MIRA
INFORM REPORT
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Report Date : |
29.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
REPRO INDIA LIMITED |
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Registered Office : |
Marathe Udyog Bhavan, 2nd
Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025 |
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Country
: |
India
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Financials
(as on) : |
31.03.2007 |
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Date of Incorporation : |
01.04.1993 |
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Com. Reg. No.: |
11-71431 |
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CIN
No.: [Company Identification No.] |
L22200MH1993PLC071431 |
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TAN
No.: [Tax Deduction & Collection Account
No.] |
MUMR06821G |
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PAN
No.: [Permanent Account No.] |
AAACR0379J |
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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 : |
Subject is engaged in the business
of conceptualizing, designing, creating, processing, printing, mailing and
publishing booklets, magazines, brochures, printed posters and annual
reports. |
RATING
& COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly
Large |
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Maximum Credit Limit : |
USD 3300000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established
and reputed company having satisfactory track. Directors are reported as experienced,
respectable and resourceful businessmen. Their trade relations are fair.
Financial position is satisfactory. 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 / Marketing Office : |
Marathe Udyog Bhavan, 2nd
Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India. |
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Tel. No.: |
91-22-2430 8851 / 2436 2263 /
24313526 / 24308851 / 27782011 |
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Fax No.: |
91-22-2437 4531 / 27782038 |
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E-Mail : |
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Website : |
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Factory : |
Plot No. A-50/2, TTC Industrial
Area, MIDC, Mahape, Navi Mumbai - 400 703, Maharashtra, India |
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E-Mail : |
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Website : |
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Branches : |
Located at : Ř
No. 174, 1st
Floor, 6th Main, Defence Colony, Indira Nagar, Bangalore - 560
038, Karnataka, India E Mail
: info@reproindialtd.com Website
: http://www.reproindialtd.com Ř
F/39, Mangal Darshan
Society, Near Chanakya Puri, Char Rasta, New Sama Road, Baroda - 390 008,
Gujarat, India Ř
11, Sakthi Flats, Kamarajar
Salai, Virugambakkam, Chennai - 600 092, Tamil Nadu, India Ř
A-65, Parijat Apartments,
West Enclave, Pitampura, New Delhi - 110 034, India |
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Overseas Office : |
BANGALORE SNS Arcade, "A" Block,
309, HAL Airport Road, Bangalore 560 017, India. LONDON Cell: +44-79522 39888 USA 1836, Glenwold Dr., Paoli, PA 19301, USA |
DIRECTORS
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Name : |
Mr. Vinod Vohra |
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Designation : |
Chairman |
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Name : |
Mr. Sanjeev Vohra |
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Designation : |
Managing Director |
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Name : |
Mr. Mukesh Dhruve |
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Designation : |
Whole Time Director |
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Name : |
Mr. Rajeev Vohra |
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Designation : |
Whole Time Director |
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Name : |
Mr. Dushyant Mehta |
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Designation : |
Whole Time Director |
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Name : |
Mr. Alyque Padamsee |
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Designation : |
Non Executive Director |
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Name : |
Dr. Jamshed J Irani |
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Designation : |
Non Executive Director |
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Name : |
Mr. Nasser Munjee |
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Designation : |
Non Executive Director |
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Name : |
Mr. Sanjay Asher |
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Designation : |
Non Executive Director |
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Name : |
Mr. U. R. Bhat |
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Designation : |
Non Executive Director |
KEY
EXECUTIVES
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Name : |
Ms. Madhavi Kulkarni |
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Designation : |
Company Secretary and Compliance Officer |
SHAREHOLDING
PATTERN
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Category
of Shareholder |
No.
of Shares |
Percentage
of Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
2118720 |
20.22 |
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Bodies Corporate |
3785600 |
36.12 |
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Any Others(Specify) |
1730492 |
16.51 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
716142 |
6.83 |
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Financial Institutions / Banks |
10337 |
0.10 |
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Non-institutions |
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Bodies Corporate |
498098 |
4.75 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
1321523 |
12.61 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
210270 |
2.01 |
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Any Other (specify) |
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Clearing member |
16740 |
0.16 |
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Non Resident Indians |
58927 |
0.56 |
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Directors and Their Relatives |
12300 |
0.12 |
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GRAND TOTAL (A)+(B)+(C) |
10479149 |
100.00 |
BUSINESS
DETAILS
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Line of Business : |
Subject is engaged in the
business of conceptualizing, designing, creating, processing, printing, mailing
and publishing booklets, magazines, brochures, printed posters and annual
reports. |
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Products : |
Items Code No.(ITC Code) Product
Description 49011002 Booklets
/ Brochures 49111001 Printed
Posters / Annual Reports 49021002 Journals,
Periodicals, Calendars |
GENERAL
INFORMATION
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Customers : |
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No. of Employees : |
1200 |
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Bankers : |
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Facilities
: |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name
: |
RSM & Company Chartered Accountants |
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Address
: |
2nd Floor, Union Co-operative
Insurance Building, 23, Sir Phiroz Shah Mehta Road, Fort, Mumbai - 400 001 |
CAPITAL
STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,479,149 |
Equity Shares |
Rs. 10/- each |
Rs.
