MIRA
INFORM REPORT
|
Report Date : |
16.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SHREE
ASHTAVINAYAK CINE VISION LIMITED |
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|
|
|
Registered Office : |
A - 204/205, VIP Plaza, 2nd
Floor, B/7 Veera Industrial Estate, Off Andheri Malad Link Road,
Andheri (West), Mumbai - 400 053, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.10.2001 |
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Com. Reg. No.: |
11-133759 |
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CIN No.: [Company
Identification No.] |
U92110MH2001PLC133759 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS44552E |
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PAN No.: [Permanent
Account No.] |
AAGCS2622B
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Legal Form : |
A
public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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|
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|
Line of Business : |
Subject
is the leading film production company. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
1000000 |
|
|
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|
Status : |
Satisfactory
|
|
|
|
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject
has come out with Initial Public Issue of Rs. 500 Millions recently. Directors
are reported as experienced, respectable and resourceful businessmen. Their
trade relations are fair. General financial position is successful. Payments
are usually correct and as per commitments.
The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
A - 204/205, VIP Plaza, 2nd Floor,
B/7 Veera Industrial Estate, Off Andheri Malad Link Road, Andheri (West),
Mumbai
- 400 053, Maharashtra, India |
|
Tel. No.: |
91-22-6702 9630/1/2/3 |
|
Fax No.: |
91-22-6702 9634 |
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E-Mail : |
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|
Website : |
DIRECTORS
|
Name : |
Mr.
Dhilin H Mehta |
|
Designation : |
Chairman & Managing Director |
|
|
|
|
Name : |
Mr.
Harshad K Mehta |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr.
Rupen N Amlani |
|
Designation : |
Whole-time Director |
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|
|
|
Name : |
Mr.
Hiren J Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Dhaval V Jatania |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Chandrakat K Sachde |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr.
Pravin S Jani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Ashok V Ladhani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Nishant A Mahidhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Hetal
N Thakore |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Subhash P Rathod |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Ms. Archana Hemant Andhare |
|
Designation
: |
Company Secretary |
BUSINESS DETAILS
|
Line of Business : |
Subject
is the leading film production company. |
GENERAL
INFORMATION
|
No. of Employees : |
120 |
|
|
|
|
Bankers : |
Canara
Bank, Mittal Tower, “C” Wing, Nariman Point, Mumbai – 400021 Tel
No.: 91-22-220735710 Fax
No.: 41-22-229882492 / 22045876 Website
: http://www.canbakindia.com |
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Banking Relations : |
-- |
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Auditors : |
Khimji
Kunverji and Company Chartered
Accountants Suite
52, Bombay Mutual Building, Sir P. M. Road, Fort, Mumbai – 400001 |
|
Tel. No.: |
91-22-22662550
/ 22661270 |
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Fax No.: |
91-22-22664045 |
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E-Mail : |
|
|
Website : |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 110.000 Millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
6303000 |
Equity
Shares |
Rs. 10/- each |
Rs. 63.030 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
63.000 |
28.700 |
28.700 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
186.400 |
148.800 |
93.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
249.400 |
177.500 |
122.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
96.500 |
20.400 |
21.300 |
|
|
2] Unsecured Loans |
23.500 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
120.000 |
20.400 |
21.300 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
369.400 |
197.900 |
143.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
43.700 |
4.200 |
6.200 |
|
|
Capital work-in-progress |
185.600 |
31.300 |
16.600 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8.300
|
234.800 |
3.300 |
|
|
Sundry Debtors |
60.300
|
12.100 |
0.000 |
|
|
Cash & Bank Balances |
64.000
|
1.700 |
51.100 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
223.600
|
21.500 |
76.500 |
