MIRA
INFORM REPORT
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Report Date : |
12.05.2007 |
IDENTIFICATION DETAILS
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Name : |
CLAAS INDIA LIMITED |
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Formerly Knows as : |
ESCORTS CLASS LIMITED |
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Registered Office : |
MCT House, I 3rd Floor, Block A, Okhla Centre, Okhla Industrial
Area, |
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Country : |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
05.12.1990 |
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Com. Reg. No.: |
55-42278 |
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CIN No.: [Company
Identification No.] |
U74999DL1990PLC042278 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELC06423E DELC07550E |
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PAN No.: [Permanent
Account No.] |
AAACE0762A |
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Legal Form : |
Subject is closely held public limited liability company. |
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Line of Business : |
Manufacturer and Exporter of Agriculture Machinery, Harvester, Cereal
Machinery etc. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderator |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having moderate. Company
probability is under sever pressure. It has come accumulated losses. Payments
are reported as slow but correct The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
MCT House, 3rd
Floor, Block A, Okhla Centre, Okhla Industrial Area, |
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Tel. No.: |
91-11-55622000 |
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Fax No.: |
91-11-55622012 |
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Factory / Warehouse Office : |
15/3, |
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Tel. No.: |
91-129-2255977 – 2270660 extn. 543 & 542 |
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Fax No.: |
91-129- 5042764 |
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E-Mail : |
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Web site : |
http://www.classindia.com |
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Location : |
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Parent Company : |
v Escorts Limited v
CLAAS |
DIRECTORS
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Name : |
Mr. Rajan Nanda |
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Designation : |
Chairman |
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Name : |
Mr. P. K. Malik |
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Designation : |
Executive Director |
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Address : |
Charlie Chaplin Allee, 2568519, |
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Date of Birth/Age : |
29.07.1952 |
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Date of Appointment : |
01.10.2003 |
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Name : |
Mr. Suresh Babu |
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Designation : |
Executive Director |
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Name : |
Mr. Lothar kriszun |
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Designation : |
Director |
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Address : |
Arndtster, 17, 33330, |
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Date of Birth/Age : |
08.07.1952 |
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Date of Appointment : |
28.10.2002 |
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Name : |
Mr. A. P. Gandhi |
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Designation : |
Director |
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Address : |
C – 2 /14 Safdarjang, Development Area, |
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Date of Appointment : |
01.01.2003 |
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Name : |
Mr. Nikolaus Feil |
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Designation : |
Director |
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Address : |
Hermann Lons Str 17, 33330, |
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Date of Birth/Age : |
27.06.1944 |
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Date of Appointment : |
10.05.2001 |
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Name : |
Mr. Thomas Klatt |
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Designation : |
Director |
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Address : |
Mahlholzweg, 11, 97447, |
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Date of Appointment : |
01.10.2005 |
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Name : |
Mr. Hans Veltmaatbernd |
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Designation : |
Director |
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Address : |
Kasper Von Zumbusch, 4, 33378, |
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Date of Birth/Age : |
29.01.1955 |
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Date of Appointment : |
01.10.2005 |
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Name : |
Mr. Hardeep Singh Sodhi |
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Designation : |
Secretary |
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Address : |
A-8, Ground Floor, Amar Colony, LAjpay NAgar, New Delhi |
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Date of Appointment : |
18.08.2003 |
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Name : |
Mr. Ashwini Mittal |
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Designation : |
Director |
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Name : |
Mr. Gernot H. Schafer |
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Designation : |
Director |
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Name : |
Mr. Martin Richenhagen |
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Designation : |
Director |
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Name : |
Mr. Hermann Garbers |
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Designation : |
Director |
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Name : |
Mr. Hansjeory Streiterifeld |
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Designation : |
Director |
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Name : |
Mr. Rakesh Chopra |
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Designation : |
Director |
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KEY EXECUTIVES
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Name : |
Mr. P.K. Malik |
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Designation : |
Managing Directors |
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Address : |
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Date of Birth/Age : |
53 Years |
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Experience : |
31 Years |
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Date of Appointment : |
01.10.2003 |
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Name : |
Mr. Rajesh Shrivastava |
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Designation : |
Export Manager |
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Name : |
Mr. Prateek Chaudhary |
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Designation : |
Manager Outsourcing |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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MDH KGGL Claas |
6999832 |
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Holding Sas |
28 |
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GMBH Fertigungstechnik Claas |
28 |
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GMBH Erntemaschines Selbstfahrende Class |
28 |
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GMBH Industrietechnil Claas |
28 |
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GMBH lschaft Vertriebsgesel Claas |
28 |
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GMBH Saulgau Class |
28 |
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Category |
Percentage |
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1. Foreign holding (foreign institutional investor(s),
Foreign companies, Foreign financial institution, Non – resident Indian or
Overseas corporate bodies . ) |
100 % |
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Total |
100 % |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Agriculture Machinery, Harvester, Cereal
Machinery etc. |
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Products : |
NIC Code & Name 29211 - Tractors, Harvesters
and other heavy machinery ITC Code Production
Description 843351
Self Propelled Harvester Combines |
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Countries : |
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Terms : |
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Selling : |
Cash or Credit (30 days |
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Purchasing : |
Cash, L/C or Credit (60 days) |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Harvester Combines |
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360 Nos. |
207 Nos. |
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GENERAL INFORMATION
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Customers : |
Retailers and government bodies |
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No. of Employees : |
Around 125 |
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Bankers : |
v
Deutsche Bank, v
HDFC Bank Limited, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mehra, Singh and Vishwanath Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Share |
RS.10/- |
Rs.70.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Share |
RS.10/- |
Rs.70.000 millions |
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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 |
70.000 |
70.000 |
70.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
73.761 |
73.761 |
67.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.00 |
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Profit and Loss Account |
(78.896) |
(61.562) |
0.000 |
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NETWORTH |
64.865 |
82.199 |
137.300 |
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LOAN FUNDS |
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1] Secured Loans |
0.145 |
0.277 |
69.500 |
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2] Unsecured Loans |
51.391 |
95.000 |
0.000 |
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TOTAL BORROWING |
51.536 |
95.277 |
69.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
116.401 |
177.476 |
206.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
82.735 |
83.214 |
92.500 |
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Capital work-in-progress |
4.172 |
1.177 |
0.000 |
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INVESTMENT |
0.185 |
0.187 |
0.200 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
101.751 |
80.716 |
123.200 |
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Sundry Debtors |
22.375 |
39.439 |
11.900 |
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Cash & Bank Balances |
88.907 |
4.048 |
1.600 |
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Other Current Assets |
0.044 |
0.001 |
0.000 |
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Loans & Advances |
81.796 |
79.977 |
75.700 |
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Total
Current Assets |
294.873 |
204.181 |
212.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
200.796 |
46.396 |
31.700 |
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Provisions |
70.701 |
69.971 |
66.600 |
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Total
Current Liabilities |
271.497 |
116.367 |
98.300 |
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Net Current Assets |
23.376 |
87.814 |
114.100 |
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MISCELLANEOUS EXPENSES |
5.933 |
5.084 |
0.000 |
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TOTAL |
116.401 |
177.476 |
206.800 |
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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 |
328.040 |
126.838 |
82.200 |
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Other Income |
69.687 |
28.240 |
1.800 |
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Total Income |
397.728 |
155.079 |
84.000 |
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Profit/(Loss) Before Tax |
(17.208) |
(65.687) |
(34.900) |
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Provision for Taxation |
0.000 |
0.000 |
0.000 |
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Profit/(Loss) After Tax |
(17.208) |
(65.687) |
(34.900) |
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Export Value |
66.238 |
24.558 |
0.000 |
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Imports : |
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Raw Materials |
129.936 |
37.088 |
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Stores & Spares |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
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Total Imports |
129.936 |
37.088 |
0.000 |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
0.000 |
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Manufacturing Expenses |
0.000 |
0.000 |
4.000 |
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Administrative Expenses |
0.000 |
0.000 |
6.300 |
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Raw Material Consumed |
245.761 |
96.724 |
68.800 |
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Purchases made for re-sale |
0.000 |
0.000 |
0.000 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
47.439 |
34.126 |
31.200 |
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Managerial Remuneration |
0.000 |
0.000 |
0.000 |
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Payment to Auditors |
0.560 |
0.552 |
0.000 |
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Interest |
5.005 |
6.580 |
3.800 |
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Insurance Expenses |
1.170 |
0.836 |
0.000 |
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Power & Fuel |
6.780 |
3.897 |
0.000 |
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Depreciation & Amortization |
0.000 |
0.000 |
8.700 |
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Other Expenditure |
108.169 |
78.049 |
15.900 |
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Total Expenditure |
414.884 |
220.764 |
138.700 |
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KEY RATIOS
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PARTICULARS |
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30.09.2005 |
30.09.2004 |
30.09.2005 |
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PAT / Total Income |
(%) |
(4.32) |
(42.35) |
(41.54) |
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Net Profit Margin (PBT/Sales) |
(%) |
(5.24) |
(51.78) |
(42.45) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(4.55) |
(22.85) |
(11.44) |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.11) |
(0.45) |
(0.25) |
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Debt Equity Ratio (Total Liability/Networth) |
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2.24 |
1.47 |
1.22 |
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Current Ratio (Current Asset/Current Liability) |
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1.08 |
1.75 |
2.16 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets :
- Land
- Building
Plant & Machinery
- Harvester
Combine
- Computers
- Office
Equipment
- Furniture
& Fixtures
- Vehicles
HISTORY
Subject was originally incorporated on 5th
December, 1990 under the name and style of “Escorts Class Limited” at
Subject is a joint venture company between Escorts India
Limited (60%) and CLAAS,
During the year 2002-03 the Escorts India Limited sold its entire share (60%) to its erstwhile joint venture partner CLAAS, Germany and the subject company ceased to be subsidiary of Escorts Limited on 12th August, 2002.
Subsequently the name of the company was changed to present.
Subject operates from caption leased by the Parent Company of area admeasuring medium size, which is located at commercial area. Caption Head office cum factory premises of area admeasuring large size, which is located at industrial area and also leased by its Parent Company.
CLAAS India Ltd. is
a 100% subsidiary of CLAAS Group of
The Company is a leading manufacturer of agricultural
harvesting machinery. The Group has operations in more than 90 countries. The
Company is a market leader in
The
Company, erstwhile Escorts The Company, was incorporated in December 1990 with
the objective of ushering in the next phase of farm mechanization in
The
main products of CIL are "Crop Tiger Track" and "Crop Tiger
Wheel" machines. In addition to this, the new products would be in the
Straw Management and Sugarcane harvesting area. Company is pioneer in
introducing Tangential Axial Flow Technology (TAF) Combine harvester in
Annual
Report 2006
The
worlds populations is rapidly expanding . each day, about 250,000 new hungry
mouth need to be fed the equivalent of the population of a sizeable city. But
in most regions of the worlds food is scarce because farmland is limited. in
order to achieve the best possible harvest result. efficient cultivation
methods are required that do not waste resources. agriculture technology and
expertise are the key to solve this dilemma. Agricultural engineering is
literally the most vital industry in the world for humanity.
As
a market and technology leader in agricultural machinery claas stands at the
forefront of the race of feed the world. For more than 90 years, class has been
supplying the agricultural sectors with machinery and services, setting world
standards in quality and performance. With specialized knowledge and constant
innovation, we deliver key impulses for optimizing the food production chain.
Claas
is aware of its social responsibility to provide sufficient food for humanity
today and in the future. Its success is based on the achievement of this goal.
That’s is what all their employees around the worlds strive for with commitment
and dedications: “ harvesting success” for class claas for humility, for
society, and for their environment
Operations
The
period under review was better than previous year. Due to better than average monsoon
in South India, the company could achieve sale of 180 Domestic Track Machines
in
Background
The
Company was incorporate in Indai on December 5, 1990 to manufacture, supply and
distribute combine harvesters. The
company is a closely held company during the year ended Sept. 30, 2005
Warranty Clams
Contractual
obligation in respect of warranties on track machines is accrued at Rs.0.025
million per machine. Contractual obligations in respect of free service for
crop tiger wheel machine is accrued at rs.0.020 million per machine
Commitment and Contingencies
a)
Estimated amount of contracts remaining to be executed on
capital account and not provided for against which has not been paid RS.25.583
Millions (Previous Year RS.1.866 millions)
b)
Income Tax Demand aggregating to Rs.12.830 (Previous year
Rs.5.626 millions ) under dispute relating to the assessment years 1998 -99,
2001 – 03 against which the company has preferred an appeal. Amount deposited
by the company is Rs.2.500
c)
During the years the company terminated the services the of
some employees who have been on struck for the period march 2004 to sept. 30,
and have recorded an accrual of Rs.0.590 towards full and final settlement dues
payable to these employees. No. accrual has been recorded in respect of wages
payable for the period these employees have been on strike. These employees
have filed a complaint before the labour court and pending settlement of the
dispute the actual impact of the claim on the financial statements of the
company is currently not ascertainable.
Web Details Attached
:
History
In
1913 Business
established by August Claas at Clarholz,
1914 August
and Franz Claas found the firm of Gebr. CLAAS
1919 Move to
Harsewinkel. Manufacture of straw binders
1921 First
CLAAS patent for a knotter for efficient straw binding
1930 Start
of development of the first combine harvester (specially suited to the specific
conditions
of
harvesting in
1934 Manufacture
of the first pick-up baler
1936 CLAAS
markets the first combine harvester built in and for
1937 Volume
production of trailed combine harvester starts (reaper-binder)
1946 Construction
of the first self-propelled combine harvester
1953 Construction
of the first self-propelled combine harvester
1956
1962 Production
starts at the new baler factory at
1968 Launch
of CLAAS engineering for production at Harsewinkel
1969 Range
expands to include green harvest machinery at Saulgau (takeover of the Josef
Bautz
agri- cultural machinery factory)
1971 Development
of a pick-up sugar cane harvester
1973 Presentation
of the first self- propelled forage harvester
1976 ROLLANT,
the first CLAAS round baler
1983 New
range of JAGUAR self-propelled forage harvesters
1988 QUADRANT,
the first CLAAS large-square baler
1992 CLAAS
engineering for production at the new Beelen factory,
1994 Start
of development of AGROCOM (electronic, satellite-assisted agricultural
information
system)
1995 Launch
of the LEXION large combine harvester (the most powerful combine harvester in
the
world, capable of harvesting up to 40 tonnes of grain in one hour)
1996 Conversion
of the Harsewinkel,
companies
1997 Takeover
of a new plant at
1998 LEXION
combine harvester is »Machine of the Year«
1999 CLAAS
Foundation set up. First company bonds issued on the Euro capital market
2000 New
parts logistics centre at Hamm-Uentrop becomes operational
2001 Laying
of the foundation stone for the brand-new factory building and plant conversion
at
Harsewinkel. At € 55 million, this is the biggest-ever corporate
investment.
2002 Highest-ever
sales achieved: € 1,265 million
2003 CLAAS
expands its product range with tractors through the acquisition of a majority
stake in
RENAULT
Agriculture. In order to build a plant, CLAAS signs an investment agreement
with
the
Russian region
2004 First anniversary of the Tractor Division,
a result of the successful cooperation between CLAAS and
RENAULT Agriculture. CLAAS celebrates the
production of its 20,000th JAGUAR forager. The machine rolls off the assembly
line in a special edition. The CLAAS tractor is a great success in
10th annual finance
meeting with international investors, analysts and bankers.
2005 ARES 500/600 - The new ARES Modelles
LEXION 600 - The definition of a new performance class.
XERION 3300 - One can
do more.
2006
DRANT 3400 - Eine neue Großballenpressen mit 40
Prozent mehr Durchsatz wird vorgestellt.
AXION - CLAAS setzt neue Maßstäbe
in Leistung und Komfort.
SCORPION - Ein neuer
Teleskoplader für die Landwirtschaft: zuverlässig, komfortabel,
leistungsstark.
Form 8
|
Name of the company |
Escorts Claas
Limited |
|
Presented By |
Mr. Sumesh
Sawhney, Company Secretary |
|
1) Date and description of instrument creating the change |
30th
Day of October, 1998, letter of hypothecation (LOH) of stocks and book debts executed
by the company in favour of HDFC Bank Limited (HDFC). A Certified Copy of the
said letters of hypothecation of stocks and book debts is enclosed |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Cash credit /
WCDL/ Bills Export Credit of Rs.20.000 millions and letter of credit /
guarantee of Rs. 40.000 millions aggregating to Rs.60.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First charge on
all the stocks in trade both present and future consisting of raw materials,
finished goods, goods in process of manufacturing and trading other
merchandise whatsoever, being movable properties now or at any time to time
hereafter stored or be stored or brought into or upon or in course transit to
our factory or premises or at any other place whatsoever and whatsoever in
our possession or occupation or at any other premises or place. First charge on
all the book debts, outstanding moneys receivable claims and bills which are
now due owing or which may at any time hereafter during the continuance of
this security become due and owing to the borrower in the course of its
business by any person, firm, company or body corporate or by the government
department or office of any municipal or local or public or semi government
body or authority or any body corporate or undertaking or project whatever in
the public in the public sector. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
a) the dues under
the LOH shall be payable by the Company to HDFC on demand. b) so long as the
money are outstanding in any of the credit facilities, the Company shall pay to
HDFC, the interest at the rate as may be communicated by HDFC from time to time with monthly / quarterly rests
on daily debits balance. c) HDFC shall
have absolute discretion for granting or continuance of the credit facilities
and determining the amounts to be advanced. d) All the moneys
advanced by HDFC on the Security shall be employed solely in and for the
purpose of the business of the company. |
|
5) Name and Address and description of the person entitled to the charge. |
HDFC Bank
Limited, H T House Branch, |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
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.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
35 |
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 |
|