MIRA
INFORM REPORT
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Report Date : |
20.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
JOSTS ENGINEERING COMPANY LIMITED. |
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Registered Office : |
Great Social Building, 60, Sir P M Road, Fort, Mumbai 400001, Maharahtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
09.05.1907 |
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Com. Reg. No.: |
11-252 |
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CIN No.: [Company
Identification No.] |
L28100MH1907PLC000252 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMJ08367C |
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PAN No.: [Permanent
Account No.] |
AAACJ1658A |
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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 : |
Manufacturing and Selling of Material Handling Equipments, Industrial Finishing, Machine Tools, etc. Importing and Exporting of Industrial Engineering
Products. |
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 1000 |
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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
relation are reported as fair. Business is active. Payment 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 : |
Great Social Building Sir P M
Road Fort Mumbai 400001 Maharashtra
India |
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Tel. No.: |
91-22-22661150 / 22661166 |
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Fax No.: |
91-22-22661951 |
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E-Mail : |
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Website : |
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Branches : |
Plot number 3, Survey
number 126, Paud Road, Pune 411 038, Maharashtra, India. |
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Tel. No.: |
91 20 25434390/25434350 |
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Fax No.: |
91 20 25434393 |
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E-Mail : |
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Website : |
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Branches : |
F-18, Ground
Floor, Lajpat Nagar III, New Delhi 110 024,INDIA Tel No.:+91 11 29839446/8 48, Nutan Bharat Co-operative Housing Society, Monalisa Apartments, Alkapuri, Vadodara – 390 070, Gujarat Tel. 91-265-2351642 E-mail. sales@baroda.josts.com Plot No. 3, Survey No. 126, Paud Road, Pune – 411 038, Maharashtra Tel. 91-20-25434565/25434350/25434390 Fax. 91-20-25434393 E-mail. sales@pune.josts.com Krishna Vilas, 1/3, Palace, Road, Post Box 5439, Bangalore – 560 001, Karnataka Tel. 91-80-2263707/2263708/2284522 Fax. 91-80-2259871 E-mail. sales@blr.josts.com 19, British Indian Street, Post Box 64, Calcutta - 700 069, West Bengal Tel. 91-33-22482257/22429510 Fax. 91-33-22480861 E-mail. sales@cal.josts.com 160-D, Patny Nagar, Sardar Patel Road, Post Box 2106, Secunderabad – 500 003, Andhra Pradesh Tel. 91-40-27846239/27846256/27817885/27817889 Fax. 91-40-27817555 E-mail. sales@hyd.josts.com C-39, II Avenue, Anna Nagar, Post Box 3477, Chennai – 600 040, Tamilnadu Tel. 91-44-626 8536 / 628 8407 Fax. 91-44-621 1708 E-mail. sales@chennai.josts.com C-7, Wagle Industrial Estate, Road No. 12, Thane – 400 604, Maharashtra Tel. 91-22-25821727/25821746/25821748/25822083 Fax. 91-22-25823478 E-mail. jostfact@thane.josts.com |
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Factory 1 : |
C-7, Wagle Industrial Estate, Road No. 12, Thane - 400
604, Maharashtra |
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Tel. No.: |
91-22-25821727/25821746/25821748/25822083 |
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Fax No.: |
91-22-25823478 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. B. H. Reporter |
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Designation : |
Chairman |
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Date of Appointment : |
16.08.2006 |
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Name : |
Mr. F.A.A. Jasdanwalla |
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Designation : |
Directors |
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Date of Appointment : |
16.08.2006 |
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Name : |
Mr. H.N. Sethna |
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Designation : |
Directors |
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Name : |
Mr. S. Sheth |
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Designation : |
Directors |
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Name : |
Mr. M. Wadia |
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Designation : |
Directors |
KEY EXECUTIVES
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Name : |
Mr. C.B. Sagvekar |
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Designation : |
Company Secretary |
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Date of Appointment : |
16.08.2006 |
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Name : |
Crawford Bayley and Company |
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Designation : |
Solicitors |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
PROMOTERS HOLDINGS
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Indian Promoters |
390,920 |
51.12% |
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Sub-Total |
390,920 |
51.12% |
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NON PROMOTER’S HOLDINGS
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Banks, Financial Institutions & Insurance |
840 |
0.11% |
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Sub-Total |
840 |
0.11% |
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OTHER INVESTORS
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Private Corporate Bodies |
78,830 |
10.31% |
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NRI’s/OCB’s/Foreign Others |
11,940 |
