MIRA
INFORM REPORT
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Report Date : |
12.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
JINDAL SAW LIMITED |
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Registered Office : |
A-1 UPSIDC Industrial Area, Nandgaon Road, Kosi
Kalan, District Mathura – 281 403, Uttar Pradesh, India |
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Country : |
India |
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Financials (as on) : |
30.09.2006 |
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Date of Incorporation : |
31.10.1984 |
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Com. Reg. No.: |
20-23979 |
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CIN No.: [Company
Identification No.] |
L27104UP1984PLC023979 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AGRS10410B |
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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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Line of Business : |
Manufacturing of Thick Walled Pipes, Submerged-Arc-Welded Pipes,
Cold-Rolled Steel Coils and Seamless Tubes. |
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 40000000 |
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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 fine track. Trade relations
are fair. Financial position is good. The company is doing very well. It’s
payments are correct and as per commitments. It can
be considered good for any normal business dealings. It can
be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered Office : |
A-1 UPSIDC Industrial Area, Nandgaon Road, Kosi
Kalan, District Mathura – 281 403, Uttar Pradesh, India |
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Tel. No.: |
91-5662-252277/252224/232426/232001/02/03 |
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Fax No.: |
91-5662-232577 |
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E-Mail : |
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Website : |
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Corporate
Office : |
‘Jindal Centre’, 12 Bhikaji Cama Place, New Delhi – 110 066 |
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Tel.
No.: |
91-11-26188360–74/26188345 |
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Fax
No.: |
91-11-26170691 |
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E-Mail
: |
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Factory : |
MUNDRA - IPU Village: Samaghogha , Pragpar -
Mandvi Road, Taluka: Mundra MUNDRA - JCO S.No. 94/1, 94/2 & 96 ,
Village: Nanakapaya Taluka: Mundra, Distt. Kutch - 370 415 (Gujarat) KOSI KALAN A-1, UPSIDC Industrial Area ,
Nandgaon Road, Kosi Kalan, Distt. Mathura - 281 403 (U.P) NASHIK A-59-60 Malegaon MIDC, Sinnar -
422 103, Distt. Nashik, Maharashtra |
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Regional
Offices : |
MUMBAI Jindal Mansion, 1st Floor 5-A, G.,
Deshmukh Marg (Peddar Road), Near Jaslok Hospital, Mumbai - 400 026. Phone : 91-22-23513000 AHMEDABAD 601, Saffron Building , Near
Panchvati Char Rasta , Ambawadi , Ahmedabad - 380 006. HYDERABAD H. No. 8-2-618/2/2/A, Plot No. 25,
Road No. 10 , Classic Emerald Lane BANGALORE 6th Floor, East Wing, Raheja
Towers, M.G. Road , Bangalore-560 001. CHENNAI 4-B, Century plaza 560-562, Anna
Salai Teynampet , Chennai - 600 018 |
DIRECTORS
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Name : |
Mr. P. R. Jindal |
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Designation : |
Vice Chairman |
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Name : |
Mr. Sminu Jindal |
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Designation : |
Managing Director |
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Name : |
Mr. A. J. A. Tauro |
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Designation : |
Director |
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Name : |
Ms.
Devi Dayal |
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Designation : |
Director
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Name : |
Mr. Kuldip Bhargava |
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Designation : |
Director |
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Name : |
Mr. H. S. Chaudhary |
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Designation : |
Whole Time Director |
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Name : |
Mr. S
K Gupta |
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Designation : |
Director
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Name : |
Mr. R
K Agarwal |
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Designation : |
Director
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MAJOR SHAREHOLDERS
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Names
of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters Holding |
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- India Promoters |
16754358 |
34.64 % |
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- Foreign Promoters |
3702100 |
7.65 % |
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Not Promoters Holding |
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Mutual
Funds and UTI |
6907516 |
14.28 % |
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Banks,
Financial Institutions, Insurance Companies [Central
/ State Government Institutions / Non government institutions] |
3000 |
0.01 % |
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FIIS |
8051706 |
16.65 % |
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Others
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Private
Corporate Bodies |
2335639 |
4.83 % |
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Indian
Public |
4197512 |
8.68 % |
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NRIs/OCBs
|
6412627 |
13.26 % |
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Total |
48364458 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Thick Walled Pipes, Submerged-Arc-Welded Pipes,
Cold-Rolled Steel Coils and Seamless Tubes. |
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Products : |
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PRODUCTION
STATUS
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Particulars |
Unit |
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Actual Production |
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Iron and Steel Pipes |
Per MT |
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143.45 |
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Pre Rolling of Stainless Steel
Strips |
Per MT |
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563.41 |
GENERAL
INFORMATION
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Customers : |
Domestic Clients Assam Gas Company Limited Bharat Petroleum Corporation Limited British Gas Cairn Energy Limited Dodsal Limited Engineers India Limited Essar Construction Limited Gammon Gas Authority Of India Limited Gujarat Adani Energy Limited. Gujarat Gas Company Gujarat State Petrnet Limited Hindustan Petroleum Company
