MIRA
INFORM REPORT
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Report Date : |
16.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
FAZE THREE LIMITED |
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Formerly Known As : |
FAZE THREE EXPORTS LIMITED |
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Registered Office : |
Survey
No. 380/1, Khanvel Silvassa Road, Village Dapada, Dadra and Nagar Haveli –
396 191 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.01.1985 |
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Com. Reg. No.: |
54-000197 |
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CIN No.: [Company
Identification No.] |
L99999DN1985PLC000197 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM20088F |
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PAN No.: [Permanent
Account No.] |
AAACF2212N |
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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 : |
Manufacturer
and Exporter of Cotton Handloom Products, Made-ups, Cushion Covers etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3400000 |
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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 an established
company and has improved its performance in 2005-06. Trade relations are
fair. General financial position is satisfactory. Payments are usually
correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office : |
Survey
No. 380/1, Khanvel Silvassa Road, Village Dapada, Dadra and Nagar Haveli –
396 191, India |
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E-Mail : |
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Website : |
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Corporate Office : |
1-2 Shiv Smriti Chambers, 49-A Dr Annie Besant Road,
Worli, Mumbai-400018, Maharashtra, India |
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Tel. No.: |
91-22-24984176/24944854 / 6660 4600 |
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Mobile No.: |
91-22-2493681/23634677 |
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E-Mail : |
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Website : |
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Factory : |
Hand Loom and
Made –ups Plant
Weaving and Made
– up Plants
Bathmat Plant
Dye house
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DIRECTORS
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Name : |
Mr. Ajay Anand |
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Designation : |
Chairman and Managing Director |
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Name : |
Mrs. Rashmi Anand |
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Designation : |
Director |
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Name : |
Mr. Sanjay Anand |
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Designation : |
Director |
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Name : |
Mr. Vasudeva Rao |
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Designation : |
Director |
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Name : |
Mr. G G Prabhu |
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Designation : |
Executive Director |
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Name : |
Mr. Martin Golla |
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Designation : |
AVP-Legal & Company Secretary |
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Name : |
Mr. Kishore M. Mahimkar |
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Designation : |
Director |
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Date of Birth/Age : |
02.08.1941 |
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Qualification : |
Solicitor |
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Expertise in Specific functional areas : |
Wide experience in Corporate Law matters |
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Date of Appointment : |
29.05.2004 |
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Name : |
Mr. Rajiv Rai Sachdev |
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Designation : |
Director |
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Date of Birth/Age : |
18.07.1955 |
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Qualification : |
BA |
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Expertise in Specific functional areas : |
Wide Experience in Entertainment and Advertising Industry |
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Date of Appointment : |
08.03.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders (as on 31.03.2007) |
No. of Shares |
Percentage of
Holding |
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Promoters
Holding |
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Promoter |
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Indian Promoters |
26549198 |
43.56% |
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Others |
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Private Corporate Bodies |
17557466 |
28.81% |
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Indian Public Limited Liability Company. The company shares are listed
on the Stock Exchange. |
16747694 |
27.48% |
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NRIs/ OCBs |
51009 |
0.08% |
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Clearing Member |
38620 |
0.06% |
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Total |
60943987 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturer
and Exporter of Cotton Handloom Products, Made-ups, Cushion Covers etc. |
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Products : |
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Exports to: |
Japan, Taiwan, Hong Kong, Germany, the US, etc. |
GENERAL
INFORMATION
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No. of Employees : |
200 |
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Bankers : |
Ø Canara Bank Ø ICICI Bank Ø
Corporation Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Thakur Vaidyanath Aiyar and Company Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Associates/Subsidiaries : |
· V R Wood Art Limited · Aunde Faze Three Autofab Limited · Instyle Investment Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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85000000 |
Equity Shares |
Rs. 2/- each |
Rs. 170.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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60943987 |
Equity Shares |
Rs. 2/- each |
Rs. 121.887 millions |
Notes:
The Authorised Share Capital of the company was changed during the year
from 65000000 Equity Shares of Rs. 2/-
each and 3000000 Preference Shares of Rs. 10/- each to 85000000 Equity
Shares of Rs. 2/- each.