1.56% |
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Sub-Total |
90,770 |
11.87% |
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General Public |
282,120 |
36.90% |
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GRAND TOTAL |
764,650 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Selling of Material Handling Equipments, Industrial Finishing, Machine Tools, etc. Importing and Exporting of Industrial Engineering
Products. |
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Products : |
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Exports : |
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Products : |
Industrial Engineered Products. |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Material Handing Equipment |
Nos. |
Not Applicable |
The Company manufacturers various products on versatile machines and
hence the installed capacity cannot be ascertained. |
424 |
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GENERAL
INFORMATION
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No. of Employees : |
About
400 |
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Bankers : |
Ř Oman
International bank S.A.O.G. Ř The South India
Bank Limited Ř Standard
Chartered Bank Ř The Zoroastrian
Co- Operative Bank Limited Ř HDFC Bank
Limited Ř ANZ Grindlays
Bank Limited O.R.D.S.A., 90 , Mahama Gandhi Road , 400001 Mumbai Ř Central Bank Of
India , 1st Floor , Mumbai Main Office Budg , Fort , 400023 Mumbai
. |
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Facilities : |
Secured
Loans:
Rs.In millions
Unsecured Loans:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sorab S. Engineer & Co. Chartered Accounts |
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Associates/Subsidiaries : |
Ř Bullows
India Private Limited Ř Bullows Paint
Equipment Private Limited Ř Phiroze Sethna
Private Limited |
CAPITAL STRUCTURE
Authorised Capital:
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No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/-each |
Rs.10.000 million |
Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
|
764650 |
Equity Shares |
Rs.10/- each |
Rs.7.646
million |
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 |
7.646 |
7.646 |
7.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
23.176 |
14.786 |
14.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
30.822 |
22.432 |
22.100 |
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LOAN FUNDS |
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1] Secured Loans |
28.953 |
31.401 |
27.400 |
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2] Unsecured Loans |
0.903 |
12.822 |
16.000 |
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TOTAL BORROWING |
29.856 |
44.223 |
43.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
60.678 |
66.655 |
65.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
12.430 |
14.010 |
6.200 |
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Capital work-in-progress |
0.000 |
0.462 |
2.400 |
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INVESTMENT |
15.035 |
12.735 |
5.100 |
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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 |
21.189
|
22.444 |
20.800 |
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Sundry Debtors |
128.875
|
74.011 |
69.400 |
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Cash & Bank Balances |
25.669
|
16.552 |
47.800 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
10.663
|
13.526 |
10.100 |
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Total
Current Assets |
186.396
|
126.533 |
148.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
137.121
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84.949 |
87.700 |
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Provisions |
16.196
|
2.998 |
11.900 |
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Total
Current Liabilities |
153.317 |
87.947 |
99.600 |
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Net Current Assets |
33.079 |
38.586 |
48.500 |
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MISCELLANEOUS EXPENSES |
0.134 |
0.862 |
3.300 |
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TOTAL |
60.678 |
66.655 |
65.500 |
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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 |
181.468 |
144.080 |
243.500 |
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Commission |
83.217 |
54.162 |
0.000 |
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Other Income |
16.779 |
17.746 |
86.900 |
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Stock Adjustment |
0.000 |
0.000 |
(2.300) |
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Total Income |
181.464 |
215.988 |
328.100 |
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Profit/(Loss) Before Tax |
22.106 |
(6.346) |
5.700 |
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Provision for Taxation |
11.100 |
(6.637) |
0.800 |
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Profit/(Loss) After Tax |
11.006 |
29.91 |
4.900 |
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Earnings in Foreign Currency : |
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Export of Goods |
0.266 |
0.000 |
0.000 |
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Commission Earnings |
77.892 |
48.275 |
0.00 |
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Total Earnings |
78.158 |
48.275 |
0.000 |
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Imports : |
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Raw Materials |
0.000 |
0.000 |
1.744 |
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Components |
6.253 |
5.836 |
0.000 |
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Finished goods for resale |
21.859 |
12.642 |
0.000 |
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Total Imports |
28.112 |
18.478 |
1.744 |
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Expenditures : |
