MIRA
INFORM REPORT
|
Report Date : |
14.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
HARSHA
ENGINEERS LIMITED |
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Registered Office : |
Changodar, Sarkhej-Bavla Road,
P.O. Changodar, Ahmedabad – 382213, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.03.1986 |
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Com. Reg. No.: |
04-8520 |
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CIN No.: [Company
Identification No.] |
U29259GJ1986PLC008520 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMH00485C |
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PAN No.: [Permanent
Account No.] |
AAACH4828C |
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Legal Form : |
A
closely held Public Limited Liability Company |
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Line of Business : |
Manufacturers
of Ball or Roll Bearing Cages and Bearing housing and Taper Rolling Bearing
Cages |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 3550000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established Company having fine track. Available
information indicates high financial responsibility of the Company. Trade relations
are fair. Payments are usually correct and as per commitments. The Company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium and
long run. |
LOCATIONS
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Registered Office : |
Changodar, Sarkhej-Bavla Road,
P.O. Changodar, Ahmedabad – 382213, Gujarat, India |
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Tel. No.: |
91-2717-391200 / 251204 to 9 |
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Fax No.: |
91-2717-250259 |
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E-Mail : |
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Website : |
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Area : |
20749 sq. mtrs. |
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Location : |
Leased |
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Factory 1 : |
v
217,
GVMM Industrial Estate, Odhav, Ahmedabad – 382 415, Gujarat Area : 928.79 sq. mtrs v
Changodar,
Sarkhej-Bavla Road, P. O. Changodar, District Ahmedabad – 382 210, Gujarat Area : 24807 sq. mtrs v
Moraiya
Farm, Sarkhej-Bavla Road, Moraiya, P. O. Changodar, District Ahmedabad,
Gujarat Area : 28328.08 sq. mtrs. wind mill plant
Located at Upleta,
Rajkot, Gujarat |
DIRECTORS
|
Name : |
Mr. Rajendra Shantilal Shah |
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Designation : |
Chairman cum Managing Director |
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Address : |
289 C, Manekbaug Society, Behind Manekbaug Hall, Ambawadi,
Ahmedabad – 380015, Gujarat |
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Date of Birth/Age : |
01.02.1948 |
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Qualification : |
B. E. (Mech.) |
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Date of Appointment : |
04.03.1986 |
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Name : |
Mr. Harishbhai Ranjit Rangwala |
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Designation : |
Director |
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Address : |
10, Nishant Bungalow, Satellite Road, Ahmedabad -380015,
Gujarat |
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Date of Birth/Age : |
01.08.1948 |
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Qualification : |
B. E. (Mech.) |
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Date of Appointment : |
04.03.1986 |
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Name : |
Mr. Dhirajlal Chunilal Bhatt |
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Designation : |
Director |
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Address : |
8, Nishant Bunglows, Satellite Road, Ahmedabad – 380015, Gujarat |
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Date of Birth/Age : |
05.08.1952 |
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Date of Appointment : |
02.02.1987 |
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Name : |
Mr. Kirit Jayantilal Sanghvi |
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Designation : |
Director |
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Address : |
50, Jain Sthanikvasi Society, Near Naranpura Railway
Crossing, Ahmedabad – 380013, Gujarat |
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Date of Birth/Age : |
24.05.1944 |
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Date of Appointment : |
02.02.1989 |
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Name : |
Mr. Jitendra Ujamshi Mamtora |
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Designation : |
Director |
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Address : |
26, Sangam Park, Ambawadi, Ahmedabad – 380015, Gujarat |
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Date of Birth/Age : |
25.04.1948 |
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Qualification : |
B. E. (Ele.) |
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Date of Appointment : |
02.02.1987 |
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Name : |
Mr. Hemant K
Sharma |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of
Shareholders |
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No. of Shares |
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Mr. Rajendra S. Shah |
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57,568 |
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Mrs.
Nirmala R. Shah |
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56,400 |
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Mr.
Pilak R. Shah |
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40,820 |
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Mr.
Mily R. Shah |
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9,184 |
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Mrs. Hetal
R. Shah Jointly with Mrs. Nirmala R. Shah |
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9,166 |
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Mrs.
Krina R. Shah |
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9,200 |
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Mrs.
Harish R. Rangwala |
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54,507 |
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Mrs.
Charusheela R. Rangwala |
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55,290 |
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Mr.
Vishal H. Rangwala |
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36,779 |
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Mr.
Munjal H. Rangwala |
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35,761 |
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Mr.
Dhirajlal C. Bhatt |
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3,600 |
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Mr.