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 |
121.887 |
121.888 |
44.481 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
538.136 |
536.337 |
535.828 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
660.023 |
658.225 |
580.309 |
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LOAN FUNDS |
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1] Secured Loans |
445.881 |
488.581 |
405.443 |
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2] Unsecured Loans |
434.181 |
62.682 |
17.672 |
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TOTAL BORROWING |
880.062 |
551.263 |
423.115 |
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DEFERRED TAX LIABILITIES |
85.605 |
58.986 |
41.577 |
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TOTAL |
1625.690 |
1268.474 |
1045.001 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
803.700 |
710.519 |
346.784 |
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Capital work-in-progress |
21.765 |
23.464 |
260.851 |
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INVESTMENT |
57.199 |
57.252 |
57.357 |
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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 |
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159.738
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Sundry Debtors |
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566.567
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147.748
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Cash & Bank Balances |
901.212
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11.318
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Other Current Assets |
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11.949
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Loans & Advances |
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147.083
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Total
Current Assets |
901.212
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566.567
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477.836
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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103.479
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107.637
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Provisions |
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9.410
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Total
Current Liabilities |
168.812
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103.479
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117.047
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Net Current Assets |
734.400
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463.088
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360.789
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MISCELLANEOUS EXPENSES |
8.626 |
14.151 |
19.220 |
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TOTAL |
1625.690 |
1268.474 |
1045.001 |
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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 |
1168.298 |
731.256 |
600.200 |
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Other Income |
80.411 |
51.087 |
46.000 |
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Stock Adjustments |
65.279 |
41.130 |
21.100 |
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Total Income |
1313.988 |
823.473 |
667.300 |
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Profit/(Loss) Before Tax |
78.778 |
53.025 |
41.700 |
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Provision for Taxation |
37.061 |
23.121 |
3.400 |
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Profit/(Loss) After Tax |
41.717 |
29.904 |
38.300 |
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Export Value |
927.059 |
592.668 |
NA |
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Import Value |
159.053 |
54.393 |
NA |
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Expenditures : |
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Raw Materials |
712.625 |
438.176 |
347.100 |
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Excise Duty |
NA |
NA |
13.100 |
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Power and Fuel Cost |
NA |
NA |
23.500 |
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Other Manufacturing Expenses |
NA |
NA |
59.100 |
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Employee Cost |
98.899 |
70.977 |
49.300 |
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Selling and Administration Expenses |
149.340 |
110.067 |
75.800 |
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Miscellaneous Expenses |
NA |
NA |
17.700 |
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Interest and Financial Charges |
56.702 |
27.744 |
22.000 |
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Depreciation |
39.209 |
29.747 |
18.000 |
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Operating expenses |
178.435 |
93.737 |
NA |
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Total Expenditure |
1235.210 |
770.448 |
625.600 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2008 1st
Quarter |
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Sales Turnover |
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358.500 |
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Other Income |
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|
0.400 |
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Total Income |
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358.900 |
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Total Expenditure |
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298.500 |
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Operating Profit |
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60.400 |
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Interest |
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25.000 |
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Gross Profit |
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35.400 |
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Depreciation |
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|
12.000 |
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Tax |
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|
1.400 |
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Reported PAT |
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22.000 |
KEY RATIOS
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Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.12 |
0.81 |
0.56 |
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Long Term Debt-Equity Ratio |
0.72 |
0.47 |
0.31 |
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Current Ratio |
1.59 |
1.44 |
1.70 |
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TURNOVER RATIOS |
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Fixed Assets |
1.33 |
1.18 |
1.49 |
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Inventory |
3.83 |
3.36 |
3.89 |
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Debtors |
9.33 |
5.82 |
5.20 |
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Interest Cover Ratio |
2.01 |
2.10 |
2.90 |
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Operating Profit Margin(%) |
16.72 |
17.93 |
13.61 |
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Profit Before Interest And Tax Margin(%) |
13.36 |
13.87 |
10.61 |
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Cash Profit Margin(%) |
6.92 |
8.15 |
9.38 |
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Adjusted Net Profit Margin(%) |
3.57 |
4.09 |
6.38 |
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Return On Capital Employed(%) |
11.62 |
9.48 |
7.70 |
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Return On Net Worth(%) |
6.52 |
5.00 |
7.05 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Faze Three Exports (FTEL) was incorporated as a private limited
company in January 1985, and became a deemed public limited company in Jan.'94.