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Excise Duty |
0.000 |
0.000 |
0.143 |
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Employee Cost |
0.000 |
0.000 |
0.589 |
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Selling and Administration Expenses |
0.000 |
0.000 |
0.354 |
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Miscellaneous |
0.237 |
0.000 |
0.000 |
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Manufacturing , Trading and other expense |
249.302 |
209.757 |
0.047 |
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Interest |
0.084 |
0.071 |
0.000 |
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Provision for doubtful debts |
0.000 |
1.693 |
0.000 |
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Inters on Others |
5.788 |
6.361 |
0.000 |
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Depreciation & Amortization |
4.184 |
2.452 |
0.019 |
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Total
Expenditure |
259.595 |
220.334 |
1.152 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr |
|
Sales Turnover |
88.90 |
90.700 |
95.500 |
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Other Income |
0.700 |
1.400 |
1.400 |
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Total Income |
89.600 |
92.100 |
96.900 |
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Total Expenditure |
67.000 |
75.600 |
71.300 |
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Operating Profit |
22.600 |
16.500 |
25.600 |
|
Interest |
1.100 |
0.900 |
0.500 |
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Gross Profit |
21.500 |
15.600 |
25.100 |
|
Depreciation |
1.000 |
1.100 |
1.200 |
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Tax |
7.100 |
5.600 |
8.200 |
|
Reported PAT |
13.400 |
8.900 |
15.700 |
200606 Quarter 1 --------------- Notes EPS is Basic and Diluted Status of Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. Staff cost for the quarter ended June 30, 2006, includes Rs 0.033 million being compensation paid under Voluntary Retirement Schemes. 2. The previous year’s figures have been regrouped wherever, necessary. 3. The above results were taken on record by the Board of Directors at their meeting
held on July 29, 2006.
200609 Quarter 2 --------------- Notes Expenditure includes (Increase)/Decrease in stock in Trade Rs (0.635) million Purchase of goods for Resale Rs 8.216 million Consumption of Raw Material Rs 28.623 million Staff Cost Rs 17.961 million Other expenditure Rs 21.498 million Tax Includes Provision for Current Tax Rs 4.986 million Fringe benefit Tax Rs 0.600 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. Staff cost for the quarter ended September 30, 2006, includes Rs 0.034 million being compensation paid under Voluntary Retirement Schemes. 2. Provision for deferred tax will be made at the end of the year. 3. The previous years figures have been regrouped wherever, necessary. 4. The above results were taken on record by the Board of Directors at their meeting held on October 31, 2006.
200612 Quarter 3 --------------- Notes Expenditure includes
(Increase)/Decrease in stock in Trade Rs (0.726)million Purchase of goods for
Resale Rs 11.486 million Consumption of Raw Material Rs 22.815 million Staff
Cost Rs 18.964 million Other expenditure Rs 18.817 million Tax Includes
Provision for Current Tax Rs 7.865 million Fringe benefit Tax Rs 0.309 million
EPS is Basic and Diluted Status of Investor Complaints for the quarter ended
December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter Nil Complaints disposed off during the
quarter Nil Complaints unresolved at the end of the quarter Nil 1. Staff cost
for the quarter ended December 31, 2006, includes Rs 0.033 million being
compensation paid under Voluntary Retirement Schemes. 2. In accordance with the
transitional provisions of AS 15 (revised 2005) on Employees Benefits issued by
ICAI with effect from April 01, 2006, additional liability, if any, on account
of Employees' Benefit will be either provided for or adjusted against the
opening balance of General Reserve at the year end. 3. Provision for deferred
tax will be made at the end of the year. 4. The previous years figures have
been regrouped wherever, necessary. 5. The Auditors of the Company have carried
out the limited review of the financial results for the quarter ended December
31, 2006 and the same has been taken on record by the Board of Directors at
their meeting held on January 31, 2007.
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
|
1.39 |
1.97 |
2.32 |
|
Long Term Debt-Equity Ratio |
|
0.08 |
0.05 |
0.00 |
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Current Ratio |
|
1.01 |
1.01 |
1.02 |
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Turnover Ratios |
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Fixed Assets |
|
2.76 |
2.45 |
4.21 |
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Inventory |
|
9.08 |
7.33 |
9.88 |
|
Debtors |
|
1.95 |
2.21 |
3.49 |
|
Interest Cover Ratio |
|
4.75 |
0.02 |
0.64 |
|
Operating Profit Margin |
(%) |
16.27 |
2.91 |
2.63 |
|
Profit Before Interest Ant Tax Margin |
(%) |
14.15 |
0.06 |
1.85 |
|
Cash Profit Margin |
(%) |
7.68 |
3.03 |
(0.25) |
|
Adjusted Net Profit Margin |
(%) |
5.56 |
0.19 |
(1.03) |
|
Return On Capital Employed |
(%) |
44.37 |
0.16 |
7.20 |
|
Return On Net Worth |
(%) |
41.35 |
1.35 |
(12.32) |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.465.90 |
|
Low |
Rs.465.90 |
LOCAL AGENCY FURTHER
INFORMATION
Operations:
Sales for the year under review wear
Rs.181.500 million as against Rs.145.400 million in the precious year. The
profit for the years was Rs.11.000 million as against Rs.3.000 million for the
previous year. Orders and Sales for the period to data show an improvement as
compared to last year. Generally business should continue to progress. Barring
unforeseen circumstances, there should be improved results in the current year.
