MIRA
INFORM REPORT
|
Report Date : |
02.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
FINE JEWELLERY MANUFACTURING LIMITED |
|
|
|
|
Registered Office : |
Plot No. GJ/12, Seepz - Sez ++ Complex, MIDC, Marol, Andheri (East),
Mumbai – 400096, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
08.10.2001 |
|
|
|
|
Com. Reg. No.: |
133589 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U36911MH2001PLC133589 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMF028648 |
|
|
|
|
Legal Form : |
A Closely held Public Limited
Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of Jewellery |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having satisfactory track.
Trade relations are fair. Financial position is satisfactory. Payments are
usually correct and as per commitments. Nothing adverse reported. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office / Export Unit : |
Plot No. GJ/12, Seepz - Sez ++ Complex, MIDC, Marol, Andheri (East),
Mumbai – 400096, Maharashtra, India |
|
Tel. No.: |
91-22-30804080 |
|
Fax No.: |
91-22-28292728 |
|
E-Mail : |
|
|
Website : |
http://www.fine-jewellery.com |
|
|
|
|
Domestic Unit: |
Fine Jewellery (India) Limited Plot No. 14, WICEL, Opp. Seepz, MIDC, Andheri (East), Mumbai – 400093,
Maharashtra, India |
|
Tel. No.: |
91-22-30813939 |
|
Fax No.: |
91-22-30813999 |
|
E-Mail : |
|
|
|
|
|
United States : |
FJIL, Inc 608, 5th Avenue, Suite # 405 A, New York – 10020 Tel. No.: +1 212 265 3707 / 7787 Fax No.: +1 212 265 7797 E-Mail : usa@fine-jewellery.com Nirvana Inc. 4923, East, 71st Street, Tulsa, Oklahoma 74136 Tel No.: +1 918 6648471 Fax No.: + 918 6646277 |
|
|
|
|
Dubai : |
Thangam Jewel LLC, 301, Gold Land Building, Dubai – UAE |
|
Tel. No.: |
+97 1 42 258019 |
|
Mobile : |
+97 1 42 258019 |
|
Fax No.: |
+97 1 42 260495 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Saurabh Surendrabhai Bhow |
|
Designation : |
Director |
|
Address : |
21, Sumadhur Co-Op. Housing Society, Nr. Manekbaug Society, Ambawadi, Ahmedabad 380015, Gujarat |
|
Date of Birth/Age : |
24.07.1956 |
|
Date of Appointment : |
29.12.1997 |
|
|
|
|
Name : |
Mr. Vinayak M. Shirsat |
|
Designation : |
Director |
|
Address : |
9/A/401, Ekta CHS, MHADA Complex, Chandivali, Andheri (East), Mumbai –
400072, Maharashtra |
|
|
|
|
Name : |
Mr. Rajesh Kothari |
|
Designation : |
Director |
|
Address : |
112A, Embassy Apartments, Nepeansea Road, Mumbai – 400006, Maharashtra |
|
|
|
|
Name : |
Mr. Premkumar Lalitkumar Kothari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sohil Premkumar Kothari |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bipin Nathalal Sagar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Viral Kothari |
|
Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2005
|
Names of Shareholders |
No. of Shares |
|
Mr. Premkumar L. kothari |
100 |
|
Mr. Rajesh Lalitkumar Kothari |
100 |
|
Mr. Sohil Premkumar Kothari |
100 |
|
Mrs. Smita Premkumar Kothari |
100 |
|
Mrs. Sonal Rajesh Kothari |
100 |
|
Mr. Bipin Nathalal Sagar |
100 |
|
Mr. Oolupi Bipin Sagar |
100 |
|
Fine Jewellery (India) Limited |
50000 |
As on 31.03.2007
|
Category |
Percentage of
Holding |
|
Foreign holdings(FIIS, FCs, FFIs, NRIs or OCB) |
25.00 |
|
Bodies Corporate |
42.00 |
|
Directors ore relatives of directors |
33.00 |
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Jewellery |
GENERAL
INFORMATION
|
No. of Employees : |
800 |
|
|
|
|
Bankers : |
˛ Union Bank of India Overseas Branch Seepz++, Building No. 2, Gala No. 007, Seepz++ Complex, Marol Industrial Area, Jogeshwari – Vakola Link Road, Andheri (East), Mumbai – 40093 ˛ Punjab National Bank Offshore Banking Unit, Seepz, Andheri (East), Mumbai – 400096, Maharashtra, India |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Kantilal B. Parekh Chartered Accountants |
|
Address : |
606, Om Chambers, Kemps Corner, Mumbai – 400036, Maharashtra |
|
|
|
|
Sister Concern : |
Fine Jewellery (India) Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9600000 |
Equity Shares |
Rs. 10/-
each |
Rs. 96.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
