MIRA
INFORM REPORT
|
Report Date : |
6th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
FBT
INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Formerly Known As : |
FARIDABAD
BOLT TIGHT INDUSTRIES PRIVATE LIMITED |
|
|
|
|
Registered Office : |
Plot
No. 43, Sector -4, Faridabad- 121004, Haryana, India |
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|
Country : |
India |
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|
|
|
Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
26.04.1977 |
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|
|
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Com. Reg. No.: |
55-8587 |
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|
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CIN No.: [Company
Identification No.] |
U34300DL1977PTC008587 |
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|
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IEC No.: |
0596024959 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
RTKF00375E |
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|
|
|
PAN No.: [Permanent
Account No.] |
AAACF2077K |
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|
|
|
Legal Form : |
Private
Limited Liability Company |
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|
|
|
Line of Business : |
Manufacturers
of Automotive Rubber Components, Metal Bonded Components |
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 |
|
Maximum Credit Limit : |
USD
50000 |
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|
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|
Status : |
Satisfactory
|
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company having satisfactory track.
Directors are reported as experienced, respectable and resourceful
industrialists. Both the directors are qualified doctors. Their trade
relations are fair. Financials position is satisfactory. Payments are usually
correct and as per commitments. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
Plot
No. 43, Sector -4, Faridabad- 121004, Haryana, India |
|
Tel. No.: |
91-129-4063817
/ 4064304 |
|
Fax No.: |
91-129-4067706
/ 2246867 |
|
E-Mail : |
|
|
Area : |
Owned |
|
Location : |
Industrial
|
|
|
|
|
Factory
1 : |
Plot
No. 77, Sector – 6, Faridabad- 121007, Haryana, India |
|
Tel.
No.: |
91-129-4063817
/ 4065818 / 4063818 / 4067707 |
|
Fax
No.: |
91-129-2245355
/ 2246867 / 4067706 |
|
E-Mail
: |
|
|
Area : |
Owned |
|
Location : |
Industrial
|
|
|
|
DIRECTORS
|
Name : |
Dr. Ashok
Kumar Bhatia |
|
Designation : |
Director
|
|
Address : |
House
No. 1116, Sector 15, Faridabad, Haryana |
|
Date of Birth/Age : |
20/12/1947 |
|
Qualification : |
MBBS |
|
Date of Appointment : |
26/04/1977 |
|
|
|
|
Name : |
Dr.
Sushma Bhatia |
|
Designation : |
Director
|
|
Address : |
House
No. 1116, Sector 15, Faridabad, Haryana |
|
Date of Birth/Age : |
03/03/1951 |
|
Qualification : |
MBBS |
|
Date of Appointment : |
26/04/1977 |
|
|
|
KEY EXECUTIVES
|
Name
: |
Dr.
Ashok Bhatia |
|
Designation
: |
Chief
Executive Officer |
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|
|
|
Name
: |
Mr. B
K Jha |
|
Designation
: |
Chief
Executive Officer |
|
|
91-9210036230 |
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|
|
|
Name
: |
Mr.
Das |
|
Designation
: |
Key
Executive |
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|
|
|
Name
: |
Mr.
Manish |
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Designation
: |
Key
Executive |
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|
|
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Dr.
Ashok Bhatia |
5250 |
35.00 % |
|
Dr.
Sushma Bhatia |
5250 |
35.00 % |
|
Mr.
Ansul Bhatia |
4500 |
30.00 % |
|
Total
|
15000 |
100.00 % |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
of Automotive Rubber Components, Metal Bonded Components |
|
|
|
|
Products : |
v
Moulded
Rubber Parts v
Metal
Bonded Moulded Rubber Parts v
Rubber
Tubing and Other Extrudates v
Textile
Braided and Non-braided Rubber Hose Pipes v
Calendered
Rubber Composites v
Textiles
Bonded Calendared Rubber Composites |
|
|
|
|
Terms : |
|
|
Selling : |
On
Credit : upto 60 days |
|
|
|
|
Purchasing : |
On
Credit : upto 60 days |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Sprocket
– can Chain Guide |
Nos. |
100000 |
60000 |
|
Damper
P 90 |
Nos. |
400000 |
300000 |
|
Bush
RR Fork |
Nos. |
200000 |
100000 |
|
|
|
|
|
GENERAL
INFORMATION
|
Customers : |
v
Hero
Honda Motors Limited v
Hema
Engineering v
Ministry
of Defence v
Indian
Railway |
|
|
|
|
No. of Employees : |
73 |
|
|
|
|
Bankers : |
Bank
of Baroda, NIT, Faridabad |
|
|
|
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors : |
B N
Kedia and Company Chartered
Accountants |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
150000 |
Equity
shares |
Rs. 10/- each |
Rs. 1.500 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
150000 |
Equity
shares |
Rs. 10/- each |
Rs. 1.500 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
1.500 |
1.500 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
10.992 |
8.257 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
12.492 |
9.757 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
8.478 |
5.447 |
|
|
2] Unsecured Loans |
|
6.564 |
3.037 |
|
|
TOTAL BORROWING |