WEB SIDE DETAILS:
Jost's Engineering Company Limited is
engaged principally in the businesses of Material Handling and the Import and
Export of Industrial Engineered Products.
Josts was established as a company in 1907, when Carl Jost converted a small
proprietary concern into a limited company known as Jost's Fan Supply and
Engineering Company Limited. At that time fans using kerosene as a fuel were
the Company's principal business. In view of the diversity of products, in 1913
the Company changed its name to Jost's Engineering Company Limited.
From then on Josts dealt with all types of Industrial and Engineering products
depending on the demands of the times. The pattern and policy of the business
was formulated right from inception, namely to be progressive in the business
and conservative in finance, and this is a policy that continues till today.
Representation of foreign principals in India is a major activity. The
company represents in India, leaders and pioneers in various fields and
successfully represents foreign companies in the fields of Sound and Vibration,
Environmental Technology, Process Instrumentation, Combustion Equipment,
Components, Industrial Finishing etc.
With factory near Mumbai and an efficient and well trained sales organisation,
Josts is able to reliably meet its customers' requirements all over India. As
representatives of leading international companies in their respective fields,
Josts keeps abreast with the latest developments in various product lines and
services with a constant exchange of information combines with training.
Josts has its own facilities for engineering, tooling, machining,
fabrication, painting and final assembly. These are supported with CAD,
Computer Controlled Machines, Electronic Data Processing and e-mail and telefax
services for prompt responses to the demands of our customers and our
principals worldwide.
Josts is represented throughout India with offices in Bangalore,
Calcutta, Chennai, New Delhi, Pune, Secunderabad, Vadodara and Vizag and
resident sales representatives in other important industrial areas who are
qualified engineers with product knowledge and training in their divisions.
Manufacturing operations are located at Thane near Mumbai with
facilities for CAD, Project Engineering, erection and after sales service.
Service and erection personnel are also located at regional and sales offices.
Project management and engineering is provided through divisional offices at
Pune and Thane.
HISTORY
The company was incorporated on 9th May, 1919 at Mumbai in Maharashtra having Company Registration Number 252.
Subject was originally established in the year 1907 as a proprietorship concern. Mr. Carl Jost converted a small proprietory concern into a limited company known as Jost's Fan Supply and Engineering Company Limited. At that time, fans using kerosene as a fuel were the company's principal business. During the early days of trading and after electricity was introduced into India, the company dealt in a number of engineering products predominantly electrical, such as generators, engines, motors, instruments, cables and lifts. In view of the diversity of products, in 1913 the company's name was changed to present.
Subject holds agencies for American, British and other European manufacturers of electrical and mechanical engineering equipment. It is also engaged in the manufacturing of material handling equipments and other engineering products.
In 1990-91, the industrial finishing division supplied a plant for painting marine containers. A new model of the Pygmy hydraulic pallet truck was introduced. In-house development of new diesel dork lift trucks incorporating the latest technology was successfully introduced in the market.
The company formed Haden Josts Engineering India Private Limited, a joint venture with Haden Drysys International, U.K.
During 1999-2000, Kerry Jost Engineering Limited, in which the company is a shareholder (35%) suspended its manufacturing operations at Chennai due to poor business prospects, lack of orders and non-availability of working capital. The company ventured into Software activities to provide engineering solutions in the field of sound and vibration data recording and gas monitoring. It has also signed an agreement with one of major principals to promote the software developed by the company
Fixed Assets:
v
Leasehold land
v
Building on
Leasehold
v
Plant and
Machinery
v
Furniture ,
Fixtures and Equipment
v
Vehicles
v
Intangible
Assets:
v
Software
v
Trade Marks
v
Technical
v
Know – How
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.42.15 |
|
UK Pound |
1 |
Rs.84.38 |
|
Euro |
1 |
Rs.57.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
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 |
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 |
|
53 |
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 |
|