104.791 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
104.791 |
104.791 |
78.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
732.245 |
662.343 |
237.100
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NETWORTH |
837.036 |
767.134 |
315.700 |
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LOAN FUNDS |
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1] Secured Loans |
436.835 |
307.704 |
409.800
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2] Unsecured Loans |
1.351 |
1.344 |
1.500
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TOTAL
BORROWING |
438.186 |
309.048 |
411.300 |
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DEFERRED TAX LIABILITIES |
109.185 |
94.065 |
0.000 |
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TOTAL |
1384.407 |
1170.247 |
727.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
721.878 |
561.476 |
491.500
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Capital work-in-progress |
71.854 |
89.970 |
0.000
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INVESTMENT |
0.000 |
50.674 |
0.000
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
151.942
|
136.990 |
112.500
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Sundry Debtors |
468.499
|
440.235 |
261.100
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Cash & Bank Balances |
21.196
|
26.329 |
27.300
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Other Current Assets |
0.153
|
0.129 |
0.000 |
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Loans & Advances |
162.728
|
120.059 |
62.300
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Total Current Assets |
804.518
|
723.742 |
463.200 |
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Less :
CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
188.661
|
237.123 |
218.700
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Provisions |
25.317
|
18.763 |
9.400
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Total Current Liabilities |
213.978
|
255.886 |
228.100 |
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Net Current Assets |
590.540
|
467.856 |
235.100
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MISCELLANEOUS EXPENSES |
0.135 |
0.271 |
0.400
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TOTAL |
1384.407 |
1170.247 |
727.000
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1308.949 |
1158.868 |
869.400 |
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Other Income |
4.549 |
6.101 |
0.000 |
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Total Income |
1313.498 |
1164.969 |
869.400 |
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Profit/(Loss) Before Tax |
132.359 |
138.392 |
60.300 |
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Provision for Taxation |
37.937 |
51.316 |
15.700 |
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Profit/(Loss) After Tax |
94.422 |
87.076 |
44.600 |
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Earnings in Foreign Currency : |
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Export Earnings |
526.779 |
457.894 |
NA |
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Other Earnings |
20.510 |
17.685 |
NA |
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Total Earnings |
547.289 |
475.579 |
NA |
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Imports : |
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Raw Materials |
199.401 |
172.050 |
NA |
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Stores & Spares |
9.558 |
7.780 |
NA |
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Capital Goods |
130.038 |
29.169 |
NA |
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Total Imports |
338.997 |
208.999 |
NA |
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Expenditures : |
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Cost of Goods Sold |
699.615 |
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Employee Emoluments |
123.223 |
93.851 |
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Operating and Other Expenses |
275.282 |
222.591 |
809.100 |
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Interest and Finance Charges |
27.182 |
32.202 |
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Depreciation & Amortization |
55.836 |
41.952 |
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Total Expenditure |
1181.138 |
1026.578 |
809.100 |
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QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
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Sales Turnover |
|
373.800
|
448.000
|
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Other Income |
|
0.300
|
9.600
|
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Total Income |
|
374.100
|
457.600
|
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Total Expenditure |
|
314.600
|
386.700
|
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Operating Profit |
|
59.50000
|
70.900
|
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Interest |
|
8.600
|
8.100
|
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Gross Profit |
|
50.900
|
62.800
|
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Depreciation |
|
14.900
|
15.900
|
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Tax |
|
5.800
|
8.000
|
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Reported PAT |
|
30.200
|
38.900
|
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.47 |
0.67 |
1.29 |
|
Long Term Debt-Equity Ratio |
0.14 |
0.31 |
0.60 |
|
Current Ratio |
1.28 |
1.23 |
0.97 |
|
TURNOVER
RATIOS |
|
|
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|
Fixed Assets |
1.37 |
1.44 |
1.22 |
|
Inventory |
8.89 |
8.99 |
9.44 |
|
Debtors |
2.83 |
3.20 |
3.50 |
|
Interest Cover Ratio |
5.86 |
5.30 |
3.46 |
|
Operating Profit Margin(%) |
16.77 |
18.96 |
14.29 |
|
Profit Before Interest And Tax
Margin(%) |
12.42 |
15.21 |
9.97 |
|
Cash Profit Margin(%) |
11.70 |
11.51 |
9.57 |
|
Adjusted Net Profit Margin(%) |
7.35 |
7.77 |
5.24 |
|
Return On Capital Employed(%) |
13.57 |
18.93 |
12.42 |
|
Return On Net Worth(%) |
11.77 |
16.09 |
14.97 |
LOCAL
AGENCY FURTHER INFORMATION
PERFORMANCE
REVIEW:
The Company in this year continues to perform well in the area of exports by enhancing
the business vertically with its existing clients and adding on new potentially
large clients to its Client's list. Sales/Income from operation increased from
Rs. 1158.900 Millions in 2006 to Rs. 1308.900 Millions in 2007 showing a growth
of 13%.