It was converted into a full-fledged public limited company in May '94. Ajay
Anand, who promoted the company in 1984, is the chairman and managing director
of FTEL.
In Feb.'95, subject came out with a Rs 126.6-Millions public issue (premium: Rs
110) to part-finance the proposed EOU to manufacture furnishing fabric, etc, at
a project cost of Rs 157 Millions. The company manufactures and exports cotton
handlooms, furnishing fabric and made-ups at its unit in Haryana. Its products
include dhurries, cushions, furnishings, carpets, etc. FTEL exports to Japan,
Taiwan, Hong Kong, Germany, the US, etc. The company took over ARR Products on
31 Mar.'94. Subject was the recipient of gold medals for its export performance
in 1991-92 and 1992-93.
In 1995-96, the business was adversely affected due to an earthquake in Japan,
which constituted a major part of exports. The construction work at the new
project site at Silvassa was completed. New machineries were installed for
manufacturing bathmats, a new product item. The company is taking up new
projects as part of its expansion and diversification plans into the field of
home furnishing and other interior furnishing related products. The company has
drawn an expansion plan for Silvassa; alongwith their joint venture partners
Achter and Ebels, Germany which are pioneers in field of automotive
fabrics.
During 1998-99, the company hived of Dadra (UT) manufacturing unit and to
acquired controlling stake in V R Woodart Limited (formerly known as Veera
Treatwood Limited). V R Woodart Limited is 100 % EOU engaged in Mfg and
Exporting of Rubber wood furniture. In 1999-2000, the Autofab division of the
company has been hived off to the Joint Venture Company `Aunde Faze Three
Autofab Limited'. During March 2003 the name of the company was changed to Faze
Three Limited. The Commercial production at Dapada Factory was commenced in
April, 2002 and the expansion and modernization of the Dyeing unit at Panipat
was also completed.
In the year 2003, the name of the company was changed to Faze Three Limited.
BUSINESS
Company Operations:
The
Company continued on the profitable path in the financial year 2006-2007 also.
The growth in Sales was driven by good performance of products in the
international markets. The Sales and Other income of the Company stood at Rs
1248.710 millions during the financial year ended March 31st 2007 as compared
to Rs. 782.344 millions as recorded during the previous year ended on 31st
March 2006 thus recording a tremendous growth of 59.61%. The profit after
taxation of the company also increased by 39.50%.
Business Overview:
As
reported in earlier years the Company has augmented the capacity to meet the
projected demand. During the year the company was successful in receiving
prospective overseas orders, in turn the company has crossed historic milestone
of Rs. 1240.000 millions in sales revenue. The excellent performance of the
Company is backed by sturdy positioning of the products in the overseas
markets.
The Company is striving towards maintaining the alike performance in the future
and expecting ample opportunities in the existing fines of business.
There was no commissioning of new plants during the year. The Company is
scheduling to utilize the plant capacities to the fullest extent and in
developing the new strategies to expand its existing lines of products through
new chains of marketing/ promotional actions.
MANAGEMENT DISCUSSION AND
ANALYSIS REPORT:
OVERVIEW:
The Indian
economy continues to grow at a scorching pace, notching up its second fastest
Growth rate ever, with gross domestic product (GDP) rising 9.4% during 2006-07.
The strong performance eras pulled off on the strength of double-digit growth
rates by manufacturing and most service sectors, which ensured that the economy
grew by over 90b for the second year. With GDP at 1999-2000 prices estimated at
Rs.28481570.000 millions, the Central Statistical Organisation, which put out
the revised estimates, projected that the per capita income went lip by 8.4% to
Rs.224530.000 millions during 2006-2007.
India can envisage its textile sector becoming $100b industry by 2010.
This
will include exports of $50b. The proposed targets would be achieved provided
reforms are initiated in textile sector and local manufacturers adopt measured
to improve their competitiveness.
