MIRA
INFORM REPORT
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Report Date : |
10.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
INDO TECH TRANSFORMERS LIMITED |
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Registered Office : |
DP
: 36, SIDCO Industrial Estate, Thirumazhisai, Chennai 602 107, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
16.01.1992 |
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Com. Reg. No.: |
18-22011 |
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CIN No.: [Company
Identification No.] |
U29113TN1992PLC022011 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEI00681C |
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PAN No.: [Permanent
Account No.] |
AAACI5775P |
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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 : |
Manufacturer of Transformers. |
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 2750000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are reported
as fair. Business is active. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
DP : 36, SIDCO Industrial Estate, Thirumazhisai, Chennai
602 107, Tamilnadu, India |
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Tel. No.: |
91 - 44 - 26811569 / 26811570 |
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Fax No.: |
91 - 44 - 26811568 |
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E-Mail : |
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Website : |
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Factory 1 : |
DP : 14-19, SIDCO Industrial Estate, Thirumazhisai,
Chennai 602 107, Tamilnadu, India |
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Tel. No.: |
91 - 44 - 26811572 / 26811772 |
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Fax No.: |
91 - 44 - 26811672 |
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E-Mail : |
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Factory 2 : |
31,VGP Salai, Saidapet, Chennai 600 015 |
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Tel. No.: |
91 - 44 - 24850309 / 24850164 |
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Fax No.: |
91 - 44 - 24851767 |
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E-Mail : |
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Factory 3 : |
VII/222, Koyyamarakkad, Kanjikode, Palakkad - 678 621 |
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Factory 4 : |
Next To Premier Cotton Mills,
Kanjikode West, Palakkad - 678 623 |
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Tel. No.: |
91 - 491 - 2566252 / 2566078 |
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Fax No.: |
91 - 491 - 2566105 |
DIRECTORS
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Name : |
Mr. P.E. Subramaniam |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. P.S. Jagdish |
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Designation : |
Executive Director |
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Name : |
Mr. P.S. Shekar |
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Designation : |
Director - Operations |
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Name : |
Mr. A.P. Muthuswami |
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Designation : |
Director |
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Name : |
Mr. K. Kannan |
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Designation : |
Director |
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Name : |
Mr. P. Velayudhan Pillai |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. V. Balasubramanian |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters and
Persons acting in concert |
6397995 |
60.28 % |
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Mutual Funds
& UTI |
988187 |
9.30 % |
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Banks |
13209 |
0.12 % |
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Foreign
Institutional Investors |
337332 |
3.17 % |
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Private
Corporate Bodies |
1146680 |
10.79 % |
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Public |
1444400 |
13.60 % |
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NRI's |
55947 |
0.52 % |
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Clearing Members |
236250 |
2.22 % |
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Total |
10620000 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Transformers. |
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Products : |
Ø Power
Transformers Ø Distribution
Transformers Ø Dry
Type Transformers Ø
Mobile
Transformers Ø Special Transformers Ø Furnace
and other special Transformers |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
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2450000 per
annum |
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Actual
Production |
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1843489 KVA |
GENERAL
INFORMATION
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Suppliers : |
Raj Lubricants (M) Private Limited On Load Gears Nexus Translam Industries National Lamination Industries Manojkrishna Engineering works Mace Engineers |
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No. of Employees : |
About 500 |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
Standard Chartered Bank ·
Citibank N.A. ·
Indian Bank |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G. Balu Associates Chartered Accountants |
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Associates/Subsidiaries : |
Ø Vigneswara
Electricals Limited Ø Sivasakthi
Engineering and Fabricators |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15300000 |
Equity Shares |
Rs. 10/- each |
Rs. 153.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10620000 |
Equity Shares |
Rs. 10/- each |
Rs. 106.200
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
106.200 |
28.169 |
28.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
607.477 |
211.101 |
137.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
713.677 |
239.270 |
166.000 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
6.800 |
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2] Unsecured Loans |
20.267 |
21.235 |
18.900 |
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TOTAL BORROWING |
20.267 |
21.235 |
25.700 |
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DEFERRED TAX LIABILITIES |
16.173 |
18.126 |
0.000 |
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TOTAL |
750.117 |
278.631 |
191.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
134.409 |
106.327 |
94.700 |
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Capital work-in-progress |
