MIRA INFORM
REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SSM FINE YARNS |
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Registered Office : |
Eluvanampatty, Periyakulam, Raod, Batlagundu, Dindigul, Madurai 624202
Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
1987 |
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TAN No.: [Tax
Deduction & Collection Account No. |
CMBS05432A |
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Legal Form : |
Partnership concern with an unlimited liability of the partner. |
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Line of Business : |
Manufacture, exporter and importer of cotton yarn |
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 400000 |
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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 well-established and reputed concern having satisfactory
track. Partners are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active, Payment are reported
as usually correct and as per commitments. The concern can be considered for business dealings at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
Eluvanampatty, Periyakulam Raod, Batlagundu, Dindigul, Madurai 624202 |
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Tel. No.: |
91-4546-235701/2/3 |
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Mobile No.: |
91-98422-40118
Mr.Viswanathan-Manager/Marketing 91-98423-04516 Mr.Meiyappan-AGM |
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Fax No.: |
91-4546-235705 |
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E-Mail : |
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Website : |
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Head Office /Factory 1: |
10 Mangalam Road, Tirupur :641604 |
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Tel. No.: |
91-421-2240831 / 2248831 |
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Fax No.: |
91-421-2248231 |
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E-Mail : |
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Factory 2 : |
Post box 15, Pithalai Patti,
Dindigul 624002 |
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Tel. No.: |
91-451-2480501/2/3 |
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Fax No.: |
91-421-2480504 |
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E-Mail : |
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Factory 3: |
SSM Fine yarns, Batlagundu, Madurai |
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Tel. No.: |
91-4546-235701/2/3 |
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Fax No.: |
91-4546-235704 |
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E-Mail : |
PARTNERS
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Name : |
Mr. Krishnaswamy and his son |
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Designation : |
Partners |
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Name : |
Mr. Prabhu Shankar (One of his sons) |
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Designation : |
Managing Partner |
BUSINESS DETAILS
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Line of Business : |
Manufacturer Exporter and Importer of Cotton Yarn |
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Products : |
Manufacturers and Exported of cotton yarn. Single Yarn Ne36/1 40/1 50/1 60/1 80/1 Two Ply yarns Ne 20/2 30/2 36/2 40/2 50/2 60/2 70/2 80/2 100/2 120/2 Forms-Single Yarn I Greys formsfor both knitting and weaving uses. Two
ply in grey, gassed and mercerized grey and dyed forms for both knitting and
weaving uses. Cotton Mix – India West Africa, Giza blend 100%, giza and Pima 100% |
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Exports : |
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Products : |
Cotton yarn |
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Countries : |
Malaysia, Japan , Korea, Honkong , SriLanka, China, Poland, Turkey,
Germany, Italy, Canada Middle east. |
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Imports : |
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Products : |
Cotton |
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Countries : |
West Africa, Egypt |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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High Quality Cotton yarn per day |
tonnes |
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25 |
25 |
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GENERAL
INFORMATION
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No. of Employees : |
Total :510 (Office: 10, Factory :500) |
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Bankers : |
State Bank of India Madurai |
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Banking
Relations : |
Satisfactory |
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CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs.100.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs.100.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2006 |
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Sales Turnover (Group) |
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750.000 |
LOCAL AGENCY
FURTHER INFORMATION
This is a
separate firm coming under the Saravana group of companies. SSM stands for Sri
Saravana Spinning Mills Private Limited based at Tirupur. This is a family owned company promoted by
Mr Krishnaswamy who is the Managing Director also. Now he and his sons take care of the company.
SSM Fine
yarns is their processing center. They
process both yarns and fabric here.
A brief
note about the parent company:
Sri
Saravana Spinning Mills Private Limited in engaged in the business of cotton yarn
for the higher end of the clothing industry.
The in depth knowledge and experience in the cotton ginning and trading
for almost 4 decades enable them to select and procure the best available raw
materials. Selection of the best
quality is from the wide range of Indian grown and International grown cotton
like US, Egypt, Australia, West Africa European union.
The
company has a capacity of about 62000 ring spindles functioning under two ultra
modern units producing about 25 tonnes of high quality yarn per day in addition
to a state of the art yarn-mercerizing and dyeing unit.
They
keep abreast of all latest technological advancements in the industry with an
endeavor to maintain the best quality product, by constantly investing in
latest machinery from internationally reputed textile manufacturers like Reiter
of Switzerland, Trutzchler of Germany. LMW of India, Murata of Japan, Savio of
Italy, Loepfe and Uster of Switzerland, Welker of Germany, Applied automation
and peass and Veejayalakshmi of India.
The processing Division of the
company called the SSM Fine Yarns – caters to the
requirement of high end clothing market, with its value added products –
Gassed, Gassed Mercerized yarns in Greys and
dyed forms. The facility is
comparable with some of the best plants in the world and has the most modern
machines from reputed international manufacturers like SSM of Switzerland,
Croon and Lucke of Germany, Jaeggli and Merc control of Switzerland, Loris
Bellim and Officinal Minnetti of Italy, Dave color of UK, Daelim Starlet of
Korea and Fongs of Hongkong.
The
company has world class testing laboratory with testing instruments from
reputed suppliers such as Uster of Switzerland, Mesdanlab of Italy and Premier of India.
They are
ISO 9001:2000 certified by UKAS of UK through BVQI.
The
company has recently launched a new venture called the ready to cut fabrics for
ready made garment exporters at SSM Fine Yarns, Batlagundu.
See
press reports of the same given below
Tirupur:
The first-ever initiative to supply ready-to-cut finished fabric to exporters
here has turned out to be popular in the market.For knitwear exporters, always
struggling to meet the short lead-time, it is proving to be handy and making
exporting easier, as it reduces a major portion of transaction and overhead
costs.
Saravana Spinning Mills with a spinning capacity of 70,000 spindles entered the
business three months ago after making huge investments in forward integration
in knitting, dyeing and other finishing processes.
"Initially, we had a doubt whether we could succeed. But, it proved to be
a success and many major exporters now want to place orders with us," says
K. Prabhu Shankar, executive director of SSM Fine Yarns. Rs.
500.000-Millions factory
The
Tirupur-based Company established a Rs.500.000 Millions dyeing factory at
Batlagundu in Dindigul district with a capacity to dye 20 tonnes of fabric a
day.
It has the largest production capacity in south India in yarn dyeing with a
daily production of 8 tonnes a day. The company has put up machines to knit 10
tonnes of fabric a day at its spinning unit at Vedasandhur, 100 km from here.
On the new venture, Mr. Shankar points out that though spinning, stitching and
knitting facilities have grown manifold in Tirupur in recent years, the
processing sector remained a weak link in the value chain and they wanted to
fill the gap.
It is handy for small and medium-sized exporters. Most of them struggle to
maintain short deadlines and ensure quality of the garment as they distribute
their job work orders among three or four knitting and dyeing units, based on
the size of the order. Much of their time is wasted in communicating to various
units and their margins shrunk in transportation and in overheads, he adds.
According to him, after confirming the orders with the buyer, the problem
starts for an exporter from sourcing yarn from a spinner.
Hassle-free
"If any exporter plans well, the business will be much easier for him. We
supply the fabric after finishing all processes in 40-50 days. It will be
hassle-free at the end of the day, " Mr. Sankar adds.
Courtesy : The Hindu (January 10th 2007)
TIRUPUR:
At a time when tonnes of Chinese ready-to-cut fabric are being imported, a
Tirupur-based spinning major has come forward to counter this challenge by
supplying the same to the exporting community here.
In the
field of garment making, the knitwear town of Tirupur follows an altogether
different method involving a host of smaller players.
