MIRA INFORM REPORT

 

 

 

Report Date :

04.09.2008

 

IDENTIFICATION DETAILS

 

Name :

VANCE BIOENERGY SDN BHD

 

 

Registered Office :

Suite 7e, Menara Ansar, 65 Jalan Trus, Level 7, 80000 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2007

 

 

Date of Incorporation :

09.09.2005

 

 

Com. Reg. No.:

709163-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Manufacturing, Export, Trading of Oleochemical and Other Product

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

709163-K

COMPANY NAME

:

VANCE BIOENERGY SDN BHD

FORMER NAME

:

N/A

INCORPORATION DATE

:

09/09/2005

COMPANY STATUS

:

EXIST

LEGAL STATUS

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

SUITE 7E, MENARA ANSAR, 65 JALAN TRUS, LEVEL 7, 80000 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

PLO 668 & 669, JALAN KELULI 5, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

TEL.NO.

:

07-2543668

FAX.NO.

:

07-2543778

CONTACT PERSON

:

LONG MUI KIOW ( DIRECTOR )

INDUSTRY CODE

:

242

PRINCIPAL ACTIVITY

:

MANUFACTURING,EXPORT, TRADING OF OLEOCHEMICAL AND OTHER PRODUCT

AUTHORISED CAPITAL

:

MYR 25,000,000.00 DIVIDED INTO
ORDINARY SHARE 25,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 15,228,007.00 DIVIDED INTO
ORDINARY SHARES 15,228,007 CASH OF MYR 1.00 EACH.

SALES

:

MYR 153,750,669 [2007]

NET WORTH

:

MYR 29,521,598 [2007]

 

 

 

STAFF STRENGTH

:

49 [2008]

BANKER (S)

:

HSBC BANK MALAYSIA BHD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

GOOD

 

 

 

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

HIGH

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

STRONG GROWTH

 

 

 

 

 

HISTORY / BACKGROUND


The SC is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the SC must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the SC is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the SC is insolvent. The SC is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The SC is principally engaged in the (as a / as an) manufacturing,export, trading of oleochemical and other product.

The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).

The SC is not qualified to be one of the Top Corporate Performers in the Malaysia 1000 (M1000) publication, a directory jointly published by Companies Commission of Malaysia (The Registrar Office), Minister of Domestic Trade and Consumer Affairs and our publication arm, BASIS Publications House Sdn Bhd.

The major shareholder(s) of the SC are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

VANCE BIONERGY LTD

61 STAMFORD ROAD, 03-03 STAMFORD COURT, 178892, SINGAPORE.

 

15,228,007.00

 

 

 

---------------

 

 

 

15,228,007.00

 

 

 

============

 

+ Also Director


directors


DIRECTOR 1

 

Name Of Subject

:

MR. WONG CHUN LEONG DAVID

Address

:

88 THOMSON GREEN, 574955, SINGAPORE.

IC / PP No

:

S7228410J

Nationality

:

SINGAPOREAN

Date of Appointment

:

28/08/2006

 

DIRECTOR 2

 

Name Of Subject

:

MR. HENDRICKS SUTIONO

Address

:

27, CLAYMORE ROAD, 15-03 THE CLAYMORE, 229544, SINGAPORE.

IC / PP No

:

B297137

Nationality

:

INDONESIAN

Date of Appointment

:

09/09/2005

 

DIRECTOR 3

 

Name Of Subject

:

MS.

Address

:

888 HAPPY GARDEN, JALAN KUCHAI LAMA, 58200 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

A1167797

New IC No

:

690118-01-6160

Date of Birth

:

18/01/1969

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

09/09/2005

 

DIRECTOR 4

 

Name Of Subject

:

MS. ANG MUI KIOW

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

IC / PP No

:

7032746

New IC No

:

630530-01-5426

Date of Birth

:

30/05/1963

Nationality

:

MALAYSIAN CHINESE

Date of Appointment

:

09/09/2005

 

DIRECTOR 5

 

Name Of Subject

:

LONG TIAN CHING

Address

:

17 PECK HAY ROAD, 04-01, 228313

IC / PP No

:

E0409786D

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

09/09/2005

 

DIRECTOR 6

 

Name Of Subject

:

MR. ARKIAN MINATA SUTIONO

Address

:

J1, SEI KERA, 135A MEDAN NORTH SUMATERA, INDONESIA.