0.000 |
0.000 |
2.200 |
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INVESTMENT |
113.470 |
0.586 |
0.600 |
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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 |
124.761
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102.836 |
55.100 |
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Sundry Debtors |
226.169
|
194.922 |
156.600 |
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Cash & Bank Balances |
479.532
|
105.044 |
34.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
137.989
|
53.017 |
26.900 |
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Total
Current Assets |
968.451
|
455.819 |
273.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
345.661
|
238.969 |
164.400 |
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Provisions |
120.552
|
45.132 |
14.500 |
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Total
Current Liabilities |
466.213
|
284.101 |
178.900 |
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Net Current Assets |
502.238
|
171.718 |
94.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
750.117 |
278.631 |
191.700 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
927.204 |
674.520 |
611.100 |
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Other Income |
7.980 |
11.643 |
3.000 |
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Total Income |
935.184 |
686.163 |
614.100 |
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Profit/(Loss) Before Tax |
165.032 |
107.876 |
49.700 |
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Provision for Taxation |
54.416 |
28.185 |
9.000 |
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Profit/(Loss) After Tax |
110.616 |
79.691 |
40.700 |
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Earnings in Foreign Currency : |
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Other Earnings |
NA |
9.000 |
NA |
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Total Earnings |
NA |
9.000 |
NA |
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Imports : |
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Raw Materials |
NA |
4.290 |
NA |
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Capital Goods |
NA |
0.107 |
NA |
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Total Imports |
NA |
4.397 |
NA |
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Expenditures : |
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Raw
Materials |
631.100
|
474.100
|
358.000
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Excise
Duty |
141.900
|
103.200
|
81.400
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Power
& Fuel Cost |
5.700
|
5.100
|
4.300
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Other
Manufacturing Expenses |
7.100
|
6.200
|
5.700
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Employee
Cost |
25.200
|
23.800
|
23.300
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Selling
and Administration Expenses |
101.900
|
81.100
|
54.800
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Miscellaneous
Expenses |
12.600
|
6.800
|
18.200
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Interest
& Financial Charges |
7.400
|
6.500
|
11.400
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Depreciation
|
8.500
|
8.600 |
7.300
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Total Expenditure |
941.400 |
715.400 |
564.400 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd
Qtr |
3rd
Qtr |
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Sales
Turnover |
213.900 |
325.000 |
450.400 |
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Other
Income |
10.000 |
7.800 |
6.900 |
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Total
Income |
223.900 |
332.800 |
457.300 |
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Total
Expenditure |
176.800 |
256.900 |
331.800 |
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Operating
Profit |
47.100 |
75.900 |
125.500 |
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Interest |
0.000 |
0.000 |
2.300 |
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Gross
Profit |
47.100 |
75.900 |
123.200 |
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Depreciation |
2.300 |
2.600 |
2.800 |
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Tax |
15.100 |
22.200 |
47.600 |
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Reported
PAT |
32.100 |
46.100 |
72.800 |
Notes
200606
Quarter 1 –
Net Sales Includes Gross Sales / Income from Operations Rs 257.70
million Less: Levies Rs 43.80 million Expenditure Includes (Increase)/Decrease
in stock in trade Rs (38.70) million Consumption of Raw Material Rs 193.10
million Employee Cost Rs 7.10 million Other Expenditure Rs 15.30 million Tax
Includes Provision for Current Tax Rs 15.00 million Deferred Tax Written back
Rs (2.40) million Fringe Benefit Tax Rs 0.10 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter 05 Complaints Received during the
quarter 296 Complaints disposed off during the quarter 301 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and taken on record by the Board of Directors in their meeting
held on July 27, 2006. 2. The Quarterly Results for the quarter ended June 30,
2006 are subject to 'Limited Review' by the Statutory Auditors of the Company.
3. Figures have been regrouped wherever necessary to conform to current year's
classification.
200609
Quarter 2 –
EPS is Basic & Diluted 1. The above results have been
approved and taken on record by the Audit Committee and Board of Directors of
the Company at the meeting held on October 28, 2006 and is subject to Limited Review
by the Auditors. 2. The Company has only one business segment i.e. manufacture
of transformers. 3.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 4 Complaints disposed off during the
quarter 4 Complaints unresolved at the end of the quarter Nil 4.The Institute
of Chartered accountant of India has revised the Accounting Standard AS-15
(Employees Benefits) effective from 1st April,2006.Consequently the adjustment
in respect of provisioning for employees benefits upto the period ended 31st
march,2006, if any shall be adjusted against the opening revenues reserves net
of tax.The additional provision for the current period due to the revised
standard shall be considered at the end of the year 5.The project are
progressing as per scheduled and the company has incurred as on date Rs.131.400
Millions &
Rs.55.900 Millions out
of IPO proceeds & terms loan availed from Bank respectively towards setting
up of the new projects. 6. The Previous corresponding period representing
pre-issue Figures are not comparable and have not regrouped / restated wherever
necessary.