Fuljibhai M. Gondalia |
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540 |
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Total
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368,815 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers
of Ball or Roll Bearing Cages and Bearing housing and Taper Rolling Bearing
Cages |
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Products : |
Bearing Cages Roller Bearing Cages
Stamped
Auto Components |
GENERAL
INFORMATION
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No. of Employees : |
517 |
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Bankers : |
v
State
Bank of India Overseas Branch, Navjivan Trust Building, Ahmedabad -
380014, Gujarat v
ICICI
Bank Limited JMC House, Opp. Piramal Garden,
Ahmedabad, Gujarat v CITI Bank N.A. Rembrandt, C.G. Road, Ground Floor,
Near Panchvati Circle, Ahmedabad |
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Banking Relations : |
Satisfactory |
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Auditors : |
C. P.
Shah and Company Chartered
Accountants 403,
Ashwamegh House, 5, Smrutikunj Society, Navrngpura, Ahmedabad - 380009,
Gujarat |
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PAN No.: |
ACBPS8919F |
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Associates/Subsidiaries : |
v
ACMA (Automobile Component Manufacturers Association) v
AMA (Ahmedabad Management Association) v
CII (Confederation of Indian Industry) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000 |
Equity Shares |
Rs. 100/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1200000 |
Equity Shares |
Rs. 100/- each |
Rs. 120.000Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
120.000 |
36.882 |
36.882 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
767.855 |
826.564 |
638.552 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
887.855 |
863.446 |
675.434 |
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LOAN FUNDS |
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1] Secured Loans |
530.762 |
221.126 |
150.192 |
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2] Unsecured Loans |
285.670 |
149.230 |
125.577 |
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TOTAL BORROWING |
816.432 |
370.356 |
275.769 |
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DEFERRED TAX LIABILITIES |
78.965 |
0.000 |
0.000 |
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TOTAL |
1783.252 |
1233.802 |
951.203 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
808.754 |
545.625 |
438.613 |
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Capital work-in-progress |
63.094 |
93.037 |
30.954 |
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INVESTMENT |
81.477 |
64.102 |
6.998 |
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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 |
405.025
|
259.218
|
214.586 |
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Sundry Debtors |
445.219
|
394.153
|
318.927 |
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Cash & Bank Balances |
24.214
|
34.088
|
9.762 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
126.966
|
128.479
|
136.425 |
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Total
Current Assets |
1001.424
|
815.938
|
679.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
145.797
|
199.346
|
120.108 |
|
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Provisions |
25.700
|
85.554
|
84.954 |
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Total
Current Liabilities |
171.497
|
284.900
|
205.062 |
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Net Current Assets |
829.927
|
531.038
|
474.638 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1783.252 |
1233.802 |
951.203 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1104.535 |
934.261 |
1394.484 |
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Other Income |
34.590 |
12.684 |
0.000 |
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Total Income |
1139.125 |
946.945 |
1394.484 |
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Profit/(Loss) Before Tax |
194.371 |
273.567 |
258.803 |
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Provision for Taxation |
- |
- |
- |
|
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Profit/(Loss) After Tax |
194.371 |
273.567 |
258.803 |
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Earnings in Foreign Currency : |
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Export Earnings |
1025.839 |
874.293 |
N A |
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Total Earnings |
1025.839 |
874.293 |
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Expenditures : |
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N A |
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Raw Material Consumed |
1103.541 |
906.713 |
- |
|
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Purchases made for re-sale |
0.000 |
0.000 |
- |
|
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Consumption of stores and spares parts |
163.772 |
121.939 |
- |
|
|
Increase/(Decrease) in Finished Goods |
(33.164) |
(35.863) |
- |
|
|
Salaries, Wages, Bonus, etc. |
115.204 |
83.347 |
- |
|
|
Managerial Remuneration |
7.046 |
7.893 |
- |
|
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Payment to Auditors |
0.359 |
0.551 |
- |
|
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Interest |
36.829 |
21.301 |
- |
|
|
Insurance Expenses |
11.628 |
11.090 |
- |
|
|
Power & Fuel |
45.396 |
34.336 |
- |
|
|
Depreciation & Amortization |
89.704 |
66.133 |
- |
|
|
Other Expenditure |
430.278 |
330.231 |
- |
|
Total Expenditure |
1970.593 |
1547.671 |
1135.681 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
17.06
|
28.89 |
18.55 |
|
|
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|
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|
Net Profit Margin (PBT/Sales) |
(%) |
17.59
|
29.28 |
18.55 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
10.73
|
20.09 |
23.14 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.31 |
0.38 |
|
|
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
1.11
|
0.75 |
0.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.83
|
2.86 |
3.30 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
Form 8:
|
Name of the company |
M/s HARSHA ENGINEERS PRIVATE LIMITED |
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Presented By |
Mr. Harish R Rangwala Director of the Company |
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1) Date and description of instrument creating the change |
Memorandum of
Entry by deposit of title deeds dated 09.03.1999 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 324.100
Millions |
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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 |
The Company
Assets being viz. All that piece or parcel of freehold non agricultural
Industrial use land bearing Revenue Survey No. 427 (Palki) admeasuring
20749.56 sq. mtrs. (i.e. 24807.25 sq. yds. ) of mouje Moraiya of Sanand
Taluka in the registration District of Ahmedabad and Sub District o0f Sanand
togetherwith all or any superstructures standing thereon has been equitable
mortgage as security for the said aggregate credit facilities. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Repayment on
Demand |
|
5) Name and Address and description of the person entitled to the charge. |
The chief Manager State Bank of
India, Odhav (Ahmedabad) Branch, G.V.M.S.A.V. Limited, Odhav, Ahmedabad |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
80027980 |
|
Corporate identity
number of the company |
U29259GJ1986PLC008520 |
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Name of the
company |
M/s HARSHA ENGINEERS PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Changodar, Sarkhej-Bavla Road, P.O.
