MIRA
INFORM REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ALOK INDUSTRIES
LIMITED |
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Registered Office : |
B-43, Mittal Tower, Nariman Point, Mumbai - 400 021,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
12.03.1986 |
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Com. Reg. No.: |
11-39194 |
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CIN No.: [Company Identification No.] |
U17110MH1986PTC039194 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMA02206B |
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PAN No.: [Permanent
Account No.] |
AAACA0201C |
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Legal Form : |
It is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of cotton and viscose / blended grey and
processed fabrics and 100% cotton knitted fabrics and intermingled yarn. |
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 35000000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Financial position is satisfactory. Payments are usually correct and as per commitments. The company is
doing well. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
B-43, Mittal Tower, Nariman Point, Mumbai - 400 021,
Maharashtra, India |
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Tel. No.: |
91-22-22874865 / 22832923 / 24940129 / 22845233 / 22881279 / 22832923 |
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Fax No.: |
91-22-22874864 / 24936078 |
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E-Mail : |
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Telex : |
11-74504 ALOK IN |
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Website : |
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Corporate
Office : |
Peninsula Tower 'A' Wing, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India |
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Tel. No. : |
91-22-24996200 /
6500 |
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Factory : |
Spinning Saily, Silvassa, Union Territory of Dadra & Nagar Haveli Weaving Division Kalyan Road, Babla Compound, Bhiwandi - 421 302, District Thane, Maharashtra, India 17/5/1 & 521/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli 209/1 & 209/4, Silvassa, Village Dadra, Union Territory of Dadra and Nagar Haveli Yarn Division 65, A, Piparia Industrial Estate, Silvassa - 396 230, Gujarat, India 103 / 2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli Processing C-16 / 2, TTC Industrial Area, MIDC, Navi Mumbai, Maharashtra, India S. No. 268, Village Balitha, Pardi, Valsad, Gujarat, India 254, Village Balitha, Taluka Pardi, District Valsad, State Gujarat Knitting Division 17/5/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli 521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa 261/P (Part A, B and C), Balitha, Pardi, Valsad, Gujarat, India 110, Morai, Pardi, Valsad, Gujarat, India Garments 374 Saily, Silvassa, Union Territory Dadra Nagar Haveli C – 271/2, TTC Industrial Area, Turbhe, Navi Mumbai Made Ups 374/2/2, Village Saily, Silvassa, Union Territory Dadra & Nagar Haveli POY 521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa Texturising 103/2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli 521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa |
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Branches : |
177, Alok House, Sant Nagar, East of Kailash, New Delhi – 110065 |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
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Name : |
Mr. Ashok B.
Jiwrajka |
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Designation : |
Executive
Chairman |
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Name : |
Mr. Dilip B. Jiwrajka |
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Designation : |
Managing Director
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Name : |
Mr. Surendra B. Jiwrajka |
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Designation : |
Joint Managing
Director |
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Name : |
Mr. K. C. Jain |
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Designation : |
Nominee Director
of Industrial Development Bank of India Limited |
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Name : |
Mr. Rakesh Kapoor |
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Designation : |
Nominee Director
of IFCI Limited |
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Name : |
Mr. K. G. Punnathara |
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Designation : |
Nominee Director
of Life Insurance Corporation of India |
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Name : |
Mr. Ashok G. Rajani |
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Designation : |
Director |
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Name : |
Mr. C. K. Bubna |
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Designation : |
Executive
Director |
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Name : |
Mr. K. R. Modi |
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Designation : |
Director |
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Name : |
Mr. R. J. Kamat |
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Designation : |
Nominee Director
of Industrial Development Bank of India |
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Name : |
Ms. Hiroo S.
