MIRA
INFORM REPORT
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Report Date : |
10.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
STANPACKS [INDIA] LIMITED |
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Registered Office : |
No. 46, Halls Road, Kilpauk, Chennai – 600010, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.12.1991 |
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Com. Reg. No.: |
18-21888 |
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CIN No.: [Company
Identification No.] |
L36991TN1991PLC021888 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES02940A |
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PAN No.: [Permanent
Account No.] |
AABCS0449K |
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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 : |
Manufacturers of Jute Bags. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 250000 |
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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.
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
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Registered Office : |
No. 46, Halls Road, Kilpauk, Chennai – 600010, Tamilnadu, India |
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Tel. No.: |
91-44-26451722 / 26461415 /26452325 |
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Fax No.: |
91-44-26451720 |
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E-Mail : |
Sridhar@blissgroup.com |
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Website : |
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Factory 1 : |
Sholiyapalayam Village, Sholavaram, Thiruvallur District, Chennai –
600067, Tamilnadu, India No. 157/1, GNT Road, Chinnambedu PO, Kavarapet, Thiruvallur District –
601206, Tamilnadu, India 6-6, Asisted Private Industrial Estate, Nellore – 524004, Andhra Pradesh,
India No. 330/B, 331, 331/B, 331/1 & 334, Shubharam Estate, Marasur
Gate, Anekal Road, Marasur, Bangalore – 562106, Karnataka, India |
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Branches : |
Located at : Nellore : Tel. No. : 91-861-2325581 / 2328924 Fax No. : 91-861-2324937 Bangalore : Tel. No. : 91-80-26562095 / 26562038 Fax No. : 91-80-26564611 Mumbai : Tel. No. : 91-22-28763515 / 28763516 / 28771346 Fax No. : 91-22-28750119 |
DIRECTORS
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Name : |
Mr. B. Surender |
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Designation : |
Chairman [From 29.10.2005] |
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Name : |
Mr. G. Sudhakar |
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Designation : |
Chairman [Till 29.10.2005] |
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Name : |
Dr. G. V. Chalapathi |
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Designation : |
Managing Director |
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Name : |
Mr. G. Radhakrishna |
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Designation : |
Joint Managing Director |
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Name : |
Mr. G. Muralidhar |
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Designation : |
Director |
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Name : |
Mr. M. Ravindra Reddy |
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Designation : |
Director |
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Name : |
Mr. S. Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr. M. V. Chandrasekar |
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Designation : |
Director |
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Name : |
Mr. M. Rajasekara Sastry |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. N. Gopalsamy |
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Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
2417748 |
39.66 % |
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Nationalized Banks |
219325 |
3.60 % |
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Mutual Funds |
132217 |
2.17 % |
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Other Companies |
159542 |
2.62 % |
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Individuals & Others |
3167168 |
51.95 % |
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Total |
6096000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Jute Bags. |
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Products : |
Small Bags: Annual Manufacuring Capacity PP Woven Sacks - 15 Million Bags PP/ HDFE Kraft Paper Bags - 10 Million Bags Agronit Bag - 5 Million Bags Multiwall Paper Bags - 10 Million Bags Hessian Laminiated Rolls - 6 Million Bags Jumbo Bags:
Reusable Jumbo Bags - 1 Million Bags Jute Jumbo Bags - 1 Million Bags Engineering Division: Jumbo Bags Filling Machine Jumbo Bags Discharging Machines |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Polymer Products |
Tones |
N.A. |
4800 |
2441.30 |
GENERAL
INFORMATION
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No. of Employees : |
About 250 |
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Bankers : |
The Karnataka Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. Srinivasan & Associates Chartered Accountants |
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Address : |
No. 5, 9th Floor, ‘B’ Wing, Parsn Manere, 602, Anna Salai,
Chennai – 600006, Tamilnadu, India |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6096000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.960
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
60.960 |
60.960 |
61.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3.623 |
3.440 |
5.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
64.583 |
64.400 |
66.400 |
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LOAN FUNDS |
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1] Secured Loans |
133.617 |
78.630 |
67.000 |
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2] Unsecured Loans |
25.321 |
18.958 |
20.200 |
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TOTAL BORROWING |
158.938 |
97.588 |
87.200 |
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DEFERRED TAX LIABILITIES |
7.577 |
5.180 |
0.000 |
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TOTAL |