Limited Indian Oil Company Limited Indraprastha Gas Limited Larsen & Toubro Mahanagar Gas Limited Oil & Natural Gas Company
Limited Oil India Limited Petronet MBH Limited Punj Lloyd Limited Reliance Petroleum Limited Reliance Ports & Terminals
Limited Shell Hazira International
Clients AGIP Gas BV, (Libya) AGIP Oil Company, (Libya) Bechtel Intec Consortium, UK Burullus Gas Company, Egypt China National East Gas Company (Egypt) FIMCO F2E, Iran Gasco (Egypt) Hyundai Heavy Industries Limited, Korea Iranian Offshore Oil Company
(IOOC), Iran Joannou & Paraskevaides
(Overseas) Limited, Greece Kalanaft, Iran Mediterranean Oil Company,
(Germany) National Iranian Gas Company
(Iran) Nigerian Agip North Oil Company, Iraq PEDCO, Iran PEDEC, Iran Petroleum Develoopment Omam, Omam PTTE&P, Thailand Qatar Petroleum, Qatar Repsol Oil Operations Saipem (Italy) Saipem / CCC – JV, Omam Saudi Arabian Oil Company Shell Petrleum Development Company
(Nigeria) Shell, Brunie Shell, The Netherlands Sichuan Petroleum Sirte Oil Company (Libya) State Company for oil
Projects (SCOP), Iraq Total E&P Indonesie, Indonesia Vietsovpe Tro, Vietnam Zueitina Oil Company (Libya) |
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No. of Employees : |
2,000 |
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Bankers : |
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Banking Relations : |
Satisfactory
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Auditors : |
statutory
auditors
N. C. Aggarwal & Company Chartered Accountants New Delhi, India internal
auditors
RSM Company Chartered Accountants |
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Associates : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised
Capital :
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No.
of Shares |
Type |
Value |
Amount |
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200000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 2000.000 Millions |
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Issued,
Subscribed & Paid-up Capital :
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No.
of Shares |
Type |
Value |
Amount |
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148360000 |
Equity
Shares |
Rs. 10/- each |
Rs. 1483.600 Millions |
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FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
1483.600 |
1471.100 |
389.797 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
8718.000 |
7003.500 |
3608.825 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
10201.600 |
8474.600 |
3998.622 |
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LOAN FUNDS |
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1] Secured Loans |
7196.300 |
5731.200 |
4415.825 |
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2] Unsecured Loans |
6603.300 |
4245.700 |
1226.383 |
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TOTAL BORROWING |
13799.600 |
9976.900 |
5642.208 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
465.777 |
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TOTAL |
24001.200 |
18451.500 |
10106.607 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7151.100 |
6390.100 |
3244.542 |
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Capital work-in-progress |
1666.400 |
894.600 |
2131.860 |
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Pre operative Expenses |
0.000 |
0.000 |
367.248 |
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INVESTMENT |
964.700 |
962.200 |
560.094 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
13741.300
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9262.500 |
4518.244 |
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Sundry Debtors |
7526.300
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3334.600 |
4103.889 |
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Cash & Bank Balances |
3909.800
|
1508.600 |
338.309 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
1838.100
|
1721.000 |
1155.503 |
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Total Current Assets |
27015.500
|
15826.700 |
10115.945 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
11897.800
|
5250.700 |
6130.901 |
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Provisions |
898.700
|
371.400 |
182.181 |
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Total Current Liabilities |
12796.500
|
5622.100 |
6313.082 |
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Net Current Assets |
14219.000
|
10204.600 |
3802.863 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
24001.200 |
18451.500 |
10106.607 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
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Sales Turnover [including other income] |
44234.000 |
26026.700 |
11583.517 |
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Profit/(Loss)
Before Tax |
2632.000 |
1514.700 |
774.898 |
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Provision
for Taxation |
870.000 |
507.400 |
212.482 |
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Profit/(Loss)
After Tax |
1762.000 |
1007.300 |
562.416 |
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Export
Value |
9636.951 |
5993.892 |
NA |
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Total
Expenditure |
41602.000 |
24512.000 |
10615.761 |
KEY
RATIOS
|
PARTICULARS |
30.09.2006 |
30.09.2005 |
30.09.2004 |
|
Debt-Equity Ratio |
1.30 |
1.30 |
1.10 |
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Long Term Debt-Equity Ratio |
1.00 |
1.04 |
0.95 |
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Current Ratio |
1.80 |
1.67 |
1.44 |
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TURNOVER RATIOS |
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Fixed Assets |
4.54 |
3.72 |
2.64 |
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Inventory |
3.46 |
3.41 |
3.99 |
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Debtors |
7.33 |
6.31 |
3.59 |
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Interest Cover Ratio |
2.82 |
2.52 |
2.70 |
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Operating Profit Margin (%) |
11.56 |
12.21 |
13.24 |
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Profit Before Interest &
Tax Margin (%) |
10.26 |
10.71 |
11.24 |
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Cash Profit Margin (%) |
5.73 |
5.80 |
7.14 |
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Adjusted Net Profit Margin (%) |
4.43 |
4.29 |
5.14 |
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Return on Capital Employed (%) |
19.41 |
18.18 |
16.63 |
|
Return on Net Worth (%) |
20.69 |
18.26 |
15.98 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.401.90/- |
|
Low |
Rs.381.00/- |
LOCAL AGENCY
FURTHER INFORMATION
The company’s fixed assets of important value include Freehold
& Leasehold Land (including site development expenses), Buildings, Plant
& Machinery, Furniture & Fixtures and Vehicles.
