Tax |
|
|
00.300 |
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Reported PAT |
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|
(43.900) |
QUARTERLY RESULTS
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PARTICULARS |
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|
30.06.2008 |
|
Type |
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|
1st
Quarter |
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Sales Turnover |
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|
33.600 |
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Other Income |
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|
00.700 |
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Total Income |
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|
34.300 |
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Total Expenditure |
|
|
30.300 |
|
Operating Profit |
|
|
04.000 |
|
Interest |
|
|
03.000 |
|
Gross Profit |
|
|
01.000 |
|
Depreciation |
|
|
01.200 |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
(00.200) |
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.00 |
0.00 |
0.00 |
|
Long
Term Debt-Equity Ratio |
0.00 |
0.0 |
0.00 |
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Current
Ratio |
0.34 |
0.41 |
0.52 |
|
TURNOVER
RATIOS |
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|
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Fixed
Assets |
0.38 |
0.40 |
0.59 |
|
Inventory |
1.92 |
2.18 |
3.14 |
|
Debtors |
10.52 |
4.48 |
3.79 |
|
Interest
Cover Ratio |
(4.14) |
(2.63) |
(0.88) |
|
Operating
Profit Margin(%) |
(50.74) |
(20.84) |
(9.21) |
|
Profit
Before Interest And Tax Margin(%) |
(54.03) |
(32.58) |
(17.12) |
|
Cash
Profit Margin(%) |
(64.18) |
(33.68) |
(28.67) |
|
Adjusted
Net Profit Margin(%) |
(67.47) |
(45.42) |
(36.58) |
|
Return
On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return
On Net Worth(%) |
0.00 |
0.00 |
0.00 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 12th May, 1960 at Chennai in Tamilnadu
having Company Registration Number 4145.
DIRECTORS REPORT
SANITARY WARE DIVISION:
The performance of
this division continued to be adversely affected in the year under review on
account of lack of working capital. Though there was a slight improvement in
production during the current year at 4749 MT, the sales was marginally lower
at Rs 148.800 millions as compared to
4340 MT and Rs.155.000 millions in the previous year. Low and irregular supply
of natural gas, break down of one kiln adversely affected the overall
production in the division. Initial problem faced in obtaining continuous
supply of natural gas has now been overcome.
TILES DIVISION:
The operations of
the division continued to remain inoperative. The company continues to probe the
possibility of trading activity by outsourcing in order to overcome the
prohibitive cost of manufacturing due to non-availability of natural gas and
huge further investments needed in view of detoriated and outdated
assets.
PROPOSED RESTRUCTURING:
The proposed restructuring could not be completed in this year due to
delay in obtaining statutory approvals. However, there has been substantial
progress subsequently and the company is confident of completing the
restructuring in the year 2007-08 impact of whose benefit is finely to be seen
in the year 2008-09.
A proposal has been submitted in this connection to the Bank of India,
the company's bankers for sanction of a fresh term loan to part-fund a Capital
Expenditure programme to enhance productivity and capacity utilization by
installation of new kilns and balancing equipment. The same is in the process
of being appraised by the Bank.
SETTLEMENT OF FINANCIAL INSTITUTION DUES:
The debts due to
secured lenders other than Bank of India and LIC of India has been the subject
matter of an assignment in favour of new investors by negotiation with the
lenders and substantial progress has been achieved in this front.
BIFR STATUS:
The company is in the process of preparation of a
detailed Scheme for Rehabilitation of the company for submission to the Hon'ble
BIFR which will encompass the Capex programme with Bank of India together with
other financial restructuring modes, concessions and waivers from statutory
payments etc. On sanction, it is expected that the company will go through a
quick turn-around and make its Net Worth positive within a short time.
Management
Discussion and Analysis Report:
The financial year ending 31st March, 2007 was also not a
good year for the Company. The operations of the tiles division continued to be
under suspension during the year under review. Despite comfortable order
booking, dispatches in sanitary ware plant were affected because of low
production and low stock availability. Inadequate supply of natural gas, insufficiency
of working capital resources, the delay in the implementation of the
restructuring scheme, and the turbulent labour situation, all in combination,
severely affected the overall operations of the Company. Thus, even though the
construction industry is doing extremely well in the economy, the Company could
not take advantage of the favorable situation.
CERAMICTILE
DIVISION
Industry
Scenario and developments
The ceramic tiles industry in India has followed similar
trends internationally which have also been characterized
by excess capacities and falling margins. Countries like
Malaysia, Thailand, Indonesia, Srilanka and Vietnam are
setting up their own plants. China is emerging as a major
competitor. Producers from Spain and Italy have the advantage of lower
transportation costs while exporting to USA and Germany. In India, the per
capita consumption is as low as 0.1 sq.mt. compared to 0.3 and 5 sq.rnt. in
China and Europe respectively. Rising disposable incomes of the growing middle
class and 40.000 million units of housing shortage, however, hold out a great
potential.