ECONOMY AND BUSINESS OUTLOOK:
The
Indian Textile Industry has an overwhelming presence in the economic life of
the Country. It plays a pivotal role through its contribution to industrial
output, employment generation and the export earnings of the Country. Currently
it contributed about 14% to industrial production, 4% to the GDP and 17% to the
Country's export earnings. The Textile sector is the second largest employment
provider after agriculture. Thus the growth and all round development of this
sector has a direct bearing on the improvement of the Economy of the
Country.
The Vision 2010 for textiles formulated by the government after intensive
interaction with the industry and Export Promotion Councils to capitalise on
the upbeat mood aims to increase India's share in world's textile trade from
the current 4% to 8% by 2010 and to achieve export value of US $50 billion by
2010; creation of 12 million new jobs in the textile sector; and modernisation
and consolidation for creating a globally competitive textile industry. The
main markets for Indian textiles and apparels are USA, UAE, UK, Germany,
France, Italy, Russia, Canada and Japan.
Risk and Concerns:
The
Indian textile industry is on the threshold of major changes. The very nature
of the industry is changing and India's textile industry is building a strong
and positive image on the international Front.
Indian goods are considered superior than Chinese textile products.
However,
the Government, will have to be supportive in controlling spiraling interest
rates and currency prices to help the Indian manufacturers.
While Rs.14000.000 millions package announced by the Government for the textile
industry, has come as a relief to the textile industry, the Government still
has to work towards controlling interest rates.
Internal Control Systems and its
adequacy:
The
Company has in place adequate systems of internal control procedures
commensurate with the Size and nature of the business and an effective system
of accounting to guarantee optimal use of is resources and protection thereof.
The internal control system comprises of those controls established in order
to, provide reasonable assurance of safeguarding assets against unautherized
use or disruption and maintenance of proper accounting and tile reliability of
financial information used with in the business.
AWARDS and ACCOLADES
The Company was awarded
the Silver Trophy by the Handloom Export Promotion Council, Ministry of
Textiles, and Government of India on August 22nd, 2006 in New Delhi by Hon'ble
Minister of Textiles, Shri Shankarsinh Vaghela.
FIXED
ASSETS
Ø
Land-Freehold
Ø
Building
Ø
Plant
and Machinery
Ø
Furniture
and Fixtures
Ø
Office
Equipments
Ø
Electrical
Installations
Ø
Vehicles
Website DETAILS:-
"Faze Three" is a renowned manufacturer and exporter of Home Interiors to major stores and textile companies all over the world. As a rare combination, it houses the complete line of home interiors all under one roof. Its product range includes an entire range of bedspreads, decorative cushions, tabletops, durries, throws, scatter rugs, bathmats and tufted carpets. The Company boasts of its own manufacturing facilities at prime locations and a design and research center headed by internationally acclaimed designers. "Faze Three" has been the recipient of awards from the Government of India for consistently achieving export targets in its category.
GOALS AND
OBJECTIVES
Performance and success throughout the world. Aiming for height in the markets of tomorrow. Increasing competitions and global challenges. Establishing new businesses with ease and speed.
ACHIEVEMENTS
The Company has
recently been awarded the QS 9000 certification for implementation and
application of Quality Management Systems. The Dadra plant was commissioned in
1997. The unit shares joint venture collaboration between "Faze
Three" and Aunde Achter and Ebels Gmbh (Germany). Aunde a
global giant known for its line of automotive fabrics
and seating systems has a dynamic worldwide presence having 55 plants
in 19 countries. Aunde is one of the leading suppliers of automotive fabric to
BMW, Mercedes, Ford, Volkswagen, and General Motors etc.
The unit caters to
the growing demand of the automobile industry. The state-of-the-art machinery
with the technological backing of its multinational JV partners enables
the automotive division of "Faze Three" to manufacture
international quality fabric. The Company is currently working towards being a
hub for suppliers to China and Asia Pacific.
"Faze Three’s" vision is to become an integrated manufacturer
of automotive upholstery. A vertical in-house production of Air Texturized yarn
to Lamination.