IC / PP No

:

P781527

Nationality

:

INDONESIAN

Date of Appointment

:

09/09/2005


MANAGEMENT

 

 

1)

Name of Subject

:

LONG MUI KIOW

 

Position

:

DIRECTOR

 

 

 

 

 

2)

Name of Subject

:

WONG CHUN LEONG DAVID

 

Position

:

DIRECTOR

 

 

 

 

 

3)

Name of Subject

:

HENDRICKS SUTIONO

 

Position

:

DIRECTOR

 

 

 

 

 

4)

Name of Subject

:

ANG MUI KIOW

 

Position

:

SECRETARY

 

 

 

 

 

5)

Name of Subject

:

LONG TIAN CHING

 

Position

:

DIRECTOR

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. ANG MUI KIOW

 

IC / PP No

:

7032746

 

New IC No

:

630530-01-5426

 

Address

:

27, JALAN NIBONG 18, TAMAN DAYA, 81100 JOHOR BAHRU, JOHOR, MALAYSIA.

 

Date of Appointment

:

09/09/2005

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

HSBC BANK MALAYSIA BHD

 

 

 

 

 

The SC enjoys normal banking routine with above mentioned banker(s). The SC has bank charges with above mentioned banker(s).

 

 

ENCUMBRANCE (S)

ENCUMBRANCE 1

Date of Creation

:

20/04/2006

Description Of Charge

:

N/A

Amount Secured

:

RM30,800,000.00

Description Of Property Affected

:

N/A

Name & Address Of Chargee

:

HSBC BANK MALAYSIA BHD

 

Form 40 Dated

Registered and Numbered 1 In The Register of Charges

 


LEGAL CHECK AGAINST SC


* A check has been conducted in our databank againt the SC whether the subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia back dated since 1900.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

 

Local

:

YES

Percentage

:

50%

Overseas

:

YES

Percentage

:

50%

Import Countries

:

MALAYSIA,INDONESIA,EUROPE



CLIENTELE

 

Local

:

YES

Percentage

:

10%

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Percentage

:

90%

Export Market

:

SINGAPORE, INDIA, EUROPE, MIDDLE EAST, UNITED STATES, KOREA

 

OPERATIONS

 

Products manufactured

:

BIODIESEL, OLEOCHEMICALS

 

 

 

Competitor(s)

:

ANHONG CHEMICALS SDN BHD

CLARIANT (MALAYSIA) SDN BHD

DL KIMIA SDN BHD

ORIN-CHEM SDN BHD

YOLIMEX SDN BHD

 

 

 

 

Total Number of Employees:

YEAR

2008

 

 

GROUP

N/A

 

 

 

 

 

 

 

 

COMPANY

49

 

 

 

 

 

 

 

 

 

Branch

:

YES

Other Information:


The SC is principally engaged in the (as a / as an) manufacturing,export, trading of oleochemical and other product.

The SC's headquarter located at Singapore and all the machineries bought from the Europe country. The SC only focus in the international exports because its quality of the products is equal with the international level.

The SC bought the raw materials from Malaysia and its also have a free license to bring in the raw materials from Indonesia, and Europe country.Its also reproses and crude the palm oil to clean energy oil and to some related products.

PROJECTS

No projects found in our databank

RECENT DEVELOPMENT


We have checked with the Malaysian National News Agency's (BERNAMA) database, but no latest development was noted in our investigation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the SC indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-2543668

Match

:

N/A

 

 

 

Address Provided by Client

:

PLO 668 & 669, JALAN KELULI 5, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR.

Current Address

:

PLO 668 & 669, JALAN KELULI 5, KAWASAN PERINDUSTRIAN PASIR GUDANG, 81700 PASIR GUDANG, JOHOR, MALAYSIA.

Match

:

YES

 

 

 

Latest Financial Accounts

:

YES

 

Other Investigations


We conducted an interview with the SC's Human Resource Manager, Ms Zaiton. She furnished us some information on the SC.

FINANCIAL COMMENTS

 

The financial summary of the SC in Year 2007 showed that it was financially STABLE. The SC has striven to achieve a favourable turnover and profitability. Return on shareholders' funds of the SC was high indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. The SC was in good liquidity position with its current liabilities well covered by its current assets. With its current net assets, the SC should be able to repay its short term obligations. Although the SC's liability ratio is high, it is mainly due to high current liabilities rather than long term debt. However, the high current liabilities are well covered by its large current assets, indicating that the SC does not face any shortage in working capital.