Advani |
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Designation : |
Nominee Director of
Export Import Bank of India |
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Name : |
Mr. Tim Ingram |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of
Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
45516303 |
28.91 |
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Non- Promoters |
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Banks/Fls/MFs |
35709949 |
22.68 |
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Flls/NRIs/OCBs/FDI |
45432880 |
28.85 |
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Other Body
Corporates/lndian Public |
25153589 |
15.97 |
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Venture Capital
Funds |
5655735 |
3.59 |
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TOTAL |
157468456 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of cotton and viscose / blended grey and
processed fabrics and 100% cotton knitted fabrics and intermingled yarn. |
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Products : |
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Imports from : |
Switzerland, England, Hongkong, Germany, Belgium, Bahrain,
Malaysia and Japan |
GENERAL
INFORMATION
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Suppliers : |
v Zellweger Luwa AG, Uster, Switzerland v Benninger Company Limited, Uzwil, Switzerland v Bonas Machine Company Limited, Gateshead, England v Staubli AG, Horgen, Switzerland v Atlas Copco Airpower N. V., Antwerpen, Belgium v Electronia Contractor AG, Lugano, Switzerland v Itochu Middle East E.C., Bahrain v Dunham-Bush Industries Sdn Bhd, Salangor Darul Ehsan, Malaysia v Todo Seisakusho Limited, Osaka, Japan v Benninger Company Limited, Uzwil, Switzerland v Gematex Textivered Lungs-Maschinen Gmbh, Wettinerstrasse 4, D-08280, Aue Germany v Fong's National Engineering Company Limited, Tsing Yi Island, Hong Kong v Osthoff-Senge GmbH & Company Kg. Postfach 11 04 65 D-42304, Wuppertal, Germany v Mayer and Cie Gmbh & Company, Albstadt, Germany |
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No. of Employees : |
1500 |
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Bankers : |
v Bank of Baroda v Calyon Bank v Citigroup v Dena Bank v IDBI Bank v ING Vysya Bank Limited v State Bank of Mysore v State Bank of Saurashtra v State Bank of Travancore State Bank of India, Backbay Reclamation Branch, Raheja Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22819539 / 22840754 / 1458 Fax No. 91-22-22043252 Bank of India, Bank of India Building, 4th Floor, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India Jammu & Kashmir Bank Limited Homi Modi Cross Lane II, Fort Chambers, Block “B”, Fort, Mumbai – 400 023, Maharashtra, India Andhra Bank, Nanavati Mahalaya, 18, Homi Modi Street, Fort, Mumbai – 400 023, Maharashtra, India Centurion Bank of Punjab Limited, 25/26, Maker Chamber III, 2nd Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22819124 / 22831922 Fax No. 91-22-22048165 The Federal Bank Limited, Mimson House, 1st Floor, Crawford Market, Mumbai – 400 003, Maharashtra, India Tel. No. 91-22-23453202 Fax No. 91-22-23453204 State Bank of Indore, 214, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India State Bank of Patiala, Atlanta, Nariman Point, Mumbai – 400 021, Maharashtra, India Punjab National Bank, PNB House, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India Tel. No. 91-22-22660040 Fax No. 91-22-22663521 The Karur Vysya Bank Limited, Kamanwala Chambers, Ground Floor, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India Tel No. 91-22-22665467 / 5914 Fax No. 91-22-22654260 Development Credit Bank Limited, 6, Tulsiani Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22830115 Fax No. 91-22-22885272 State Bank of Hyderabad, 11-C, Mittal Tower, 1st Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India Tel. No. 91-22-22844096 Fax No. 91-22-22841096 Syndicate Bank, 11, Ballard Estate, Adi Marzban Road, Ballard Estate, Mumbai - 400 038, Maharashtra, India Tel. No. 91-22-22626622 / 22618536 Fax No. 91-22-22626619 Syndicate Bank, Syndicate Bank Building, Sir P. M. Road, Fort, Mumbai – 400 001, Maharashtra, India The Vysya Bank Limited, 210, Mittal Tower, ‘A’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India Standard Chartered Grindlays Bank, 90, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India Tel. No. 91-22-22642245 Fax No. 91-22-22619866 State Bank of Bikaner & Jaipur, Overseas Branch, 240-242, Nirman Building, Nariman Point, Mumbai – 400 021, Maharashtra, India |
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Banking Relations : |
Satisfactory |
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Auditors : |
Gandhi & Parekh Chartered Accountant, Saraswati Darshan, Malad (West), Mumbai – 400 064, Maharashtra, India Deloitte Haskins and Sells Chartered Accountants |
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Associates : |
Grabal Alok Impex Limited 106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Manufacture of all types of embroidered products Alok Knit Exports Limited 109, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Nirvan Holdings Private Limited 109, Shah & Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Investment Company Jiwarjka Associates Private Limited 109, Shah & Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Trading in textiles Jiwarjka Investment Private Limited 2, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Trading in textiles Niraj Realtors & Shares Private Limited 107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Dealing in real estate, properties and shares Alok Finance Private Limited 106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Finance company Nirvan Capital Services Limited 109, Shah & Nahar (Worli) Industrial Estate, Off Dr. E, Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Finance Company Ashok Realtors & Shares Private Limited 302, Krishnakunj, 3rd Floor, Plot No. TPS – 170, Shivaji Park Road No. 5, Pandurang Naik Marg, Mahim, Mumbai – 400 016, Maharashtra, India Dealing in real estate, properties and shares Alok Denims (Private) Limited 106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India Manufacturing of Denim fabric Alok Textile Traders Pramatex Enterprises Alok Knit Exports Limited Nirvan Clothing Company Limited Nirvan Exports Alok Finance Private Limited D. Surendra & Company Green Park Enterprises Lipren Knit-Fab Private Limited Galaxy Gloknit Private Limited (Formerly known as Renhok Tex-Knit Private Limited Pramita Creations Private Limited (Formerly Pramita Fashions Private Limited) Vidhi Gloknit Private Limited (Formerly Known as Vidhi Apptex Private Limited) Globus E-Commerce Limited (Formerly Known as Globus Technologies Limited) Alok Itec Limited Buds Clothing Company Eden Knitfab Honey Comb Knit Fabrics Maclon Textiles Mircon Knits Pique Knits Tulip Textiles Vaibhav Knit-Fabs Viraj Textiles The Waffle Knits Daffodil Knitfab |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