The business
revolves around three major sections - spinning, fabricating and garmenting -
elsewhere in the world. In China, Sri Lanka or Italy, the exporter mainly does
the job of garmenting. But here the exporter's role starts from sourcing yarn
from a spinner, giving it to the knitter, then to dyer and so on. This job may
soon get a new dimension with the entry of a few big players who could supply
ready-to-cut fabric. Tirupur-based Saravana Spinning Mills, with a production
capacity of 60 tonnes of yarn a day, has taken the lead by establishing huge
facilities at an investment of Rs. 50 crore to supply fabric to local
exporters.
It has
established an 18-tonne dyeing factory at Batlagundu in Dindigul district. It
has put up a yarn-dyeing unit, one of the biggest in the State.
K.
Prabhu Shankar, executive director of the SSM Fine Yarns, believes that this is
the concept of the future. "We think there is huge gap and big players
like us have to step in. There is a lot of potential. This would give exporters
confidence to handle volume orders and reduce overheads substantially. They
would get quality fabric consistently. There would be no shade variation or
difference in weight, which causing headache for exporters.''
He says
the exporter should focus on his/her core business with better control over it
instead of spending time in dealing with day-to-day problems.
TIRUPUR:
The first-ever initiative to supply ready-to-cut finished fabric to exporters
here has turned out to be popular in the market.
For knitwear
exporters, always struggling to meet the short lead-time, it is proving to be
handy and making exporting easier, as it reduces a major portion of transaction
and overhead costs.
Saravana
Spinning Mills with a spinning capacity of 70,000 spindles entered the business
three months ago after making huge investments in forward integration in
knitting, dyeing and other finishing processes.
"Initially,
we had a doubt whether we could succeed. But, it proved to be a success and
many major exporters now want to place orders with us," says K. Prabhu
Shankar, executive director of SSM Fine Yarns.
Rs.
500.000 Millions factory
The
Tirupur-based company established a Rs.50-crore dyeing factory at Batlagundu in
Dindigul district with a capacity to dye 20 tonnes of fabric a day.
It has
the largest production capacity in south India in yarn dyeing with a daily
production of 8 tonnes a day.
The
company has put up machines to knit 10 tonnes of fabric a day at its spinning
unit at Vedasandhur, 100 km from here.
On the
new venture, Mr. Shankar points out that though spinning, stitching and
knitting facilities have grown manifold in Tirupur in recent years, the
processing sector remained a weak link in the value chain and they wanted to
fill the gap.
It is handy
for small and medium-sized exporters. Most of them struggle to maintain short
deadlines and ensure quality of the garment as they distribute their job work
orders among three or four knitting and dyeing units, based on the size of the
order. Much of their time is wasted in communicating to various units and their
margins shrunk in transportation and in overheads, he adds.
According
to him, after confirming the orders with the buyer, the problem starts for an
exporter from sourcing yarn from a spinner.
Hassle-free
"If
any exporter plans well, the business will be much easier for him. We supply
the fabric after finishing all processes in 40-50 days. It will be hassle-free
at the end of the day, " Mr. Sankar adds.
New machines ordered by the
company
Report
from Logic
Art Automation Co.,Ltd, Address : 8F-7, No.16, Lane 609, Sec.5, Chung-Shin
Road, San-Chung City, Taipei Hsien, Taiwan
Tel:886-2-2999-2899
Fax:886-2-2999-2893
After
all these successful businesses in India with Auro Dyeing, MP Shantex, JPC and
Vardhman Group… on our Production Measuring Equipments, recently SSM fine Yarns of the Saravana group, India
has also signed an order for our LA-201 and LA-301 Systems, once again it
justified our products are suitable for any size of textile companies.
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
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Indian Rupees |
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US Dollar |
1 |
Rs.44.49 |
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UK Pound |
1 |
Rs.85.71 |
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Euro |
1 |
Rs.58.53 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
8 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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59 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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 |
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<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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