MIRA
INFORM REPORT
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Report Date : |
13.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
K.K NAG LIMITED |
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Registered Office : |
Gat No. 393, At And Post Urse, Taluka Maval, Pune – 410 506,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
13.07.1965 |
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Com. Reg. No.: |
11-13267 |
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CIN No.: [Company
Identification No.] |
U25209MH1965PLC013267 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEK00493D |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturer, Importer, Exporter and Traders in all types
of Packing and Packaging Materials, Plastics, Plastic Goods and Chemical Equipments |
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 150300 |
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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. Directors are reported
as experienced and respectable businessmen. Trade relations are reported as
fair. Business is active. Payments are reported as 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 / Corporate Office: |
Gat No. 393, At And Post Urse, Taluka Maval, Pune – 410 506,
Maharashtra, India |
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Tel. No.: |
91-2114-237081-83 |
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Fax No.: |
91-2114-237084 |
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E-Mail : |
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Website : |
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Administrative Office : |
Devi Chambers, 23/5 Bund Garden Road, Pune - 411 001, Maharashtra, INDIA |
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Tel. No.: |
91-20-26126456 / 26126472 |
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Fax No.: |
91-20-26123422 |
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E-Mail : |
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Factory : |
Promil
DIVISION: Urse
1. Manufacturing · Gat No. 393, At and Post Urse, Talegaon, Tal. Maval, District Pune, Maharashtra, India · Plot No. 26/A, Veerasandra Industrial Area, Hosur Road, Bangalore – 561 229 · Plot No. E - 86, Ranjangaon Industrial Area, Village Karegaon , Taluka Shirur, District Pune – 412 208, Maharashtra 2. Sales and Engineering · T-127, Bhosari Industrial Estate, Pune – 411026, Maharashtra, India · C-211, 2nd Floor, Raj Ratan Co-operative Housing Society, Near BMC Garden, Jogeshwari (East), Mumbai – 400060, Maharashtra, India Plastic
Machinery Division, Pune
· T-127, Bhosari Industrial Estate, Pune – 411026, Maharashtra, India Anti-Corrosive
Equipment Division, Pune
· Shembekar Industrial Compound, Chinchwad, Pune – 411019, Maharashtra, India · D-3, Bhosari Industrial Estate, Pune – 411026, Maharashtra, India Promil
Division, Bangalore
· 484 D, IV Phase, Peenya Industrial Area, Bangalore – 560058, Karnataka, India Promol
Division, Pondicherry
· 84/1, Molapakkam Road, Kariamanichkkam, Netapakkam Commune, Pondicherry – 605106 |
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Branches : |
Pune Sales
Office Pune
Manufacturing - Talegaon Gat No. 393, At and Post Urse, Pune
Manufacturing - Ranjangaon Plot No. E86 Bengaluru Sales
Office Bengaluru
Manufacturing Plot No. 26A, Veerasandra Industrial Area Hosur Road, Bengaluru 561
229 India Puducherry Sales
Office and Manufacturing 84/1 Molapakkam Road, Kariamanickkam Netapakkam Commune, Puducherry
605 106 India Chennai Sales
Office ·
Old No. 5B, New No. 6, Thandeeswaram Nagar, Velacherry Chennai 600 042
India · 69-B, Venkataratrinam Nagar, Adyar, Chennai – 600 020, Tamilnadu Engineering
Support Division Shembekar Industrial Compound Chinchwad, Pune 411 019 India Rotomoulding
Division Shembekar Industrial Compound Chinchwad, Pune 411 019 India Breezair Business
Group Gat No. 393, At and Post Urse, Rural
Development Cell Gat No. 393, At and Post Urse, Nag Foundation 3 Boat Club Road, Pune 411 001 India 69-B, Venkataratrinam Nagar, Adyar, Chennai – 600 020, Tamilnadu Bangalore Sales
Office: Plot No. 17, Survey No: 122, Jigani Industrial Area,
Jigani Hobli, anekal Taluka, Bangalore – Rural District. |
DIRECTORS
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Name : |
Mrs. Surabhi K. Nag |
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Designation : |
Chairman |
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Address : |
“Barodi”, 3, Boat Club Road, Pune – 411 001, Maharashtra |
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Date of Birth/Age : |
02.10.1935 |
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Date of Appointment : |
13.07.1965 |
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Name : |
Mr. Milon K. Nag |
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Designation : |
Director cum Chief Executive Officer |
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Address : |
“Barodi”, 3, Boat Club Road, Pune – 411 001, Maharashtra |
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Date of Birth/Age : |
06.07.1962 |
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Date of Appointment : |
01.11.1986 |
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Name : |
Mr. Carlton R. Bhiladwala |
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Designation : |
Director |
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Address : |
Building A, Flat No. 601, Landmark Garden, Kalyani Nagar,
Pune – 411 001, Maharashtra |
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Date of Appointment : |
01.07.1981 |
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Name : |
Mr. Krishnamurthy Vishveshwaran |
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Designation : |
Director |
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Address : |
184, 6th C Main, 15th, 3rd
Cross, II Stage, II Phase, Mahalaxmi Industrial Layout, Bangalore – 560 086,
Karnataka |
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Date of Appointment : |
10.04.1995 |
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Name : |
Mr. Promeet K. Nag |
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Designation : |
Director |
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Address : |
Segeberger Chaussee, 249 B, 22851, Norderstedt, Germany |
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Date of Birth/Age : |
17.03.1965 |
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Date of Appointment : |
23.03.1989 |
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Name : |
Mr. Ramanathan V. Ayyapankar |
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Designation : |
Director |
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Address : |
A-3/22, Agrasen Co-Operative Housing Society, 8, Koregaon
Road, Pune – 411 001, Maharashtra |
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Date of Birth/Age : |
15.03.1939 |
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Date of Appointment : |
02.10.1978 |
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Name : |
Mr. Puroshottam A. Ranade |
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Designation : |
Director |
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Address : |
B-37, Woodland, Near Gandhi Bhavan, Kothrud, Pune – 411
029, Maharashtra |
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Date of Appointment : |
01.04.1995 |
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Name : |
Mr. Ulhas D. Damle |
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Designation : |
Director |
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Address : |
A -501, Eves Garden, Opposite Baner Telephone Exchange, Baner Road,
Pune – 411 045, Maharashtra |
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Date of Birth/Age : |
08.04.1954 |
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Date of Appointment : |
01.07.2001 |
KEY EXECUTIVES
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Name : |
Mr. Purushottam Anant Ranade |
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Designation : |
Secretary |
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Address : |
B 37, Woodland, Near Gandhi Bhavan, Kothrud – 411 029, Pune,
Maharashtra, India |
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Date of Birth/Age : |
13.09.1954 |
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Date of Appointment : |
01.04.1999 |
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Email ID: |
SHAREHOLDING PATTERN
Equity Shares Breakup (Percentage of Total Equity):
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Sr No. |
Category |
Percentage |
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1 |
Bodies Corporate |
1.00 |
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2 |
Directors or relative of directors |
99.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Importer, Exporter and Traders in all types
of Packing and Packaging Materials, Plastics, Plastic Goods and Chemical
Equipments. |
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Products : |
· Expanded Polystyrene Products · Chemical Equipments
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PRODUCTION STATUS as on 31.03.2002:-
Class of goods
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Nos.
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Sets
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Promil (Expanded Polystyrene Products) |
546537 |
7528 |
GENERAL
INFORMATION
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Customers : |
· Aankit Granites Limited. · Aasahi Glass India Limited. · Ambit Info Tech Limited · American Power Conversion · Amul · Applicomp (India) Limited. · ARS Exports · Aquamall Water Solutions Limited. · Asea Brown Boveri Limited · Automatic Electric Limited. · Bajaj Auto Limited. · Balzer India Limited. · Bharat Forge Limited. · Blue Star Limited. · Bombay Exports · BPL Limited. · Carrier Aircon Limited. · Chandfruit Company · Coca Cola India Limited. · Crystal Granite and Marble Private Limited. · Easun Reyrolle Limited. · EKL Appliances Limited. · Enkei Castalloy · ETA General Private Limited. · Eureka Forbes Limited. · Forbes Marshall Limited. · FAL Industries Limited. · Gera Developments · Glaxo Smithkline Pharmaceuticals Limited. · Glittek Granites Limited. · Godrej and Boyce Manufacturing Company Limited. · Greaves Limited. · HCL Peripherals · IBM India Limited. · ICFAI Institute of Technology · Indo Western Refrigeration (India) Limited. · Invensys India Private Limited. · Jabil Circuits · L. G. Balakrishnan and Bros · L J International Limited. · Larsen and Toubro Limited. · Lenova India Limited. · Madhav Marbles and Granites Limited. · Maral Overseas · Maya Appliances Private Limited. · Motherson Sumi Limited. · Namdhari Fresh Vegetables · Oxfam · Panasonic Home Appliances Limited. · Paradise Foodcourt · Philips India Limited. · Prince Plastics · Raien Trading Corporation · S.D. Fine-Chem Limited. · Satyam Computers · Scanet Exports Limited. · Serum Institute of India Limited. · Solaris Fitness World · Spencer’s Hyper Markets · Sudarshan Chemicals · Supreme Treves Limited. · Tata Auto Plast · TVS Electronics Limited. · Tyco Electronics Corporation · Videocon Industries Limited. · Web Peripherals Limited. · Whirlpool of India Limited. |
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No. of Employees : |
220 |
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Bankers : |
State Bank of India Address: Industrial Finance Branch, Pimpri, Pune - 411 034, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. B. Billimoria and Company Chartered Accountants, |
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Address 1 : |
No. 5, The Landmark, 42, Aundh Road, Khadki, Pune – 411013, Maharashtra |
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Address 2: |
706, B Wing, 7th Floor, ICC Trade Towers, Senapati Bapat Road, Pune – 411 016, Maharashtra |
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Tel. No.: |
91-20-5819891-93 |
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Fax No.: |
91-20-5811619 |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
100000 |
Equity shares |
Rs.100/- each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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84704 |
Equity shares |
Rs.100/-
each |
Rs. 8.470
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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8.470 |
8.470 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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29.105 |
12.111 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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37.575 |
20.581 |
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LOAN FUNDS |
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1] Secured Loans |
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60.163 |
22.138 |
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2] Unsecured Loans |
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35.461 |
39.017 |
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TOTAL BORROWING |
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95.624 |
61.155 |
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DEFERRED TAX LIABILITIES |
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9.235 |
6.464 |
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TOTAL |
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142.434 |
88.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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117.696 |
76.695 |
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Capital work-in-progress |
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6.488 |
3.729 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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50.940 |
33.368 |
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Sundry Debtors |
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77.581 |
48.452 |
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Cash & Bank Balances |
|
5.896 |
7.812 |
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Other Current Assets |
|
0.129 |
0.052 |
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Loans & Advances |
|
22.827 |
12.099 |
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Total
Current Assets |
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157.373 |
101.783 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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129.835 |
89.607 |
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Provisions |
|
9.288 |
4.400 |
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Total
Current Liabilities |
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139.123 |
94.007 |
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Net Current Assets |
|
18.250 |
7.776 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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142.434 |
88.200 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Sales Turnover |
|
424.270 |
357.485 |
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Other Income |
|
1.939 |
0.728 |
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Total Income |
|
426.209 |
358.213 |
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Profit/(Loss) Before Tax |
|
27.529 |
26.051 |
|
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Provision for Taxation |
|
8.601 |
7.239 |
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Profit/(Loss) After Tax |
|
18.928 |
18.812 |
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Export Value |
|
27.890 |
7.985 |
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Expenditures : |
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Raw Material Consumed |
|
219.031 |
159.784 |
|
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Purchases made for re-sale |
|
18.680 |
17.672 |
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Consumption of stores and spares parts |
|
11.266 |
8.343 |
|
|
Increase/(Decrease) in Finished Goods |
|
[6.421] |
0.815 |
|
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Salaries, Wages, Bonus, etc. |
|
30.351 |
26.033 |
|
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Managerial Remuneration |
|
2.674 |
2.642 |
|
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Payment to Auditors |
|
0.257 |
0.257 |
|
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Interest |
|
7.746 |
9.739 |
|
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Insurance Expenses |
|
0.826 |
0.803 |
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Power & Fuel |
|
55.722 |
40.347 |
|
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Depreciation & Amortization |
|
12.520 |
13.632 |
|
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Other Expenditure |
|
73.918 |
60.080 |
|
Total Expenditure |
|
426.570 |
340.147 |
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KEY RATIOS
|
PARTICULARS |
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|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
4.44 |
5.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
6.48 |
7.28 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
9.77 |
14.29 |
|
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Return on Investment (ROI) (PBT/Networth) |
|
|
0.73 |
1.26 |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
6.24 |
7.53 |
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Current Ratio (Current Asset/Current Liability) |
|
|
1.13 |
1.08 |
LOCAL AGENCY
FURTHER INFORMATION
TRADE REFERENCE:
˜ Janardhan Chemicals
˜ Samarth Enterprises
˜ Shraddha Rubber and Plastics
˜ Anu Enterprises
OTHER INFORMATION:
Subject acts as manufacturer, importer, exporter and traders in all types of packing and packaging materials, plastics, plastic goods and chemical equipments, etc.
Subject offers complete EPS solutions for a wide range of applications, including packaging, insulation and internal components.
Subject is fully equipped to undertake development of complete EPS solutions for all the needs, right from scratch, from designing the prototype, to manufacturing the mould, to producing the final EPS moulding.
Subject operates from caption owned factory premise of area admeasuring 10850 sq. fts.