Overall financial condition of the SC : STABLE

ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2004

2005

2006

2007*

2008**

 

 

 

 

 

 

Population ( Million)

25.58

26.13

26.64

27.17

27.73

Gross Domestic Products ( % )

7.1

5.3

5.8

6.3

6.5

Domestic Demand ( % )

7.5

7.3

7.0

9.0

6.8

Private Expenditure ( % )

13.1

9.5

7.0

8.6

8.2

Consumption ( % )

10.5

9.2

7.1

9.0

7.9

Investment ( % )

25.8

8.5

7.0

7.1

9.5

Public Expenditure ( % )

<2.1>

3.6

6.8

10.1

3.2

Consumption ( % )

6.0

5.4

5.0

10.8

5.5

Investment ( % )

<8.7>

1.9

8.9

9.3

0.5

 

 

 

 

 

 

Balance of Trade ( MYR Million )

80,663

99,760

108,192

99,965

99,599

Government Finance ( MYR Million )

<19,419>

<18,684>

<19,109>

<19,948>

<20,933>

Government Finance to GDP / Fiscal Deficit ( % )

<4.3>

<3.8>

<3.3>

<3.2>

<3.1>

Inflation ( % Change in Composite CPI)

1.4

3.1

3.9

4.0

6.0

Unemployment Rate

3.5

3.5

3.4

3.5

3.3

 

 

 

 

 

 

Net International Reserves ( MYR Billion )

254

266

290

-

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

13.84

13.63

12.91

-

-

Average 3 Months of Non-performing Loans ( % )

8.46

6.74

5.41

-

-

Average Base Lending Rate ( % )

5.99

6.00

6.61

-

-

Business Loans Disbursed( % )

10.5

8.7

<2.5>

-

-

Foreign Investment ( MYR Million )

13,143.9

17,882.9

20,228.0

-

-

Consumer Loans ( % )

-

-

-

-

-

 

 

 

 

 

 

Registration of New Companies ( No. )

38,580

37,474

38,293

-

-

Registration of New Companies ( % )

6.8

<2.9>

2.2

-

-

Liquidation of Companies ( No. )

3,334

3,069

8,647

-

-

Liquidation of Companies ( % )

<15.8>

<7.9>

181.8

-

-

 

 

 

 

 

 

Registration of New Business ( No. )

189,206

193,095

216,147

-

-

Registration of New Business ( % )

4.6

2.1

11.9

-

-

Business Dissolved ( No. )

51,301

73,355

52,879

-

-

Business Dissolved ( % )

7.0

43.0

<27.9>

-

-

 

 

 

 

 

 

Sales of New Passenger Cars (' 000 Unit )

380.6

400.8

374.1

-

-

Cellular Phone Subscribers ( Million )

14.6

18.5

19.5

21.3

-

Tourist Arrival ( Million Persons )

15.7

16.7

17.5

20.1

-

Hotel Occupancy Rate ( % )

60.8

63.6

64.8

-

-

 

 

 

 

 

 

Credit Cards Spending ( % )

19.3

13.9

15.4

-

-

Bad Cheque Offenders (No.)

70,465

57,316

36,555

-

-

Individual Bankruptcy ( No.)

16,251

15,868

13,596

-

-

Individual Bankruptcy ( % )

31.6

<2.4>

<14.3>

-

-

 

INDUSTRIES ( % of Growth ):

2004

2005

2006

2007*

2008**

 

 

 

 

 

 

Agriculture

5.0

2.5

5.3

3.1

3.4

Palm Oil

3.9

7.1

5.8

<0.6>

-

Rubber

16.5

<2.9>

12.6

1.0

-

Forestry & Logging

4.3

2.0

<0.4>

2.8

-

Fishing

5.5

<0.4>

9.3

5.2

-

Other Agriculture

2.4

3.2

5.3

7.0

-

Industry Non-Performing Loans ( MYR Million )

620.3

563.7

516.5

487.3

0

% of Industry Non-Performing Loans

1.38

1.19

1.06

1.08

0

 

 

 

 

 

 

Mining

3.9

0.8

<0.4>

3.3

6.0

Oil & Gas

4.5

1.6

4.6

-

-

Other Mining

<8.0>

<1.0>

5.1

-

-

Industry Non-performing Loans ( MYR Million )

62.6

68.8

55.4

42.2

-

% of Industry Non-performing Loans

0.1

0.1

0.1

0.1

-

 

 

 

 

 

 