The
Company has leveraged it's expertise in Digital Printing business in order to
capitalise the growing opportunities both from international and domestic
markets. The Company is well poised to benefit growing international trend of
outsourcing print and related services from countries like India.
The
Company has set up a 100% Export Oriented Undertaking (EOU) under Software
Technology Park (STP) Scheme at Mazzine Floor, 50/2 TTC, MIDC Industrial Area,
Mahape, Navi Mumbai 400 710 by name 'Repro India Limited - Content Services'.
The income of this unit will be fully exempt from Income Tax u/s 10B of the
Income Tax Act, 1961 for the current year and next two years.
The
Company is undergoing ERP implementation (Print Domain specific) with EFI Hagen
OA MIS system (EFI is a dedicated print industry ERP & MIS Automations
Solutions US Company] under which the entire activity from the enquiry stage
till final billing and payment shall be automated, The Company expects to have
better MIS reports through this system and this analysed information will
further help them to focus on strengthening efficiency and profitability of the
Company.
During
the year ended March 31, 2007, no ESOPs have been granted and no vesting has
taken place.
Under
the Repro (Employee Stock Option Scheme) 2006, approved by the shareholders in
the last Annual General Meeting (AGM) on September 12, 2006, the Company has
granted 5,00,000 number of options on May 14, 2007 at an exercise price of Rs.
98 per share, vesting period varying between one to three years from the date
of grant and exercise period being 3 years from the date of vesting. The
Company is in the process of finalizing the application for obtaining
In-principle approval from the Stock Exchanges for the same.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry Structure and Developments:
Global
commercial printing industry is expected to grow to US $ 400 billion by 2009.
Printing is one of the USA's largest manufacturing industry generating revenues
of USD 157 bn from printed products and services.
Printing
Industry in one of UK's largest economic sectors at GBP 13 bn. The combined
turnover of paper, printing and publishing industry is GBP 29 bn representing
3.5% of UK GDP Within the global market, USA and UK markets are very large and
are looking at outsourcing There are huge World Bank funded education projects
in the African Continent offering large opportunities to the developing
countries like India.
During this
year, the Company has leveraged it's expertise in Digital Printing Business in
order to capitalise the growing opportunities both from international and
domestic markets, The Company is well poised to benefit growing international
trend of outsourcing print and related services from countries like India. With
the aid of Digital Printing Repro is able to meet demand for quick, reliable
methods of producing, fulfilling and distributing content as expeditiously as
possible without error and with utmost flexibility.
Last year the
Company has started to undergo ERP implementation (Print Domain specific) with
EFI Hagen OA MIS system (EFI is a dedicated print industry ERP & MIS
automation solutions US company). The Company aims to make its operations more
process oriented and aligned with its objectives and strategies, EFI as an integrated
manufacturing MIS system will:
Provide tools
to collect, organize and present the information the Company needs for timely,
profitable management decisions.
Provide the
technological flexibility required to meet the unique needs of print manufacturing.
Provide the
on-going support and development necessary to protect the Company's technology
Investment.
Last year they
augmented their infrastructure. On the pre-press side they added a
state-of-the-art Computer-to-Plate system, the Agfa Avalon with on-line baking
that is capable of delivering 500 printing plates per day, i.e., 500 X 8 = 4000
pages, thereby eliminating the manual paste-ups and montage films resulting in
speed, accuracy and efficiency. This coupled with the Agfa 'Apogee X ' PDF work-flow
can trigger simultaneously, the Agfa Sherpa Digital Colour Proofing System and
the Avantra 44 Image Setter which eliminates manual stripping, that saves time
and ensures quality.
The Agfa Apogee
X work flow also offers remote digital proofing & web-based approval system
to their clients across geographies also at distant locations in Africa, UK and
USA, The Apogee X also provides CIP4 auto-inking system to some of out presses.
Further, with the implementation of the print domain ERP - EFI - Hagen it's
linkage to the proposed JDF module will offer ability to carry the print job
from genesis through completion, i.e. from creative, pre-press, print,
finishing, packaging and delivery seamlessly.
