MIRA INFORM REPORT
|
Report Date : |
16.11.2006 |
IDENTIFICATION DETAILS
|
Name : |
FOSROC CHEMICALS INDIA
PRIVATE LIMITED |
|
|
|
|
Formerly Known As : |
BURMAH CASIROL COMPANY
PRIVATE LIMITED |
|
|
|
|
Registered Office : |
41st, KM, N. H.
4, Kuluvanahalli Post, Nelmangala Taluk, Bangalore - 562111, Karnataka, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
22.12.1980 |
|
|
|
|
Com. Reg. No.: |
08-4053 |
|
|
|
|
CIN No.: [Company Identification No.] |
U02411KA1980PTC004053 |
|
|
|
|
TAN No.: [Tax Deduction & Collection Account No.] |
BLR00782F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACF2300D |
|
|
|
|
Legal Form : |
Closely
Held Public Limited Liability company |
|
|
|
|
Line of Business : |
Manufacturing
and Selling of Chemicals for Strengthening, Concreting, Cementing and Adhesives,
Paints, Sealant, etc |
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 800000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established and reputed company having fine track. Financial position is
good. Payments are correct and as per commitments. Trade relations are fair. The company can be
considered good for any normal business dealings at usual trade terms and
conditions. It can be regarded as a
promising business partner in a medium to long – run. |
LOCATIONS
|
Registered Office : |
41st,
KM, N. H. 4, Kuluvanahalli Post, Nelmangala Taluk, Bangalore - 562111,
Karnataka, India |
|
Tel. No.: |
91-80-27733340 / 27733342 /
22225495 / 22240018 / 22240120 / 22240182 / 28360441 / 28362835/23343182 |
|
Fax No.: |
91-80-27733518 / 22233474 /
28360663/23343178 |
|
E-Mail : |
mnramesh@fosrocindia.com, info@fosrocindia.com, sales@fosrocindia.com, India@fosroc.com |
|
Website : |
|
|
Area : |
2500
sq. fts. (Rented) |
|
|
|
|
Head Office : |
“Hafeeza Chambers”, Second
Floor, P. B. No. 2744, 111/3, K. H.
Road, Bangalore – 560 027, Karnataka |
|
Tel. No.: |
91-80-22240018/22240120/22240182/28360441/28362835 |
|
Fax No.: |
91-80-22233474/28360663 |
|
E-Mail : |
|
|
|
|
|
Regional Offices : |
Bangalore
1218, R. M. V. Extension,
Bangalore – 560 080, Karnataka Tel. No. 91-80-23343161 / 23442004 Fax No. 91-80-23447454 E-Mail rsridhar@fosrocindia.com Mumbai
#39-40 Mahavir Centre, Plot
No. 77, Sector 17, Vashi, Navi Mumbai – 400 703, Maharashtra Tel. No. 91-22-27896411 – 4, 32989004 Mobile 91-9819789248 (Mr. Gopal Sarma) Fax No. 91-22-27896413 E-Mail pkpatry@fosrocindia.com
/ gopal_sarma@jmhfzco.com Delhi Kolkata, West Bengal |
|
|
|
|
Plants : |
Tel. No. 91-8118-233316
Tel.
91-80-2225495 / 2240018 / 2240120 / 2240182 / 2240242 Fax. 91-80-2233474 E-mail. 1. mnramesh@fosrocindia.com Website. http://www.fosrocindia.com
|
|
|
|
|
Branches : |
Located at : v
Mumbai, Maharashtra v
Delhi v
Kolkata, West Bengal v
Hyderabad, Andhra
Pradesh v
Ahmedabad, Andhra
Pradesh v
Bhubaneshwar, Orissa v
Chennai, Tamilnadu v
Kochi, Kerala v
Coimbatore v
Hyderabad, Andhra
Pradesh v
Vizag |
DIRECTORS
|
Name : |
Mr. F. A. A Jasdanwalla |
|
Designation : |
Chairman |
|
Address : |
No.