|
15.042 |
8.484 |
|
|
DEFERRED TAX LIABILITIES |
|
0.634 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
28.168 |
18.241 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
17.903 |
11.838 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.358 |
0.358 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
8.431 |
1.307 |
|
|
Sundry Debtors |
|
31.701 |
27.849 |
|
|
Cash & Bank Balances |
|
0.810 |
0.090 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
5.994 |
2.386 |
|
Total Current Assets |
|
46.936 |
31.632 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
33.231 |
23.112 |
|
|
Provisions |
|
3.798 |
2.475 |
|
Total Current Liabilities |
|
37.029 |
25.587 |
|
|
Net Current Assets |
|
9.907 |
6.045 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
28.168 |
18.241 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
131.318 |
100.126 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
7.809 |
6.314 |
|
Provision
for Taxation |
|
4.441 |
3.770 |
|
Profit/(Loss)
After Tax |
|
3.368 |
2.544 |
|
|
|
|
|
|
Total
Expenditure |
|
119.616 |
90.254 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
2.56 |
2.54 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
5.95 |
6.31 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
12.04 |
14.52 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.63 |
0.65 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
4.17 |
3.49 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
1.27 |
1.24 |
LOCAL AGENCY
FURTHER INFORMATION
Incorporated
on April 26, 1977 the subject is engaged in business of Manufacturer of
Automotive Rubber Components, Metal Bonded Components
Subject
does not import and purchases locally.
Subject
reportedly exports its products and mainly manufacturing and supplying to OEMs
. the client list and the products being manufactured for OEMs are as follows :
|
Name
of the Customer |
Products |
|
Hero
Honda Motors limited |
Sprocket
– can Chain Guide |
|
Hero
Honda Motors limited |
Damper
P 90 |
|
Hema
Engineering |
Bush
RR Fork |
ISO
9001:2000 Certified Company
Indian
Auto Industry
v
Largest
Three Wheeler Market in the world
v
2nd
Largest Two Wheeler Market in the world
v
4th
Largest Passenger Vehicles Market in Asia
v
4th
Largest Tractor Market in the world
v
5th
Largest Commercial Vehicles Market in the world
Production value : 8.46 millions vehicles
Passenger Cars : 14.5 %
Three Wheelers : 4.5 %
Commercial Vehicles : 4 %
Two Wheelers : 77 %
Auto Component Industry
|
|
2001-02 |
2002-03 |
2003-04 |
2004-05 |
|
Output ($ millions) |
4470 |
5430 |
6730 |
8700 |
|
Export ($ millions) |
578 |
760 |
1020 |
1400 |
|
Investment ($ millions) |
2300 |
2645 |
3100 |
3950 |
|
Export share to output |
13 % |
14 % |
15 % |
16 % |
Components Production Range
Body and Chassis : 12 %
Electrical parts :9 %
Drive Transmission and Steering Parts :19 %
Suspension and Braking Parts :12 %
Suspension and Braking Parts : Equipments : 10 %
Engine Parts: 31 %
Others : 7 %
Following India's
growing openness, the arrival of new and existing models, easy availability of
finance at relatively low rate of interest and price discounts offered by the
dealers and manufacturers all have stirred the demand for vehicles and a strong
growth of the Indian automobile industry. shows high growth obtained since
2001- 02 in automobile production continuing in the first three quarters of the
2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth
rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound
annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment
exceeding Rs. 50,0000 millions, the turnover of the automobile industry
exceeded Rs. 59,5180 millions in 2002-03. Including turnover of the
auto-component sector, the automotive industry's turnover, which was above Rs.
84,0000 millions in 2002-03, is estimated to have exceeded Rs.1,00,0000
millions ( USD 22. 74 billion) in 2003-04.
Government has
liberalized the norms for foreign investment and import of technology and that
appears to have benefited the automobile sector. The production of total
vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It
is likely that the production of such vehicles will exceed 10 million in the
next couple of years.
Between 1998-99 and
2003-04, output of commercial vehicles has grown 2.8 times compared to the 2.2
times increase in passenger cars. Furthermore, two-wheeler output continues to
dominate the volume statistics of the sector. In 2003-04, for every passenger
car turned out by the sector, there were 7 two-wheelers produced. In the two
wheeler segment, there is a greater preference for motorcycles followed by
scooters, with both production and domestic sales of motorcycles increasing at
faster rates than for scooters in the current and previous years.
THE KEY FACTORS BEHIND THIS
UPSWING
Sales incentives, introduction of new
models as well as variants coupled with easy availability of low cost finance
with comfortable repayment options continued to drive demand and sales of
automobiles during the first two quarters of the current year. The risk of an
increase in the interest rates, the impact of delayed monsoons on rural demand,
and increase in the costs of inputs such as steel are the key concerns for the
players in the industry.