210000000 |
Equity Shares |
Rs. 10/- each |
Rs. 2100.000 millions |
|
90000000 |
Preference shares |
Rs. 10/- each |
Rs. 900.000 millions |
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TOTAL |
|
Rs. 3000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
157470000 |
Equity Shares |
Rs. 10/- each |
Rs. 1574.700 millions |
|
68000000 |
10% Optionally Convertible Preference Shares |
Rs. 10/- each |
Rs. 680.000 millions |
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TOTAL |
|
Rs. 2254.700 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2254.700 |
2183.500 |
1719.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
6500.600 |
4607.300 |
2180.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
8755.300 |
6790.800 |
3899.000 |
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LOAN FUNDS |
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1] Secured Loans |
18002.100 |
12395.100 |
7476.800 |
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2] Unsecured Loans |
3442.900 |
794.000 |
707.400 |
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TOTAL BORROWING |
21445.000 |
13189.100 |
8184.200 |
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DEFERRED TAX LIABILITIES |
1001.000 |
751.000 |
0.000 |
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Share Warrants |
0.000 |
33.200 |
0.000 |
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TOTAL |
31200.300 |
20764.100 |
12083.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
11557.700 |
7010.800 |
4481.200 |
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Capital work-in-progress |
7069.000 |
1707.700 |
1314.100 |
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Incidental Expenditure during Construction |
115.700 |
74.200 |
0.000 |
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INVESTMENT |
397.000 |
78.500 |
40.700 |
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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 |
3581.500 |
3632.700 |
2035.300 |
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Sundry Debtors |
3545.300 |
4029.700 |
4346.400 |
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Cash & Bank Balances |
5330.300 |
4968.000 |
1572.700 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
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Loans & Advances |
1581.600 |
961.700 |
524.500 |
|
Total Current Assets |
14038.700 |
13592.100 |
8478.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1713.500 |
1467.600 |
2004.700 |
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Provisions |
263.300 |
231.600 |
227.000 |
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Total Current Liabilities |
1976.800 |
1699.200 |
2231.700 |
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Net Current Assets |
12061.900 |
11892.900 |
6247.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
31201.300 |
20764.100 |
12083.200 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Total
Income |
14464.300 |
13036.200 |
11283.800 |
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Profit/(Loss)
Before Tax |
1540.000 |
1235.100 |
925.700 |
|
Provision for
Taxation |
447.900 |
342.600 |
214.900 |
|
Profit/(Loss)
After Tax |
1092.100 |
892.500 |
710.800 |
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Total Earnings |
3656.600 |
2735.400 |
N.A. |
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Total Import |
2995.500 |
1159.500 |
N.A. |
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Total Expenditure |
12924.300 |
104128.500 |
9215.600 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
30.12.2006 (3rd Qtr.) |
|
Sales Turnover |
3578.600 |
4171.800 |
4799.200 |
|
Other Income |
0.000 |
0.000 |
32.300 |
|
Total Income |
3578.600 |
4171.800 |
4831.500 |
|
Total Expenditure |
2776.500 |
3219.500 |
3725.900 |
|
Operating Profit |
802.100 |
952.300 |
1105.600 |
|
Interest |
170.200 |
213.200 |
241.500 |
|
Gross Profit |
631.900 |
739.100 |
864.100 |
|
Depreciation |
245.600 |
280.300 |
325.300 |
|
Tax |
44.500 |
53.000 |
63.000 |
|
Reported PAT |
269.200 |
326.400 |
370.600 |
Notes
2006-06 Quarter 1
Expenditure
Includes (Increase)/Decrease in Stock in Trade Rs 52.30 million Material
Consumption Rs 2021.40 million Staff Cost Rs 105.60 million Other Expenditure Rs
593.10 million Tax Includes Provision for Taxation Current Tax Rs 43.30 million
Deferred Tax Rs 72.60 million Fringe Benefit Tax Rs 1.20 million EPS is Basic
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter 17 Complaints disposed off during the quarter 17 Complaints unresolved
at the end of the quarter Nil 1. The above results have been reviewed by the
Audit Committee and taken on record by the Board of Directors of the Company at
their meeting held on July 28, 2006. 2. Export Sales have increased by 12.32%
to Rs 1012.20 million for the quarter ended on June 30, 2006 as compared to Rs
901.20 million for the corresponding quarter ended June 30, 2005. 3. Out of 989
6% unsecured Foreign Currency Convertible Bonds (FCCBs) of USD 50,000 each,
outstanding at the beginning of the quarter, 55 FCCBS stand converted into
17,55,978 equity shares of the Company, leaving an outstanding balance of 934
FCCBs aggregating USD 46.70 million as at the end of the current quarter. 4
During the quarter, 6,80,00,000 Optionally Convertible Preference shares of Rs
1O/- each stand converted into 1,11,47,540 equity shares. 5. Expansion
programmes of the Company are progressing satisfactorily. 6. The entire
operations of the company relate to only one segment viz. textiles, The risk
and returns are generally perceived by the management to be the same for all
locations and thus treated as one segment. 7. The company has calculated
liability relating to gratuity and leave encashment according to revised
Accounting Standard - 15 Employees Benefits. No effect was given in the General
Reserve as per transitional provisions, as liability relating to gratuity and
leave encashment up to March 31, 2006 has already been provided as per revised
standard. 8. The figures of previous quarter/period have been
reclassified/regrouped wherever necessary to correspond with those of the
current quarter/period.
2006-09 Quarter 2
Expenditure
Includes (Increase)/Decrease in Stock in Trade Rs (125.90) million Material
Consumption Rs 2426.70 million Staff Cost Rs 124.70 million Other Expenditure
Rs 778.50 million Tax Includes Provision for Taxation Current Tax Rs 51.50
million Deferred Tax Rs 79.40 million Fringe Benefit Tax Rs 1.50 million EPS is
Basic Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 24 Complaints disposed off during the quarter 24 Complaints
unresolved at the end of the quarter Nil 1. The above results have been
reviewed by the audit committee and taken on record by the Board of Directors
of the Company at their meeting held on October 27, 2006. The same are subject
to Limited review by the statutory auditors of the Company. 2. Export Sales
have increased by 44.88% to Rs 1286.80 million for the quarter ended on
September 30, 2006 as compared to Rs 888.20 million for the corresponding
quarter ended September 30, 2005. 3. Expansion programmes of the company are
progressing satisfactorily. 4. The entire operations of the company relate to
only one segment viz., textiles. The risk and returns are generally perceived
by the management to be the same for all units and thus treated as one segment.
5. The figures of previous quarter / period have been reclassified / regrouped
wherever necessary to correspond with those of the current quarter / period.
200612 Quarter 3
Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (24.60) million Material Consumption Rs 2839.40 million Staff Cost Rs 129.10 million Other Expenditure Rs 782.00 million Tax Includes Provision for Taxation Current Tax Rs 60.50 million Deferred Tax Rs 105.20 million Fringe Benefit Tax Rs 2.50 million EPS is Basic Status of Investor Complaints for the quarter ended December 31, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 53 Complaints disposed off during the quarter 53 Complaints unresolved at the end of the quarter Nil 1. The above results have been reviewed by the audit committee and taken on record by the Board of Directors of the Company at their meeting held on January 29, 2007. The same are subject to Limited review by the statutory auditors of the Company. 2. Total Sales have increased by 30.98% over the corresponding quarter of the previous year. Export Sales have increased by 68.23% to Rs 1552.90 million for the quarter ended on December 31, 2006 as compared to Rs 923.10 million for the corresponding quarter ended December 31, 2005. 3. The Company through a wholly owned subsidiary is setting up a textile SEZ in Silvassa and having received the in-principal approval from GOI, for this purpose has acquired around 132 acres of land. 4. The acquisition of 60% stake in Mileta, a Company based in Czech Republic engaged in manufacturing high end shirting fabrics, handkerchiefs, bed linen, batistes and damask along with its brands for a value of EURO 13.96 million is scheduled to conclude in the current quarter. 5. Phase I & II of the expansion projects aggregating to Rs 11750.00 million is complete with only spinning and terry towel projects scheduled for completion by March and September 2007 respectively. Phase III of the expansion project aggregating to Rs 11000 million is progressing satisfactorily, 6. The entire operations of the company relate to only one segment viz., textiles, The risk and returns are generally perceived by the management to be the same for all units and thus treated as one segment. 7. The figures of previous quarter/period have been reclassified/ regrouped wherever necessary to correspond with those of the current quarter/period.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
2.23 |
2.00 |
2.11 |
|
Long Term Debt
Equity Ratio |
1.70 |
1.29 |
1.16 |
|
Current Ratio |
2.02 |
1.80 |
1.42 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.28 |
1.80 |
2.28 |
|
Inventory |
4.03 |
4.54 |
4.64 |
|
Debtors |
3.84 |
3.07 |
3.20 |
|
Interest Cover Ratio |
2.68 |
2.55 |
2.22 |
|
Operating Profit
Margin (%) |
22.44 |
20.29 |
18.46 |
|
Profit Before
Interest and Tax Margin (%) |
16.91 |
15.82 |
15.05 |
|
Cash Profit
Margin (%) |
13.05 |
11.42 |
9.76 |
|
Adjusted Net
Profit Margin (%) |
7.51 |
6.94 |
6.35 |
|
Return on Capital
Employed (%) |
9.79 |
12.68 |
16.80 |
|
Return on Net
Worth (%) |
14.49 |
17.93 |
24.98 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
|
High |
Rs.62.50/- |
|
Low |
Rs.59.30/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 12.03.1986 at Mumbai in Maharashtra under the name and style of Alok Textile Private Limited having Company Registration Number 39194.
The name of the company was changed to Alok Textile Industries Private Limited on 17.11.1992. Subsequently it was converted into a public limited liability company on 11.02.1993.
Subject is the flagship company of the Alok Group, which was promoted by Jiwrajka family.
Subject was incorporated as a Private Limited Liability Company. In the year 1989 the company set up texturising division for intermingled yarn at Silvassa with an installed capacity of 511 tpa.
In 1990-91, the company installed intermingling Clip Jets of Heberlein Maschinenfabric, Switzerland, on its texturising machine to manufacture Roto texturised yarn. It was among the first in the country to install such jets. The company ventured into fabric manufacture in June 1991.