Manufacturing #

9.8

5.1

7.3

3.1

1.8

Exported-oriented Industries

15.5

3.0

11.1

<1.9>

-

Electrical & Electronics

17.8

3.6

13.4

3.0

-

Rubber Products

14.8

2.4

0.4

8.0

-

Wood Products

12.7

0.9

0.7

3.3

-

Textiles & Apparel

<11.7>

<4.4>

12.6

<10.1>

-

Domestic-oriented Industries

9.7

6.9

5.0

5.3

-

Food, Beverages & Tobacco

3.8

7.7

4.8

5.6

-

Chemical & Chemical Products

14.6

6.9

1.7

9.2

-

Plastic Products

13.5

18.6

21.3

<3.6>

-

Iron & Steel

2.7

<6.7>

<6.9>

17.5

-

Fabricated Metal Products

29.2

<7.5>

20.0

26.2

-

Non-metallic Mineral

<4.8>

<6.0>

<1.9>

6.6

-

Transport Equipment

8.6

10.4

5.3

<19.0>

-

Paper & Paper Products

2.3

4.6

4.1

14.9

-

Crude Oil Refineries

<2.4>

8.2

12.1

8.6

-

Industry Non-Performing Loans ( MYR Million )

7,765.4

6,035.6

6,181.3

6,366.2

-

% of Industry Non-Performing Loans

17.3

12.7

12.7

14.1

-

 

 

 

 

 

 

Construction

<1.5>

<1.6>

<0.5>

5.2

5.5

Industry Non-Performing Loans ( MYR Million )

5,547.7

5,172.7

5,527.3

5,116.7

-

% of Industry Non-Performing Loans

12.4

10.9

11.4

11.3

-

 

 

 

 

 

 

Services

6.8

6.6

7.2

9.0

7.7

Electric, Gas & Water

8.1

5.5

5.2

4.6

5.0

Transport, Storage & Communication

8.5

6.3

5.2

7.6

7.8

Wholesale, Retail, Hotel & Restaurant

7.1

8.0

7.1

11.6

10.0

Finance, Insurance & Real Estate

6.3

7.0

7.7

10.7

9.2

Government Services

6.5

7.6

9.8

4.6

8.6

Other Services

4.9

5.0

4.7

5.0

5.9

Industry Non-Performing Loans ( MYR Million )

8,913.7

8,716.8

11,593.2

10,207.8

-

% of Industry Non-Performing Loans

19.9

18.4

23.9

22.6

-

 

 

 

 

 

 

 

 

 

 

 

 

* Estimate / Preliminary

 

 

 

 

 

** Forecast

 

 

 

 

 

# Based On Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)



INDUSTRY COMMENTS

 

MSIC CODE

242 : Manufacture of Other Chemical Products

 

 

INDUSTRY :

CHEMICAL


The chemical products industry is essentially a supporting industry, supplying intermediates and inputs to the end-user industries such as agriculture, electronics, automotive, construction-related industry and personal care products. The chemicals and chemical products industry, including agricultural and industrial chemicals, cosmetics and toiletry products, paint and soaps, is a significant contributor to the manufacturing sector. The growth of the industry is also highly dependent on the performance of the other sectors of the economy.


The growth in the chemicals and chemical products sector may be constrained by the rising raw material prices. Chemicals and chemical products, chalked up a 16.8% year on year rise.


This industry remains an important sector and a growth engine for manufacturing output. It accounts for the largest share of Malaysia's non-electrical and electronic exports. Both organic and inorganic chemicals are gaining more attention and are anticipated to continue their growth momentum of 2007, especially driven by demand from China, Thailand and other ASEAN countries. In particular, agricultural and industrial chemicals, cosmetics and toiletry products are being absorbed by burgeoning economies with large consumer bases, like China. The sub-sector that looks most promising in this industry is the expansion of the agricultural chemicals industry, which includes the manufacture of fertilisers and pesticides. There have also been indications of a higher level of foreign participation in this industry, especially in the form of strategic partnerships with domestic firms, essentially to expand their production capacities for export.


In January-November 2007, the industry's exports summed up to RM1.16 billion, translating into a 19% rise. However, closer scrutiny shows that the pesticides and herbicides sub-sector posted a corresponding 34.3% growth, with output coming up to RM561.6 million for the same period.