231.098 |
167.168 |
153.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
136.516 |
94.837 |
87.300 |
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Capital work-in-progress |
0.000 |
0.000 |
1.700 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
73.354
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55.610 |
40.800 |
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Sundry Debtors |
39.650
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34.776 |
31.800 |
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Cash & Bank Balances |
0.385
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0.162 |
0.200 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
23.426
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15.880 |
22.000 |
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Total
Current Assets |
136.815
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106.428 |
94.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
42.233
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34.289 |
30.700 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
42.233
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34.289 |
30.700 |
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Net Current Assets |
94.582
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72.139 |
64.100 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.192 |
0.500 |
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TOTAL |
231.098 |
167.168 |
153.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
236.776 |
209.838 |
165.500 |
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Other Income |
1.151 |
0.919 |
1.300 |
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Total Income |
237.927 |
210.757 |
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Profit/(Loss) Before Tax |
7.042 |
5.694 |
6.300 |
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Provision for Taxation |
3.345 |
2.218 |
2.900 |
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Profit/(Loss) After Tax |
3.697 |
3.476 |
3.400 |
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Earnings in Foreign Currency : |
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Export Earnings |
3.985 |
1.803 |
N.A. |
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Commission Earnings |
0.000 |
0.000 |
N.A. |
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Other Earnings |
0.000 |
0.000 |
N.A. |
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Total Earnings |
3.985 |
1.803 |
N.A. |
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Expenditures : |
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Raw Materials |
0.000 |
0.000 |
107.400 |
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Excise Duty |
0.000 |
0.000 |
5.500 |
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Power & Fuel Cost |
0.000 |
0.000 |
12.100 |
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[Increase] / Decrease in Finished Goods |
[21.951] |
0.271 |
0.000 |
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Manufacturing Expenses |
215.524 |
172.477 |
2.700 |
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Administrative Expenses |
6.944 |
5.877 |
14.200 |
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Establishment Expenses |
7.457 |
6.092 |
0.000 |
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Selling Expenses |
3.646 |
3.680 |
0.000 |
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Employee Cost |
0.000 |
0.000 |
9.900 |
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Miscellaneous Expenses |
0.000 |
0.000 |
2.200 |
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Interest & Financial Charges |
0.000 |
0.000 |
9.300 |
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Depreciation |
0.000 |
0.000 |
5.500 |
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Share Issue Expenses Written Off |
0.192 |
0.192 |
0.000 |
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Total Expenditure |
211.812 |
188.047 |
168.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Sales
Turnover |
61.100 |
61.800 |
82.000 |
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Other
Income |
0.100 |
0.100 |
0.100 |
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Total
Income |
61.200 |
61.900 |
82.100 |
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Total
Expenditure |
53.600 |
53.800 |
77.400 |
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Operating
Profit |
7.600 |
8.100 |
4.700 |
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Interest |
3.300 |
5.300 |
5.300 |
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Gross
Profit |
4.300 |
2.800 |
[0.600] |
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Depreciation |
2.200 |
2.600 |
2.500 |
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Tax |
0.300 |
0.000 |
[00.100] |
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Reported
PAT |
1.100 |
0.100 |
[2.000] |
Notes
200606 Quarter 1
EPS is Basic & Diluted 1. The above results were
reviewed by the Audit Committee and taken on record by the Board of Directors
at its meeting held on 28.07.2006 subject to the limited review by the
Statutory Auditors of the Company. 2. The Company operates in a single primary
business segment namely manufacture of 'Packing Materials'. 3. Previous Year's
figures were regrouped wherever necessary. 4. Details of investor complaints
for the quarter ended 30.06.2006 beginning -Nil, Received - Nil, Disposed off -
Nil and ending - Nil. 5. Dues of the Sales Tax, Income-Tax and Excise Duty
which have not been deposited on account of dispute and forum where the dispute
is pending are as under; S No Name of the Nature of Dues Amount Pertaining
Present Status Statute Rs. 1. Sales Tax Sales Tax 825,477 1994-95 On appeal the
case Demand was remanded to the assessing officer. 2. Sales Tax -do- 353,788
1995-96 -do- 3. Sales Tax -do- 128,925 1997-98 -do- 4. Sales Tax -do- 80,755
2001-02 -do- 5. Central Excise Duty 370,589 2004-05 The Assistant Commissioner
of Central Excise Chennai 6. Income Tax Income Tax 535,659 AY 1995-96 Income
Tax Act, 1961 & Interest Appellate Tribunal, Chennai. 7. Income Tax -do-
863,086 Block Preferred for an Act, 1961 Assessment Appeal with ITAT, Chennai.
