MIRA
INFORM REPORT
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Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
BOMBAY PAINTS LIMITED |
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Registered Office : |
Corridor Road, Gavanpads, Chembur – 400 074 Mumbai |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.12.1948 |
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Com. Reg. No: |
11-6834 |
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CIN No.: [Company Identification No.] |
L24220MH1948PLC006834 |
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TAN No.: (Tax Deduction & Collection Account No.) |
MUMB11476D |
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PAN No.: (Permanent Account No.) |
AAACB4226E |
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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 : |
Manufacture of Paints/Varnishes |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
RATING
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STATUS |
PROPOSED
CREDIT LINE |
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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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Maximum Credit Limit : |
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Status : |
Sick Company |
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Payment Behaviour : |
Delayed |
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Litigation : |
Unknown |
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Comments : |
The company is a Sick company having it’s networth being eroded. Ways & means position are difficult. Payments are reported as slow & delayed. The company can be considered for any business dealing on safe & secured trade terms & conditions. |
LOCATIONS
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Registered Office : |
Corridor Road, Gavanpads, Chembur – 400 074 Mumbai, Maharashtra, India |
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Tel No : |
91-22-25544016/56993000 |
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Fax No : |
91-22-25520650/56993010 |
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Email : |
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Website : |
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Head Office/Plant : |
B.D. Patil Marg, Gavanpada, Chembur, Mumbai-400074, Maharashtra, India |
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Tel No : |
91-22-5544016/ 5544017 |
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Fax No : |
91-22-5540650 |
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Email : |
DIRECTORS
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Name : |
Mr. Umesh Kumar N. More |
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Designation : |
Chairman |
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Name : |
Mr. Niraj Kumar U. More |
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Designation : |
Managing Director |
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Name : |
Mr. Vinod Haritwal |
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Designation : |
Director |
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Name : |
Mr. Ramgopal M. Dujodwala |
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Designation : |
Director |
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Name : |
Mr. H. N. Karanjia |
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Designation : |
Director |
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Name : |
Mr. Harnish D. Juthani |
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Designation : |
Director (Commercial Operations) |
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Name : |
Mr. Ravi Jagannathan |
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Designation : |
General Manager (Sales and Administration) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of
Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters and
Associates |
737857 |
49.19 |
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Banks and
Financial Institutions |
6125 |
0.41 |
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NRIs |
37621 |
2.51 |
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Other Bodies
Corporate |
60059 |
4.00 |
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Indian Public |
658338 |
43.89 |
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Total |
1500000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Paints/Varnishes |
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Products : |
· Acrylic or Vinyl Paints · SYN Enamel other Colours · Other Enamel & Paints · Varnishes · Acrylic Emulsion Paints · Oil Bound Distemper · Thinner · Alkyd Resin · Bituminous Black
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed Capacity |
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Paints, Enamels
and Varnishes |
K.L. |
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7329 |
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Oil bound
Distempers |
M.T. |
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1380 |
GENERAL
INFORMATION
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No. of Employees : |
About 150 |
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Bankers : |
Central Bank of India |
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Facilities : |
Secured Loans (Rs.
In millions) :
Unsecured Loans :
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Banking Relations
: |
Poor |
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Auditors : |
M.M. Nissim & Company Chartered Accountants |
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Associates/Subsidiaries : |
v Shree M.P.J. Builders Private Limited v Ridhi Sidhi Limited v Growel Investments Limited v Grauer and Weil India Limited v Dujodwala Paper Chemicals Limited v Dujodwala Products Limited v Nikmo Biotech Private Limited v Poona Bottling Limited v Waluj Beverages Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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80,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 80.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 15.000 Millions |
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 |
15.000 |
15.000 |
15.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
42.224 |
42.842 |
43.478 |
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4] (Accumulated Losses) |
(150.461) |
(140.440) |
(124.761) |
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NETWORTH
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(93.237) |
(82.598) |
(66.283) |
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LOAN FUNDS |
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1] Secured Loans |
120.949 |
114.159 |
105.993 |
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2] Unsecured Loans |
90.006 |
90.156 |
90.101 |
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TOTAL BORROWING
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210.955 |
204.315 |
196.094 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL
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117.718 |
121.717 |
129.811 |
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APPLICATION OF
FUNDS
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FIXED ASSETS [Net
Block]
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55.209 |
57.256 |
59.957 |
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Capital
work-in-progress
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1.000 |
1.000 |
2.949 |
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INVESTMENT
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0.025 |
0.010 |
0.010 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS,
LOANS & ADVANCES
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Inventories
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51.111
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56.491 |
55.843 |
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Sundry Debtors
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60.591
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50.138 |
31.409 |
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Cash & Bank
Balances
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14.011
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4.641 |
7.312 |
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Other Current
Assets
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0.000
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0.000 |
0.000 |
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Loans &
Advances
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13.885
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10.286 |
6.996 |
Total
Current Assets
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139.598
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121.556 |
101.560 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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72.660
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56.975 |
38.088 |
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Provisions
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8.890
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8.490 |
7.863 |
Total
Current Liabilities
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81.550
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65.465 |
45.951 |
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Net Current Assets
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58.048
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56.091 |
55.609 |
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MISCELLANEOUS
EXPENSES
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3.436 |
7.360 |
11.285 |
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TOTAL
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117.718 |
121.717 |
129.811 |
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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 |
257.805 |
221.489 |
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Other Income |
2.921 |
0.095 |
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Total Income |
260.726 |
221.584 |
152.525 |
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Profit/(Loss) Before Tax |
9.620 |
14.020 |
(42.803) |
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Provision for Taxation |
(4.000) |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
10.020 |
14.020 |
(42.803) |
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Imports : |
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Raw Materials |
4.794 |
2.873 |
NA |
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Total Imports |
4.794 |
2.873 |
NA |
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Expenditures : |
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Manufacturing Expenses |
255.905 |
220.358 |
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Interest |
12.273 |
12.979 |
195.328 |
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Depreciation & Amortization |
2.168 |
2.267 |
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Total
Expenditure |
270.346 |
235.604 |
195.328 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 (1St
Qtr) |
30.09.2006 (2ND
Qtr) |
31.12.2006 ( 3rd
Qtr) |
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Sales Turnover |
68.700 |
69.700 |
74.100 |
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Other Income |
0.100 |
0.100 |
1.200 |
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Total Income |
68.800 |
69.800 |
75.300 |
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Total Expenditure |
63.500 |
65.500 |
70.100 |
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Operating Profit |
5.300 |
4.300 |
5.200 |
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Interest |
2.500 |
2.700 |
2.600 |
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Gross Profit |
2.800 |
1.600 |
2.600 |
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Depreciation |
0.500 |
0.500 |
0.500 |
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Tax |
0.100 |
0.100 |
0.100 |
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Reported PAT |
2.200 |
1.000 |
2.000 |
200606 Quarter 1
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (6.893)million Consumption of
Raw Materials Rs 42.895 million Purchase of raw material Rs 1.788 million Staff
Cost Rs 6.779 million Other Expenditure Rs 18.984 million Tax Indicates
Provision for Fringe Benefit Tax Provisions & Contingencies Indicates
Provision for Doubtful Debts EPS is Basic and Diluted 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 03
Complaints disposed off during the quarter 03 Complaints unresolved at the end
of the quarter Nil 1. The Company's business consists of single segment of
paints. 2. Managements response to the qualification of the auditors on the
financial statement for the year ended March 31, 2005. a) Pending finalisation
/ approval of the scheme of rehabilitation of BIFR, the accounts of the Company
are prepared on a going concern basis. b) No Provision of interest on unsecured
Term Loans from associates. 3. Adjustment required to be made in respect of
impairment of assets as required under AS-28, if any, of Cash generating units
will be considered at the year end. 4. Statutory Auditors have carried out the
Limited Review of the Financial Results shown above. 5. Provision for Taxation
and Deferred Taxation will be ascertained at the end of Financial Year. 6. The
figures of previous period, wherever necessary, have been regrouped and
reclassified to conform to those of the current period. 7. The above results
have been approved and taken on record by the Board of Directors at their
meeting held on July 31, 2006.
200609 Quarter 2
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (10.062)million Consumption
of Raw Materials Rs 49.262 million Purchase of raw material Rs 1.150 million Staff
Cost Rs 6.609 million Other Expenditure Rs 18.624 million Tax Indicates
Provision for Fringe Benefit Tax EPS is Basic and Diluted 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 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The Company's business consists of single segment of
paints. 2. Managements response to the qualification of the auditors on the
financial statement for the year ended March 31, 2006. a) Pending finalisation
/ approval of the scheme of rehabilitation of BIFR, the accounts of the Company
are prepared on a going concern basis. b) No Provision of interest on unsecured
Term Loans from associates. The above observations are self-explanatory and do
not call for any further comments. 3. Adjustment required to be made in respect
of impairment of assets as required under AS-28, if any, of Cash generating
units will be considered at the year end. 4. Statutory Auditors have carried
out the Limited Review of the Financial Results shown above. 5. Provision for
Taxation and Deferred Taxation will be ascertained at the end of Financial
Year. 6. The figures of previous period, wherever necessary, have been
regrouped and reclassified to conform to those of the current period. 7. The
above results have been approved and taken on record by the Board of Directors
at their meeting held on October 25, 2006.
200612 Quarter 3
Notes
EPS is
Basic and 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 03 Complaints disposed off during the quarter 03
Complaints unresolved at the end of the quarter Nil 1. The Company's business
consists of single segment of paints. 2. Managements response to the
qualification of the auditors on the financial statement for the year ended
March 31, 2006. a) Pending finalisation / approval of the scheme of
rehabilitation of BIFR, the accounts of the Company are prepared on a going
concern basis. b) No Provision of interest on unsecured Term Loans from
associates. The above observations are self-explanatory and do not call for any
further comments. 3. Adjustment required to be made in respect of impairment of
assets as required under AS-28, if any, of Cash generating units will be
considered at the year end. 4. Statutory Auditors have carried out the Limited
Review of the Financial Results shown above. 5. Provision for Taxation and
Deferred Taxation will be ascertained at the end of Financial Year. 6. The
figures of previous period, wherever necessary, have been regrouped and
reclassified to confirm to those of the current period. 7. The above results
have been approved and taken on record by the Board of Directors at their
meeting held on January 31, 2007.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
0.56 |
0.65 |
0.88 |
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TURNOVER RATIOS |
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Fixed Assets |
4.49 |
3.87 |
2.49 |
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Inventory |
5.47 |
4.48 |
2.81 |
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Debtors |
5.32 |
6.18 |
6.16 |
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Interest Cover Ratio |
0.22 |
(0.05) |
(1.39) |
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Operating Profit Margin(%) |
1.66 |
(0.63) |
(13.08) |
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Profit Before Interest And Tax Margin(%) |
0.92 |
(0.28) |
(14.48) |
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Cash Profit Margin(%) |
(2.65) |
(4.52) |
(23.49) |
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Adjusted Net Profit Margin(%) |
(3.40) |
(5.44) |
(24.88) |
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Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
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Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
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High |
Rs.29.60 |
|
Low |
Rs.29.40 |
LOCAL AGENCY
FURTHER INFORMATION
FIXED ASSETS :
· Land Freehold
· Land Leasehold
· Buildings
· Plant & Machinery
· Research Equipments & Fittings
· Furniture, Fittings & Office Equipment
· Vehicles
SUBJECT IS IN TRADE
TERMS WITH FOLLOWING:
· Jitendra & Company
· ABCD Drums,
· Alpha Chemie
· Pacopack Industries
· Mira tin works
· Rama Cans Private Limited
· Himalaya Resins & Paints Private Limited
· Sri Satya Minerals
OPERATIONS:
The year under review witnessed a growth of 16.79% in sales. The net
loss for the year was lower at
10.020 millions as against Rs. 13.729 millions in the previous year. In line with the changed focus on product mix to cater to industrial, marine and
OEM segments, the
average contribution is higher and considering the expanding potential of both agricultural and
automotive sectors, the coming years would witness substantial growth in terms of sales.
BOARD FOR
INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR):
As reported in the last Report of the Directors to the Shareholders, the
Company had become 'sick'
under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. A reference was made
to BIFR as required under the said law.
BIFR has admitted the reference and has appointed Central Bank of India
as the Operating Agency
with directions to assess the viability of the Company. The assessment is under progress.
DIVIDEND:
Due to carry forward Losses, your Board has decided not to recommend any dividend for the year ended March 31, 2006.
The Company had taken various premises / equipments under operating
leases. These are generally not
non-cancellable and range between 11 months to 3 years and above.
These are renewable on mutually agreeable terms. Lease payments
amounting to Rs. 1.021 Millions are recognised in the Profit and Loss account under the head 'Rent'.
Website Details :
Corporate Info
They, at
Bombay Paints Limited, are, individually and collectively committed to this
task through their
contribution to the industrial world. They have
achieved commendable growth through a relentless commitment to research and
development and have many 'firsts' to their credit.
For over 50 years Bombay Paints has been involved in the
manufacture of various types of Paints, Varnishes,Enamels, Putties and Sealing
Compounds and Resins.
History
Bombay Paints Limited was established in 1948 as a Private Limited
Company by Mr. Y.A. Ezzudin and Mr. D. Jamaluddin. It was later bought over by
two technocrats, Mr. J. M. Chudasama and Mr. J. M. Nadkarni and converted into
a Public Limited Company in 1960.
In April 1994, the Management of the Company once again changed hands by
virtue of which the control was transferred to a larger business group, known
as the Growel Group, specialising in
surface treatment and corrosion protection. The group is associated with
various manufacturing and trading activities in diverse fields like Chemicals,
Engineering, aerated waters, trading etc. The annual turnover of the group in
the year 2002-03 aggregated to over Rupees 1.5 billion. With the help of
management expertise, coupled with high level of infrastructure and business
synergies offered by the parent group, Bombay Paints has become stronger with a
compelling presence in the paint industry.
Group Companies
Bombay Paints Limited, belongs to the family of the Growel Group; a large business group with diversified
interests in areas like metal finishing and aerated water, besides trading. The
annual turnover of the group in the year 2002-2003 aggregated to over Rs.1.5
billion.
Products
In India, the Company caters to various Industrial Projects
and also to the original equipment manufacturers to various industries. These
Products are generally tailor-made to the requirement of the customers and vary
in the level of technology from simple application to highly sophisticated
painting systems.
Bombay Paints Limited manufacture a wide range of paints
based on alkyds, epoxys, polyurethanes, vinyls and acrylic resins, which helps
in reducing corrosion on metallic surfaces. The product categories inclue:
v Quick
Drying Low Bake and Stoving Systems, for tarctors, Farm Equipments, Harvesters,
etc.
v Quick
Drying Paints, casting sealers and stoving paints for commercial vehicles.
v Paint
systems for two-wheelers.
v Exterior
wall coatings, based on Vinyl Polymers.
v Zinc silicate
primers, Epoxy Paints, Polyrethane Paints and other heavy duty coatings for
chemical, Fertilizer and Petro-chemical plants.
v Paint
System for thermal power plants, Nuclear Power Plants.
v Shop
Primers for shipyards
Customers
The Company's heavy duty coatings have found wide spread use
across a large number of customer segments. The products have found acceptance
from most of the prestigious industrial customers including Defense and Railway
authorities. The broad based customer list places Bombay Paints in formidable
position in the Heavy Duty coatings business in India. Some of the industries
catered to by Bombay Paints are:
v Petroleum
refineries
v Petro-chemical
plants
v Fertiliser
plants
v Ship
yards
v Tractor
manufacturers
v Automobile
manufacturers
v Scooter,
motor cycle and moped manufacturers
v Shipping
companies
v Cargo
Container manufacturers
v A host
of Engineering and industrial equipment manufacturers and contractors.
Their customer list includes:
SHIPBUILDING YARDS:
v Mazagaon
Dock Limited., Bombay
v Hindustan
Shipyard Limited.,
Vishakapatnam
v Cochin
Shipyard Limited.,
Cochin
v Garden
Reach Ship Builders, Calcutta
v CHEMICAL
PLANTS & REFINERIES:
v Rashtriya
Chemicals & Fertilisers Limited. (RCF), Bombay
v Gujrat
State Fertiliser Corporation Limited.
(GSFC), Baroda
v Bharat
Petroleum Corporation Limited.,
Baroda & Bombay
v Hindustan
Petroleum Corporation Limited.,
Bombay
v Oil
& Natural Gas Commission
v Reliance
Petrochemicals Limited, Hazira
ORIGINAL EQUIPMENT MANUFACTURERS:
v Godrej,
Bombay
v TELCO,
Pune & Jamshedpur
v Siemens
India Limited.,
Bombay
v Mahindra
& Mahindra Limited.,
Bombay
v Escorts
Limited.,
Delhi
v Eicher
Tractors Limited.,
Delhi
v Bajaj
Auto Limited.
SHIPPING COMPANIES:
v Shipping
Corporation of India Limited.,
Bombay
v Great
Eastern Shipping Company. Limited.,
Bombay
v Scindia
Steam Navigation Company. Limited.,
Bombay
CONTAINERS:
v Trans-Freight
Containers Private. Limited.,
Bombay
v Sealord
Containers Limited.,
Bombay
v Indian
Container Terminal, Bombay
v
Container Card, Bombay
OTHER PROJECTS / CONTRACTORS:
v Nhava
Sheva Port Trust, Bombay
v Larsen
& Toubro Limited.,
Bombay & Hazira
v Essar,
Hazira
v Lloyds’
Steel
v Indian
Oil Corporation
v Reliance
Industries Limited.
v OFF-SHORE:
v Oil
& Natural Gas Commission, Bombay
v M.
Pallonji & Company. Private. Limited.,
Bombay
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 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.43.98 |
|
UK Pound |
1 |
Rs.85.59 |
|
Euro |
1 |
Rs.58.49 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
2 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
11 |
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 |
|