96.000 |
60.000 |
45.743 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
77.694 |
52.972 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
173.694 |
112.972 |
45.743 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
417.465 |
352.794 |
99.102 |
|
|
2] Unsecured Loans |
31.375 |
33.645 |
12.010 |
|
|
TOTAL BORROWING |
448.840 |
386.439 |
111.112 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
622.534 |
499.411 |
156.855 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
186.546 |
179.798 |
17.985 |
|
|
Capital work-in-progress |
7.700 |
3.838 |
110.421 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
3.755 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
462.785
|
664.457 |
53.593 |
|
|
Sundry Debtors |
354.716
|
271.148 |
0.000 |
|
|
Cash & Bank Balances |
7.679
|
9.534 |
3.649 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
6.410
|
8.559 |
1.571 |
|
Total
Current Assets |
831.590
|
953.698 |
58.813 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
396.152
|
640.936 |
|
|
|
Provisions |
9.594
|
0.245 |
|
|
Total
Current Liabilities |
405.746
|
641.181 |
38.182 |
|
|
Net Current Assets |
425.844
|
312.517 |
20.631 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
2.444 |
3.258 |
4.063 |
|
|
|
|
|
|
|
|
TOTAL |
622.534 |
499.411 |
156.855 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
1183.658 |
679.912 |
|
|
Other Income |
|
0.000 |
0.000 |
|
|
Total Income |
|
1183.658 |
679.912 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
70.071 |
53.217 |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
70.071 |
53.217 |
|
|
|
|
|
|
|
|
Export Turnover |
|
1183.410 |
679.799 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest |
|
43.763 |
21.148 |
|
|
Depreciation & Amortization |
|
33.374 |
17.974 |
|
|
Other Expenditure |
|
1036.450 |
587.573 |
|
Total Expenditure |
|
1113.587 |
626.695 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
5.92
|
7.82 |
-- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.92
|
7.82 |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.92
|
7.82 |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.47 |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.33
|
5.67 |
0.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.04
|
1.49 |
1.54 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
˛ Land
and Building
˛ Plant
and Machinery
˛ Electrical
installation
˛ Furniture
and Fixture
˛ Office
Machinery
˛ Vehicles
˛
Computers
Form 8:
|
Name of the company |
FINE JEWELLERY MANUFACTURING LIMITED |
|
Presented
By |
Union Bank of India, Overseas Branch Seepz++, Mumbai |
|
1) Date and description of instrument creating the change |
8.05.2004 a) General Term Loan Agreement (SD-18) b) Term Loan Agreement (SD-19) (Hypothecation of movable) (Both the documents constitute a single charge) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
US$0.61 million (Rs.27.500 millions) |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The borrower hypothecation and charge to the Bank: a) Casting machine, wax injector and accessories, vulcanizes, CNC lathe, Plating equipment, tools and equipments, ultrasonic machine, lathe polishing machine, bunt out furnaces, grooving machines, CC TV Lamps etc. b) All the tangible movable machinery and plant of the borrower together with spares, tools and accessories and other movables, both present and future, whether lying loose or in case which are now lying or stored or about or shall be brought into or be stored or in or upon or about the borrower’s premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the borrower’s works at Plot No. GJ/12, Seepz - Sez ++ Complaex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Term Loan Amount; US $ 0.61 millions (Rs.27.500 millions) repayment of installments: Commencing from 31.03.2005 No. of Amount of Tenure Installment installments 2004-2005 Rs. 1.725 millions Quarterly 2005-2006 Rs. 6.875 millions Quarterly 2006-2007 Rs. 6.875 millions Quarterly 2007-2008 Rs. 6.875 millions Quarterly 2008-2009 Rs. 5.150 millions Quarterly Interest : BPLR+2% p a with quarterly rests |