In the year 1991 it commenced weaving operation at Bhiwandi.
In January 1992, it set up its own preparatory units for warping and sizing.
In 1994 the company expanded weaving capacity at Bhiwandi and texturing capacity at Silvassa. At present, the weaving capacity at Bhiwandi is 14.405 million meters p.a. of cotton / viscose and blended fabrics.
In 1994-95, the company promoted Grabal Alok Exports, to produce embroidery articles, in technical and financial collaboration with Grabal, Albert Grabher Gesellshaft, Austria.
Knitting division at Silvassa and state-of-the-art eco friendly process house at Navi Mumbai was set up in the year 1996-97. The process house commenced operations from March 1996 and is presently working at 60% capacity. The installed capacity of the process house for cotton / viscose woven fabrics is 18 million mtrs. and 2400 MT for cotton knitted fabrics.
In the year 1998, the company modernised and expanded its weaving and knitting capacities at Silvassa.
To tap the growing potential and boom in the e-commerce trade during 1999-2000, the company has invested in an IT Company, Chrysalis Information Systems Limited and expects to yield rich dividends in the coming years. Under the TUF Scheme, the company had gone for expansion project of weaving and processing and this project was equipped with the state-of-the art machines and latest technologies such as high speed Airjet looms wider width sulzer looms with jacquard attachments. Partial trial runs of the weaving project have already commenced.
The company is planning to increase the knit processing capacity to 3000 MT p.a. in the current year. It is also planning to set up a made-up unit at Valsad to boost the direct exports of home textile.
Performance
During the financial year under report the company recorded sales of Rs. 14207
millions and profit before tax of Rs. 1540 millions, an increase of 16.02% and
24.69% respectively over the previous year. The company's exports (including
incentives) increased to Rs. 3945.500 millions from Rs. 3065.300 millions in
the previous year, an increase of 28.71%.
Capital & Finance
During the year under report, the company allotted 5966400 equity shares of Rs.
10/- each at a premium of Rs. 45.67 per share upon conversion of 5966400
Warrants. After the aforesaid conversion there are no outstanding Warrants
remaining to be converted into equity shares. Also1450000 outstanding
optionally fully convertible Debentures held by LIC were converted in to
2604634 equity shares of Rs.10/- each at a premium of Rs. 45.67 per share.
Further 20 outstanding 2.50% unsecured Foreign Currency Convertible Bonds
(FCCBs) of the face value of USD 25000 each aggregating to USD 5 million were
converted in to 374526 equity shares at a premium of Rs. 48.10 per share. By
virtue of conversion of the above FCCBs, the entire 2.50% Unsecured FCCBs
stands fully converted in to equity shares.
During the current year, 68000000 Optionally Convertible Preference Shares
aggregating to Rs. 680 millions held by a foreign investor were converted into
11147540 equity shares of Rs. 10/- each at a premium of Rs. 51 per share.
The company successfully concluded an issue of 1% unsecured foreign currency
convertible bonds (with yield to maturity of 6%) aggregating to USD 70 million
(due in 2010) to finance capital expenditure comprising of 300 Part A
compulsorily convertible bonds totalling USD 15 million and 1100 Part B bonds
totalling USD 55 million. The bonds are listed on the Luxembourg Stock
Exchange. As on the date of this Report, 466 bonds aggregating to USD 23.30
million have been converted into 16261788 equity shares. Out of the above 466
bonds, the 300 Part A bonds were converted at a premium of Rs. 49/- per share
and 166 Part B bonds were converted at Rs. 61.5875 per share as per the terms
of the offering circular.
After considering the aforesaid additions to equity, as on the date of this
Report, the paid up equity capital of the company stands at Rs. 1703.700
millions comprising of 170371974 equity shares of Rs. 10/-each.
During the year under report, the company raised Rs. 1402.700 millions out of
issue of fresh equity share (including premium) and borrowings (net) of Rs.
8255.900 millions to meet project expenditure and working capital
requirements.
Awards and Certificates
The company's performance has been recognized at various forums and some of the
awards conferred are given below:
v
Silver
Trophy for the year 2004-05 for export of made-ups in the manufacturer exporter
category from The Cotton Textiles Export Promotion Council (TEXPROCIL).
v
Silver
Trophy for the year 2005-06 for export of fabrics in the manufacturer exporter
category from TEXPROCIL.
v
Bronze
Trophy for the year 2005-06 for export of made-ups in the manufacturer exporter
category from TEXPROCIL.
v
Valued
Business Partner- 2005' awarded by Li & Fung (Trading) Limited.
The key financial highlights of
2005-06 are as follows:
Turnover increased to Rs. 14207 millions, a growth of 16.02% over previous year
sales of Rs. 12245 millions. All the divisions of the company recorded growth.
Maximum growth is witnessed in Home textile division.
Exports increased (including incentives) from Rs. 3065.300 millions in 2004-05
to Rs. 3945.500 millions in 2005-06, an increase of 28.71%, which was mainly
driven by home textile division. The company exported its products to over 50
countries during the year.
MAJOR EVENTS DURING THE
YEAR
The company raised USD 70 mn. though issue of Foreign Currency Convertible
bonds (FCCBs) during the year for meeting capital expenditure
requirement.
The company has acquired a strategic stake of around 5% in The Shirt Company,
which is a leading garment exporter in India. This investment would help the
company to further strengthen the ongoing business relationship with them in
apparel fabric segment.
The company was awarded the silver trophy for being the second highest
manufacturer exporter in the made ups (bed sheets in our case) category for the
year 2004-05. For the year 2005-06, the company has bagged two trophies, Silver
Trophy for being the second highest manufacturer exporter in fabric category
and Bronze Trophy for third highest manufacturer exporter in the made ups (bed
sheets in their case). The company has also been awarded certificate by the
global trading giant Li & Fung (Trading) Limited) as their 'Valued Business
Partner- 2005'.
The company has completed major portion of Phase I and II of the expansion
drive. Most of the projects would get stabilized during the current year and
the benefits would start accruing to the company. The company has also
announced the Phase III of the expansion drive with a total outlay of Rs. 11000
millions funded by Term Loan under TUFS of Rs. 9000 millions and internal
accruals of Rs. 2000 millions. Under this project the company will be
increasing its Ring Spinning capacity as a backward integration measure and further
increase its Apparel Fabric, Home Textiles and Garment capacities. The Phase
III expansion drive is expected to be completed by March 2008. The financial
tie up for the project has been completed. Details of the Phase III projects
are more comprehensively given under the head New projects. In the current year
the company will be focusing on streamlining its operations and developing
markets.
OVERVIEW
The company's performance for the year was satisfactory with sales aggregating
to Rs. 14207 millions as compared to Rs. 12245 millions in 2005 registering a
growth of 16.02%. Exports including export incentive rose to Rs. 3945.500
millions and Profit after tax increased by 22.36% to Rs. 1092.100
millions.
The company is in
trade terms with:
Embassy Silicones (India) Private Limited
Happy Hardware
Keshari Enterprises
Sumedha Fiscal Services Limited
B R Corporation
Atmaram Maneklal Industries Limited
Bindu Synthetics Limited, Silvassa, Vapi, Gujarat
Professional
Esha Exim Private Limited
Century Textile & Industries Limited
Century Bhavan
Contact Person : Mr. Sultan
Bharat Petroleum Corporation Limited, Chembur
Contact Person : Mr. M. L. Mahadevan
Tel No. 91-22-25543493
Ciba Speciality Chemical (India) Limited
Contact Person : Mr. S. Kumar
Vardhaman Spinning Limited
Contact Person : Mr. B. K. Jain
Tel. No. 91-22-28578823
WEBSITE DETAILS
ORIGIN AND GROWTH
Established
in 1986 as a Private Limited Company, Subject began with texturising of
yarn and steadily expanded into weaving, knitting, processing, home
textiles and readymade garments. Subject also controls an extensive embroidery
operation through its sister concern, Grabal Alok Impex Limited
In
1993, they became a public limited company. Since then they have continued to
increase the scale of their operations and the range of their activities.
Today, subject is amongst the A Group listed companies on India's leading stock
exchanges.
In less
than two decades, subject has grown to become a diversified manufacturer
of world-class home textiles, apparel fabrics, garments and polyester yarns
selling directly to manufacturers, exporters, importers, retailers and brands
the world over. With the sales turnover of around Rs. 12500 millions in F.Y.
2004-05, subject is amongst the fastest growing vertically integrated textile
companies in India.
Major Milestones
|
FY 1989 |
Setting
up manufacturing facilities for Texturising at Silvassa.(1 no. Texturising
machine). |
|
FY 1991 |
Commencement
of weaving operation at Bhiwandi, District Thane. |
|
FY 1993 |
Conversion
into Public Limited Company and IPO of 22,50,000 equity shares of Rs.10/-
each for cash at a premium of Rs.10/- each per share aggregating Rs. 45
millions to part finance Weaving capacity (50 nos. Cimmco looms) at Bhiwandi
and expansion of Texturising capacity (1 no. Texturising machine) at
Silvassa. |
|
FY 1994 |
Expansion
of weaving capacity (50 Cimmco Looms) at Bhiwandi and texturising capacity (3
nos. Texturising machines) at Silvassa |
|
|
Turnover
of Rs. 500 millions achieved. |
|
FY 1995 |
Financial
and Technical collaboration with Grabal, Albert Grabher Gesellshaft mbH &
Co of Austria for manufacture of embroidered products through a Joint Venture
Co. viz. Grabal Alok Impex Limited |
|
FY 1996 |
Setting
up of Knitting Division at Silvassa (8 machines) and state-of-the-art
eco-friendly Process House at Navi Mumbai (3 Stenter). |
|
|
Turn
over of Rs.1000 millions achieved. |
|
FY 1997 |
Expansion
of Texturising capacity (5 nos. Texturising machines) at Silvassa. |
|
|
Turn
over of Rs. 1500 millions achieved. |
|
|
Completion
of Rights Issue of 7490192/- equity shares of Rs.10/- each at a premium of Rs.10/-
per share aggregating to R. 149.804 millions to part-finance the process
house and knitting projects. |
|
FY 1998 |
Modernization
and expansion of weaving (24 Sulzer Projectile Looms) at Silvassa |
|
|
Private
placement of 9142700/- equity shares of Rs.10/- each at a premium of Rs.7.50
per share aggregating to Rs.160 millions with FIIs. |
|
FY 1999 |
Expansion
of weaving (28 Sulzer Projectile Looms) and knitting capacities (20 machines)
at Silvassa. |
|
|
Turn over
of Rs. 2500 millions achieved. |
|
FY 2000 |
Turnover
surpasses Rs. 3500 millions |
|
FY 2001 |
Undertaken
expansion of weaving and processing capacities under TUFS at an aggregate
cost of Rs.1900 millions |
|
|
Foray
into the domestic ready-made Garments sector (OWL Brand). |
|
FY 2002 |
Rights
Issue of 5670098/- FCDS of Rs.90/- each aggregating to Rs. 510.3 millions to
part-finance the weaving and processing projects. |
|
|
Completion
of Modernization and Expansion of weaving project (88 Air Jet / Rapier Sulzer
Looms) at Silvassa. |
|
|
Expansion
of knitting capacities (28 machines) at Silvassa |
|
|
Turnover
surpasses Rs. 5500 millions |
|
FY 2003 |
“Export
Trading House” Status awarded. |
|
|
Completion
of Modernisation and Expansion of processing project at Vapi. (2
Stenters). |
|
|
Expansion
of Texturising Capacity at Silvassa (10 machines). |
|
|
Setting
Up of Garment Unit at Navi Mumbai (100 stitching machines). |
|
|
Turnover
Surpasses Rs. 7500 millions |
|
FY 2004 |
Turnover
surpasses Rs.10000 millions (Exports exceeded Rs.1000 millions). |
|
|
Expansion
of Texturising Capacity at Silvassa (30 machines). |
|
|
Expansion
of Knitting Capacity at Silvassa (40 machines). |
|
|
Expansion
of Weaving Capacity at Silvassa (170 Airjet / Rapier Looms). |
|
|
Foray
in to Home Textiles (Bed Sheets) for Direct Exports. |
|
|
Concluded
Mezzanine Finance Transaction of Rs.1010 millions (Rs. 680 millions Redeemable
Preference Shares and 330 millions warrants) arranged by CLSA. |
|
|
Preferential
allotment of 538890 Equity shares of Rs.10/- each at premium of Rs.55.67 to
Body Corporate. |
|
FY 2005 |
Completed
FCCB issued of USD 35 mn (Rs. 1530 millions) comprising of 1400 Bonds of USD
25000 each. Out of these bonds, 1380 bonds have been converted into 31870334
equity shares of Rs. 10/- each at an average price of Rs. 49.68 per share.
The proceeds of the issue are used for augmenting long term margin for working
capital, repayment of debt and normal capex. |
|
|
Preferential
allotment of 11311400 Equity shares of Rs.10/- each at premium of Rs.51/- per
share (promoters 5573700 and IL&FS 5737700) aggregating to Rs. 690
millions. The proceeds of the same are used to part finance the expansion
programme of the company. |
|
|
Conversion
of 1450000 OFCDs (part) issued to LIC into 2604634 equity shares of Rs. 10/-
each at a premium of Rs.45.67 per share. |
|
|
Exports
exceeded Rs. 3000 millions |
|
|
Expansion
of Weaving Capacity at Silvassa (170 Airjet / Rapier Looms). |
|
FY 2006 |
Texprocil
Silver Trophy for 2nd Highest export award in the Manufacturer
Exporter – Made ups Category. |
|
|
Completed
FCCB issue of USD 70 mn about Rs. 3062.500 millions (Assumed price 1
USD=43.75) in May and June 2005. |
|
|
Conversion
of balance 1450000 OFCDs issued to LIC into 2604634 equity shares of Rs. 10/-
each at a premium of Rs.45.67 per share in June 2005. |
|
|
Conversion
of 5966400 warrants into 5966400 equity shares of Rs. 10 each for cash at a
premium of Rs. 45.67 per share by Niraj Realtors & Shares Private Limited
(purchased from TAD (Mauritius) Limited) in the month of August 2005. |
|
|
Completion
of wider width weaving and processing under Rs. 10700 millions project in
October 2005. |
|
|
Setting
up of new plant for processing of knitted fabric at Vapi and POY plant at
Silvassa. |
News :
Alok Industries
Q2FY07 Net Profit up 28.20% at Rs 326.400 millions
October 27, 2006:
Alok Industries Limited, amongst India’s leading integrated textile
manufacturer has posted a 28.20 per cent rise in net profit at Rs 326.400
millions for the second quarter ended September 30, 2006, as compared to Rs
254.600 millions in the corresponding quarter previous year. Net sales rose
20.77 per cent to Rs 4171.800 millions compared to Rs 3454.400 millions during
the same quarter previous year.
