MIRA
INFORM REPORT
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Report Date : |
28.10.2006 |
IDENTIFICATION
DETAILS
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Name : |
VENKY’S
INDIA LIMITED |
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Formerly Known As : |
WESTERN HATCHERIES LIMITED |
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Registered Office : |
“Venkateshware
House”, S. No. 114/A/2, Pune – Sinhagad Road, Pune – 411030, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.07.1976 |
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Com. Reg. No.: |
11-19110 |
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CIN No.: [Company
Identification No.] |
U01222PN1976PTC019110 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEW00143D |
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PAN No.: [Permanent
Account No.] |
AAACW1300L |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer and Seller of Poultry Feed,
One Day Old Commercial Chicks, Animal Feed, etc. The company is a part of VH Group. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD
4500000 |
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Status : |
Good |
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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 fine track. Directors are experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. The company is doing very well. Payments are usually correct and as per commitments. The concern can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
“Venkateshware
House”, S. No. 114/A/2, Pune – Sinhagad Road, Pune – 411030, Maharashtra,
India |
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Tel. No.: |
91-20-2422231/4251530-41 |
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Fax No.: |
91-20-2537760/4251077/1060 |
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Corporate
Office : |
“Venkateshwara
House”, S.No. 3-5-808 & 808/1, Hyderguda, Hyderabad - 500 029, Andhra
Pradesh, India |
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Factory
: |
Units : Pune, Maharashtra – (Broiler Breeder Farms, Specific Pathogen Free Egg, Poultry Feed, Animal Health Products, Chicken Processing, Broiler Commercial Farms and Nutritional Health Products.) Solapur, Maharashtra - Solvent Extraction and Refinery and Poultry Feed. Anand, Gujarat - Broiler Breeder Farm, Broiler Commercial Farm and Layer Breeder Farm Samalkha and Sonepat, Haryana - Broiler Breeder Farm and Layer Breeder Farm Ambala, Haryana - Broiler Breeder Farm and Poultry Feed Dehradun, Uttaranchal - Broiler Breeder Farm and Layer Breeder Farm and Poultry Feed Ludhiana, Punjab - Broiler Breeder Farm and Layer Breeder Farm Khanna, Punjab – Poultry Feed Rewa, Madhya Pradesh – Broiler Breeder Farm and Hatchery |
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Plants
: |
Solapur, Maharashtra Osade (Pune),
Maharashtra Patvi, Ambala |
DIRECTORS
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Name : |
Mrs. Anuradha J. Desai |
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Designation : |
Chairman
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Name : |
Mr. B. Venkatesh Rao |
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Designation : |
Vice Chairman |
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Name : |
Mr. B. Balaji Rao |
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Designation : |
Managing Director and Chief Executive
Officer |
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Name : |
Mr. Jitendra M. Desai |
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Designation : |
Director |
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Name : |
Mr. S. B. Thorat |
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Designation : |
Director |
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Name
: |
Mr. B. G. Deshmukh |
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Designation
: |
Director |
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Name
: |
Mr. C. Jagapati Rao |
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Designation
: |
Director |
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Name
: |
Mr. V. N. Dubey |
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Designation
: |
Director |
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Name
: |
Lt.
Col. Ashok Mahajan |
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Designation
: |
Director
[Retired] |
MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
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Individuals
/ Hindu Undivided Family |
701355 |
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Bodies
Corporate |
4176418 |
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Mutual
Funds / UTI |
1342 |
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Financial
Institutions / Banks |
309 |
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Foreign
Institutional Investors |
1809 |
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Bodies
Corporate |
689410 |
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Individuals
– Individual share holders holding nominal share capital up to Rs. 0.100
million |
2830975 |
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Individual
share holders holding nominal share capital in excess of Rs. 0.100 million |
831375 |
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NRI’s
/ OCB’s |
67657 |
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Directors/Relatives/
Associates [Independent & are not in control of the company] |
62970 |
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Shares
in transit |
27937 |
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TOTAL |
9391557 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Seller of Poultry Feed,
One Day Old Commercial Chicks, Animal Feed, etc. The company is a part of VH Group. |
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Products : |
Item
Code No. (ITC Code) Product Description 3099009 Poultry Feed 1059100 One Day Old Commercial Chicks 23099002 Animal Feed Concentrates Additives and Supplements |
PRODUCTION
STATUS
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Products |
Unit |
Installed Capacity |
Actual Production |
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- At Own facilities |
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Chicks |
Nos. |
84453363 |
44905533 |
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[Include for captive consumption] |
Nos. |
-- |
13399905 |
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S.P.F. eggs |
Nos. |
4400000 |
3898797 |
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Refined Oil |
MT |
15000 |
13333 |
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[Include for captive consumption] |
MT |
-- |
456 |
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De-Oiled cakes for poultry feed |
MT |
98400 |
58396 |
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[Include for captive consumption] |
MT |
-- |
17853 |
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Animal Health Products |
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- Powder |
MT |
900 |
2514 |
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[Includes for captive consumption] |
MT |
-- |
71 |
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- Liquid |
K.L. |
600 |
901 |
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[Include for captive consumption] |
MT |
-- |
57 |
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Poultry Feed |
MT |
121800 |
112727 |
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[Include for captive consumption] |
MT |
-- |
56724 |
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Nutrition Health Products |
MT |
36 |
62 |
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- At External Leased facilities |
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AHP Powder |
MT |
-- |
658 |
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Chicks |
Nos. |
-- |
12695898 |
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Commercial live broilers |
KGS. |
-- |
18995122 |
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[Include for captive consumption] |
KGS. |
-- |
9812191 |
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Poultry Feed |
MT |
-- |
516 |
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[Include for captive consumption] |
MT |
-- |
516 |
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Processed Chicken |
KG |
-- |
4049854 |
GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
State Bank of India Bank of Maharashtra Bank of Baroda Corporation Bank IDBI Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Sudit K. Parekh & Company Chartered Accountants, 12-A, Suleman Chambers, 2nd Floor, 4, Battery Street, Apollo Bunder, Mumbai - 400 001, Maharashtra |
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Associates : |
Ø Balu Foods Private Limited Ø Shivalik Hatcheries Private Limited Ø Srivenk Finance Limited Ø Uttara Dairy & Food Products Limited Ø Uttara Foods and Feeds Products Private Limited Ø Venkateshwara Foods and Feeds (firm) Ø Venkateshwara Farms Private Limited Ø Venkateshwara Research and Breeding Farm Limited Ø Venkateshwara Hatcheries Private Limited Ø Venco Research & Breeding Farm Limited Ø Venkateshwara Research and Breeding Farm Private Limited Ø V. R. Equipment Limited Ø V. J. Equipment Limited Ø Venkateshwara Bio Sentry India Limited Ø Brindavan Bio Sentry India Limited Ø Eastern Hatcheries Private Limited Ø Medivenk Laboratories Private Limited Ø Venkateshwara Farms Private Limited Ø B. V. Supplements Manufacturing Company Limited Ø Baramati Agro Limited Ø Vivek Hatcheries Limited Ø Brindavan Hatcheries Private Limited Ø V. R. Equipment Limited Ø Biotech Consortion India Limited Ø Contronic International Private Limited Ø Omni Bio Search Private Limited Ø Venki Imports and Exports Private Limited Ø Ranchi Hatcheries Private Limited Ø Dattatraya Hatcheries Private Limited Ø Balaji Foods And Feeds Limited Ø Srivenk Investment Limited |
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Subsidiaries : |
Venky’s Food (India) Limited "Venkateshwara House", S. No. 114/A/2, Pune-Sinhagad Road, Pune - 411 030, Maharashtra, India Venkateshwara Management Services Limited "Venkateshwara House", S. No. 114/A/2, Pune-Sinhagad Road, Pune, - 411030, Maharashtra, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
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11000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 110.000 millions |
|
1000000 |
Preference
Shares |
Rs. 10/- each |
Rs. 100.000 millions |
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TOTAL |
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Rs. 210.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
9397272 |
Equity
Shares |
Rs. 10/- each |
Rs. 93.973 millions |
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Less : |
Forfeited
Shares |
|
Rs. 0.057 million |
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TOTAL |
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Rs. 93.916
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
93.916 |
93.916 |
93.916 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1030.652 |
895.518 |
766.255 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1124.568 |
989.434 |
860.171 |
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LOAN FUNDS |
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1] Secured Loans |