As the players continue to introduce new models and variants, the competition
may intensify further. The ability of the players to contain costs and focus on
exports will be critical for the performance of their respective companies.
The auto component sector has also posted significant growth of 20 per cent in
2003-04, to achieve a sales turnover of Rs.30,6400 millions (US$ 6.7 billion).
Further, there is a potential for higher growth due to outsourcing activities
by global automobiles giants. Today, this sector has emerged as another sunrise
sector.
The
'FBT Industries (P) Ltd.' are a pioneer manufacturer, exporter and
supplier of Automotive and Industrial Rubber Products. Their wide gamut of
products includes Moulded Rubber Parts, Metal Bonded Moulded Rubber Parts,
Rubber Tubings & other Extrudates, Textile Braided & Non-Braided Rubber
Hose Pipe, Calendered Rubber Composites and Textile Bonded Calendered Rubber
Composites. They are an ISO 9001:2000 certified company and famous for their
product quality and reliability. Established in the year 1986, they had a
vision to become the best amongst their competitors and a challenge to be the
fastest performer and the most reasonable unit in terms of rates. Today, they
have not only achieved the set targets but also become a milestone in the field
of manufacturing automotive and industrial rubber products.
They specialize in manufacturing of :
- Moulded Rubber Parts
- Metal Bonded Moulded Rubber
Parts
- Rubber Tubings & other
Extrudates
- Textile Braided &
Non-braided Rubber Hose Pipes
- Calendered Rubber Composites
- Textile Bonded Calendered
Rubber Composites
Their company manufactures wide range of
products that cater to a variety of static as well as dynamic Automotive and
Industrial applications, using specialty polymers such as Viton, Silicone,
Fluoro Carbon Elastomers, CSM (Hypalon), ACM (Polyacrylic), EPDM, NBR, H-NBR,
Polychloroprene, Butyl, PVC, PU, ECO etc. They conform to stringent Japanese,
European and US OE specifications.
Well-equipped and hi-tech manufacturing
facilities are core secret of their success. With state-of-the-art injection/
transfer/ vacuum compression cum transfer moulding presses, cold feed
extruders, with full captive power backup, a modern tool room with CNC machines
for in-house precision manufacture and round the clock maintenance of dies
& moulds, they ensure highest standards of quality and productivity. CAD
center with latest software for design engineering enables us to develop new
and innovative designs with improved modifications on constant basis. Their
rich Quality control and material testing laboratory has the modest equipments
that helps us to conform the QC norms of international standards in all of
their automotive and industrial rubber products.
In addition to independent infrastructural
facilities, their qualified and professional staff members continuously try to
improve the present quality level of the products.
The key features, which make us superior in
front of their immediate competitors are:
- ISO 9001:2000 certified
company
- Two decades of experience
- Established OE suppliers to
major Auto & Industrial Brands, Railways and Defence.
- Two factories located in the
National Capital Region of Delhi
- Professionally managed
- In-house Design and R&D
- Innovative solutions to
customer needs
- Fast development turnaround
and response to customer ECN's
- Low cost of operations
- Competitive pricing
- Strict Compliance to
international quality standards and shipment timeliness
- Integrated infrastructure
for speedy vertical Ramp-up of production
Their aim is to provide their clients best
quality products, reasonable price list, timely shipment and prompt services.
They constantly try to cater the changing needs and requirements of their
clients and develop long lasting relationships with them. Regular improvements
and modifications in automotive and industrial rubber products keeps us
upgraded with time.
They strongly believe that the key to a
sustained and healthy growth in this rapidly evolving environment, is a
passionate quest for innovation – in materials, products, tools and processes.
|
Business Type |
Exporter ,
Manufacturer , Supplier |
|
Export Percentage |
30% |
|
Primary
Competitive Advantages |
Two decades of
experience, Professionally managed company, Competitive pricing, Two
factories located in the National Capital Region of Delhi, In-house R&D
Center, Low cost of operations. |
|
No of Staff |
50 |
|
Year of
Establishment |
1986 |
|
No of Production
Lines |
2 |
|
Export Markets |
Worldwide |
|
Investment on
Manufacturing Equipment |
1 crore |
|
OEM Service
Provided |
Yes |
|
Production Type |
Manual &
Automatic |
|
No of Engineers |
5 |
|
Monthly Production
Capacity |
As per the demand
of customer. |
|
Product Range |
Moulded Rubber
Parts, Metal Bonded Moulded Rubber Parts, Rubber Tubings & other
Extrudates, Textile Braided & Non-braided Rubber Hose Pipes, Calendered
Rubber Composites, Textile Bonded Calendered Rubber Composites. |
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. 45.92 |
|
UK
Pound |
1 |
Rs. 86.09 |
|
Euro |
1 |
Rs. 59.31 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |