MIRA
INFORM REPORT
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Report Date : |
03.05.2007 |
IDENTIFICATION DETAILS
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Name : |
LYKA LABS LIMITED |
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Registered Office : |
Plot No. 4801 / B & 4802 / A, GIDC Industrial Estate,
Ankleshwar – 393002, |
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Country : |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
29.12.1976 |
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Com. Reg. No.: |
8738 |
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CIN No.: [Company
Identification No.] |
L24230GJ1976PLC008738 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDL00299F |
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PAN No.: [Permanent
Account No.] |
AAACL0820G |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges |
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Line of Business : |
Manufacturing and Marketing of Bulk Drugs Formulations in
the form of Capsules, Tablets, Ointments, Injectable and Syrups - Dry
Liquids. |
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 1100000 |
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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/ Plant : |
Plot No. 4801 / B & 4802 / A, GIDC Industrial Estate,
Ankleshwar – 393002, |
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Tel. No.: |
91-2646-251529/221422 |
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Mobile No.: |
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Fax No.: |
91-2646-250692 |
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TeleGram : |
LYKAPEN |
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E-Mail : |
vtimmapur@lykalabs.com |
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Website : |
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Head Office : |
101, Shiv Shakti Industrial Estate, Tel. No. :
91-22-66112200 Fax No. :
91-22-66112248 77, Tel. No. : 91-22-2610 5900,
2610 5901, 2610 5902, 2610 6167 Fax No. : 91-22-2610 5281, 2610
2754 |
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Factory 1 : |
Formulation
Division : T/139, MIDC.Tarapur, Boisar-401 501 P. O. No. 98, Jujva, Valsad - 396 001, 76, Bluk Drugs
Division : Jujva, Post Box No. 98, Valsad – 396001, Plot No. 4801 / B & 4802 / A, GIDC Industrial Estate, Ankleshwar –
393002, |
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R & D Centre : |
Adarsh Industrial Estate, Chakala, Andheri (East), Mumbai
- 400 059, |
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Branches : |
55/2, |
DIRECTORS
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Name : |
Mr. Narendra Ishwarlal Gandhi |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. Vijay Chimanlal Sanghavi |
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Designation : |
Director |
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Name : |
Mr. Vinodkant Amritlal Sanghani |
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Designation : |
Director |
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Name : |
Mr. V. A. Sanghani |
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Designation : |
Director |
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Name : |
Mr. Nehal Narendra Gandhi |
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Designation : |
Director |
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Name : |
Mr. Vijaychandra Shantilal Taksali |
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Designation : |
Executive Director |
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Name : |
Mr. Rangaswami Anantha Subramani Iyer |
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Designation : |
Executive Director |
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Name : |
Mr. Shivabettu Somashekar Upadhyaya |
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Designation : |
Director |
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Name : |
Mr. S. Parikh |
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Designation : |
Director |
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Name : |
Dr. Dushyant Balmukund Parikh |
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Designation : |
Director |
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Name : |
Mr. Suryakoti Vedhachalam Satyamurthy |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S. K. Chowdhary |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
2676526 |
28.77 |
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Mutual Funds and UTI |
4600 |
0.05 |
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Banks, Financial Institutions, Insurance Companies |
181289 |
1.88 |
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FII’s |
11700 |
0.12 |
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Private Corporate Bodies |
1690013 |
17.57 |
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Indian Public |
4837143 |
50.28 |
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NRI’s / OCB’s |
127729 |
1.33 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Bulk Drugs Formulations in
the form of Capsules, Tablets, Ointments, Injectable and Syrups - Dry
Liquids. |
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Products : |
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Imports : |
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Products : |
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Countries : |
Europe and |
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Terms : |
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Purchasing : |
L/C, D/A and D/P |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity [Per Annum in 000’s] |
Actual
Production [Per Annum in 000’s] |
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Bulk Drugs |
Kgs |
86 |
0.185 |
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Formulations : |
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Capsules |
Nos. |
605700 |
84295 |
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Tablets |
Nos. |
411000 |
193381 |
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Ointments |
Kgs. |
300 |
153 |
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Injectables |
Vials/ Ampoules |
48000 |
8994 |
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Syrup – Dry |
Bottels/ Sachets |
12500 |
1661 |
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- Liquid |
Litres |
- |
- |
GENERAL INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
Ř
Dena Bank, Ankleshwar, Ř
Bank of Ř The Kapol Co-operative Bank Limited Ř
Bank of Ř
UCO Bank, Mumbai, Ř
UTI Bank Limited, Mumbai, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M. A. Parikh & Company Chartered Accountants Thakorebhai – Shirish Desai & Butala Chartered Accountants |
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Associates : |
Lyka Securities Limited Lyka Hetero Healthcare Limited Lyka BDR International Limited Hetero Drugs Limited BDR Pharmaceutical International Private Limited |
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Subsidiaries : |
Lyka Exports Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15000000 |
Equity Shares |
Rs.10/- each |
Rs. 150.000 millions |
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500000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs. 50.000 millions |
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TOTAL |
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Rs. 200.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9620000 |
Equity Shares |
Rs. 10/-
each |
Rs. 96.200
millions |
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108570 |
10% Cumulative Redeemable Preference Shares |
Rs. 100/-
each |
Rs. 10.857
millions |
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TOTAL |
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Rs. 107.057 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.09.2005 |
30.09.2004 |
30.09.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
107.057 |
87.690 |
83.690 |
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2] Equity Share Warrants |
2.720 |
2.805 |
0.000 |
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3] Share Application Money |
0.302 |
21.519 |
0.000 |
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4] Reserves & Surplus |
176.172 |
161.631 |
179.833 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
286.251 |
273.645 |
263.523 |
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LOAN FUNDS |
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1] Secured Loans |
496.198 |
798.416 |
859.416 |
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2] Unsecured Loans |
190.220 |
120.188 |
138.186 |
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TOTAL BORROWING |
686.418 |
918.604 |
997.602 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
972.669 |
1192.249 |
1261.125 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
175.059 |
210.097 |
219.431 |
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Capital work-in-progress |
10.810 |
26.826 |
25.936 |
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INVESTMENT |
158.279 |
98.429 |
110.673 |
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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 |
98.947
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86.827 |
95.860 |
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Sundry Debtors |
682.585
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989.628 |
998.390 |
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Cash & Bank Balances |
61.971
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8.130 |
10.415 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
207.928
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248.652 |
230.084 |
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Total
Current Assets |
1051.431
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1333.237 |
1334.749 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
418.942
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464.458 |
417.485 |
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Provisions |
12.084
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11.882 |
12.179 |
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Total
Current Liabilities |
431.026
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476.340 |
429.664 |
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Net Current Assets |
620.405
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856.897 |
905.085 |
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MISCELLANEOUS EXPENSES |
8.116 |
0.000 |
0.000 |
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TOTAL |
972.669 |
1192.249 |
1261.125 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.09.2005 |
30.09.2004 |
30.09.2003 |
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Sales Turnover |
436.123 |
458.256 |
1381.624 |
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Other Income |
168.160 |
198.419 |
0.000 |
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Total Income |
604.283 |
656.675 |
1381.624 |
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Profit/(Loss) Before Tax |
[4.823] |
[26.946] |
[9.123] |
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Provision for Taxation |
0.202 |
0.000 |
4.225 |
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Profit/(Loss) After Tax |
[5.025] |
[26.946] |
[13.348] |
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Earnings in Foreign Currency : |
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Export Earnings |
25.518 |
58.373 |
4.546 |
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Commission Earnings |
0.000 |
0.000 |
0.000 |
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Other Earnings |
0.000 |
0.000 |
0.000 |
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Total Earnings |
25.518 |
58.373 |
4.546 |
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Imports : |
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Raw Materials |
30.977 |
16.388 |
87.927 |
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Stores & Spares |
0.000 |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
30.977 |
16.388 |
87.927 |
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Expenditures : |
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Manufacturing Expenses |
516.676 |
564.337 |
1155.067 |
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Interest |
75.240 |
104.566 |
213.617 |
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Depreciation & Amortization |
17.192 |
14.718 |
22.062 |
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Total Expenditure |
609.108 |
683.621 |
1390.746 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
31.03.2007 [Full
Year] |
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Sales
Turnover |
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|
1338.800 |
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Other
Income |
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|
76.800 |
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Total
Income |
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|
1415.600 |
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Total
Expenditure |
|
|
1494.700 |
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Operating
Profit |
|
|
[79.100] |
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Interest |
|
|
60.300 |
|
Gross
Profit |
|
|
[139.400] |
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Depreciation |
|
|
25.900 |
|
Tax |
|
|
1.000 |
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Reported
PAT |
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|
[166.300] |
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KEY RATIOS
|
PARTICULARS |
|
30.09.2005 |
30.09.2004 |
30.09.2003 |
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PAT / Total Income |
(%) |
[0.83]
|
[4.10] |
[0.96] |
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Net Profit Margin (PBT/Sales) |
(%) |
[0.79]
|
[4.10] |
[0.66] |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[0.39]
|
[1.74] |
[0.58] |
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Return on Investment (ROI) (PBT/Networth) |
|
[0.01]
|
[0.09] |
[0.03] |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.90
|
5.09 |
5.41 |
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Current Ratio (Current Asset/Current Liability) |
|
2.43
|
2.79 |
3.10 |
STOCK PRICES
|
Face Value |
Rs.10/- each |
|
High |
Rs.39.30/- |
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Low |
Rs.39.25/- |
LOCAL AGENCY FURTHER INFORMATION
History :
The company was incorporated on 29th December,
1976 at Ankleshwar in
The company brought bulk drugs into its operational fold by
amalgamating Lyphin Chemicals Private Limited with itself in April, 1983. It also added a range of ayurvedic and animal
health care products over the years. In
1990, it diversified into marketing medical and diagnostic equipment and
instruments of Bekton Dickinson, US, Airsep Corporation, US,
The company offers a broad range of antibiotics used as
life-savers and to treat minor infections.
It has a fairly widespread product base with tropical steroids for skin
disorders, anti-cancer products, cardio-vascular drugs and anti-inflammatory
product. Lyka introduced in
A Government of India-recognised Export House, it received the Certificate of Merit for its excellent export performance in 1993-94. In the same year, it received an award from CHEMEXCIL for its outstanding performance.
During 1997-98, the company’s administrative office and
plant at Tarapur has been awarded ISO 9002 certification for its quality management
system by SGS Yarsley International Certification Services Limited,
The production carried out at
OPERATIONS
The Company has continued to focus on Contract Manufacturing, especially
Lyophilisation. With increased number of products and customers, the Company
has been able to optimize utilization of its manufacturing capacity.
Company has now fully optimized its lyophilisation capacity and has planned to
increase its capacity to manufacture a wide range of products and meet
increased demand for its lyophilized formulations.
Company's sale to its Joint Venture Company namely Lyka BDR International
Limited (LBDR) has though increased marginally, company expects to achieve
further quantum increase in sales in the current year with the corresponding
increase in sales of LBDR.
Company has continued to widen its range of Generic Formulations and hopes to
increase its sale in this growing segment.
Company's R&D activities have played a key role in introducing new products
and shall continue to develop new dosage forms and new drug delivery systems.
Company has also successfully developed products on Contract basis for U.S.A.
Market.
Company has undertaken formulation development activity of various new
molecules and expects to receive permission for manufacturing the same in due
course which will help increase Company's contract manufacturing activities and
generate additional revenue.
Company also has plans to introduce a wide range of Injectable Formulations
mainly for its use in hospitals, nursing homes etc. which will help generate
additional revenue in the coming years.
With these increased activities and full utilization of its capacity, the
Company is optimistic about its future and expects to achieve better
results.
GLOBAL DEPOSITORY RECEIPTS (GDR):
The Company issued GDRs of the value of US $5,000,000 during December 2005
which has been listed in Luxembourg Stock Exchange. Consequently, the Company
allotted 40,00,000 Equity Shares underlying the said GDRs. The Equity Shares
has been listed on the Bombay Stock Exchange Limited end National Stock
Exchange of India Limited.
SIGNIFICANT DEVELOPMENTS:
The Company has entered into a Memorandum of Understanding (MOU) with Serum Institute
of India Limited, pursuant to which, both the companies have plans to use each
others facilities and capacities to Mutual advantage.
The Company has dis-invested its stake of 49% in the capital of its Joint
Venture, Lyka Hetero Healthcare Limited. This will open new avenues for the
Company in the domestic market and accordingly to start with, Company is
foraying into marketing of injectable formulations to hospitals, institutions,
nursing homes etc.
INDUSTRY STRUCTURE AND DEVELOPMENTS
Current market for pharmaceutical formulations in
Apart from Life Style disease drugs, sale of Anti-asthamatic, Geriatric drugs,
CNS (Central Nervous System) and G.I. (Gastro Intestinal) Drugs continues to be
on rise. With the increase in pollution, stress and changing dietary habits as
well as improved life expectancy, the industry is witnessing growth in such
therapeutic groups.
As expected, outsourcing of Research and Development, Clinical Trials and
Contract Manufacturing by international companies is on the rise and coming
days shall witness more increased activities in this area. Indian
Pharmaceutical Industry is poised to be a key player in these areas.
Exports of pharmaceutical formulations to both Regulated and Non-Regulated
markets have continued to grow steadily. Current exports are estimated to be
around Rs.150000 millions. The exports market, during last three years, have
shown an average growth of around 18%. As margin on Generics is under pressure
in
OPPORTUNITIES AND THREATS, OUTLOOK, RISKS AND CONCERNS:
Company is manufacturing a wide range of lyophilized injectables and has plans
to increase the lyophilisation capacity and also further widen the range of
products. The demand for lyophilized products manufactured by the company is
growing continuously.
Company's sale of Generic products is also steadily improving. With the
expanded range of products, the company is set to grow faster in this
segment.
Company is exploring new avenues in the Domestic Market and accordingly to
start with, Company is foraying into marketing of injectable formulations to
hospitals, institutions, nursing homes etc.
With the increased activities in all the segments of operation, the overall
performance of the company is expected to improve further.
FINANCIAL / OPERATIONAL PERFORMANCE:
The Company's manufacturing of Lyophilized Products, on contract basis, has
increased substantially, and as a result thereof, apart from the rise in
processing and labour charges, it has helped the Company utilize its
manufacturing capacity optimally. In coming years, Contract Manufacturing
including lyophilisation, would be a focus area of operation for maximizing
revenue generation and capacity utilization, making manufacturing facilities as
stand-alone and self sustaining centres. However, the sales revenues is
marginally lower than that of last year in view of competitors having shifted
their operation to excise free zones.
During the year company reached a one-time settlement with one of the member
banks of the `consortium of banks' and recognized the benefits. Similar
exercise is in an advanced stage of negotiation with one more bank of the
`consortium of banks'.
Till now the finance cost has been a major factor affecting the margins.
However, the Company's persistent efforts have yielded positive results, which
would result into improved margin through substantial savings in finance cost
in coming years. The Company is also exploring its other avenues to reduce its
Interest burden further to help improve its profitability.
Apart from gearing itself to become a major manufacturer and supplier of
Lyophilised Products, the Company has also developed several new products
through its R & D activities, which would help generate additional revenue
for the Company in coming years.
Subsequent to the close of the Financial Year, the Company raised its Equity
Capital by issue of 4.000 millions of Equity Shares underlying the Global
Depository Receipts (GDRs) at Rs.57.45 per share and also issued 9,30,000
Equity Shares on a Preferential basis at Rs.72/- per share. The Company also
issued 4,25,000 Equity Share Warrants to be converted on or before 14/01/2007
into 4,25,000 Equity Shares of Rs.10/- each at a premium of Rs.54/- per share
and 6,75,000 Equity Share Warrants to be converted on or before 05/07/2007 into
6,75,000 Equity Shares of Rs.10/- each at a premium of Rs.58/- per share.
Company is also exploring other possible avenues to induct long-term funds,
subject to necessary approvals, to improve its financial ratios. This
additional infusion of funds would be deployed in further upgradation of its
manufacturing facilities.
WEBSITE DETAILS
Subject is one of
the leading Health Care Companies, enjoying tremendous confidence amongst
Medical Profession for its quality and efficacious products for more than four
decades and has excellent brand equity. It is certified ISO 9001:2000 Company.
It has also forayed into Animal Health Care Products and is enjoying equal
confidence among Veterinarians. Subject is recognised as EXPORT HOUSE by the
Government of India. It also received recognition of ISO 9001:2000 for both
manufacturing plants.
Subject's
manufacturing plants located at Ankleshwar in Gujarat and Tarapur in
Subject's products
encompass a wide range of therapeutic segments which include anti-bacterials,
anti-tubercular, anti-cancer, anti-ulcerants, dermatological, cardiovascular,
cough and cold preparations, pain management etc. Subject is also interested in
Contract Manufacturing products for overseas buyers under their brand names. In
other specific proposals such as providing technical know-how, joint ventures
and supply of products in bulk are also under taken by subject.
Subject has
penetrated well into the international market and is catering to the needs of
more than 25 countries. It serves Institutions like World Health Organisation
(WHO) and through WORLD BANK it supplies ANTI-TB DRUGS to various countries
like
Subject’s products
are registered in the countries of South East Asia, Eastern Europe, East
Africa,
The Hon'ble
President Of
Chemexcil Award By
The Hon'ble Minister Of Commerce, Government Of
Certificate From
Indian Trade Promotion Organisation For Second Highest Exporter To Latin
American Countries.
Best Supplier
Certificate From State Pharmaceutical Corporation Of
Dun &
Bradstreet Membership Certificate No. 65-007-7423.
These awards
reflect the status of subject in the International field of Pharmaceuticals.
Subject has a full
fledged Research and Development Centre which is recognized by The Department
of Science and Technology, Government of India. It is certificate with ISO
9001:2000.
Subject's well
defined Quality Policy coupled with stringent Quality Control and Quality
Assurance specifications and parameters assure safe, efficacious and quality
products for ailing masses spread all over the globe.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.90 |
|
|
1 |
Rs.81.29 |
|
Euro |
1 |
Rs.55.47 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
53 |
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 |
|