301.485 |
352.574 |
431.537 |
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2] Unsecured Loans |
534.087 |
161.673 |
142.407 |
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TOTAL BORROWING |
835.572 |
514.247 |
573.944 |
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DEFERRED TAX LIABILITIES |
139.162 |
157.450 |
146.860 |
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Government Grants |
10.292 |
10.344 |
9.802 |
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TOTAL |
2109.594 |
1671.475 |
1590.777 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
906.296 |
860.085 |
884.658 |
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Capital work-in-progress |
163.713 |
45.554 |
10.191 |
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INVESTMENT |
404.010 |
241.206 |
103.258 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
497.765
|
418.742 |
539.347 |
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Sundry Debtors |
377.263
|
353.028 |
357.521 |
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Cash & Bank Balances |
91.784
|
86.220 |
33.995 |
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Other Current Assets |
67.798
|
47.491 |
44.978 |
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Loans & Advances |
55.296
|
30.507 |
32.864 |
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Total Current Assets |
1089.906
|
935.988 |
1008.705 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
423.877
|
369.843 |
359.328 |
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Provisions |
30.454
|
44.848 |
63.374 |
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Total Current Liabilities |
454.331
|
414.691 |
422.702 |
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Net Current Assets |
635.575
|
521.297 |
586.003 |
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MISCELLANEOUS EXPENSES |
0.000 |
3.333 |
6.667 |
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TOTAL |
2109.594 |
1671.475 |
1590.777 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
3837.769 |
3467.727 |
3123.054 |
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Profit/(Loss)
Before Tax |
177.895 |
268.334 |
221.536 |
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Provision
for Taxation |
60.212 |
101.591 |
60.150 |
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Profit/(Loss)
After Tax |
117.683 |
166.743 |
161.386 |
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Export
Value |
74.356 |
81.177 |
72.014 |
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Import
Value |
117.812 |
117.431 |
141.921 |
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Total
Expenditure |
3657.702 |
3217.295 |
2901.518 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.06.2006 [1st Qtr.] |
|
Sales Turnover |
|
|
885.400 |
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Other Income |
|
|
14.400 |
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Total Income |
|
|
899.800 |
|
Total Expenditure |
|
|
827.400 |
|
Operating Profit |
|
|
72.400 |
|
Interest |
|
|
11.400 |
|
Gross Profit |
|
|
61.000 |
|
Depreciation |
|
|
17.200 |
|
Tax |
|
|
14.200 |
|
Reported PAT |
|
|
30.500 |
Notes
2006-06 Quarter 1
EPS is Basic and
Diluted 1.The above unaudited results have been subjected to 'Limited Review'
by the Statutory Auditors in terms of Clause 41 of the listing agreement and
were reviewed by the audit committee and taken on record by the Board of
Directors at its meeting held on 28.07.2006. 2. There were 2 investor
complaints pending at the beginning of the quarter. The number of investor
complaints received during the quarter were 12 and all have been redressed. 3.
The figures in respect of previous periods have been regrouped or rearranged
wherever necessary to conform to the current periods classification.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
0.63 |
0.58 |
0.73 |
|
Long
Term Debt Equity Ratio |
0.48 |
0.33 |
0.36 |
|
Current
Ratio |
1.24 |
1.13 |
1.09 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed
Assets |
2.67 |
2.51 |
2.29 |
|
Inventory
|
8.37 |
7.20 |
6.12 |
|
Debtors |
10.51 |
9.71 |
8.97 |
|
Interest
Cover Ratio |
6.61 |
8.82 |
5.34 |
|
Operating
Profit Margin (%) |
7.07 |
10.51 |
9.13 |
|
Profit
Before Interest and Tax Margin (%) |
5.46 |
8.77 |
7.10 |
|
Cash
Profit Margin (%) |
4.68 |
6.58 |
6.24 |
|
Adjusted
Net Profit Margin (%) |
3.07 |
4.83 |
4.20 |
|
Return
on Capital Employed (%) |
12.04 |
20.53 |
15.52 |
|
Return
on Net Worth (%) |
11.03 |
17.83 |
15.76 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.138.05/- |
|
Low |
Rs.134.25/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company formerly known as 'Western Hatcheries (WHL) a Venkateswara Hatcheries Group company was incorporated in 1971, engaged in poultry breeding, producing eggs and hatching layer and broiler chicks. WHL also processes markets and sells ready to cook chicken, fast food items of poultry meal and other ingredients.
Its hatcheries are at Pune, Maharashtra; Hyderabad, Andhra Pradesh and Hosur, Tamilnadu. While the feed units are at Osade (Pune), Solapur, Dehradun, Ambala and Allahabad and Solvent Extraction plant at Solapur (Capacity is 60000 tpa). The company also has a modern diagnostic and research centre at Pune.
The company's Specific Pathogen-Free eggs (SPF eggs) producing facility is one of the five of its kind in the world. This facility with a capacity of 500000 eggs is started in 1983 with technology from Spafas, USA. SPF eggs are an important and crucial raw material for the production of human and poultry vaccines as per WHO Standards. It sells these eggs to vaccine manufacturers, bio-medical research institutions and universities.
