MIRA INFORM REPORT
|
Report Date : |
13th May, 2006 |
IDENTIFICATION DETAILS
|
Name : |
NIKHIL
FOOTWEARS PRIVATE LIMITED |
|
|
|
|
Registered Office : |
G-11, Udyog Nagar, Main
Rohtak Road, Delhi – 110 041, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2005 |
|
|
|
|
Date of Incorporation : |
9th
January, 1987 |
|
|
|
|
CIN No.: |
U19201DL1987PTC026643 |
|
|
|
|
Com. Reg. No.: |
55-26643 |
|
|
|
|
TAN No.: (Tax Deduction &
Collection Account No.) |
DELN01310B |
|
|
|
|
Legal Form : |
Private
Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of footwear. |
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 |
|
Maximum Credit Limit : |
USD 2250000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established company having fine track. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Payments are correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
G-11, Udyog Nagar, Main
Rohtak Road, Delhi – 110 041, India |
|
Tel. No.: |
91-11-2547 3842 / 2547 1684
/ 2547 2660/ 25472557/ 25473827 |
|
Fax No.: |
91-11-2547 2907 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
|
|
Location : |
Commercial |
|
|
|
|
Factory 1 : |
98,
Shahzabad Bagh Industrial Area, Old Rothak Road, Delhi –m 110035 |
|
Tel. No.: |
91-11-23657248/
23657258/ 55450423/ 55450425 |
|
Fax No.: |
91-11-23658037 |
|
Location : |
Industrial |
DIRECTORS
|
Name : |
Mr.
Aggarwal Nand Kishore |
|
Designation : |
Director |
|
Address |
12/22,
East Punjabi Bagh, New Delhi – 110 026, India |
|
Date of Birth : |
02/12/1948 |
|
Date of Appointment : |
18/07/1989 |
|
Other Directorships |
·
Microtek International Private Limited, India ·
Kabeer Textiles Private Limited, India |
|
|
|
|
Name : |
Mr.
Aggarwal Naresh Kumar |
|
Designation : |
Director |
|
Address: |
15/27,
East Punjabi Bagh, New Delhi – 110 026, India |
|
Date of Birth : |
12/09/1954 |
|
Date of Appointment : |
01/10/1996 |
|
|
|
|
Name : |
Mr.
Aggarwal Ajay Kumar |
|
Designation : |
Director |
|
Address: |
12/22,
East Punjabi Bagh, New Delhi – 110 026, India |
|
Date of Birth : |
23/04/1973 |
|
Date of Appointment : |
15/10/1998 |
|
|
|
|
Name : |
Mrs. Aggarwal Urmil |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
P.
S. Soni & Comapny |
|
Designation : |
Company
Secretary |
|
Address : |
116,
Anupam Commercial Compaex, A-Block, Paschim Vihar, Opposite Jwala Heri, New
Delhi – 110063. |
|
Tel. No. : |
91-11-30924911/
256016724 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mange Ram Aggarwal |
1,670 |
|
Subhash Chander Aggarwal |
2,500 |
|
Varun Aggarwal |
1,500 |
|
Naresh Kumar Aggarwal |
2,500 |
|
Anil Kumar Aggarwal |
2,500 |
|
Nand Kishore Aggarwal |
3,100 |
|
Urmil Aggarwal |
1,500 |
|
Shanti Devi |
1,500 |
|
Ajay Kumar Aggarwal |
1,500 |
|
Amit Aggarwal |
1,500 |
|
Charu Aggarwal |
750 |
|
Nisha Aggarwal |
1,000 |
|
Tarun Aggarwal |
1,500 |
|
Saroj Jain |
750 |
|
Raj Kumar Gupta |
1,500 |
|
Vinod Kumari |
1,500 |
|
Bimal Prasad Jain |
500 |
|
Vivek Jain |
750 |
|
Navneet Aggarwal |
1,500 |
|
Nikhil Aggarwal |
1,000 |
|
Vishesh Gupta |
1,500 |
|
Sanchit Gupta |
1,500 |
|
Ruchi Aggarwal |
1,000 |
|
Ankit Aggarwal |
1,500 |
|
Ginni Devi |
2,000 |
|
Sushma Aggarwal |
1,980 |
|
Neha Aggarwal |
1,000 |
|
Asha Devi |
2,000 |
|
TOTAL |
43,000 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in
manufacturing of footwear (excluding repair) such as leather shoes, leather
sandals and chappals, leather cum rubber / plastic cloth sandals and
chappals. It is also engaged in
trading of PVC leather cloth, PVC resin and PVC compounds. |
||||||||
|
|
|
||||||||
|
Products : |
Ø
Footwear Ø
Pu Sole Ø
Sport Shoes Ø
Other Footwear (With
Upper of Textile Materials) Ø
Upper Sole
|
||||||||
|
|
|
||||||||
|
Brand Names : |
v
Action v
Health Plus v
Campus v
Dotcom v
Milano v
EVA Flotter v
School Time v
Mausam v
Florina v
Micro v
Hooha v
Fun Time v
Roaming v
Fly Float v
Chanchal v
Flotter v
Easy Line |
||||||||
|
|
|
||||||||
|
Exports to : |
Spain.