History
Saw Pipes, promoted by the O P Jindal group in 1984 is into
manufacturing and coating of Submerged Arc Welded pipes (SAW Pipes). The
company is the largest producer of Saw Pipes, which is widely used in the
energy sector for the transporation of oil and gas. The company is a market
leader and a global major in providing 'Total Pipe Solutions' to the
industry.
The Company has an integrated facilities at multiple locations. Further
the company gas diversified from a single product company to a multi-product
company, manufacturing large diameter Submerged Arc Welded pipes & Sprial
pipes and bends for energy transportation sector. Carbon, alloy and stainless
steel seamless tubes manufactured by conical piercing process are used for
industrial applications and Ductile iron pipes for water and sewage
transportation.
The business operations of the company are structured as Saw Pipes,
Seamless Tubes, Ductile Iron Spun Pipes and the US Operations.
The company has obtained technical assistance from US Engineers and
Consultants, a subsidiary of US Steel Corporation for its products. Further
company has nine manufacturing facilities located at 4 places in India i.e
KosiKalan (UP), Mundra (Gujarat), Nashik(Maharashtra), Swastik Foils(New Delhi)
and through affiliates it also manages the largest pipe mill in the US,
supported by a plate mill with a matching capacity. The Nashik facility
produces stainless/Carbon steel seamless tubes and pipes and the New Delhi unit
produces CR stainless steel precision coils of thin and ultra thin
gauges.
The Subsidiaries of JSL are Hexa Securities & Finance Co Limited,
Jindal Enterprises LLC and IUP Jindal Hexa Metals Limited
The company has continually expanded and consolidated its operations. It
has amalgamated Swastik Foils in 1988-89 with itself and as part of backward
integration the Swastik Udyog, a subsidiary of Jindal Strips which produces
thicker gauge steel stripes was merged with the company in 1991-92. It commissioned
its composite coating project at Kandla, Gujarat in 1998-99 and the 100% EOU
for manufacture of Longitudinal Welded SAW Pipes at Mundra, Gujarat has been
completed and commenced trial production. Its seamless tube division is under
lock out, long term viable solutions are worked out for the operations of the
division.
The modernisation plan was completed for its Nashik plant and the
production is expected to commence very soon. Since United States is the
largest market for large diameter pipes,the company plans to benefit from the
synergies available from the market,it has opened branch office in US. It has
got a significant stake in SAW pipes Inc USA, which is having a largest pipe
manufacturing capacity in US.
During 2003-04, the company estabilished, IUP Jindal Hexa Metals Limited
a joint venture company between the company and Imphy Ugine Precision, IUP,
France, one of the divisions of Arcelor group for manufacturing of high
precision metal to be used in electronics industry and other applications. The
Company has transferred its Swastik Foils Division into the joint venture
company and it is holding 73% in the joint venture company. The company has
strated its Trial Production with effect from 7th October 2005 and raised its
first invoice on 24th October 2005. Further the company has also decided a
dispatch plan of 14000 MT from the year 2006.
The company has increased the installed capacity of Iron & Steel
Pipes by 700000 MT during 2004-05 and with this expansion the total installed
capacity of Iron & Steel Pipes has increased to 1250000 MT. Further the
company has installed a new capacity of Pig Iron with a capacity of 200000
MT.
The name of the company has been changed from Saw Pipes Limited to Jindal
Saw Limited (JSL) with effect from 11th January 2005.
Review Of Operations:
Strong growth in energy and urban infrastructure (including water &
sewage segments) propelled the Company's all round performance. Year 2005-06
was another period of achievements for the Company registering a sale of
Rs.40614.8 Millions as compared to Rs.23928.2 Millions for the previous year,
thereby registering the growth of 70%. The PAT for the year grew by 75% to
Rs.1762.0 Millions in the year ended September, 2006 as compared to Rs.1007.3
Millions achieved in previous year.