The company entered the capital market in May, 1989 with an issue of 14% PCDs to part finance its expansion cum diversification programme of setting up a central grower farm at Pune, animal health products division at Ambala, Haryana, broiler breeder farm at Dehradun and also expansion of SPF eggs production facilities. In 1992-93, the company commissioned the central grower farm, animal health products division, broiler breeder farms were commissioned and the expansion SPF eggs production capacity was also completed. The company commissioned a poultry feed unit at Dehradun in 1993-94.
Chintamani Hatcheries Private Limited and Sahyadri Hatcheries Private Limited were amalgamated with the company, with effect from April, 1993 and with effect from April, 1994 respectively. Northern Hatcheries Private Limited, Pawna Hatcheries Private Limited, Narmada Hatcheries Private Limited and the company were amalgamated with its. In 1995-96, the company completed the expansion of its poultry business at Samalkha and Ambala, both in Haryana, whereas expansion at Bhigwan, Maharashtra is under implementation. The company's pathogen free eggs division is under implementation.
During the year 1997-98 the company increased the installed capacity of its SPF Eggs, Solvent Extraction Oil and Poultry Feed by 200000 Nos, 599 TPA and 9000 MT. The Animal Health Products division started manufacturing eggs powder and chicken powder for humans under the brand names Venper, Vengain and Venfit. The company benefits substantially from the technological break through from the research carried out by the foreign joint venture partners and further research by Indian joint ventures partners to make breeds suitable for Indian conditions.
The company's mew SPF unit was set up at Bhor last year. In 2000-01, the company commissioned a 50 TPA Edible Oil refinery with a cost of Rs. 25.000 millions. The company's Animal Health Products division has entered into a business association with the USA based Alltech Inc to market their animal nutritional product in India.
OPERATIONS
The Company registered a growth of 11% in sales turnover for the year at Rs.
3837.4 millions as compared to Rs. 3450.4 millions in the previous year.
However, the profit before tax declined by 29% at Rs. 177.9 millions as
compared to Rs. 268.3 millions (excluding provision for contingencies written
back of Rs. 20 millions) in the previous year. Though the Company's sales
turnover and profits were on the rise up to the three quarters ended December,
2005, the announcement of bird flu in February, 2006 and the subsequent panic
among consumers of poultry products caused severe damage to the poultry
industry and this single factor has negatively impacted the overall performance
of the company for the fourth quarter. The negative impact in the fourth
quarter resulted in decline in profits for the FY 2005-06 as a whole vis-a-vis
FY 2004-05.
During the under report the Animal Health Products Unit situated at Ambala was
disposed of to Venkateshwara Biosentry (India) Limited.
DIVIDEND
The Directors recommend a dividend of 20% (Rs.2/- per share). The dividend, if
approved at the ensuing annual general meeting, will absorb Rs.18.783 millions
(previous year Rs. 32.870 millions).
OUTLOOK
The poultry industry, after the 'bird flu' scare, has started showing signs of
improvement. The company, in close co-ordination with National Egg
Co-ordination Committee and the All India Poultry Development And Services
Private Limited undertook an extensive awareness campaign through the print
media and electronic media to alleviate the fears about 'bird flu' that created
turmoil in the poultry industry. The campaign has started showing desired
positive impact on consumption of chicken and eggs. These measures will
definitely help in improving consumption of poultry products and the poultry
industry is expected to attain normalcy in operation very soon.
The Directors are therefore hopeful that this will help the company in getting
back to the growth track.
The company’s fixed assets of important value include trademark, land (freehold and leasehold), buildings, plant, machinery and equipments, electrical installations, furniture, fixtures and office equipment and vehicles.
WEBSITE
DETAILS
Venky's (India) Limited formerly known as Western Hatcheries Limited was established in 1976, mainly to produce day-old layer and broiler chicks for the dense poultry markets of North India.
Over the years, Venky's (India) Limited embarked upon new ventures in regular succession, adding tremendous value to the company, giving it an edge in technology and high returns on investment. The company has steadily grown to over 30 units spread across India.
Today, Venky's impressive portfolio includes animal health products, pellet feeds, processed, and further processed chicken products, solvent oil extraction, and SPF Eggs. The company's Specific Pathogen Free Egg unit (in technical collaboration with SPAFAS Inc. USA) is among four such units in the world and the only one of its kind in the developing world.
Diversifying from mainstream poultry products, Venkys (India) Limited has added to its credit, manufacturing facilities for nutritional health products for humans, and pet food and health care products. The company has steadily grown to over 30 units spread across India.
The Forbes business magazine of USA ranked Venky's (India) Limited as 67th among the 100 best global small companies in the year 1999-2000.
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.44.84 |
|
UK
Pound |
1 |
Rs.85.55 |
|
Euro |
1 |
Rs.57.28 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|