A major change that took over the ceramic tiles industry, in
last three years was the introduction of vitrified, porcelain tiles and
introduction of large format tiles. These new entrant product types are said to
be the tiles of the future. Internationally these tiles are already the major
sellers. These category of products account for more than 30% of all organized
sales in this industry (approx. INR 4.00 Billion).
These new products and the conventional wall and floor tiles
have together made the organized industry grow to a formidable Rs.40000.000
millions crore (INR 40.00 billion) industry. This coupled with a spate of
expansions by many players make the industry look very promising in the future.
The Indian Industry has developed an export market although
at the lower end. In volume it constitutes less than
half a percent of the global market. (Presently India does not
figure in the list of major exporting countries). But this reality could change
as Indian exports are rising at the rate of 15% per annum.
Sanitaryware
Division
Industry Scenario and developments
As per the research reports, in India, more than 60% of the
population does not have access to sanitation systems. There is also a shortage
of 50.000 million dwelling units. Low per capita consumption of sanitary ware
(less than 2%), the perpetual shortage of dwelling units outlines tremendous
potential for sanitary ware products. Change in life style, high disposable
income, concern for high quality toilets in middle income group segment and
above is resulting high growth of higher end sanitary products and this trend
is likely to continue for the next five years. To capitalize on the emerging
opportunities in sanitary ware industry, all existing major players are going
for capacity expansion and new entrants (including global brands) are setting
up shops in India despite strong entry barrier for any new brand in the
industry.
Business
Review
This has been dealt with in detail in the Directors' Report
to the Shareholders.
Marketing
and Distribution
In the last twelve months, the company has been focusing more
on the consolidation of its distribution network in south and east markets
where it has strong brand image and sub dealer network. As a result of above
measures, order position of the company product has significantly improved. Due
to current supply constraints, expansion and distribution in other market is
yet to be taken. The discounts and incentive schemes are also being reviewed
periodically to make it at par with competition. Focus is also made on projects
segment. Over all objective of the marketing strategy of the company still
continues to be dealer 'push' till the time capacity de-bottlenecking is done.
Future
Outlook
'Neycer' is one of the oldest sanitary brands, known for its
colours, designs styles and superior products with
innovation features. Because of these factors NEYCER is able
to stifle the stiff competition from other brands without any significant
investment in advertisement and promotion. NEYCER has submitted a revised
comprehensive proposal to its banker which seeks permanent solution to its long
term problems by modernisation, capacity expansion of its existing
manufacturing facilities at Vadalur and restructuring of debts and equities.
The proposal is expected to be accepted and financial facilities provided by
the bank shortly. With finalisation of strategic investments, the Directors are
confident of earning profits and wiping out its entire negative net worth in
less than three years.
Financial
performance
The financial performance of the company for the year ended
31st March 2007 continued to be poor as the problems pertaining to availability
of gas, labour problems, working capital constraints all continued. However the
situation is expected to improve in the coming year in view
of the stability in availability of natural gas, expected
modernisation and improvement in working capital
availability.
The company is in trade terms with:-
Ø Bhanu Cerglaze Private Limited
Ø B. P. Engineering
Ø Kalamani Industries
Ø Nagaraj Pulverising Mills
Ø Standard Packaging Private Limited
Ø Sri Sivananda Packaging
Ø Sai Lalith Industries
Ø Sri Meenakshi Silica Private Limited
Ø Shanthinath Minerals
Ø Sri Venkateswara Products
Ø Shri Bharath Ramchand Products
Ø Ashok Industries
Ø Alphari Plasters Private Limited
Ø Jyothi Plastics
Ø Patel Plastic Corporation
Ø Precitech Plastics
Ø Plascomps
Ø Sri Balamurugan Chemicals
Ø Superflo Private Limited
Ø Shanmukam Zircons Private Limited
Ø Star Tape Private Limited
Ø Sri Balaji Plasters
Ø S. P. Industries
Ø The Capital Trading Company
Ø Victory Chemicals Private Limited
Ø Yantra Shilpa Udyog Private Limited
FIXED ASSETS
v Land
v Buildings
v Plant and
Machinery
v Electrical
v Installations
v Furniture and
Fittings
v Vehicles
v Research and
Development
v Buildings
v Plantand Machinery
v Electrical
Installation
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.48.74 |
|
UK Pound |
1 |
Rs.85.19 |
|
Euro |
1 |
Rs.66.12 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
8 |
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 |
|