|
Total Current Assets |
356.200
|
270.100 |
130.900 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
208.900
|
108.400 |
9.900 |
|
|
Provisions |
7.200
|
0.000 |
0.000 |
|
Total Current Liabilities |
216.100
|
108.400 |
9.900 |
|
|
Net Current Assets |
140.100
|
161.700 |
121.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.700 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
369.400 |
197.900 |
143.800 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
701.800 |
267.000 |
84.100 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
119.400 |
4.600 |
[1.500] |
|
Provision
for Taxation |
44.700 |
1.100 |
0.000 |
|
Profit/(Loss)
After Tax |
74.700 |
3.500 |
[1.500] |
|
|
|
|
|
|
Total
Expenditure |
582.400 |
262.400 |
85.600 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.33 |
0.14 |
0.54 |
|
Long
Term Debt-Equity Ratio |
0.27 |
0.13 |
0.54 |
|
Current
Ratio |
1.78 |
3.29 |
2.95 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
3.63 |
3.04 |
0.98 |
|
Inventory |
5.65 |
2.24 |
1.66 |
|
Debtors |
18.96 |
44.05 |
0.00 |
|
Interest
Cover Ratio |
34.17 |
6.75 |
-6.50 |
|
Operating
Profit Margin(%) |
65.89 |
2.14 |
-1.43 |
|
Profit
Before Interest And Tax Margin(%) |
17.92 |
2.03 |
-1.55 |
|
Cash
Profit Margin(%) |
58.86 |
1.43 |
-1.67 |
|
Adjusted
Net Profit Margin(%) |
10.88 |
1.31 |
-1.79 |
|
Return
On Capital Employed(%) |
43.42 |
3.17 |
0.00 |
|
Return
On Net Worth(%) |
35.00 |
2.33 |
0.00 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.227.00/- |
|
Low |
Rs.232.00/- |
LOCAL AGENCY
FURTHER INFORMATION
The
registered office or the company was shifted from 33/34, 1st Floor,
RNA Arcade, Crystal View, CHS, Lokhandwala Complex, Andheri [West], Mumbai –
400053 to Ahinsa Dham, Building No. 1, Opposite Sabkhuch Supermarket, Link Road
Malad [West], Mumbai – 400064, w.e.f. 01.04.2002. Subsequently it was shifted
to 422, New Sonali Link Industrial Estate, Link Road, Building No. 2, Malad
[West], Mumbai – 400064 w.e.f. 09.01.2004 and then to the preset address w.e.f.
09.01.2005.
Operation:
During the year the total income increased to Rs.610.505 Millions from
Rs.266.962 Millions of the previous year and the profit before depreciation,
interest & other financial expenses and tax during the year was Rs.452.369
Millions as against Rs.5.648 Millions in the previous year.
During the year the Company has distributed 9 films. These were Nigehbann,
Nazar, Paheli, Dus, Aparahan, Mr.Prime Minister, Anjane - The unknown,
Family-Ties of Blood, Zinda. After successfully putting in place the
infrastructure and expertise for production and distribution, the company
decided to produce a high budget film with an attractive star cast. The Company
ventured into production of Maine Pyar Kyun Kiya in association with Sohail
Khan Productions featuring Salman Khan, Katrina Kaif, Sushmita Set, and Sohail
Khan among others. This film was released in July 2005 and proved to be a major
success at the box office.
They distribute their home productions as well as films made by other
production houses mainly in the Bombay Territory. With the film Zinda they
entered the Delhi Territory as a distributor and are in the process of
consolidating their position in north India. By end of February 2006, they have
distributed films in 1145 theaters.
To complete the chain of vertical integration they decided to extend their
operation to exhibition, which will enable us to control the eventual screening
of film and gather direct feedback about audience taste and preferences. They
ventured into exhibition towards the end of the financial year 2004-05 and
since then they have tied up with 28 theatres for exclusive screening of their
own film and films produced by other production houses.
Changes In Share Capital:
The company has increased authorized share capital from Rs.30 Millions to
Rs.110 Millions on up share capital has increased to Rs.63.030 Millions from
Rs.28.650 Millions by capitalizing of Free Reserve.
Directors:
In accordance with the requirements of the Companies Act, 1956, Mr. Dhilin
H.Mehta and Mr.Harshad K.Mehta will retire by rotation at conclusion of ensuing
Annual General Meeting and being eligible, have offered themselves for
re-appointment.
During the year Mr. Ashok Ladhani, Mr. Chandrakant Sachde, Mr. Pravin Jani,
Mr.Nishant Mahidhar, Ms. Hetal Thakore, Mr. Subhash Rathod who were appointed
as an additional Directors of the Company by the Board of Directors and whose
term of office expires at this Annual General Meeting are proposed to be
appointed as Directors of the Company. During the year Mr. Vipul Simaria and
Ms. Pankti Mehta, have resigned as Director during the year.
Notice Against Directors And Promoters
A notice u/s 156 of Income Tax Act 1961 has been received by Mr.