Changodar, Ahmedabad – 382213, Gujarat, India |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
State Bank of
India Navjivan Trust
Complex, P O Navjivan, Ahmedabad, Gujarat, India |
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Nature of description
of the instrument creating or modifying the charge |
|
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Date of
instrument Creating the charge |
27.03.2007 |
|
Amount secured by
the charge |
Rs. 550.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
v
Rate of
Interest
v Terms of repayment Term Loan of Rs.
190.000 Millions repayable in twenty quarterly installments of Rs. 9.500 Millions
each First quarter
ending 30.06.2007 Last quarter ending 31.03.2010. Twenty quarterly
installments as per the clause 3 of letter regarding the grant of individual
limits within the overall limit. WC repayable on
demand v Margin Raw Materials 25% Stock-in-Progress 40% Finished Goods 40% Any Other Stores 50% Book Debts/ Receivable 50% ( Cover Period 75 days ) TL 30.61% LC 10% BG 10% EPC 10% in fob Value v Extent operation of the charge Exclusive charge of present and future goods, book debt, movables and
immovable properties, documents of title to goods and other assets. WC Hypo of all the chargeable current assets present and future Ranking first pari passu with Citi Bank N A TL 1st
charge over the assets created out of SBI’s Term Loan |
HISTORY
The
subject was originally incorporated as private limited liability company and
then it was converted into a closely held public limited liability company.
Subject
has set up as a 100% Export Oriented Unit at Village Moraiya, Taluka Sanad in Ahmedabad
in 1998 in technical collaboration with Timken Company of U.S.A – for
manufacturing of Taper Roller Bearing Cages (TRBG) at a cost of Rs. 178.546
millions. Timken, U.S.A. made a buy back agreement for 10 years with the
company. State Bank of India had sanctioned a foreign currency loan of USD 2.8
millions for this project. It commenced commercial production with effect from
1st August, 1999
Subject
is India’s leading Bearing Cages manufacturing company with a formidable
international presence. The company brings to the world of bearing cages a fine
blend of technology, skill, experience and adherence to global quality
standards, imperative for the manufacturing of precision components for an
international market.
The
company’s Design Lab reassures its worldwide customers of a solid focus on
design:-
v
Pro-engineering
Software (Including Mechanica module for stress analysis)
v
Pro-Manufacturing
(for CNC Machine Programming)
v
Work
Station with solid modeling
The
subject is capable of designing tool in one day, which includes manufacturing,
drawings and computer programs for CNC Machines.
AMALGAMATION
With
effect from 21st October, 1997 Harsha Components Private Limited and
Rollers and Retainers Private Limited, both these associates were amalgamated
with the company.
The
company exports Taper Roller Bearing Cages (TRBG) to Timken – France, British
Timken, etc. as per the buy back agreement with the Parents Organisation Timken
– U.S.A.
The
company gives training to its’ employees for nurturing growth and sustaining
its business plans.
The
company has well equipped Standard Room and Laboratory to check metallic and
non-metallic dirt, its nature and size.
The
company has been accredited with ISO 9002 Certification from BVQI.
The
company’s fixed assets of important value include goodwill, freehold as well as
leasehold (GVMASV Unit) plots, wind mill, bore well and furniture and fixtures.