Contingent
liabilities:-
|
Particulars |
31.03.2007 |
|
Counter guarantee issued in favour of Banks |
2.466 |
|
Excise duty demands being disputed by the company |
0.094 |
|
Income Tax Demands being disputed by the company |
0.200 |
|
Sales Tax demands being disputed by the company |
0.370 |
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Bills/ Cheques discounted but not matured |
30.942 |
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Provident Fund claims disputed by the company |
2.722 |
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Estimated amount of contracts remaining to be executed on capital
account |
1.856 |
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The amount which the company can raise under the companies acceptance
of deposits ) Rules , 1975 From shareholders to the extent of 10% of the paid-up capital and Free
reserves. |
3.758 |
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From Public to the extent of 25% of the paid up Capital and Free
Reserves. The aggregate of deposit from shareholders actually held on the last
day of the immediately preceding financial years (31.03.2007) |
9.394 |
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The aggregate of deposits from public actually held on the last day of
the immediately preceding financial years (31.03.2007) |
0.175 |
|
The Company has no overdue deposits other than unclaimed deposits as
on the date of the advertisement. |
0.750 |
WEBSITE DETAILS:
Subject is a leader in Expanded Polystyrene (also known as Thermocole)
solutions and is amongst the top Indian companies that provide products and
services to the plastics industry.
Founded in 1965 as a manufacturer
of fiberglass and lead lined products, today they are a multi-location company
focused on a range of plastic solutions for a wide range of applications,
including packaging, insulation, and internal components.
They have ISO 9001
certification from TUV and are currently being certified for ISO 14001.
Subject is driven by
innovation. Their innovation schemes ensure that they get new product and
process ideas from both within and outside the company. They are always open to
new partnerships and collaborations, either as customers, supporters, or
joint-venture participants, and welcome any such opportunities.
They have operations all
over Western and Southern India and are expanding aggressively to cover the
whole of the Indian subcontinent.
Subject was founded in 1965
by the late Mr. Kalyan Kumar Nag, on a foundation of innovation and continuous
improvement. They have a rich history of product and process innovation and
pioneering new plastic processes.
Prior to starting the
Company, Mr Nag and his senior Partner, Mr R.A. Cole, pioneered the use of
Expanded Polystyrene (EPS) in India (in fact, the generic name for EPS in
India, "Thermocole", is derived from the words "Thermo" for
heat and "Cole" for Mr R.A. Cole!). Interestingly, the two pioneers
synthesised expandable polystyrene for the first time in India, in Mr. Cole's
kitchen in Mumbai!
They pioneered the use of
Fibreglass Reinforced Plastic (or FRP) in India. They are amongst the largest
and most competent EPS processors in India. They are also involved with the
production of Rotational Moulded, Injection Moulded and Blow Moulded plastics.
They currently pioneer the
use of Expanded Polypropylene (EPP) in India. They have an in-house team of
design engineers and are constantly developing new designs. They have factories
in Pune, Bengaluru and Puducherry and a centralised Tool Room in Pune.
They are also India
distributors for the Breezair range of Ducted Evaporative Air Coolers, an
efficient alternative to compressed airconditioning. Breezair is manufactured
by Seeley International Pty. Limited., Australia.
Nag Foundation:
The Nag Foundation is a public charitable trust established by the company in late 1989 for the dual purpose of promoting art and culture in Pune and providing a platform for Pune artists to display their work and reach discerning buyers.
The late Mr. K.K. Nag, the founder of the company and the Nag Foundation, was
an avid collector of art since the early 1950's. He knew most of the artists in
Bombay personally (who have since made a name for themselves) and would
regularly buy their works. Having known the artists personally, Mr. Nag knew
how hard they had to struggle to establish themselves and how long it took for
them to be recognised.
After starting the company in Pune at the end of 1965, there was no time or
money for him to spend on art for nearly 20 years, although his passion for art
continued unabated.
As soon as the business of the company started doing well, Mr. K.K. Nag decided
to set up a trust for the promotion of art (particularly, fine arts) in Pune as
a gesture of gratitude to the city where his company had grown from a modest
enterprise into a multi-divisional organisation. He noticed that although Pune
was considered the cultural capital of Maharashtra, where music and drama were
unparalleled, there was total neglect of the fine arts. Thus was born the Nag
Foundation.
Since then, the Nag Foundation has held many outstanding exhibitions and
organised many seminars, workshops and lectures. Some of the exhibitions were
held in collaboration with prestigious national institutions such as the Lalit
Kala Academy, New Delhi, and the National Institute for Conservation and
Preservation of Art, Lucknow.
Finances:
The Nag Foundation is an entirely non-profit organisation and its activities
are totally funded by the company The Nag Foundation does not charge any
commission or fees to the artists for displaying their work nor to the public
who visit the exhibitions. The sale proceeds of any works sold are given
entirely to the respective artists.
Plastic Processes and
Infrastructure:
They offer complete Plastic
solutions for a wide range of applications.
From concept to final product, everything is done in-house, including
making Prototypes and designing and manufacturing moulds.
Plastic
Processes and Infrastructure Home
· Expanded Polypropylene (EPP)
· Engineering Support Division
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 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.39.35 |
|
UK Pound |
1 |
Rs.80.36 |
|
Euro |
1 |
Rs.57.62 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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 |
|