Dhilin Mehta for A.Y. 2003-04 for Rs. 3.180 Millions vide notice dated
23/03/2006. Apeal has been filed against the same on 20.04.2006.
As per website
Introduction
The Indian entertainment industry and the film
industry in particular, is at the threshold of tremendous growth. For industry
participants to extract value from this growth, it will be imperative to adopt
globally relevant structures of doing business, becoming efficient and cost
effective.
Shree Ashtavinayak Cine Vision Limited
is attractively poised in this scenario. Its integrated approach, corporatised
structure, strong balance sheet and a professional, capable team are catalysts
to a higher than average growth in the future. This will not only lead to the
creation of one of the most respected companies in the industry from India, but
also to create lasting content with progressively enhancing value.
Shree Ashtavinayak Cine Vision Limited
is the pioneering corporate structure in the tinsel town.
With a clear focus on high entertainment value, Shree Ashtavinayak Cine Vision integrates the value chain in the
commercial motion picture segment from production to distribution to
exhibition.
THE INDIAN ENTERTAINMENT INDUSTRY- a perspective
Smart Facts - The
Indian entertainment industry is presently estimated to be Rs 353 billion in
size by 2005 and is growing rapidly. (Source
– FICCI Frames 2006)
Number of single screen theatres -
12,000 approx
Number of multiplex screens -
350 approx.
Filmed Entertainment Industry -
Estimated at INR 68 billion in 2005; expected to more than double by 2010.
Domestic Box Office Market -
Estimated at INR 53 billion in 2005; projected to grow to INR 102 billion by
2010.
Home Video Market -
Estimated at INR 4 billion in 2005; projected to grow to INR 21 billion by
2010.
Shree Ashtavinayak Cine Vision Limited
operates in one of the largest markets for films in the world with 1041 films
being produced in 2005. It is currently worth about INR 68 billion in 2005 and
expected to more by 2010. Indians love to watch movies which can be gauged by
the fact that India the highest admissions in the world at over 3 billion
people coming to the theaters. (Source:
The Indian Entertainment and Media Industry, Unravelling the potential by FICCI and Price Waterhouse Coopers).
The advancements in technology are helping the Indian film industry in all the
spheres – picture film production, film exhibition and distribution/marketing
leading to the industry getting corporatised.
Many theatres across the country are getting upgraded to multiplexes and
initiatives to set up more digital cinema halls in the country are already
underway. This will not only improve the quality of prints and thereby make
film viewing a more pleasurable experience, but also reduce piracy of prints.
Shree Ashtavinayak Cine
Vision Limited is a one of the leading film Production and
Distribution Company in India. The company has produced some of the best-known
films and the most recognized amongst them is"Golmaal" is an out and out comedy written by Anees Bazmi, with an underlying
suspense element". The star cast of the film includes Ajay Devgan, Arshad Warsi, Tusshar
Kapoor, Paresh Rawal, Sharman Joshi among others.
Production of films serve as the key revenue source.
The hugely successful Maine Pyar Kyun Kiya paved the way for credibility and
performance in future. The company’s strength in distribution to contribute to
greater insight into audience preference minimizing risk.
The corporate structure helps procure institutional funding while in-house
equipment and postproduction capabilities once acquired will further add to
margins.
Shree Ashtavinayak Cine Vision Limited produces high quality entertainers
for global audiences of mainstream Hindi cinema. The company has built
capabilities for cost effective film production, including excellent
relationships with acclaimed directors, actors and other members of the value
chain.
The company began with producing films such as Golmaal, Funtoosh- Dudes in
the10 Century and Agni-Pankh. It's largest and by far the most successful
production venture was the Salman Khan- Sushmita Sen-Katrina Kaif starrer Maine
Pyaar Kyun Kiya.
After the success of Maine Pyar Kyon Kiya, the company has put more focus on
the production of films.
Shree Ashtavinayak Cine Vision has drawn up aggressive plans and is
presently involved with producing more than ten films, to be released over the
next 18 months. Shree Ashtavinayak
has brought together some of the biggest names in the Indian film industry to
deliver quality entertainment to viewers across the world.
Directors include some of the biggest names in the industry – David Dhawan,
Priyadarshan, Abbas-Mastan, Imtiyaz Punjabi, Rohit Shetty .