Website Details Attached:
Subject is a global solution provider of Bearing Cages as well as special purpose Stamped Components. It is a preferred supplier of different types of Roller and Ball Bearing Cages and cages for Bearing with special applications. Subject has been a growing organization with significant international presence. Since 1972, Subject brings rich experience gained from customer engagements around the world through technology partnerships and strategic alliances and thereby provides superior value to help industries perform efficiently and profitably. Subject also ensures innovative solutions and reliable support to customers who confirm to the delivery of excellence in a sustainable manner.
Subject takes pride in its position as a supplier to top four out of five bearing manufacturers worldwide.
A persistent stress on quality, systems and processes has facilitated ISO/TS-16949:2002 certification, which is the highest certification in Auto component manufacturing sector.
Milestones
1972 Inception of Subject Engineers.
1979 Developed first cage for Taper Roller Bearing.
1985 Developed Brass Machined Cages as an import substitute.
1993 New facility in Changodar, Ahmedabad. Introduced state-of-the-art manufacturing facilities for pre-riveted Ball Bearing Cages for the first time in India. The technical know how was sourced from Shimizu Seiko of Osaka.
ISO 9002 Certification received.
Tool Room established with German & Japanese CNC machines.
1998 Subject establishes a 100% Export Oriented Unit at Moraiya, Ahmedabad with technical know how from
USA for Taper Roller Bearing Cages
2000 Award for Outstanding Performance
from FAG Precision Bearings Ltd. for three consecutive years.
2001 AMA-Atlas Dyechem Outstanding Entrepreneur of the Year Award to Managing Director, Mr. Rajendra Shah.
2002 Polyamide Cage shop set up in Changodar, Ahmedabad. Received Best Supplier Award from Timken India Ltd.
2004 ISO / TS 16949:2002 Certification received. Implemented ERP System - SAP.
Started production of Bearing Seals and other Stamped
components.
2005 Taper automation division established at Changodar, Ahmedabad.
Started production of Steel Spherical Roller Bearing Cages.
2006 Brass Machined Cage Shop established in Moraiya, Ahmedabad
Quality
Subject believes that the highest products and sevices are
mandatory to continually meet the rising expectations of customers. Their
commitment to quality, evident at every level of the organization ensures that
these concerns are identified and addressed early in the process, so as not to
jeopardize customer satisfaction. They ensure stringent inspection processes to
guarantee that their products are manufactured to exact customer
specifications.
The commitment to quality reaches well beyond their certifications and can be
seen in their ongoing investments in technology and employee training.
Technology
Subject's manufacturing philosophy is to use state of art technologies with a clear focus on economies of scale, which defines the manufacturing process as manual, semi automatic and fully automatic. The company has developed in-house capability to manufacture special purpose machines and appropriate automation technology.
In a continuous effort to improve its technology and processes, Subject invests regularly in equipment such as power presses from AIDA, Minster, Schuler etc. and CNC machines from Deckel Maho, Sodick, Mitutoyo, Browne & Sharpe etc to get consistent output.
Subject also puts great emphasis on technology in other functional areas and uses advanced software for product development, tool design & enterprise resource planning (SAP).
Subject’s operations demand a global logistics management capability to reach its multilocational clients, thus facilitating professionally managed, cost effective solutions for inbound and outbound movement of raw material and finshed goods.
Subject’s value proposition believes in the consistent delivery of cost savings through reduced transportation and infrastructure costs, leading technology applications, measurable customer service and process improvements, and improved data quality and management.
Subject’s logistics team is comprised of experts in supply
chain and logistics management, commercial carrier management, logistics operations
and execution, and supply chain technology.
Air
Connectivity
Connected to major international destinations like New York, Chicago, Los Angeles, London, Singapore and Kuala Lumpur with flights operating on a regular basis. Domestic connectivity with all metropolitan and major cities of India.
Ports Connectivity
PIPAVAV - 350 Kms.
MUNDRA - 435 Kms.
MUMBAI - 589 Kms.
ICD Ahmedabad (Dry Port) - 030 Kms.
from Subject and connected by dedicated rail services to
Mundra, Pipavav, Mumbai.
Rail Connectivity
Extensive Rail connectivity with
the rest of India for passenger and freight movement.
Road
Connectivity
Excellent Road connectivity with the rest of India through National Highways and Expressways which are part of
the Golden Quadrilateral (freeways connecting all metro
cities of India).
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 39.28 |
|
UK Pound |
1 |
Rs. 80.87 |
|
Euro |
1 |
Rs. 57.68 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|