A – 21, Fascinate Homes, 6TH Main, 12th Cross,
Bangalore – 560001, Karnataka |
|
Date of Birth/Age : |
13.07.1926 |
|
Date of Appointment : |
26.12.1980 |
|
|
|
|
Name : |
Mr. Abjijit Dutta, BE MIE |
|
Designation : |
Managing
Director |
|
Address : |
907,
Olympus 3 Prestige, Acropolis Hosur Road, Bangalore - 560029, Karnataka |
|
Date of Birth/Age : |
28.07.1950 |
|
Date of Appointment : |
11.11.1997 |
|
|
|
|
Name : |
Ms. Suzanne EI Zainy |
|
Designation : |
Director |
|
Address : |
PB
12276, Dubai |
|
Date of Birth/Age : |
23.08.1958 |
|
Date of Appointment : |
28.08.1998 |
|
|
|
|
Name : |
Mr. Sedky Adel |
|
Designation : |
Director |
|
Address : |
Fosroc International
Limited, Middle East Dho, PB 12276, Dubai |
|
Date of Appointment : |
06.06.1999 |
|
|
|
|
Name : |
Mr.
G. G. Desai |
|
Designation : |
Director |
|
Address : |
120, Hole House Road,
Mumbai - 400025, Maharashtra |
|
Date of Birth/Age : |
04.06.1933 |
|
Date of Appointment : |
09.08.1989 |
|
|
|
|
Name : |
Mr.
John Scott |
|
Designation : |
Director
|
|
Address : |
120, Hole House Road,
Mumbai - 400025, Maharashtra |
|
Date of Birth/Age : |
13.06.1950 |
|
Date of Appointment : |
23.05.2005 |
|
|
|
|
Name : |
Mr.
K. S. Narayanan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Tawfic Ghandour |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr.
S. R. Babu Shankar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr.
D. Sitaramiah, M. Tech. |
|
Designation : |
Chief Executive |
|
|
|
|
Name : |
Mr.
R. Sridhar |
|
Designation : |
General Manager (South & East) |
|
Address : |
Rahimatoola House, No. 7, Street Fort |
|
Date of Birth/Age : |
14.12.1956 |
|
Date of Appointment : |
29.06.2005 |
|
|
|
|
Name : |
Mr.
P. K. Pasty |
|
Designation : |
General Manager (West & North) |
|
|
|
|
Name : |
Mr.
R. N. Lavania |
|
Designation : |
Operations Manager |
|
|
|
|
Name : |
Mr.
Sridhar S. Hegde |
|
Designation : |
Corporate Finance Manager |
MAJOR SHAREHOLDERS
|
Name of Shareholder |
No of Shares |
|
Fosroc International
Limited, Middle East, Dho PB 12276, Dubai |
799,999 |
|
Jhh, UK |
1 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Selling of Chemicals for Strengthening, Concreting, Cementing and
Adhesives, Paints, Sealant, etc |
|
|
|
|
Imports from : |
UK
and Singapore |
|
|
|
|
Terms : |
|
|
Selling : |
Credit
(120 days) |
|
|
|
|
Purchasing : |
Credit
(180 days) |
GENERAL INFORMATION
|
Suppliers : |
|
|
|
|
|
Customers : |
|
|
|
|
|
No. of Employees : |
240 |
|
|
|
|
Bankers : |
v
HSBC, M. G. Road,
Bangalore – 560 001, Karnataka v
HDFC Bank Limited,
Kasturba Road Branch v
HDFC Bank Limited,
Malleshwaran Branch v
HDFC Bank Limited,
Ankleshwer v
HDFC Bank Limited, New
Delhi v
Central Bank of India,
RMV Branch v
Central Bank of India,
Ankelshwer v
Central Bank of India,
Mumbai v
Canara Bank of India,
Mumbai v
Canara Bank,
Kuluvanahall Branch v
Canara Bank, Cuunigham
Branch v
State Bank of India,
Bangalore |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Price Waterhouse &
Company Chartered Accountants |
|
Address : |
21 Museum Road, Bangalore –
560 025, Karnataka |
|
Tel. No.: |
91-80-25591298/25595335 |
|
|
|
|
Associates/Subsidiaries
: |
Fosroc International
Limited, Dubai Subsidiaries
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,600,000 |
Equity Shares |
Rs.10/- each |
Rs. 16.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
800,000 |
Equity Shares |
Rs.10/- each |
Rs. 8.000 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.12.2005 (12TH Month) |
31.12.2004 (9 Month) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
8.000 |
8.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
200.405 |
179.404 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
208.405 |
187.404 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
40.106 |
40.046 |
|
TOTAL
BORROWING
|
|
40.106 |
40.046 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
248.511 |
227.450 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
53.582 |
60.366 |
|
Capital work-in-progress
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
|
|
0.025 |
0.045 |
|
DEFERREX TAX ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
70.825 |
65.652 |
|
|
Sundry Debtors
|
|
244.192 |
205.998 |
|
|
Cash & Bank Balances
|
|
43.887 |
21.419 |
|
|
Other Current Assets
|
|