The chemical products industry is expected to grow in tandem with the overall growth of other manufacturing of the economy. Besides that, the chemical and chemical products industry raises investment to improve efficiency and increase productivity to meet stronger demand. In addition, the Government's emphasis on high technology and higher-skilled projects is expected to increase investment in high value-added projects. Strong external demand for resource-based products and the improvement in the construction-related industries would further lend support to the expansion of chemical sector.

 

 

OVERALL INDUSTRY OUTLOOK : Strong Growth



COMMENTS


Established in 2005, the SC is a private limited company with core business in the manufacturing, exporting, trading of oleochemical and other product. Throughout its years of establishment, the SC has slowly been building up contacts with its clients and competing in the industry. Having been in the industry for only 3 years, the SC is growing fast with a paid up capital exceeding RM15 million. With a huge paid up capital, the SC is allowed to expand its business comfortably.


About 90% of the SC's products are exported to countries like Singapore, India, Europe and others while the remaining are absorbed by the local market. Such a wide geographical spread has well diversified its business risk should there be a slowdown in the local economy. Thereby it will increase its ability to compete in the market. Hence, its future prospects seem to be fairly good. However, being an international player, the SC is subjected to certain inherent risks of foreign currencies fluctuation and stiff competition from the international market. The SC is assisted by 49 employees and its overall management capability is regarded as good.


For the financial year ended 2007, the SC registered a pre-tax profit of RM13.95 million based on its turnover of RM153.75 million. Return on shareholders' funds of the SC was high indicating that the SC was efficient in utilising its shareholders' funds to generate favourable returns. The SC was in good liquidity position with its current liabilities well covered by its current assets. With its current net assets, the SC should be able to repay its short term obligations. Although the SC's liability ratio is high, it is mainly due to high current liabilities rather than long term debt. However, the high current liabilities are well covered by its large current assets, indicating that the SC does not face any shortage in working capital.


Investigation revealed that the SC sources its raw materials from both local and overseas countries. About 50% of the SC's products are imported from Malaysia, Indonesia and Europe. As a result, the SC is exposed to foreign currency fluctuation risk.


Based on our databank, there are no legal suits against the SC.


The chemical industry remains an important sector and a growth engine for manufacturing output. Moreover, the continuous efforts implemented by the government to boost the economic growth will further enhance the industry. The SC's business opportunity in the future should be bright.


Based on the above condition, we recommend a fairly large amount of credit be granted to the SC promptly.

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIA ACCOUNTING STANDARD.

 

PROFIT AND LOSS ACCOUNT

VANCE BIOENERGY SDN BHD

31-December-2007

 

Consolidated Accounts

:

NO

UnQualified Reports

:

YES

 

 

 

RM

Turnover

153,750,669.00

Operating Revenue

0.00

 

---------------------

Profit/(Loss) Before Tax

13,954,103.00

 

---------------------

 

Profit/(Loss) After Tax

10,489,622.00

Extraordinary Item

0.00

Minority Interest

0.00

 

---------------------

Profit/(Loss) Attributable to Shareholders

10,489,622.00

 

---------------------

 

Prior Period Adjustment

0.00

Net Dividend

0.00

Transferred To/From Reserved

0.00

Others

0.00

 

---------------------

Unappropriated Profit/(Loss) Brought Forward

3,803,969.00

 

---------------------

Unappropriated Profit/(Loss) Carried Forward

14,293,591.00

 

================

 

 

BALANCE SHEET

 

VANCE BIOENERGY SDN BHD

31-December-2007

 

Consolidated Accounts

:

NO

UnQualified Reports

:

YES

 

 

 

RM

Fixed Assets

67,211,510.00

Total Investment

0.00

Amount Owing By

0.00

Current Assets

59,299,931.00

Intangible Assets

0.00

Other Assets

3,552,738.00

 

---------------------

Total Assets

130,064,179.00

 

================

 

 

Working Capital

39,097,763.00

 

 

Issued Capital

15,228,007.00

Paid Up Capital

15,228,007.00

Share Premium & Reserved

0.00

Unappropriated Profit/(Loss)

14,293,591.00

 

---------------------

Shareholder's Fund/Equity

29,521,598.00

 

---------------------

 

Current Liabilities

20,202,168.00

Amount Owing To

0.00

Long-term and Deferred Liabilities

80,340,413.00

Share Application Account

0.00

Minority Interest

0.00

 

---------------------

Total Equity Liability

130,064,179.00

 

================

 

 

Contingent Liabilities

0.00

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.26

UK Pound

1

Rs.79.19

Euro

1

Rs.64.42

 

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

 

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions