MIRA
INFORM REPORT
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Report Date : |
17.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MOTHERSON TECHNO TOOLS LIMITED |
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Formerly Known As : |
MOTHERSON TRIPLEX
TOOLS PRIVATE LIMITED |
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Registered Office : |
43, Community Centre, Bhagera
House, New Friends Colony, New Delhi – 110 05 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.07.1992 |
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Com. Reg. No.: |
55-49607 |
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CIN No.: [Company
Identification No.] |
U74999DL1992PLC049607 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELM09472B |
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PAN No.: [Permanent
Account No.] |
AADCM5685K |
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Legal Form : |
Public Limited Liability company. |
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Line of Business : |
Manufacturing and sale of Cutting Tools and EDM
Wire. |
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 1208660 |
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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 and reputed company having fine track. Trade relations are fair. Financial
position is good. 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 to long run. |
LOCATIONS
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Registered Office : |
43, Community Centre, Bhagera
House, New Friends Colony, New Delhi – 110 05, India |
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Tel. No.: |
91-11-26842174 / 24510042 /
51627490 |
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Fax No.: |
91-11-26842174 / 51627490 |
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E-Mail : |
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Website : |
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Head
Office / Corporate Office / Factory 1
: |
A-9/A, Sector 16, Noida – 201 301, Dist. Gautam
Budh Nagar, Uttar Pradesh |
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Tel. No.: |
91-120-2510754/2510755/ 55 /59 / 2510759/2510045 |
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Fax No.: |
91-120-2510047 |
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E-Mail : |
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Branches : |
Located at :- · 905, B Wing, Mittal Tower, MG Road, Bangalore – 560 001, Karnataka Tel.
91-80-5599700/5325136 Fax.
91-80-5325137 E-mail.
Bangalore@mttl.motherson.com · 41/11, A/B/2, Velappanchavadi, Thiruverkadu, Chennai – 600 077, Tamilnadu Tel.
91-44-26492421/26492443/26490331 Fax.
91-44-26274619 E-mail.
Chennai@mttl.motherson.com · 129/2, Sanghvi Compound, Mumbai Pune Road, Chinchwad, Pune – 411 019, Maharashtra Tel.
91-20-27458685/7477971 Fax.
91-20-27477525/7475146 E-mail.
pune@mttl.motherson.com ·
New No.71, 6, Y Block, · 1, Navketan Industrial Estate, Mahakali Caves Road, Mumbai 400093 Shed No. H-3,01, Saif Zone,
P.O. Box 8388, Sharjah, United Arab, Emirates. |
DIRECTORS
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Name : |
Mr. Vivek Chand Sehgal |
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Designation : |
Director |
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Address : |
22 GWIN, Gana Crescent, Glen Waverly,
Victoria, Australia |
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Date of Birth/Age : |
28.09.1956 |
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Date of Appointment : |
20.07.1992 |
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Name : |
Mr. S. R. Bansal |
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Designation : |
Director |
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Address : |
C-8/801, Yamuna Vihar, Delhi |
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Date of Birth/Age : |
26.12.1959 |
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Date of Appointment : |
18.12.2003 |
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Name : |
Mr. Sanjay Mehta |
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Designation : |
Director |
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Address : |
H. No. 24, Sector 21C,
Faridabad, Haryana |
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Date of Birth/Age : |
15.01.1964 |
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Date of Appointment : |
18.12.2003 |
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Name : |
Ms. Geeta Soni |
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Designation : |
Director |
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Address : |
B-46, Greater
Kailash Part – II, New Delhi |
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Date of Birth/Age : |
27.07.1953 |
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Date of Appointment : |
18.12.2003 |
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Name : |
Mr. Dharmender
Kumar |
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Designation : |
Director |
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Address : |
241, Chander Lok,
Mandoli Road, Delhi – 110093 |
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Date of Birth/Age : |
23rd
September, 1973 |
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Date of Appointment : |
02nd
October, 2004 |
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Name : |
Mr. Ashok Tandon |
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Designation : |
Director |
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Address : |
E- 52, Panchsheel Park, New
Delhi – 110017 |
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Date of Birth/Age : |
20.02.1951 |
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Date of Appointment : |
18.12.2003 |
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Name : |
Mr. Manoj Maheshwari |
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Designation : |
Director |
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Address : |
A -5/B-129, A5-B , SFS Flats, near Avtar Enclave, Paschim Vihar, New Delhi
– 110 063 |
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Name : |
Mr. Vivek Avasthi |
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Designation : |
Director |
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Address : |
B -1/6, Vasant Vihar, new Delhi – 110 057 |
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Date of Birth/Age : |
10.11.1961 |
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Date of Appointment : |
27.09.2005 |
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Name : |
Mr. Katsuhide Kurasaka |
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Designation : |
Director |
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Address : |
4-8-14, Minami Hanayashiki, kawanishi, Hyogo – 660 026 |
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Date of Birth/Age : |
01.11.1946 |
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Date of Appointment : |
19.10.2005 |
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Name : |
Mr. Takaaki Kawamoto |
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Designation : |
Director |
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Address : |
121 Mayer road, 14-05, the Makena -437 932 |
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Date of Birth/Age : |
11.10.1955 |
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Date of Appointment : |
19.10.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Sehgal Chaand Vivek |
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99450 |
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Mrs. Radha Rani Holdings PTE
Limited |
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400000 |
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Motherson Advanced Systems and solutions Limited |
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479463 |
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Mr .l V Sehgal |
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100 |
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Mr. G N Gaiba |
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100 |
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Mr. R K Aggarwal |
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100 |
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Mr. Puneet Saim |
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100 |
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J S RR Holdings (M) Private Limited |
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1530000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and sale of Cutting Tools and EDM
Wire. |
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Products : |
-
Hardened Steel Machining -
Precision Cast Iron Machine -
Roll Turning -
Valve Seat Machining -
Heat Resistant Alloy Machining
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Imports from : |
Japan and European Countries |
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Terms : |
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Purchasing : |
Credit |
PRODUCTION STATUS as on 31.03.2006:-
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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Cutting Tools |
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Nos. |
180000 |
84789 |
GENERAL
INFORMATION
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No. of Employees : |
125 |
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Bankers : |
· Bank of Tokyo Mitsubishi Limited, Sansad Marg, New Delhi · Citibank, Connaught Place, New Delhi · Axis Bank limited Address: Kanchanjunga Building, 18 , Barakhamba road, New Delhi – 110 001 · Indian Overseas Bank Address: F -47, Malhotra Building, Janapth, New Delhi – 110 001 |
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Facilities : |
Secured by way of
hypothecation of specific vehicles. Secured against
Hypothecation of Machine, Building, Stock lying in factory depot and
elsewhere including those in transit company’s all present and future book
debts / receivables. |
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Banking Relations : |
Satisfactory |
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Auditors : |
P. R. Mehra & Company Chartered Accountants 56, Darya Ganj, New Delhi – 110 002 |
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Tel. No.: |
91-11-23274910/23271236 |
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Fax No.: |
91-11-23287390 |
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Associates / Group Companies: : |
v
A Basic Concepts
Designs India Private Limited v
AES India
Engineering Limited v
Anset Iwata
Motherson Limited v
ASL
Motherson Communications Limited v
Field Motor
Private Limited v
Ganapati
Auto Industries v
Motherson Advance Polymers Limited v
Motherson Automotive Technologies and Engineering
(MATE – A Division of MSSL) v
Sumi Motherson Innovative Engineering Limited
(SMIEL) v
Motherson Sumi Infotech and Designs Limited v
Miyazu Motherson Engineering Design Limited v
Motherson Sumi Systems Limited v
Moon Meadows Private Limited v
Motherson Advance Automobile Solutions Private
Limited v
Motherson
Air Travel Agencies Limited v
Motherson
Auto Industries v
Motherson
Auto Solutions Private
Limited v
Motherson
Consultancy Private Limited v
Motherson Engineering Research and Integrated
Technologies Limited v
Motherson
Moulds Private Limited v
Motoman
Motherson Robotics Limited v
Saks
Ancillaries Limited v
Samvardhana
Motherson Finance Limited v
SIS – BRO
Creations Private
Limited v
Southcity
Motors Limited v
Vaaman Auto
Industries v
Webasto Motherson Sunroofs Limited v
Motherson Innovative Technology research v
Motherson v
Motherson Techno Tools Mideast |
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Subsidiaries : |
v
Motherson
Techno Tools [FZE] |
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Joint Venture : |
v
Motherson
Consultancy Private Limited v
JSRR
Holdings [M] Private Limited v
Sumitomo Electric
Hardmetal Corporation v
Radha Rani
Holdings [Pte.] Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3500000 |
Equity shares |
Rs. 10/- each |
Rs. 35.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3345751 |
Equity shares |
Rs. 10/-
each |
Rs. 33.457
millions |
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 |
33.457 |
33.458 |
25.093 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
268.708 |
210.515 |
92.360 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
302.165 |
243.973 |
117.453 |
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LOAN FUNDS |
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1] Secured Loans |
21.713 |
3.458 |
38.892 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
21.713 |
3.458 |
38.892 |
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DEFERRED TAX LIABILITIES |
9.883 |
8.092 |
8.740 |
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TOTAL |
333.761 |
255.523 |
165.085 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
131.476 |
100.298 |
87.740 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.818 |
1.818 |
0.000 |
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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 |
72.550
|
52.723
|
36.104 |
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Sundry Debtors |
113.745
|
95.283
|
63.513 |
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Cash & Bank Balances |
52.856
|
56.955
|
5.417 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
41.375
|
18.504
|
8.467 |
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Total
Current Assets |
280.526
|
223.465 |
113.501 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
77.618
|
52.510
|
35.470 |
|
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Provisions |
2.441
|
17.548
|
0.686 |
|
Total
Current Liabilities |
80.059
|
70.058 |
36.156
|
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Net Current Assets |
200.467
|
153.407
|
77.345 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
333.761 |
255.523 |
165.085 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
368.771 |
308.195 |
217.030 |
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Other Income |
8.063 |
4.310 |
3.064 |
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Total Income |
376.834 |
312.505 |
220.094 |
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Profit/(Loss) Before Tax |
123.323 |
120.977 |
70.278 |
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Provision for Taxation |
46.055 |
42.146 |
24.889 |
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Profit/(Loss) After Tax |
77.268 |
78.831 |
45.389 |
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Earnings in Foreign Currency : |
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FOB Value of exports |
|
4.526 |
381.933 |
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Commission Earnings |
|
0.298 |
1.308 |
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Total Earnings |
23.592 |
4.824 |
383.241 |
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CIF Value of Imports : |
|
|
|
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Raw Materials |
NA |
39.901 |
27.927 |
|
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Trading goods |
NA |
64.968 |
48.957 |
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Capital Goods |
NA |
10.711 |
10.266 |
|
Total Imports |
NA |
115.580 |
87.150 |
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Expenditures : |
|
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|
Raw Material Consumed |
43.801 |
33.871 |
0.000 |
|
|
Manufacturing and other expenses |
0.000 |
0.000 |
77.890 |
|
|
Cost of goods traded |
0.000 |
0.000 |
60.310 |
|
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Financial Expenses |
0.000 |
0.000 |
3.279 |
|
|
Purchases made for re-sale |
111.920 |
75.740 |
0.000 |
|
|
Consumption of stores and spares parts |
16.640 |
13.038 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
[9.985] |
[4.046] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
27.010 |
21.279 |
0.000 |
|
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Payment to Auditors |
0.130 |
0.100 |
0.000 |
|
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Interest |
0.429 |
1.110 |
0.000 |
|
|
Insurance Expenses |
1.697 |
1.278 |
0.000 |
|
|
Power & Fuel |
3.442 |
2.626 |
0.000 |
|
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Depreciation & Amortization |
13.618 |
10.700 |
8.335 |
|
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Other Expenditure |
68.397 |
52.610 |
0.000 |
|
Total Expenditure |
114.723 |
89.703 |
149.814 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
20.50
|
23.94
|
20.62 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
33.44
|
36.74
|
32.38 |
|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
29.93
|
37.37
|
34.92 |
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.50
|
0.60 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
0.33
|
0.30
|
0.64 |
|
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|
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|
|
Current Ratio (Current Asset/Current Liability) |
|
3.50
|
3.19
|
3.14 |
LOCAL AGENCY
FURTHER INFORMATION
|
Name of the
company |
MOTHERSON TRIPLEX TOOLS PRIVATE LIMITED |
|
Presented
By |
Mr. P Srinivasan
, Managing Director |
|
1) Date and
description of instrument creating the change |
· Letter of hypothecation for hypothecation of stocks dated 22.09.2000. enclosed hereto as annexure –A · Letter of hypothecation for hypothecation of movable assets fixed assets dated 22.09.2000 Enclosed hereto as annexure – B · Agreement of hypothecation of book debts dated 22.09.2000. Enclosed hereto as annexure - C |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 12.500
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 |
Hypothecation of
stocks , book debts and all movable fixed assets both present and future by
way of first charge |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Terms and conditions as contained in the
deeds attached |
|
5) Name and
Address and description of the person entitled to the charge. |
Indian Overseas Bank Address: F -47, Malhotra Building,
Janapth, New Delhi – 110 001 |
|
Name of the
company |
MOTHERSON TRIPLEX TOOLS PRIVATE LIMITED |
|
Presented
By |
Mr. Vivek Chaand
Seghal, director |
|
1) Date and
description of instrument creating the change |
Term loan
agreement dated 30.08.1997 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 10.000
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 |
Equitable mortgage
of land and building at (A Block A, Sector -16, Noida Pledge of 50000
Equity shares of Motherson Sumi Systems limited |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Term loan for four and half year Rate of interest 1% above Prime Lending
rate Other terms and condit9ons as per
agreement enclosed |
|
5) Name and
Address and description of the person entitled to the charge. |
Axis Bank limited Address: Kanchanjunga Building, 18 , Barakhamba
road, New Delhi – 110 001 |
FIXED
ASSETS
v
Leasehold Land
v
Building
v
Computer and
Software
v
Furniture and
Fixture
v
Office
Equipments
v
Vehicles
v
Plant and
Machinery
v
Capital WIP
It is
in trade terms with :-
v
Sumitomo Electric Industries Limited, Japan
v
Hero Honda Limited, New Delhi
v
Escorts Limited, New Delhi
WEBSITE DETAILS:
Subject has a joint venture with Sumitomo Electric Hardmetal Corp., Japan for the manufacture and sales of Cubic Boron Nitride (CBN) and Polycrystalline Diamonds (PCD) Cutting Tools Sumitomo Electric Industries Limited is the world leader in the field of CBN and PCD Cutting Tools.
They at Motherson Techno, provide integrated tooling solutions for all the machining requirements. Whether it is tools for metal cutting or tools for gear cutting, grinding solutions or precision tool holding, they provide state-of-art solutions from global leaders in their respective fields.
The various Principals aligned with them are
Inhouse manufacturing of CBN and PCD Tools - Both Standard ISO inserts and customised from their state-of-art manufacturing facility at Noida, in India, in technical license with Sumitomo Electric Hardmetal Corp.
Sumitomo Electric Hardmetal Corp. for their range of Inserts (Cermets/Carbides), Tool holders, Endmills/ Drills/Milling Cutters.
BIG-DAISHOWA SEIKI Co. - Japan for their Precision Tool Holding Systems and accessories.
NACHI-FUJIKOSHI - Japan for their range of Broaches, Broaching machines, Hobs, Gear Shaper and Shaving Cutters.
ALLIED MATERIALS - Japan for CBN and Diamond Grinding wheels and dressers.
HEULE - Backspot facing and chamfering tools.
Their well trained team of Engineers will assist you in the selection of the right tool and geometry to get the most optimal economical solution.
Their well trained team of Engineers will assist you in the selection of the right tool and geometry to get the most optimal economical solution.
Products
CBN - A New Generation Cutting Tool Material
Sumitomo electric is a world leader in the field of metal cutting tools in the category of super hard materials. This category consists of materials like CBN and PCD which are much higher on the hardness scale as compared to conventional materials like carbide or ceramic.
Superior mechanical properties make them ideal for machining hardened steel, Hi Speed turning and milling of cast iron, machining exotic materials where heat generation is very high while cutting and similar tough applications where there is conventionally no option but to have grinding or poor tool life resulting in higher tooling costs.
The CBN Grades developed
by Sumitomo Electric Industries result in:
Higher productivity
lower lead time for component supply by
reduction in cycle time
Reduction in idle time
Applications for CBN
grade Cutting Tools
Hardened steel machining
Hi speed cast iron machining
Titanium and nickel base alloys
MTTL also provides customized
Cutting Tool solutions for varied operations like:
Hardened steel grooving on shafts
Small Dia boring in hardened steel
High Speed Milling of Cast Iron components
like Cylinder Block and head
Valve seat machining operations
Precision machining of aerospace materials
like titanium and nickel based alloys
PCD
PCD Tools, mainly used for non-ferrous materials are an ideal solution for finishing and roughing application in turning, milling, drilling and end milling for automotive engine parts such as transmission case, cylinder head, piston, cylinder block, connecting rod, oil pump housing and more.
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.39.29 |
|
UK Pound |
1 |
Rs.80.72 |
|
Euro |
1 |
Rs.57.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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 |
|