Portugal, Holland, Germany, Denmark, U.A.E., Dubai, Mauritius, United States,
U.K, Ireland, France. |
||||||||
|
|
|
||||||||
|
Imports from : |
Germany,
Netherlands, Taiwan and Italy. |
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
Cash
and Credit upto 60 days terms. |
||||||||
|
|
|
||||||||
|
Purchasing : |
Cash
and Credit upto 60 days terms. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
Footwear (Pair) |
Nos |
4,000,000 |
4564112 |
|
|
P. V. Shoes (Pair) |
Nos |
1,200,000 |
-- |
|
|
Sole (Pair) |
Nos |
-- |
2594583 |
|
GENERAL INFORMATION
|
Customers : |
v
Asian Paints v
Asashi India Glass v
Jet Airways v
Hindalco Industries v
Maruti Udyog Limited v
Samsung India Limited v
Indian Army v
Indian Air Force v
Delhi University v
Park Royal v
Parle Biscuits v
Mother Diary v
Hyatt Regency v
Le-Meridian |
|
|
|
|
No. of Employees : |
300 |
|
|
|
|
Bankers : |
v
State Bank of Bikaner
& Jaipur, Lawrence Road, New Delhi v
State Bank of Bikaner
& Jaipur, Jaipur, Rajasthan |
|
|
|
||||||||||||||||||
|
Facilities: |
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Banking Relations : |
Good |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Auditors : |
Brijendra & Company |
||||||||||||||||||
|
Qualification; |
Chartered Accountants |
||||||||||||||||||
|
Address : |
76, Darya Ganj, New Delhi –
110 002 |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Affiliates : |
v
API Associates Private
Limited, India v
API Polymers India
Limited, India v
Mahan Plastic Private
Limited, India v
Nikhil Udyog, India v
Micro Industrial
Corporation, India v
Microtek International
Limited, India |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Sister Concern: |
v
Ajay Plastic
Industries v
Micro Industrial
Corporation Fax: 91-11-25478399 Line
of Business : Manufacturer of Shoes v
Action International
Pvt. Ltd. Line of Business : Manufacturer of Shoes v
Action Footwear Pvt.