6. The impact of Accounting Standard (AS)-15 (Reviced 2005) 'Employee Benefits'
issued by the Institute of Chartered Accountants of India which is applicable
w.e.f April 1.2006 is not considered as the impact of this is not meterial. The
matter will be considered at appropriate time.
200609 Quarter 2
1. The above results were reviewed by the Audit Committee
and taken on record by the Board of Directors of the Company at its meeting
held on 31st October, 2006 subject to the Limited Review by the Statutory
Auditors of the Company. 2. The Company Operates in a single primary business
segment namely manufacture of Packing Materials. 3. Previous year's figures
were regrouped wherever necessary. 4. Details of investor complaints for the
quarter ended September 30, 2006 beginning-Nil received-Nil; disposal off. Nil
and ending-Nil. 5. Dues of the Sales Tax, Income-Tax and Excise Duty which have
not been deposited on account of dispute and forum where the dispute is pending
are as under; S No Name of the Nature of Dues Amount Pertaining Present Status
Statute Rs. 1. Sales Tax Sales Tax 825,477 1994-95 On appeal the case Demand
was remanded to the assessing officer. 2. Sales Tax -do- 353,788 1995-96 -do-
3. Sales Tax -do- 128,925 1997-98 -do- 4. Sales Tax -do- 80,755 2001-02 -do- 5.
Central Excise Duty 370,589 2004-05 The Assistant Excise Demand Commissioner of
Central Excise, Chennai. 6. Income Tax Income Tax 535,659 AY 1995-96 Income
Appellate Act, 1961 & Interest Tribunal, Chennai. 7. Income Tax -do-
863,086 Block Preferred for an Act, 1961 Assessment Appeal with ITAT, Chennai.
6. The Impact of Accounting Standard (AS15) (Revised 2005)'Employee Benefits'
issued by the The Institute of Chartered Accountants of India which is
applicable with effect from April 1, 2006 is not considered now as the impact
of this is not material. The matter will be considered at appropriate time. 7.
Dividend @ 5% on the equity shares was declared in the Annual General Meeting
of the Company held on 28.09.2006 and the dividend warrants were dispatched to
the shareholders.
200612 Quarter 3
1. The above results were reviewed by the Audit Committee
and taken on record by the Board of Directors of the Company at Its meeting held
on 29 January 2007 subject to the limited Review by the Statutory Auditors of
the Company. 2.The Company Operates in a single primary business segment namely
manufacture of 'packing materials'. 3.Previous year's figures were regrouped
wherever necessary. 4.Details of Investor complaints for the quarter ended
December 31, 2006 : beginning. NIl; received -Nil; disposed off -Nil and
ending- Nil 5.Dues of Of Sales Tax, Income-Tax and Excise Duty which have not
been deposited on account of dispute and forum where the dispute is pending are
as under: S No Name of the Nature of Dues Amount Pertaining Present Status
Statute (Rs.) 1. Sales Tax Sales Tax Demand 825,477 1994-1995 On Appeal the
remanded to the Assessing Officer II. Sales Tax Sales Tax Demand 353,788
1995-1998 do III. Sales Tax Sales Tex Demand 128,925 1997-1998 do IV. Sales Tax
Salsa Tax Demand 80,755 2001-2002 do V. Central Excise Excise Duty Demand
370,589 2004-2005 The Assistant Commissioner of Central Excise, Chennai VI.
Income Tax Income Tax & Interest 535,659 AY1995-96 Income Tax Act,1961
Appellate Tribunal Chennai Vii Income Tax Income Tax & Interest 863,086
Block Preferred for an Act 1961 Assessment appeal with ITAT Chennai 6. The
Impact of Accounting Standard(AS15) (Revised 2005)'Employee Benefits' issued by
the Institute of Chartered Accountants of India which is applicable with effect
from April1,2006 is not considered now as the impact of this is not material.