11.896 |
10.103 |
|
|
Loans & Advances
|
|
23.050 |
43.338 |
Total Current Assets
|
|
393.850 |
346.510 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities & Provisions
|
|
194.844 |
174.442 |
|
|
Provisions
|
|
4.102 |
5.029 |
Total Current Liabilities
|
|
198.946
|
179.471 |
|
Net Current
Assets
|
|
194.904 |
167.039 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
248.511 |
227.450 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.12.2005 (12TH Month) |
31.12.2004 (9 Month) |
Sales Turnover [including other income]
|
|
954.582 |
600.651 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
134.521 |
84.328 |
Provision for Taxation
|
|
0.000 |
0.000 |
Profit/(Loss) After Tax
|
|
134.521 |
84.328 |
|
|
|
|
|
Export Value
|
|
NA |
NA |
|
|
|
|
|
Import Value
|
|
NA |
NA |
|
|
|
|
|
Total Expenditure
|
|
820.061 |
516.323 |
KEY RATIOS
|
PARTICULARS |
|
|
31.12.2005 (12TH Month) |
31.12.2004 (9 Month) |
PAT / Total Income
|
(%)
|
|
14.09 |
14.03 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
|
14.09 |
14.03 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
|
30.06 |
20.72 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
|
0.64 |
0.44 |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
|
1.14 |
1.17 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
|
1.97 |
1.93 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The
company was incorporated on 22nd December, 1980 at Bangalore in
Karnataka having Company Registration Number 4053.
The
company was originally incorporated under the name and style of "Burmah
Casirol Company" private limited and it became a deemed into pubic limited
liability company with the present name.
The
company is the Indian operation of Fosroc International Limited., U K, a part
of B P Amoco, a lubricant and Speciality chemical giant with worldwide
operations. Fosroc and Technik merged in 1990 under the Fosroc banner to create
the largest UK based construction and mining chemical company.
Subject,
is the first multinational construction chemicals company to start its
operation in India way back in 1981. Since then, the company has been
introducing international quality products into the Indian market, making it
the Numero Uno Construction Chemicals Manufacturer in the country.
MILESTONES:
|
1981 |
Fosroc India started its
operation as a joint venture between Mumbai based industrialist and Fosroc
International Limited, UK |
|
|
|
|
1983 |
Established Stockists Network |
|
|
|
|
1987 |
Established Regional Offices at all Metros |
|
|
|
|
1990 |
Burmah Castrol Plc (Expandite) merged with Foseco
(Parent company of Fosroc) Worldwide, and formed largest UK based
construction chemical and mining company |
|
|
|
|
1990 |
Second manufacturing unit at Ankleshwar put into
operation |
|
|
|
|
1993 |
Established Regional Marketing Department to
cater to the needs of the customer regionally |
|
|
|
|
1997 |
Expansion of Ankleshwar Unit with modern
manufacturing facilities |
|
|
|
|
1997 |
Fosroc India certified for ISO9002
Quality Management System by Bureau Veritas Quality International on all
India basis |
|
|
|
|
1998 |
Bangalore plant was moved
to its present location with modern manufacturing facilities making it as one
of the modern Construction Chemical Manufacturing plant in India |
|
|
|
|
1999 |
Established Research & Development |
|
|
|
|
2000 |
Burmah Castrol's Worldwide lubricants business
has become part of BP Amoco Plc. following the successful completion of
BP Amoco's cash offer for Burmah Castrol. |
|
|
|
|
2002 |
Fosroc India certified for ISO9001 2000 series by
Bureau Veritas Quality International on all India basis including R&D |
|
|
|
|
2003 |
Fosroc Global was acquired by Dr. James Hay,
Chairman of JMHfzco Group of Companies |
BUSINESS:
Subject is also engaged in as manufacturer and seller of construction chemical products such as Concrete Admixtures, Surface Treatment Products, Grouts and Anchors, Mortars, Industrial/Commercial floor treatment products, Protective coatings, Joint Sealants, Waterproofing Systems, Jelly Filling Compounds, etc.
Subject
is reported to be a leader in its product lines.
The
company is also engaged in as manufacturers, processors, importers, exporters
and dealers of all kinds of speciality chemicals, compounds, coatings, etc.