Some of the popular stars who will be acting in the projects are:
Ajay Devgan, Akshay Kumar, Govinda, Nana Patekar, Paresh Rawal, Salman Khan,
Zayed Khan.Sushmita Sen, Katrina Kaif, Bipasha Basu, Rimi Sen.
Ashtavinayak has released some significant and popular films in the past. Some
of the previous releases by the production house are Fun2ssh - Dudes in the
10th Century,Maine Pyar Kyun Kiya,Agnipankh, Golmaal.
Measures are being taken by the company to film the movies in a short span of
time. This would help avoid cost overruns which is commonly associated with
movie production. The company expects to wind-up production of some of the
movies within an average duration of 8 -10 months.
Shree Ashtavinayak Cine Vision Limited provides quality entertainment to
audiences across all age groups.
The
Vision
Shree Ashtavinayak Cine
Vision Limited envisions to be:
A fully
integrated player in the Film Entertainment business.
And
professionalize and systemize the Film Production process optimizing the use of
resources and maximizing return on investment.
Film Distribution
Founded inOctober 2001, Shree Ashtavinayak Cine Vision Limited was created to
be a full service Distribution company specializing in the best in cinema for
the growing modern Indian audience insisting on cinematic diversity. Since then
the company has become one of the busiest distributors of quality entertainment
films.
In its very young existence the company had had the pleasure of working with an
incredible cast of internationally lauded filmmakers and stars. The range of
artists vary from Akshay Kumar to Rani Mukherjee to
the incredible Shahrukh Khan as well as talented directors
like Amol
Palekar and Farah Khan.
The distribution of the films has immensely helped the company for its
consistent growth. The company distributes films from all the reputed banners
and production houses. By distributing number of successful movies the company
has established itself as one amongst the top Indian distributing companies.
In the years to come, sophisticated film audiences can continue to expect the
best in engaging, provocative and enriching cinema from Shree Ashtvinayak Cine Vision Limited
Shree Ashtavinayak Cine Vision Limited
has successfully distributed blockbusters such as the Shahrukh Khan- Sushmita Sen-
Zaayed Khan starrer Main Hoon Na.
Encouraged by the success, it went to distribute films like Paheli,
which has since been nominated as the Indian entry into the Oscars in the 'Best Foreign Film Category' .
Other very successful films distributed by Shree Ashtavinayak include Dus and Aitraaz,
Tango Charlie, Maine Pyar Kyon kiya, Garv, Fida, Phir Hera Pheri, Tom Dick
& Harry, Golmaal.
In the immediate future, Shree
Ashtavinayak Cine Vision will be releasing Bhagam Bhagstarring Akshay
Kumar, Govinda, Lara Datta, Shakti Kapoor, Rajpal Yadav, Jakie Shroff and many
others. The movie is complete and is slated to hit the theaters
on 22 Dec 2006.
The Company is constantly on the look-out the manner in which it can leverage
its distribution network. Shree Ashtavinayak Cine Vision is in negotiations for
acquiring distribution rights from successful producers willing to pre-sell
them.
The company provides a hands-on approach towards marketing and distribution to
ensure a successful reception of films in the marketplace. The team also offers
innovative and flexible distribution deals that are results-oriented and
filmmaker-friendly.
The strong network and channels that the company has paves the way for a smooth
and successful runs for the feature films that have been crafted. Shree Ashtavinayak Cine Vision Limited
envisions being a filmmaker's dream. They know the distribution landscape that
independents need to know. Every job is undertaken and executed with care, hard
work and enthusiasm. Their zeal and commitment is their signature.
Press Release
Ashtavinayak Cine Vision to raise Rs. 500
Millions
Mumbai
Shree Ashtavinayak Cine Vision is planning to tap the markets through an
Initial Public offer of Rs. 500 Millions to upgrade its film production
facilities and to finance three films. “We plan to rais Rs. 500 Millions from
the markets for purchasing the state-of-the art film production equipment and
also finance out three films, out of which one has hit the floors and the other
two are at the preproduction stage,” Shree Ashtavinayak Chairman and Managing
Director Dhilin Mehta said here. The company has made a net profit of Rs.
92.600 Millions for the nine months ended December 31, 2005 with a turnover of
Rs. 469.200 millions, he added.
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.44.25 |
|
UK
Pound |
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.36 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|