Ltd. Line
of Business : Trading of shoes
through its own show room v
API Polymers India
Pvt. Ltd. Line of Business : Chemicals
& Plasicizers |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000 |
Equity Shares |
Rs. 10/- |
Rs.5.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
43000 |
Equity Shares |
Rs. 10/- |
Rs.4.300 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4.300 |
4.300 |
4.300 |
|
|
2] Reserves & Surplus |
553.350 |
528.347 |
501.330 |
|
NETWORTH
|
557.650 |
532.647 |
505.630 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
122.417 |
36.713 |
10.811 |
|
|
2] Unsecured Loans |
38.719 |
62.314 |
84.856 |
|
TOTAL
BORROWING
|
161.136 |
99.027 |
95.667 |
|
|
DEFERRED TAX LIABILITIES |
7.330 |
7.796 |
8.793 |
|
|
|
|
|
|
|
TOTAL
|
726.116 |
639.470 |
610.090 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
105.169 |
115.232 |
131.729 |
|
Capital work-in-progress
|
7.258 |
3.210 |
0.853 |
|
Capital Goods in Transit
|
0.236 |
0.640 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.370 |
0.737 |
0.417 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
178.319
|
214.482
|
|
|
|
Sundry Debtors
|
316.991
|
306.863
|
|
|
|
Cash & Bank Balances
|
103.637
|
87.464
|
726.749
|
|
|
Other Current Assets
|
0.000
|
0.000
|
|
|
|
Loans & Advances
|
266.640
|
203.358
|
|
Total Current Assets
|
865.587
|
812.167 |
726.749
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
235.839
|
280.249
|
249.658
|
|
|
Provisions
|
16.665
|
12.267
|
0.000
|
Total Current Liabilities
|
252.504
|
292.516 |
249.658
|
|
Net Current
Assets
|
613.083
|
519.651 |
477.091
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
726.116 |
639.470 |
610.090 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
926.372 |
1000.575 |
1021.033 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
41.221 |
38.369 |
57.718 |
Provision for Taxation
|
16.219 |
11.352 |
16.381 |
Profit/(Loss) After Tax
|
25.002 |
27.017 |
41.337 |
|
|
|
|
|
Export Value
|
1.827 |
34.724 |
20.763 |
|
|
|
|
|
Import Value
|
69.614 |
91.151 |
66.880 |
|
|
|
|
|
Total Expenditure
|
898.862 |
979.604 |
963.315 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
2.70
|
2.70 |
4.05
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
4.45
|
0.04 |
5.68
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
4.21
|
4.12 |
6.71
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.07
|
0.07 |
0.11
|
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
0.74
|
0.74 |
0.68
|
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
3.43
|
2.78 |
2.91
|
LOCAL AGENCY FURTHER INFORMATION
Operations:
During the year under review
their company has achieved sales turnover of Rs. 926.372 Millions as against
the Sales turnover of Rs. 1000.575 Millions last year and earned a net profit
after tax of Rs. 25.030 Millions as against a profit of Rs. 27.018 Millions in
the last year.
Their Company had taken a
step further in the diversification process in the Real estate Business and
promoted a company by subscribing to the memorandum in consortium with other
renowned Business Houses in real estate business.
Dividend :
Even though their company has achieved a turnover of Rs. 926.400 Millions and profits of Rs. 25.003 Millions their Director regret to say that no dividend is declared for the year ending 31.03.2005. The decision has been taken to keep the funds for further expansion plants and diversification projects of the company as stated above.
FIXED ASSETS:
Land, Buildings, Plant & Machinery, Moulds & Dies, Generator, Electric installation, Furniture & Fixture, Office Equipment, Weighing machine, Vehicles, Cycles, Computers, Air Conditioners, Water cooler, Pump set etc.
Trade Terms With:
v M.G. Polymers & Compounding Company
v N. K. Polymers & Additives Manufacturing
v Sanchit Polymers
v Chandras Chemical Enterprise Private Limited
v Organo Vinyl Private Limited
v API Industrial Corporation
FINANCIALS OF API POLYMER INDIA PRIVATE LIMITED
|
Particulars |
|
31.03.2003 |
31.03.2002 |
|
Net Worth |
|
108.983 |
104.413 |
|
|
|
|
|
|
Sales Turnover |
|
237.728 |
237.099 |
|
|
|
|
|
|
Profit Before Tax |
|
7.680 |
14.166 |
|
|
|
|
|
|
Profit After Tax |
|
4.570 |
9.118 |
ACTION GROUP PROFILE :
Subject is committed to
growth. To ensure that the growth is maintained along with a competitive edge,
Action group has moved vertically as well.
Subject implemented a backward integration strategy by entering into chemicals
and plastisizers business.
CHEMICAL AND PLASTISIZERS:
Their plant located at Daman
for the manufacturing of PVC compound, DOP, DBP, DOA, and DIDP etc. under the
brand name API providing employment opportunities in backward areas of India.
Conglomerate Diversification
Action is not only a leading brand in footwear, but also group has made
investments in various streams un-related to the existing line of business.
MICROTEK (COMPUTER PERIPHERALS & POWER BACK
UP)
Year 1986, Action in a joint
venture entered into an altogether different industry. Brand MICROTEK was
launched in the Indian market.