|
5) Name and Address and description of the person entitled to the charge. |
Union Bank of India, Overseas Branch Seepz++, Building No. 2, Gala No. 007, Seepz++ Complex, Marol Industrial Area, Jogeshwari – Vakola Link Road, Andheri (East), Mumbai - 40093 |
Form 8
|
Corporate identity number (CIN) Foreign company registration number |
U36911MH2001PLC133589 |
|
Name of the Company |
FINE JEWELLERY MANUFACTURING LIMITED |
|
Address |
Plot No. GJ/12, Seepz - Sez ++ Complaex, MIDC, Marol, Andheri (East), Mumbai – 400096, Maharashtra |
|
This form is for |
Creation of charges |
|
Type of Charge |
Movable property (not being pledge) |
|
Particulars of the charge holder |
Punjab National Bank Offshore Banking Unit, Seepz, Andheri (East), Mumbai – 400096, Maharashtra E-Mail: anilahuja@pnboffshore.com |
|
Amount secured by the charge |
Rs.6.000 millions |
|
Brief of the principal terms and conditions |
Rate of Interest: Interest@6 month LIBOR +% p a or such other rate as may be fixed from time to time by the Bank Margin: The company has to keep and maintain 10% margin on hypothecation goods and commodities as specified in the schedule of securities and margin Extent and operation of the charge: Punjab National Bank, have sanctioned packing credit facilities of USA 135000 to the company against hypothecation of raw materials , stocks in process, finished goods – gold platinum, plain and studded jewellery, precious and semi precious stones, rough, cut and polished diamonds, packing materials as per schedule of security and margin in the agreement. |
|
Description of the property charged indicating |
Packing credit agreement (hypothecation) |
|
Date of Instrument creating charge |
16.07.2007 |
As Per Web Details
Company Profile:
Established in 1987, Subject was among the first six factories to set up the Jewellery unit in Seepz. Fine Jewellery, a technologically- advanced organisation driven by the vision to be a leader in the mass produced diamond jewellery segment has now grown into a multi-million dollar enterprise, converting aspirations to reality of diamond jewellery connoisseurs in more than 17 countries such as The United States, UK, Australia and the Middle East.
Continuous Development
The consumers are the fulcrum around which all their efforts are concentrated. They believe in their professional commitment of Purity, Clarity, Innovation and above all designing excellence.
Their design team that brought the ‘Invisible’ diamond setting technique to Indian
shores using CAD/CAM technology has pioneered many a design revolution,
including the patented ‘Mystery Setting’. They have been instrumental in they
being bestowed with a plethora of prestigious awards at events organized by
eminent organizations like De Beers, GJEPC (Gem and Jewellery Export Promotion
Council), and magazines like “Retail Jeweller’ to name a few.
Their organizational philosophy is reflected in the multi-tier quality control system and in their endeavor to consolidate their position as the market leader in the area of designer wear diamond jewellery.
Being one of the largest exporters of diamond jewellery, their unparalleled global industry experience is reflected in commitment to deliver outstanding products, world-class customer service, with processes to ensure that the name represents the highest standards of professional quality throughout the world.
Press Release:
Fine Jewellery plans to raise Rs 2000.000 millions via IPO
Vinay Umarji /
Mumbai/ Ahmedabad February 7, 2008
Company to expand
its capacity from 2,500 units to 4,000 units per day.
To cater to the
growing domestic demand, diamond jewellery manufacturing and marketing company,
Fine Jewellery India Limited (FJIL), is expanding its capacity from 2,500 units
per day to 4,000 units per day, at a cost of between Rs 150.000 millions and Rs
200.000 millions. The expansion is expected to be completed by June 2009.
To fund the
expansion, the 30-year-old company, part of the Mumbai-based Fine Group, is
contemplating raising close to Rs 2000.000 millions through an initial public
offering (IPO).
