MIRA
INFORM REPORT
|
Report Date : |
20th
May, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
CARNATION
INDUSTRIES LIMITED |
|
|
|
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Registered Office : |
28/1
Jheel Road, Liluah, Salkia, Howrah - 711106, West Bengal, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
23rd
February, 1983 |
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|
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Com. Reg. No.: |
21-35920 |
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CIN No.: [Company
Identification No.] |
U27209WB1983PTC035920 |
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Legal Form : |
It is
a Public Limited Liability company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business : |
Manufacturer
and Merchant Exporter of Grey Cast Iron Product and Ductile Product. |
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
500000 |
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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 and respectable businessmen. Their
trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal
for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
28/1
Jheel Road, Liluah, Salkia, Howrah - 711106, West Bengal, India |
|
Tel. No.: |
91-33-26454785/30939136/37 |
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Fax No.: |
91-33-26458418 |
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E-Mail : |
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Website : |
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Head
Office : |
222, A J C Bose Road, 1st
Floor, Room No. 4 and 5, Kolkata – 700 017, West Bengal, India |
|
Tel.
No.: |
91-33-22472256/8229,
2280-3127 |
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Fax
No.: |
91-33-22479938 |
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E-Mail
: |
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|
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Corporate
Office : |
222, A J C Bose Road, 1st
Floor, Room No. 4 and 5, Kolkata – 700 017, West Bengal, India |
|
Tel.
No.: |
91-33-22472256/8229,
2280-3127 |
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Fax
No.: |
91-33-22479938 |
|
E-Mail
: |
DIRECTORS
|
Name : |
Mr. P
M Narielvala |
|
Designation : |
Chairman
|
|
Qualification : |
F C A |
|
Position Held : |
1. The Institute Of
Chartered Accountants Of India : Past President |
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|
|
|
Name : |
Mr.
Ravindra Prakash Sehgal |
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Designation : |
Managing
Director |
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Qualification : |
B. Tech (Hons), Dbim, Dem |
|
Position Held : |
1. E E
P C (E R), A Govt. Body : Chairman 3. National Treasurer – IIF 4.
National Executive Committee Member - IFA |
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|
|
|
Name : |
Mr.
Manoj Bose |
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Designation : |
Whole
Time Director |
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|
|
|
Name : |
Mr.
Vinay Kumar Agarwalla |
|
Designation : |
Director
|
|
|
|
|
Name : |
Mr.
Rajesh Kumar Pandey |
|
Designation : |
Director
|
KEY EXECUTIVES
|
Name
: |
Mr. S
K Agarwal |
|
Designation
: |
Company
Secretary |
|
|
|
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Name
: |
Mr.
Arun Bose |
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Designation
: |
Additional
and Executive Director |
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|
|
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Name
: |
Mr.
Suvobrata Saha |
|
Designation
: |
Executive
Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
and Merchant Exporter of Grey Cast Iron Product and Ductile Product. |
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|
|
|
Products : |
§
Grey
Cast Iron Product §
Ductile
Product |
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|
|
PRODUCTION
STATUS
|
Particulars |
|
|
Unit |
Actual Production |
|
|
|
|
|
|
|
Grey Iron Foundry: Unit 1 Unit 2 |
|
|
Mt. Mt. |
600 700 |
|
Ductile Iron Foundry |
|
|
Mt. |
600 |
|
Associate Foundries |
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|
Mt. |
700 |
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GENERAL
INFORMATION
|
No. of Employees : |
Around
440 |
|
|
|
|
Bankers : |
§
State
Bank of Hyderabad §
Punjab
National Bank |
|
|
|
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Banking Relations : |
Satisfactory
|
|
|
|
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Auditors : |
Jain
and Bagaria Chartered
Accountants |
|
Address : |
18,
Mangoe Lane, 2nd Floor, Kolkata – 700 001, West Bengal, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
|
|
|
|
|
|
Not
Available |
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3460000 |
Equity
Shares |
Rs. 10/- |
Rs. 34.600 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 |
34.600 |
34.300 |
34.300 |
|
|
2] Reserves & Surplus |
101.300 |
86.100 |
86.000 |
|
|
NETWORTH |
135.900 |
120.400 |
120.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
147.200 |
101.600 |
89.900 |
|
|
2] Unsecured Loans |
5.000 |
0.500 |
0.500 |
|
|
TOTAL BORROWING |
152.200 |
102.100 |
90.400 |
|
|
|
|
|
|
|
|
TOTAL |
288.100 |
222.500 |
210.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
68.800 |
67.500 |
68.800 |
|
|
Capital work-in-progress |
2.300 |
3.600 |
0.400 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
65.200
|
44.700 |
34.600 |
|
|
Sundry Debtors |
227.600
|
151.900 |
141.900 |
|
|
Cash & Bank Balances |
20.400
|
9.000 |
8.200 |
|
|
Loans & Advances |
35.400
|
49.600 |
30.100 |
|
Total Current Assets |
348.600
|
255.200 |
214.800 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
111.200
|
95.400 |
64.800 |
|
|
Provisions |
20.400
|
8.900 |
10.000 |
|
Total Current Liabilities |
131.600
|
104.300 |
74.800 |
|
|
Net Current Assets |
217.000
|
150.900 |
140.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.500 |
1.500 |
|
|
|
|
|
|
|
|
TOTAL |
288.100 |
222.500 |
210.700 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Sales Turnover [including other income] |
619.700 |
439.800 |
351.800 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
25.900 |
0.500 |
16.500 |
|
Provision
for Taxation |
10.100 |
(0.600) |
3.500 |
|
Profit/(Loss)
After Tax |
15.800 |
1.100 |
13.000 |
|
|
|
|
|
|
Total
Expenditure |
593.800 |
439.300 |
335.300 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2005 |
30.09.2005 |
31.12.2005 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
|
Sales Turnover |
125.000 |
90.900 |
80.900 |
|
Other Income |
3.400 |
2.500 |
1.900 |
|
Total Income |
128.400 |
93.400 |
82.800 |
|
Total Expenditure |
121.200 |
82.900 |
79.100 |
|
Operating Profit |
7.200 |
10.500 |
3.700 |
|
Interest |
2.400 |
3.600 |
2.700 |
|
Gross Profit |
4.800 |
6.900 |
1.000 |
|
Depreciation |
1.600 |
1.600 |
1.600 |
|
Tax |
1.100 |
1.500 |
0.000 |
|
Reported PAT |
2.100 |
3.800 |
(0.600) |
200506
Quarter 1 :-- Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
9.612 million Consumption of Raw Materials Rs 70.057 million Staff Cost Rs
6.299 million Other Expenditure Rs 35.165 million Tax Includes Provision for
Current Tax Rs 1.095 million Fringe Benefit Tax Rs 0.043 million.
200509
Quarter 2 :-- Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
2.689 million Consumption of Raw Materials Rs 61.377 million Staff Cost Rs
6.146 million Other Expenditure Rs 12.728 million Tax Includes Provision for
Current Tax Rs 1.405 million Fringe Benefit Tax Rs 0.046 million Status of
Investor Complaints for the quarter ended September 30, 2005 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 09
Complaints disposed off during the quarter 09 Complaints unresolved at the end
of the quarter Nil 1. The above results have been taken on record by the Board
of Directors at its meeting held on October 24, 2005 2. Other income represents
mainly export incentives. 3. The Company is engaged in the manufacture of
castings & M.S. products which are subject to same risk & returns and
hence as in the past there is one primary segment. The analysis of geographical
segments is baaed on the areas in which the Company operates 4. Provision for
Deferred Tax will be made at the end of the year. 5. Due to weak doller the
Company incurred a loss of foreign exchange difference of Rs 0.429 million.
200512
Quarter 3 :-- Expenditure Includes (Increase) / Decrease in Stock in Trade Rs
(1.874)million Consumption of Raw Materials Rs 49.880 million Staff Cost Rs
6.630 million Other Expenditure Rs 24.432 million.
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
0.99 |
0.80 |
0.76 |
|
Long Term Debt Equity Ratio |
0.07 |
0.04 |
0.02 |
|
Current Ratio |
1.28 |
1.29 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
5.14 |
3.86 |
3.27 |
|
Inventory |
10.36 |
10.18 |
9.02 |
|
Debtors |
3.00 |
2.75 |
2.56 |
|
Interest Cover Ratio |
2.45 |
1.04 |
2.31 |
|
Operating Profit Margin (%) |
8.83 |
4.98 |
10.91 |
|
Profit Before Interest and Tax Margin (%) |
7.69 |
3.52 |
9.12 |
|
Cash Profit Margin (%) |
3.92 |
1.73 |
5.86 |
|
Adjusted Net Profit Margin (%) |
2.77 |
0.27 |
4.08 |
|
Return on Capital Employed (%) |
17.17 |
6.59 |
14.53 |
|
Return on Net Worth (%) |
12.33 |
0.91 |
11.31 |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.
23.00 |
|
Low |
Rs.
22.65 |
LOCAL AGENCY
FURTHER INFORMATION
As Per Web Details
Profile
In the
winter of 1982 amalgamated the combination of a few dynamic working men all
successful in their respective fields to form CARNATION ENTERPRISE Pvt. Ltd.
which later in 1995 changed the name to Carnation
Industries Limited.
Starting off as a merchant exporter the Company recorded a steady growth each
year, the Company went into manufacturing in the mid-eighty's and is running
two Grey iron foundries and ductile Iron Unit all in West Bengal. Both the Grey
Iron production units and the Ductile Iron production unit are certified by SGS
(India) Ltd. as per BS-EN-124 require for systems approval & specific
product approvals.
CARNATION is the country's
first Conventional Grey Iron foundry to be certified ISO 9002 by KPMG (USA).
Currently it holds the BS EN ISO 9001:2000 certificate from BSI (UK). UL
Certification from Underwriters Laboratories Inc., USA.
CARNATION, today, has a professional set up backed by
a group of highly experienced and Technically qualifed shop staff in different
departments working under professional managers. We have a work force strength
of 40 experienced personnel & a labour strength of over 400 persons.
Product development, technology upgradation and
providing more for the value of money are CARNATION's forte.
A front runner today, CARNATION has
established itself as one of the top exporters of castings from India and it
takes the toil and sweat of the whole team ably supported by juniors and the
labour force to keep CARNATION at top. Having attained status in the exports
field, CARNATION is now moving ahead with its plans to establish itself as a
front runner in the Domestic Market with its new products and the changing
scenarios in the Indian infrastructure development is bound to see a surge in
its domestic Sales in the coming years.
"Together we make things happen. Come let's join hands to take up the
21st Century's challenge - let's work together."
Message
from Managing Director
Carnation
looks forward to facing the challenges of the new millennium. As our company
grows, we are looking for new direction and vision of the 21st
century. While expanding horizons , management and company wise we deeply
understand our increasingly important role in the development of society
& our country as a whole. As we continue to grow, our company is also
guided by a social Mission : TO contribute to the lives of the people by
creating new values by means of innovative technologies. Where we are today is
a result of this consciousness. We have recently introduced a new standard of
customer service unrivalled in the covers & greetings industry called
the 4c's - continuous excellence, continuity of brand image, consistency
in quality, credibility with awards.
It is the goal of Carnation Industries Limited with the participation of all
employees to produce & market only quality products and also to make
continuous improvement so that customer confidence in our capabilities is
enhanced.
It is also our aim to improve quality management system by reviewing quality
objectives on a continuous basis and willingness to embrace new ideas.
Products Range
§
Ductile & Grey Iron Sanitary Castings e.g. Manholes, Catch
basins Frames, Grates etc.
§
Ductile & Grey Iron valve boxes, meter boxes, surface
boxes,
Service boxes, Step Iron.
§
Ductile & Grey Iron Gulley Gratings, Syphones, Hydrants.
§
Ductile Iron Railway Castings.
§
Ductile Iron M J Fittings, Push on fittings and
related products.
§
Ductile Iron glands, Flanges, anchor flanges, Brackets.
§
Ductile Iron Industrial and auto casting.
§
Marine items e.g., mushroom anchors, naval anchors, river anchors,
cleats of wide variety.
§
Counter weights for fork lifts.
§
MS, SS Bolts, Rubber gaskets, GRP Plates, Brass fittings,
Industrial leather gloves.
SPECIFICATION
SPECS
IS210
: 1993
§
FG 150
§
FG 200
§
FG 220
§
FG 260
INDIAN
IS 1865
: 1974
§
ASTM A 48 CLASS 20 Equivalent BSS/DIN/IS GR 15
§
ASTM A 48 CLASS 25 Equivalent BSS/DIN/IS GR 20
§
ASTM A 48 CLASS 30 Equivalent BSS/DIN/IS GR 22
§
ASTM A 48 CLASS 35 Equivalent BSS/DIN/IS GR 25
§
BS EN 124 FLAKE GRAPHITE ISO 1083
§
ASTM A 536, 60-40-18 And 60-45-12 & 80-55-6
§
DIN 1693 GGG 40, GGG 50
§
ISO 1083, 400 / 12 / 500 / 7
Product Certification, Quality
Control & Assurance
The majority of our Ductile Iron range of products are certified
by BSI (Kitemark) AND UL (Approval). The BSI Kitemark scheme is based on the
design, type testing, mark and quality control requirements of BS EN 124, the
1994 British and European standard for gully tops and manhole tops for
vehicular and pedestrian areas.
The UL Approval scheme is also based on the design type testing,
mark and quality control requirements of ASTM A536 / 60-42-10 & AWW A/C -
153 / 94 for pipe fittings required for water line, sewage and gases. We also
offer an alternative third party accreditation under a similar approved scheme,
enabling us to comply with the requirements of specification for Highway Works
Appendix B.
Under KPMG certified ISO 9002(1994) and now BSEN
ISO9001:2000 BSI certified Quality Management System, we control
full traceability of product from source of manufacture through to ultimate
point of delivery, to satisfy any possible specified product liability requirements.
CARNATION is proud to be associated with BSI- KITEMARK & also UL APPROVAL and carries a large range of KITEMARKED and UL APPROVAL Products.
Export Activities
OUR
GLOBAL PRESENCE
Country - USA
Capital - Washington D. C
Population - 249,632,692
Currency - US Dollar
Country -
Australia
Capital - Canberra
Population - 19,268,000
Currency - Aus. Pound
Country - Canada
Capital - Ottawa
Population - 30,787,000
Currency - Canadian
Country - Greece
Capital - Athens
Population -10,259,900
Currency - Euro
(Greek Drachma)
Country - Mexico
Capital - Mexico City
Population -95,365,000
Currency -Mexico Pesos
Country - Saudi
Arabia
Capital - Riyadh
Population - 21,295,000
Currency - Saudi Riyal
Country - U. K.
Capital - London
Population -59,80,000
Currency -Pound Sterling
Country - Bahrain
Capital - Manama
Population -668,000
Currency - Dinar
Country-Northem
Ireland
Capital -
Population -
Currency -
Country - Quatar
Capital - Doha
Population -551,000
Currency - Quatar Riyal
Country - Belgium
Capital - Brussels
Population - 10,087,000
Currency -
Euro
Country - U. A.
E.
Capital - Abu Dhabi
Population - 2,007,000
Currency - Dirham
Country - France
Capital - Paris
Population -58,939,000
Currency -Euro
Country - Oman
Capital - Muscat
Population -2,656,000
Currency -Omani rial
Country - Germany
Capital - Berlin
Population -82,765,000
Currency - Euro
Country - Yemen
Capital - Sana
Population -16,956,000
Currency - Yemen Riyal
Awards Won
|
1985-86 |
Export Excellence award in C I Sanitary
castings |
|
1986-87 |
Highest Export performance award in C I
Industrial castings |
|
1987-88 |
Highest Export performance in C I panel (ALL
INDIA) |
|
1988-89 |
Top Exporters Shield (Eastern Region) |
|
1989-90 |
Highest Export performance award in C I
Sanitary castings |
|
1990-91 |
Certificate of Export Excellence : Eastern
Region |
|
1991-92 |
Certificate of Export Excellence : Eastern
Region |
|
1993-94 |
Certificate of Export Excellence : Eastern
Region |
|
1994-95 |
Certificate of Export Excellence : All India |
|
1995-96 |
Highest Export Performance in C I Panel (All
India) |
|
1996-97 |
Certificate of Export Excellence : Eastern
Region |
|
1997-98 |
Trophy for Highest Exporter in the group :
Eastern Region |
|
1998-99 |
Award for Export Excellence from EEPC (ER) for
highest export performance. |
|
1999-2000 |
Excellence Award For Excellence in
Productivity, Quality, Innovation & Management by Institute of Economic
Studies, New Delhi. |
|
1999-2000 |
All India Award for Export Excellence in
Engineering Goods. |
|
2001-2002 |
Certificate of Export Excellence : Eastern
Region |
|
2002-2003 |
Certificate of Export Excellence : Eastern
Region |
Location
Our industry is located at Liluah & Uluberia
in Howrah district of the State of West Bengal and connected by both train
& bus services with the city of Calcutta. Distance of Liluah from
Calcutta is 18 km and Calcutta to Uluberia is 40 km.
Description
Our industry is an intergrated
engineering unit consisting of :
§
Grey Iron Foundry : 2 units.
§
Ductile Iron foundry (Uluberia unit).
§
Centralised warehouse for despatch
Contacts
Registered Office
28/1 Jheel Road, Liluah, Howrah
Phone: 2645-4785 / 30939136 / 37
Fax : 2645-8418
Corporate Office
222 A.J.C. Bose Road, Suite
4 & 5, 1st Floor, Calcutta - 700 017
Phone: 2247-2256 / 8229,
2280-3127
Fax: 2247 9938
Email : Carcast@Vsnl.Net
Web Site : http://www.Carnationindustries.com
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.45.52 |
|
UK
Pound |
1 |
Rs.85.79 |
|
Euro |
1 |
Rs.58.46 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
YES |
|
--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 |