Computer monitors (colored/mono), speakers, keyboards, mouse, motherboard, UPS,
cases, spikes, suppressor etc. are manufactured under this brand name.
Later on the company extends its product line and goes into the making of
INVERTERS and makes it presence in the power back up segment also.
Five manufacturing plants, more than 20 branch offices, 250 distributors and
over 2500 strong dealers besides its own showrooms, MICROTEK is the country’s
largest computer peripheral and inverter manufacturer.
Microtek manufacturing facilities have been awarded ISO 9002 certification. The
entire customer support activity is also ISO 9002 certified.
OKAYA (AUTOMOTIVE AND
INDUSTRIAL BATTERIES)
Arrow International” has been
promoted by multi crore ‘Microtek’ to give to the Indian consumers OKAYA world
class Japanese Technology batteries.
Batteries for all kind of cars, automobiles, heavy-duty trucks, motorcycles,
telecommunication systems, electric utilities etc are produced under the Brand
name OKAYA.
The Co. enjoys UL CERTIFICATION, the ISO 9001:2000 by UNDERWRITERS LABORATORIES
INC. USA.
The company caters to both replacement market and original equipment
customers.
SUN CITY (HOUSING AND COMMERCIAL PROJECTS)
Another joint venture is in
the REAL ESTATES under the name SUN CITY PROJECTS which is being promoted by
three distinguished groups ACTION, ESSEL (Zee Networks) and ODEON builders.
Sun City Projects emerged with a mission to provide ‘International Quality
Housing, Leisure and Entertainment’ at affordable prices. Outcome was an
integrated township spread over 150 acres of land.
Sun City is also coming up with ‘North Square Mall’ (North Delhi) and ‘Cross
River Mall’ (The biggest in East Delhi) with a new vision but the same mission
“Affordable International Standard Retail Spaces”.
SRI
BALAJI ACTION MEDICAL INSTITUTE (HEALTH CARE)
Action group has also stepped
into the HEALTH CARE sector and has recently opened Action Medical Institute in
Delhi.
Spread over 6 acres of landscaped sprawling grounds with 3 lacs square feet of
centrally air - conditioned built up area, mission of the group is to set up an
institute for providing - world class integrated health care facilities to all
sections of the society with a humanitarian touch, whilst maintaining high
standard of ethical practice and professional competency with emphasis on
training and education leading to research.
With a center of excellence in Cardiology, Pediatric, Gynecology, Nephrology,
Gastroenterology and Orthopedics, the Institute with over 25 medical
specialties and 400 beds will serve as a referral hospital for Delhi and
adjoining areas.
|
Name
of the company |
NIKHIL FOOTWEARS PRIVATE LIMITED |
||||||||
|
Presented By |
Company & State Bank
of Bikaner & Jaipur |
||||||||
|
1)
Date and description of instrument creating the change |
Hypothecation
Agreement dated 05.02.2001 and Registered on 16.02.2001 |
||||||||
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
92.500Millions |
||||||||
|
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 |
All
present and future goods book debts and all other movables assets of the
borrower including documents of title goods outstanding moneys, receivables
including receivables by way of cash assistance and /or cash incentives under
the cash Incentive scheme or any other scheme claims including claims by way
of refund of excise/ custom duties under the Duty Draw Back Scheme, or any
other scheme, bills, invoice, documents, etc. belonging to or in the possession or under the control of the
borrower wherever lying stored and kept shall be hypothecated to the bank by
way of first charge. First
charge on all the fixed assets of the company both present and future W.D.V
as on31.03.1999 is Rs. 189.809 Millions |
||||||||
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Rate
of interest as may be determined by the Bank
from time to time |
||||||||
|
5)
Name and Address and description of the person entitled to the charge. |
State
Bank of Bikaner & Jaipur , Lowrence road, New Delhi |
||||||||
|
6)
Date and brief description of instrument modifying the charge |
Supplemental
hypothecation agreement for goods and assets dated 27.07.2005 |
||||||||
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Bank’s
charge over stocks, book debts, and other movable assets increased from
Rs.92.500 Millions to Rs. 132.500 Millions.
|
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.45.46 |
|
UK
Pound |
1 |
Rs.85.94 |
|
Euro |
1 |
Rs.58.32 |
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 |
YES |
|
--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
|
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 |