200612
Quarter 3 –
Net Sales Includes Gross Sales / Income from Operations Rs
547.30 million Levies Rs (96.90) million Expenditure Includes
(Increase)/Decrease in stock in trade Rs 9.20 million Consumption of Raw
Material Rs 280.00 million Employee Cost Rs 11.00 million Other Expenditure Rs
31.60 million EPS is Basic & Diluted 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 07 Complaints disposed off
during the quarter 07 Complaints unresolved at the end of the quarter Nil 1.
The above results have been approved and taken on record by the Audit Committee
and the Board of Directors of the Company at it the meeting held on January 22,
2007 and is subject to Limited review by the Auditors. 2. The Company has only
one business segment i.e. manufacture of transformers. 3. The Institute of
Chartered Accountants of India has revised the Accounting Standard As-15 (
Employee Benefits) effective from April 01, 2006. Consequently, the adjustments
in respect of provisioning for employee benefits upto the period ended March
31, 2006, if any, shall adjusted against the opening revenue reserves, net of
tax. The additional provision for the current period due to the revised
Standard shall considered at the end of the year. 4. The projects are
progressing as per schedule and the Company has incurred as on date Rs 190.20
million & Rs 55.90 million out of IPO proceeds & Term Loan availed from
Bank towards setting up to the new projects. 5. Figures for the previous
quarter / period ended December 31, 2006 have been regrouped / restated
wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
0.04 |
0.12 |
0.39 |
|
Long
Term Debt-Equity Ratio |
0.04 |
0.11 |
0.14 |
|
Current
Ratio |
1.82 |
1.51 |
1.35 |
|
TURNOVER
RATIOS |
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Fixed
Assets |
6.44 |
5.16 |
4.31 |
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Inventory |
9.80 |
10.28 |
10.21 |
|
Debtors |
5.30 |
4.62 |
3.97 |
|
Interest
Cover Ratio |
23.30 |
17.60 |
5.36 |
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Operating
Profit Margin(%) |
16.22 |
15.15 |
10.80 |
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Profit
Before Interest And Tax Margin(%) |
15.46 |
14.09 |
9.65 |
|
Cash
Profit Margin(%) |
10.68 |
10.88 |
7.58 |
|
Adjusted
Net Profit Margin(%) |
9.92 |
9.82 |
6.43 |
|
Return
On Capital Employed(%) |
34.67 |
50.60 |
29.48 |
|
Return
On Net Worth(%) |
23.21 |
39.33 |
27.33 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.269.50/- |
|
Low |
Rs.259.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Indo Tech Transformers Ltd was incorporated in 1992. The company
started its business as a partnership firm under name of M/s Indo Tech Electric
Company. The company as commenced manufacture of small distribution transformer
at Saidapet and Palakkad in 1976. Today the company manufactures power and
distribution transformers upto 100 MVA/220 KV. The company has merged Indo Tech
Electric Company Ltd with itself with effect from 1st April 2003.
The company manufactures special transformers which are customer & Industry
specific. The company has three manufacturing facilites two facilites at
Chennai, TamilNadu and one at Palakkad, Kerala. The installed capacity of these
plants is 2450 MVA per annum.
The company made an Initial Public Offer of 3945130 equity shares of Rs.10/-
each for cash at price of Rs.130/- per equity share aggregating to Rs.512866900
in February 2006.
The objects of the issue are to relocate and modernization of Saidapet plant
into a new Distribution Transformer Plant of 750 MVA/Annum at Thirumazhisai,
setting up a new power transformer plant with a capacity of 2400 MVA/Annum
including 220 KV class of transformers, Setting up of Dry Type Transformer
plant at Thirumazhisai (120 units per annum) and to meet working capital
requirements.
FIXED
ASSETS
Ø
Land
Ø
Buildings
Ø
Plant
& Machinery
Ø
Testing
Equipments
Ø
Material
Handing Equipments
Ø
Tools,
Jigs & Fixtures
Ø
Electrical
Fittings & Equipments
Ø
Air
conditioners & Refrigerators
Ø
Wind
Electric Generator
Ø
Furniture,
Fixtures & Fittings
Ø
Office
Equipments
Ø
Vehicles
Ø
Technical
Know - how
PERFORMANCE
The Company has performed beyond expectations once again. Growth has been
maintained in the local markets while the Company is exploring possibilities in
the overseas markets. Their investments in manpower resources, technology and
seeking new business areas continue to be the growth engines. The 2005-06
annual results demonstrate the Company's ability to identify, nurture and
accelerate growth opportunities resulting in a strong platform for future
growth.
The Company's total revenues for the year 2005-06 was Rs.1123.255 Millions
representing a growth of 37.41%. (Rs.817.473 Millions for the previous year
ended March 31, 2005). The Net Profit after provision for taxation for the year
ended March 31, 2006 was Rs.110.616 Millions (Rs.79.691 Millions for the previous
year ended March 31, 2005) signifying a healthy growth of 38.81%.
The earning per share and cash earning per share for the year under review was
Rs.14.34 and Rs.15.45 respectively.
The Company's net worth continues to be strong and stood at Rs.713.677 Millions
as on March 31, 2006 (Rs. 239.270 Millions in March 31, 2005), reflecting the
intrinsic strength of the Company. The book value per share is Rs.67.20
signifying consistent enhancement in shareholders value.
BUSINESS OPERATIONS OVERVIEW AND OUTLOOK:
The year 2006-07 looks optimistic as far as business from State Electricity
Boards, Power Projects, Public Utilities, Industrial Customers and Exports are
concerned. The importance given by the Government for infrastructure projects
and huge investments coming up in the Power Sector is expected to generate huge
demand for the products of the Company.
The Power Ministry intends to implement various projects including the mega
power projects and these will result in larger requirement of the Company's
products.
The Company continues to get regular orders from State Electricity Boards,
other Public Utilities, leading Turnkey Electrical Contractors as well as a
range of Industrial Customers. The above will result in extending the Customer
base of the Company and will enable the Company to achieve its projected growth
in the years to come.
The Company has embarked on an Expansion Plan and three Projects are being
implemented concurrently, namely:
Relocation and Modernization of Saidapet plant into a new Distribution
Transformer Plant of 750 MVA/annum at Thirumazhisai.
Setting up of Dry Type Transformer Plant at Thirumazhisai.
Setting up a new Power Transformer Plant with a Capacity of 2400 MVA/ Annum
including 220 KV class of transformers at Illuppapattu Village,
Kancheepuram.
The first and second Projects is expected to commence operations during the 20d
Quarter of the year 2006-07. The large Power Transformer Plant is expected to
commence operations during the 1st Quarter of the year 2007-08.
The present order book of the Company stands at Rs.960 Millions.
The Company has started receiving export inquires and is confident of meeting
the requirement of various range of its transformers for its export customers
in the near future.
AMALGAMATION
Indo Tech Electric Company Limited (ITECL) was amalgamated with the Company
pursuant to the order of the Hon'ble Madras High Court dated 30th September
2005.
Previous
Year's figures have been regrouped wherever necessary to confirm to this year's
classification. The current year figures includes the figures of erstwhile Indo
Tech Electric Company Limited as per the Scheme of Amalgamation approved by the
Hon'ble Madras High Court.
AS PER
WEBSITE
Indo
Tech Transformers Limited, an ISO 9001 Certified company, is the flagship of
the Rs. 1000 million Indo Tech Group. It was established in 1976 and has since
grown to be a prominent player in the Indian electrical Industry for Power
& Distribution transformers. The Group has diversified into various related
areas of business, manufacturing Electrical, Electronic & computer hardware
related products, pre - stressed cement casting products in addition to various
special application transformers, mobile sub-station transformers & sub -
stations. Indo Tech has a list of over 3150 satisfied customers. Its strength
is its commitment to quality and excellent customer service.
QUALITY
POLICY
INDO
TECH are committed to total quality by
·
Ensuring
customer satisfaction
·
Upholding
stake holders value
·
Innovative technology
NEWS & UPDATES
Currently
manufacturing largest mobile transformer of 60MVA capacity.
Obtained
approval as a supplier of 132KV Power transformer for Power Grid Corporation of India Limited
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.44.22 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.58.03 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
|