Good design and quality seat fabric create favorable impressions about an
automobile. CAD methods are employed to perfect the designs. Various kinds of
fabric are manufactured to optimize design, performance and price parameters.
Ultra modern looms, stentering and lamination machines are employed to
manufacture quality fabric. All seat covers are subjected to stringent quality
control tests, which are carried out in its laboratory modeled on international
standards.
It is a major supplier to major OEM’s like Hyundai, GM India, Ford, Fiat,
Maruti, and Daewoo. The plant is targeting to attain QS 9000 certification by
September 2001.
The unit’s design
studio in Mumbai and Dadra is backed by the latest technology and accurate
fabric engineering procedures to forecast customer needs and adhere to customer
specifications. The studio’s ability to integrate international and domestic
perspectives has given rise to a unique library of trends and designs.
The Retail outlet is
situated in a discreet corner of Nepean Sea Road - Mumbai’s high profile area.
It has proved to be the city’s newest home fashion destination. "AA
Living" as it is called is living proof of how traditional Indian weaves,
designs, fabrics and raw materials can be the inspiration for a whole
host of modern, stylish and co-ordinate décor ideas.
The parent company "Faze Three" has an exclusive team of designers for "AA Living". This
ensures exclusivity in design, as they do not supply fabric
to any other outlet in India.
V R WOODART
LIMITED
V R WOODART - the vertically integrated unit for Rubber wood produce in India started its marketing activities two years ago. The parent Company Faze Three Limited is today a major exporter of Home Interiors catering to majors all over the world.
Indian rubber wood
has a 20 year cycle as against 10 years in the Far East. This wood is
therefore, of greater dimensional stability, dense fine grain, easily workable
edges and high mechanical resistance. It also has much greater intrinsic
strength with even thickness and uniformity in light colors for staining and
lacquering.
Location
Highlights
The plant is located in the state of Kerala, which is one of the largest untapped resources of rubber wood in the world. Cochin being a port city makes shipment for products fast, frequent and cost-effective.
About the Plant
The V R Woodart plant is a vertically integrated Company having 3 factories; one for processing and the other for finishing. The third is under construction in Tamilnadu. It is a state-of-the-art manufacturing unit backed by International standards and development facilities. A well managed work force and professionally managed team of dynamic result oriented people ensure uncompromising quality and timely deliveries of products. The unit boasts of an in-house quality control department, which assures an international standard of all its products. The plant is currently supplying products to majors in the U.S. and the U.K.
Products
Its intrinsic strength
lies in having one of the finest machines for making up to 12 feet laminated
boards. The machine mix allows it to manufacture products such as panel boards,
S4S, Face Frames, doors along with the complete range of household and kitchen
accessories.
The unit at Panipat
about 90 Kms from Delhi, the capital of India, is spread over 69,000 sq. meters
along with a factory at Dadra spread over 20,000 sq. mts.
The in-house manufacturing facilities backed by continuous improvement and
technology upgradation have given the unit a competitive edge. The unit boasts
of a large worldwide customer base in USA, Europe, Australia and Japan and is
an accredited supplier to major Home Stores namely JC Penney, Marks and Spencer, Wal-Mart etc. and
also to textile companies such as Mohawk, Springs, Whitley Willows and Selkon
to name a few.
Outstanding
creativity, innovation, uncompromising quality, value addition, fair
competitive pricing, practical implementation, global perspective have
contributed to making "Faze Three" one of the
known Indian exporters of home furnishings. It has been the recipient of
the Silver Trophy for 3 consecutive years awarded by the Government of
India for achieving the second highest sales in its category. Ultra modern
looms, dyeing facilities, latest designing and development strategies are
employed to produce world-class products, which are being sourced to major
textile giants all over the world.
OTHER INFORMATION:
|
Contingent Liabilities |
31.03.2007 (Rs. in
millions) |
|
Bills discounted |
48.339 |
|
Bank guarantee |
2.250 |
|
Corporate Guarantee for Loan |
37.500 |
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 records 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. 48.43 |
|
UK Pound |
1 |
Rs. 84.54 |
|
Euro |
1 |
Rs. 65.91 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
69 |
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 |
|