Exports sales during
the quarter grew by 44.88 per cent to Rs 1286.800 millions from Rs 888.200
millions during the corresponding quarter last year. Operating profit margins
increased to 22.83 per cent from 20.69 per cent.
Commenting on the
results, Mr Dilip Jiwrajka, Managing Director, Alok Industries Limited said, “
Their exports in the first half of FY 2007 have grown by 28.48% over previous
year, a clear indication of the traction that we are witnessing in their key
export markets. With the acquisition of Mileta and the alliance with Teviz, we
have taken concrete steps towards manufacture of value added products, which
will further expand their presence in the European markets and improve
realisation.”
Alok recently
signed a Memorandum of Understanding (MOU) with Mileta International (Mileta) to
acquire 60% stake in Mileta with an understanding to acquire a further 19.6% on
certain mutually agreed terms and conditions. Mileta, based in Czech Republic,
is a leading European manufacturer of high quality shirting fabrics, batistes and voiles, complete line of
functional table linen, bed linen and exclusive handkerchiefs.
About Alok Industries Limited
(BSE Code: 521070) (NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO)
(Bloomberg Code: ALOK@IN)
Established in
1986, Alok Industries Limited is amongst the fastest growing vertically
integrated textiles solutions provider in India. A diversified manufacturer of
world-class home textiles, apparel fabrics, garments and polyester yarns, Alok
has capacities of 60.00 mn meters of sheeting fabric for its home textiles
business, 82.50 mn meters of apparel width woven fabrics, 16800 tons per annum
of knitted fabrics and 8 million pieces per annum of garments. With the
commencement of spinning of cotton yarn by December 2006 (7080 tons per annum),
Alok would achieve complete integration. The company also has a strong presence
in polyester textured yarn with a capacity of 85000 tons per annum, which is
being supplanted by 47000 tons per annum of POY. The company has a blue chip
international customer base comprising of world-renowned retailers, importers
and brands.
MEDIA RELEASE –
For September 26, 2006
Alok Industries
signs MoU for the acquisition of Mileta International
Mumbai, September 26, 2006:
Alok Industries Limited (Alok), one of the leading vertically integrated
textiles solutions providers in India has signed a Memorandum of Understanding
(MoU) with Mileta International (Mileta)
to acquire 60% stake in
Mileta with an understanding to acquire a further 19.6% on certain mutually
agreed terms and conditions. Mileta, based in Czech Republic, is a leading
European manufacturer of high
quality shirting fabrics, batistes and voiles, complete line of functional
table linen, bed linen and exclusive handkerchiefs.
Under the terms of
the MoU, Alok will exclusively own all the brands of Mileta including Mileta, Erba,
Cottonova, Lord Nelson, Wall Street, Osaka and Erbelle as also Mileta’s
licensee rights of Daks for handkerchiefs. Alok will also become a sourcing base for Mileta’s
products globally. Meanwhile, Mileta will provide design
inputs, marketing inputs, training and transfer of technology, which Alok will
leverage to enhance its product value. The company will also use Mileta’s
brands in India to widen its retail presence. Alok has agreed to pay EUR 13.96
million for the above acquisitions.
“This acquisition
is aimed at making further inroads in the growing European market and
strengthening their presence in the fashion conscious apparel and home textile
segments, which have been growing at a much faster pace than the price
conscious segments,” said Dilip Jiwarajka, Managing Director, Alok Industries
Limited
He further added,
“Alok’s cost advantage coupled with Mileta’s superior product designs and
technology and international brands will help the company to penetrate newer
markets and expand Mileta’s share in its existing markets.”
The acquisition is
expected to close in the next three months subject to a financial and legal due
diligence, while the company expects Mileta’s operations to be integrated into
Alok within 12 months after the acquisition. The acquisition will be financed
through internal accruals and borrowings.
About Mileta International (Mileta)
The Czech Republic based Mileta International
is
one of the leading vertically integrated textile enterprises in Europe
with an annual turnover of EUR 18 million. Its production facility includes weaving and finishing, based on
state-of-the-art technology and many years of experience. The
Mileta range of products includes amongst others, handkerchiefs, high quality shirting, batistes and voiles,
complete line of functional table linen and bed linen.
About Alok Industries Limited
(BSE Code: 521070) (NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO) (Bloomberg
Code: ALOK@IN)
Established in
1986, Alok Industries Limited is amongst the fastest growing vertically
integrated textiles solutions provider in India. A diversified manufacturer of
world-class home textiles, apparel fabrics, garments and polyester yarns, Alok
has capacities of 60.00 mn meters of sheeting fabric for its home textiles
business, 82.50 mn meters of apparel width woven fabrics, 16800 tons per annum
of knitted fabrics and 8 million pieces per annum of garments. With the
commencement of spinning of cotton yarn by December 2006 (7000 tons per annum),
Alok would achieve complete integration. The company also has a strong presence
in polyester textured yarn with a capacity of 85000 tons per annum, which is
being supplanted by 47000 tons per annum of POY. The company has a blue chip
international customer base comprising of world renowned retailers, importers
and brands.
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.44.28 |
|
UK Pound |
1 |
Rs.86.62 |
|
Euro |
1 |
Rs.58.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
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