Risk and Concern and Risk Mitigation:
Rise in interest cost:
Printing
industry is a very capital intensive industry. The current trend of increase in
the interest rates may adversely affect the margins of the Company as the debt
is a major source of finance. The rise in the interest cost will increase the cost
of funds to a great extent and may impact profitability adversely.
Company's Perspective:
The Company has
been very conservative when it comes to finance planning and capital resource
deployment. The Company is and will continue to strive hard to maintain the
desired level of debt equity ratio, which indirectly will negate the impact of
rise in interest rates. Similarly, the Company is looking at various
instruments of financing to reduce the impact of rising interest rate. Further,
since 44% of the business of the Company is from exports, the Company can avail
export finance at competitive interest rate therefore minimizing the impact of
rising interest rate.
Rise in paper cost:
Rise in paper
cost might affect the Company's margins. Unprecedented rise in prices of paper
which forms the major cost of the printing, might affect margins. On an
average, paper cost account for 40% of operating cost, Though most of the
projects have price escalation clause for increase in inputs, it might so
happen that the increase in costs are not fully covered by the escalation in
prices.
Company's perspective:
The Company has
tied up with paper mills such that the prices of paper are revised only at the
end of every quarter and hence for every increase in paper cost, the Company
has a time period of a quarter to revise the prices of its products to the
customer.
Foreign Exchange Fluctuation:
Due to
increasing exports, the Company is exposed to multiple currencies.
The Company's
performance and future could be affected by fluctuations in exchange
rates.
Company's perspective:
The Company
hedges its exposure through non speculative forward contracts.
Further, the
Company has sufficient imports also which provide a natural hedge against the
currency movement.
Product
Categories:
The Company is mainly engaged in value added print solutions
business in the Export and the Domestic Market. Following are the categories of
the products namely:
a) Scholastic Books (b) Children's Colouring & Activity
Books (c) Scientific, Technical and Medical Books (d) Trade Books (e) Digital
Printing Books (f) Content Services and (g) Fulfillment.
The Export market for the print industry is booming and specially the huge
World Bank funded education projects in the African Continent offering large
opportunities to the developing countries like India.
Also in the domestic front the Company is focusing it's strength on Education
Publishing including IT education and premium and large volume Annual
Reports
All their product categories are mainly Education based and because of the
growing importance of education all around the globe, the Company is confident
of taking the fullest advantage of this situation.
The Digital Printing Business has performed very well in the last two quarters
of the year ended March 31, 2007 and is expected to contribute in greater
proportions to the total turnover in the coming years.
The Content Services business during this year has accounted for 3 small
proportion of the total revenue and the Company expects to do more and more
Content Development in the coming years.
Fulfillment is another product which the Company is engaged in The Company
expects the fulfillment business to grow in the coming years because of the
need of the Clients who require all the print solutions beginning with the
creative till the dispatch of the product to the end user under one roof.
In the ensuing year, the Company continues to strategically focus it's strength
on usage of those business models which are more profitable, standardization of
raw material SKU for volume benefits and reduction in inventory holding
costs.
Sales/Income
from operations:
Sales/Income from operation increased from Rs.1158.900 Millions in 2006 to
Rs.1308.900 Millions in 2007 showing a growth of 13%.
Other Income:
Other income reduced from Rs. 6.100 Millions in 2006 to 4.500 Millions in 2007
due to reduction in dividend income earned in the previous year by deploying
the money raised through IPO.
Operating
and Other Expenses:
Operating and other expenses amounted to Rs. 275.300 Millions in 2007 as
against Rs.222.600 Millions in 2006, The expenses as a % to sales has increased
to 21% in 2007 from 19% in 2006. The increase is due to investment in marketing
and other infrastructure related expenses, the benefit of which will be fully
realised in the coming years.
Provision
for Taxation:
There is decrease in provision for current tax i.e. from Rs.45.900 Millions in
2006 to Rs. 20.100 Millions in 2007 due to higher depreciation available
because of expansion and also because of income tax exemption available to the
'Content Services Division' u/s. 10B of Income Tax Act, 1961 which became
effective in the current year.
Provision for deferred tax increased from Rs.2.500 Millions in 2006 to
Rs.15.100 Millions in 2007.
There is decrease in Fringe Benefit Tax i.e. from Rs.2.700 Millions in 2006 to
Rs.2.600 Millions in 2007.
Fixed Assets
- Land
- Factory Building
- Office Premises
- Plant and Machinery
- Office Equipments
- Electrical Installation and Fittings
- Furniture and Fixtures
- Vehicles
- Air Conditioners
- Computer
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.39.44 |
|
UK Pound |
1 |
Rs.78.73 |
|
Euro |
1 |
Rs.57.69 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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. |
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 |
|