The company has been accredited with ISO 9002
certification.
The
company is a Joint Venture with Forsoc International, U.K.
The
company has traditional expertise in Concrete Admixtures, Industrial Flooring,
Repair and Protection, Grouts and Anchors. The company has operations in over
28 countries with 2500 employees making it one of the world’s major companies
in the construction chemical market.
The
company's geographical diversity is one of the company’s strengths with
operations in Europe, Americas, Oceania, South and East Asia, The Middle and
Near East. Fosroc also exports to over hundred additional countries giving it a
total global coverage.
The
company's strength lies in concrete, cement and polymer technologies. These
technologies are under continuous scrutiny by its technical and marketing
experts, developing products to give innovative and lasting solutions for any
construction requirements.
The
company has invested valuable resources over the years to acquire the ability
to test and simulate the most demanding site conditions giving accurate
predictions of product performance and its life expectancy in differing
climatic conditions.
Over
the years, the company has accumulated a wealth of experience on raw materials
and product performance. This data enables the company to manufacture products
of very high quality, keeping pace with global technical advances, marketing
trends and application needs under diverse geographical and climatic
conditions.
As
the company's, customer focus goes hand in hand with quality people, the
company believe that its must give the customers what its require and when
their need it. The company had over 200 employees out of which, 50% are
marketing and technical support staff. Thus, the company ensures that a
comprehensive sales and technical support will always be available to its'
customers anywhere in the country.
International
leverage gives the company the opportunity to offer tried and tested solutions
from one geographical region to another with great confidence.
The
company in India has a specially trained team spread all over the country that
can execute large application jobs. Its' trained engineers and sales staff,
oversee the execution of the work. The company associate with the consultants
and the clients right at the specification stage to offer product support and advice.
The supply chain consists of a countrywide network of stockists.
Caption
factory premises of area admeasuring 9,916 sq. metres. is also owned by the
company and is situated in a rural area.
Press
clipping
CFO Asia / Pricewaterhouse Coopers Awards Babu Shankar
S
R Babu Shankar, General Manager ( Commercial) cum Company Secretary has won the
Award for the category of Managing Finance in Small to Medium Enterprises for
the year 2002.
CFO
Asia is a Finance Magazine published from Hong Kong and is part of The
Economist Group. The award is jointly presented by CFO Asia magazine and
Pricewaterhouse Coopers an international audit firm.
The
Award is presented for introduction of
best practices in Management Information Systems, Treasury Management, contribution
to the Company’s Growth plans and creativity of initiatives. Full details are available in their web site
CFOasia.com.
Fosroc
India continues to be the great Leader in Indian market of Construction
Chemicals. Fosroc always has been the
first to accelerate its Quality with an ultimate aim of meeting the ever
changing requirement of its customers.
Fosroc India has upgraded its Quality Management System in line with
ISO9001-2000 series and announces that the certificate of ISO9001-2000 series
has been awarded. Thus Fosroc India has
become ISO9001-2000 series certified Company
Fosroc
International Limited, U.K, a part of BP Amoco a
lubricant and speciality chemical giant with Worldwide operations, Fosroc
and Technic merged in 1990 under the Fosroc banner to create a largest UK based
construction chemical company.
Over
60 years of pioneering experience have been devoted to finding new and better
solutions to meet modern construction, civil engineering and mining needs.
Fosroc products are contributing to the success of major projects worldwide and
consistently delivering lasting results.
FOSROC - working for successful construction & mining
around the world.
Fosroc
International Limited, UK, is one of the world's major manufacturers and
suppliers of construction Chemicals. The company has operations - with local
service - in over 28 countries and exports to about 100 others.
Fosroc
is a member of the BP Amoco Group - a truly global force with over 15,000
employees in 50 countries and selling to 100 other nations. The world wide
sales is around 3 billion pounds.
It
imports raw materials/chemicals, etc for own use from UK and Singapore.
The
company's fixed assets of important value includes land, building, plant and
machinery, furniture and fixture, office equipments and vehicles.
Subject
operates from caption owned office cum factory premises of area admeasuring 2
acres. Caption head office premises of area admeasuring 5,000 sq.fts.
MEMBERSHIPS
- Confederation of Indian Industry
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. 45.17 |
|
UK
Pound |
1 |
Rs. 85.24 |
|
Euro |
1 |
Rs. 57.89 |
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 |
NO |
|
--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
|
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 |