“They are in the
process of talking to merchant bankers to take the IPO route. The IPO proceeds
will be utilised to expand the manufacturing units, besides ramping up the
domestic retail network over the next three years,” said Sohil Kothari,
director, Fine Jewellery India.
On the retail front,
the company at present markets diamond jewellery under the ‘Nirvana’ brand in
malls and multi-brand outlets across the country. FJIL is now set to launch its
own standalone stores, five to begin with, in the 2008-09 financial year.
“Gujarat will be a
major market for the retail plans. The state forms around 11 per cent of the Rs
400.000-500.000 millions turnover,” he added.
Post-expansion, FJIL
will focus more on the domestic market instead of exports. “Domestic sales will
contribute 50 per cent to the overall business, from the present 30 per cent,”
he said.
The jewellery market
in India is estimated to be Rs 800000.000 millions at the retail level, of
which diamond jewellery accounts for 12 to 15 per cent.
Competitive Strengths
v Qualified and competent Board of Directors.
v Dedicated and skilled personnel
v State-of art manufacturing facility spread over 66000 square feet with stringent quality control and installed capacity to produce 1 million pieces per year
v A team of Industrial Engineers dedicated to Process Improvements and Quality Assurance
v Distribution network through the offices in New York, Dubai, Hong Kong and Mumbai.
v Patented diamond settings techniques and designs offering differentiation and uniqueness in the product.
v Pioneered various revolutionary settings - Pressure setting, Invisible setting and Mystery setting
v An award winning design team (of 40-50 designers in India and around 30 designers accessible in Hong Kong) that stays abreast with latest trends and creates a wide array of designs.
Collections
v
Eden
v
Harmony
v
Icy Cube
v
Misaki
v
Mystere
v
Mystique
v
Rosette
v
Spice
Brands
Nirvana is a range of exquisitely crafted diamond jewellery in 18 K yellow or white gold. Launched in India in 2002, Nirvana has carved a niche for itself by being a trend-setter in the industry. In a short span, it has come to be known as one of the leading diamond jewellery brands in the country. The brand has more than 600 designs that are innovative and contemporary especially launched for the new age customer who buys jewellery as a fashion statement.
Press Release
Press Trust of India
/ Mumbai June 08, 2008, 16:51 IST
Leading diamond jewellery
exporter, Subject has drawn up a Rs 1150.000 millions capital expenditure plan
over the next three years to set up retail outlets as well as increasing
manufacturing capacity, a top company official said.
They are setting up
30 stand-alone stores for 'Nirvana' brands in 10 major towns in the next three
years and increasing the manufacturing capacities to supply to these retail
outlets. The capex is estimated at Rs 1150.000 millions Fine Jewellery's
Director, Sohil Kothari, said.
The company proposes
to raise $25 million through private equity in the next six months. It is also
considering raising funds through an initial public offer (IPO), Kothari
said.
The
"Nirvana" brand, which is positioned as a lifestyle brand, has been
the number two brand in the domestic market in the branded jewellery segment.
It will now be sold through exclusive jewellery
boutiques.
The company has
decided to expand its domestic retail business in view of the 18 to 20 per cent
growth in the domestic jewellery market, Kothari said.
Nirvana jewellery to have standalone stores
[7th Feb. 2008]
Date: 07.02.2008
FJIL is focusing on Gujarat as the state contributes around 11 per cent of the company‘s turnover, which is over Rs. 400.000 millions.
FJIL will also focus more on the domestic market instead of exports. “Domestic sales will contribute 50 per cent to the overall business, from the present 30 per cent,” Kothari said.
Besides, the company is also planning massive expansions and raise Rs. 2000.000 millions through an initial public offering.
“They are expanding the capacity from 2,500 units per day to 4,000 units per day, which will cost between Rs. 150.000 millions and Rs. 200.000 millions, and are contemplating raising the funds through an IPO,” said Kothari.
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 :
The 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.
The 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. 44.21 |
|
UK Pound |
1 |
Rs. 79.76 |
|
Euro |
1 |
Rs. 64.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|