The matter will be considered at appropriate time. ActLt96Assessment MAT, Cho'
6. The of Aautinting StaiWaN (A515) Revd 2005)8etta' issued the The Institute
oAcwtintaf of Indiais applicableeffect from Ap9 1, is not
ixmsnawasfknWolflsnotmat.ThametWwilbecorrodwadmapproprte*ne. r t1.1I.5xxx xere
of Does
KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.55
|
1.64 |
2.03 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.95
|
2.70 |
3.77 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.57
|
2.82 |
3.45 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.08 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.11
|
2.04 |
1.77 |
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Current Ratio (Current Asset/Current Liability) |
|
3.23
|
3.10 |
3.08 |
STOCK PRICES
|
Face Value |
Rs. 10/- each |
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High |
Rs. 8.67/- |
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Low |
Rs. 8.67/- |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE:
The turnover during the year 2005-06 increased by 12.89%. The Profit Before Tax
during the year was Rs. 7.042 millions as against Rs. 5.694 millions in the
previous year. The depreciation for the year was Rs. 7.487 millions as against
Rs. 6.250 millions in the previous year.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
During the year, the company set new benchmarks and continued to grow its
business. The company also continued to enjoy growth on all parameters,
including sales, profits, net worth and assets. The turnover of the company for
the year under report eras Rs. 236.777 millions as compared to Rs. 209.838
millions in the previous year. The profit before depreciation is at Rs. 14.468
millions as against Rs. 12.106 millions in 2004-05 and the depreciation is at
Rs. 7.487 millions as against Rs. 6.250 millions in the previous year. The
profit before tax is at Rs. 7.042 millions as against Rs. 5.694 millions in the
previous year.
SECTOR AND INDUSTRY-WISE DEVELOPMENTS
a) Growth of Industry:
The polymer industry is witnessing double digit rapid growth over the last few
years. The growth is expected to be sustained more so in a developing country
like ours where there is scope for multi-fold growth in per capita consumption.
India's per-capita consumption of plastics which was 1 kg in 2000 is expected
to reach 10 by 2020. Therefore, there lies a vast potential for growth both in
terms of expansion and diversification.
b) Growth of customers and products:
The company has been focusing to deliver value and services to the customers.
The company has thereby achieved a growth of 12%. Additional capacities have
been added up which will enable the company to increase customer base in the
year 2006-07.
OUTLOOK
With quality being the focus, the company will be able to expand markets and
thereby improve the sales turnover.
Fixed Assets :
Land, Buildings, Plant & Machinery, Air Conditioners,
Computers, Electrical & Electronic Equipments, Furniture & Fittings,
Vehicles, Lab Equipments, Office Equipments, VHF System, etc.
INTRODUCTION :
They are part of BLISS group of Companies engaged in the manufacture of all types of flexible water proof packing materials. The products are tailor made to meet customers requirements. The company was incorporated in 1991 by taking over 3 partnership companies and also expanding its activities for the manufacture of Polypropylene bags.
Stanpacks (India) Limited has 3 manufacturing facilities viz Bangalore (Engineering Division), Nellore (Hessain Based Products & HDPE, PP Laminated Paper Bags) and Madras (PP Bags/fabric/lamination & Laminated Jute/PP/Foil etc.
MARKET :
The promoters of Stanpacks (India) Limited
are experienced in marketing packing materials for more than 3 decades. The
three firms whose business have been taken over by Stanpacks (India)
Limited have an existing sales force which has been taken over and
expanded to keep up with the requirements of the expansion in operations.
The company has expanded its marketing activities to be close to its customer
base. The Marketing team headed by Vice president Marketing based at Chennai
has very good talented marketing team at Chennai, Mumbai, Bangalore, Hyderabad
and Nellore.
TECHNOLOGY AND
COLLABORATION :
Stanpacks (India) Limited manufacture Filling & Discharging machinery which is used for filling and discharging of Jumbo Bags. These machines are manufactured with technical collaboration from Bagfilla Overseas Limited of UK who are world leaders in this field for more than 4 decades. Stanpacks (India) Limited has exclusive rights to sell these machines in India and South East Asia. One of these machines has already been exported to Malaysia.
RESEARCH AND
DEVELOPMENT :
The company's well equipped R & D team has done extensive work in developing various packaging materials. Several successful achievements have been transformed into product development on commercial scale. The company has the credit of seeking several patents from its in-house R & D work.
FACILITIES AND
QUALITY CONTROL :
The company has a dedicated team who check for the Quality parameters from the raw material stage till the product is finished and packed. The company has all the testing facilities. The company meets BIS standards specified.
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.42.86 |
|
UK Pound |
1 |
Rs.84.75 |
|
Euro |
1 |
Rs.57.71 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|