In the year 2004-05 the Company had created four separate strategic
business units (SBU) to improve and maximize the operational efficiency. This
move has yielded rich dividends in the form of all round performance reflected
by improved results. The financial strategy of the Company has also paid well
in controlling the financial cost even in the increasing interest rate
regime.
For repayment of certain high cost debts, the Company entered into global
financial market in September 2005 by issuing Global Depository Shares (GDSs)
aggregating to USD 75 Mn @USD 7.99 per GDS. To part finance the ongoing capital
expenditure program, during the year, the Company issued 0.75% Foreign Currency
Convertible Bonds (FCCB) aggregating to JPY 9,090 Million (app. USD 80 million)
at a YTM of 4% p.a. Both issuance of GDS and FCCB had met with good response
thereby demonstrating the confidence of the international financial community
in the Company.
OUTLOOK:
SAW pipe, Seamless pipe and Ductile Pipe industry caters to the
infrastructure requirements of an economy. In India high targets of growth in
terms of gross domestic product have been set in the range of 8-9% per annum.
Industry experts have already expressed the need for greater infrastructure
development in the country to meet such ambitious targets. Energy is one of the
key infrastructure areas, which need to be developed. The transportation of oil
and gas is key factor as power and downstream units assume significance. Major investment
in the exploration of oil and gas reserves in the country has resulted in the
identification of reserves by private sector as well. All these developments
are expected to culminate in a major demand for line pipes, the most secure and
cheap mode of transportation of oil and gas. In addition, the goal of supplying
water to the most remote villages and the development of water supply and
sewerage systems should continue to generate demand for pipes in the water
sector.
Thus, looking forward, they believe that there will be substantial growth
in the energy and water segments, and hence demand for our products will remain
strong. Incremental long-term energy demand will be driven, in our view, by the
industrialization of not only India but also other nations. This incremental
demand must be satisfied, at least in the foreseeable future, by oil and
natural gas. This should, in turn, lead to generally higher levels of drilling
activity around the world.
The Company is well positioned to become a market leader in every market
segment they serve with geographic diversity that not only creates growth
opportunities but also reduces our exposure to any one market and with product
lines that are diverse in application and customer base.
The Genesis
Jindal Saw Limited is a part of the USD $4
billion Jindal Group, one of the country's topmost industry houses and the
foremost indigenous steel producers and exporters. It started operation in the
year 1984, when it became the first company in India to manufacture Submerged
Arc Welded (SAW) Pipes using the internationally acclaimed U-O-E technology.
About Jindal Saw Limited (JSL)
JSL is one of the country's largest producers
of SAW pipes, which is widely used in the energy sector for the transportation
of oil and gas. With integrated facilities at multiple locations and an ever
expanding market opportunity, JSL has diversified from a single product company
to a multi-product company, manufacturing large diameter submerged arc pipes
and spiral pipes and bends for the energy transportation sector; carbon, alloy
and stainless steel seamless pipes and tubes manufactured by conical
piercing process used for industrial applications; and Ductile iron (DI) pipes
for water and sewage transportation.
JSL has established itself as a market leader, and a global major in providing
total pipe solutions to the industry.
Quality at par with the best in the world
The company boasts of an inimitable,
innovative and process driven business environment with the highest level of
quality commitment, which is reassured through the ISO 9001, ISO 14001 and ISO
18001 certifications, amongst others.
A Structured Organisation
At JSL, the business operations are highly
structured with four strategic business units: Large Diameter Pipes, Seamless
Tubes, DI (Ductile Iron) Pipes and the US Operations. Every SBU has its own
dedicated sales and marketing targets and operations. While the first three
SBUs manufacture and market Large Diameter Pipes, Seamless Tubes and Ductile
Iron Pipes respectively, the last SBU acts as a dedicated marketing arm
catering to the American market. In effect, the US Operations markets the
products manufactured by all other SBUs. It also gets raw material converted to
finished goods supplied to the US Affiliates under a toll conversion
arrangement, and further markets the product in the American market.
Besides these, JSL also provides various value added products like pipe
coatings, bends and connector castings to its clients.
Manufacturing Facilities
The state-of-the-art manufacturing facilities
of Jindal Saw Limited are located at three places in India. The first plant was
set up in Kosi Kalan in UP to manufacture SAW Pipes using U-O-E technology.
Later, a coating plant was also added here. At Nashik (Maharashtra), the
company has one plant, engaged in the manufacture of Seamless pipes. There are
two manufacturing bases in Mundra (Gujarat). Mundra-I, which is fully export
oriented, has two plants to manufacture SAW Pipes and one plant for coating.
Mundra-II, the second base, has three more plants.
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.44.21 |
|
UK
Pound |
1 |
Rs.87.48 |
|
Euro |
1 |
Rs.57.23 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
70 |
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 |
|